Loans are a form of financial aid that students use to help pay for classes and educational-related expenses (Cost of Attendance) that may not be otherwise covered by scholarships, grants, or personal resources. When considering student loans, keep in mind that loans accrue interest and must be repaid even if the student does not complete the program and/or does not find employment in the selected area of study.
Interest for student loans accrues while a borrower is in school, in a grace period, or in authorized period of deferment.
First-time loan borrowers at LCCC are required to complete Entrance Counseling and sign a Master Promissory Note. (Once a student graduates, leaves LCCC, or drops below half-time enrollment, the student is required to complete Exit Counseling that explains loan repayment responsibilities. Students required to complete this process will receive direct communication about the necessary steps.)
Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s college education. With Direct Loans, the student and/or parent borrows funds directly from the federal government and has a single contact, the loan servicer, for everything related to repayment even if the borrower receives Direct Loans at different schools.
The Federal Direct Subsidized Loan
This is a need-based federal loan awarded only to students who demonstrate financial need. Undergraduate students who have unmet financial need can be considered for this loan up to the amount of the students’ borrowing limit. Borrowers must be U.S. citizens or eligible non-citizens, enrolled at least half time and meet all other eligibility requirements including Satisfactory Academic Progress.
150% Direct Subsidized Loan Limit
In 2013, the U.S. Department of Education implemented a requirements that limits a first-time borrower’s eligibility for Direct Subsidized Loans to a period not to exceed 150 percent of the length of the borrower’s educational program. Depending on the situation, this provision could also cause first-time borrowers who have exceeded the 150 percent limit to lose the interest subsidy on their Direct Subsidized Loans. A first-time borrower is defined as any student who has no outstanding balance on a FFEL or Direct Loan when receiving a Federal Direct Loan on or after July 1, 2013. The Maximum Eligibility Period is based on the length of the student’s current academic program and is equal to 150% of the hours needed to graduate. Contact Student Financial Aid if you have additional questions.
The Federal Direct Unsubsidized Loan
This is a non-need based federal loan that cannot exceed the educational cost of attendance minus other financial aid. Undergraduate students who are not eligible for any Subsidized Direct Loan or are eligible for only a portion of the annual loan limit for the Subsidized Direct Loan may be eligible for the Unsubsidized Direct Loan. Borrowers must be U.S. citizens or eligible non-citizens, enrolled at least half time and meet all other eligibility requirements including Satisfactory Academic Progress.
Federal Parent Loan to Undergraduate Student (PLUS) Loan
Federal PLUS loans are Unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.
How to Apply
- Complete the FAFSA (Free Application for Federal Student Aid) FSA ID.
- You will need an FSA ID (username and password).
- LCCC’s Federal School Code is 003068.
- Complete the LCCC Online Federal Direct Loan Request form.
To review your financial aid, log into your Student Center in MyCampus. Under “Financial Aid,” click “View Financial Aid” and select the financial aid year to review your award summary.
To reduce or decline your student loan once it appears in your award summary, complete the Loan Reduction Request Form.
Eligibility Requirements for Federal Direct Student Loan Borrowers
- Must be enrolled for a minimum of six credit hours for each semester you wish to borrow funds
- Must be meeting the College’s satisfactory academic progress standards
- Must be meeting all other U.S. Department of Education eligibility requirements
- At the time of disbursement, must be enrolled in and commenced attendance in a minimum of 6 credit hours.
Students who borrow from the Federal Direct Loan Program are required to complete Entrance and Exit Counseling. These sessions are required by Federal Regulations and offer information relating to the terms and conditions of the loan programs and a student's obligation when borrowing. Financial Services is notified electronically when students have completed the required counseling.
Entrance Counseling is required for all first-time borrowers of a Federal Direct Loan while attending LCCC. Failure to complete an Entrance Counseling session will prohibit the disbursement of student loan funds to the students' account. To complete Entrance Counseling, students should go to https://studentaid.gov/, choose "Complete Aid Process,” then choose “Complete Entrance Counseling” and follow the steps outlined.
Once the Entrance Counseling is completed, students need to sign the Master Promissory Note (MPN) electronically. Students may choose to print the MPN to sign and mail to the U.S. Department of Education. (Choosing to print, sign, and mail the MPN could delay disbursement of student loans if the MPN isn't received by the Department of Education in a timely manner.) To sign the Master Promissory Note, students should go to https://studentaid.gov/, choose "Complete Aid Process” and choose “MPN for Undergraduates” under the “Complete a Master Promissory Note” heading and follow the steps outlined.
Exit Counseling is required of all loan borrowers who graduate or drop below half time status (less than 6 credit hours). For Exit Counseling, go to https://studentaid.gov/, choose "Manage Loans,” then choose “Complete Exit Counseling,” and follow the steps outlined. An Exit Counseling session will provide information concerning the terms of a student's loan, indebtedness, repayment and debt management. Students who do not complete the Exit Counseling will not receive their diplomas or academic transcripts from LCCC. Failure to complete Exit Counseling may also delay future disbursement of aid at LCCC. If you prefer a paper copy of the Direct Loan Exit Counseling Guide, you may download the PDF version from the StudentAid.gov website. An alternative to fulfilling the Exit Counseling requirement electronically, you will need to read the guide, complete the Student Contact Information and Acknowledgment, and return it to Student Financial Aid.
|FIRST DISBURSEMENT DATE||FIXED INTEREST RATE|
|Direct Subsidized Loans Undergraduate||7/1/21 – 6/30/22||3.73%|
|Direct Unsubsidized Loans Undergraduate||7/1/21 – 6/30/22||5.28%|
|Direct PLUS Loans Parents||7/1/21 - 6/30/22||6.28%|
The interest rate for a loan, once established, will apply for the life of the loan – that is, the loan will be a fixed-rate loan. As a result, it is likely that many borrowers will have a set of fixed-rate loans, each with a different interest rate.
Review the charts below for annual and lifetime aggregate limits for the Federal Direct Loan(s).
|ANNUAL LIMITS||SUBSIDIZED||ADDITIONAL UNSUBSIDIZED||TOTAL
(SUBSIDIZED AND UNSUBSIDIZED)
|Third Year and Beyond||$5,500||$2,000||$7,500|
(and dependents whose parents are unable to borrow under the PLUS program)
|ANNUAL LIMITS||SUBSIDIZED||ADDITIONAL UNSUBSIDIZED||TOTAL
(SUBSIDIZED AND UNSUBSIDIZED)
|Third Year and Beyond||$5,500||$7,000||$12,500|
Aggregate Lifetime Limits for Subsidized / Unsubsidized Loans
|SUBSIDIZED||ADDITIONAL UNSUBSIDIZED||TOTAL SUBSIDIZED AND UNSUBSIDIZED|
(Excluding those whose parents can’t borrow PLUS)
|Independent Undergraduates & Dependent Students whose parents can’t get PLUS||$23,000||$34,500||$57,500|
** Loan eligibility is based on the federal loan calculation.
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
First Disbursement Date On or After 10/01/20 and before 10/01/22
(fees are the same for 2020-21 and 2021-22)
|Federal Direct Subsidized and Unsubsidized Loans||1.057%|
|Federal Direct PLUS Loans||4.228%|
Federal Direct Loans that are processed and disbursed by Lorain County Community College will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders and schools determined to be authorized users of the data system., as required by the Consumer Information regulations.
In keeping with Federal Education Loan regulations, Lorain County Community College Code of Conduct for Education Loans specifically prohibits:
- Revenue-sharing arrangements with any lender
- Receiving gifts from a lender, a guarantor or a loan servicer
- Contracting arrangement providing financial benefit from any lender or affiliate of a lender
- Directing borrowers to particular lenders or refusing or delaying loan certification
- Offers of funds for private loans
- Call center of financial aid office staffing assistance
- Advisory board compensation
Private loans are available for students who qualify, as an alternative way to fund educational expenses. When choosing to borrow private loans, students may choose any lender who actively participates in the private education programs. Student Loan borrowers may also qualify for loans or other assistance under the HEA (Higher Education Act) programs. Terms and conditions of the Title IV, HEA programs may be more favorable than the provision of the private education loans.
LCCC recommends students to file a FAFSA to determine if you are eligible for federal aid [grants, Direct Student Loans, and PLUS (Parent Loan for Undergraduate Students)]. The terms and conditions of a Federal Direct Student Loan may be more favorable than the provisions of a private education loan. LCCC does not endorse any private educational loan lender or lending program. Borrowers may choose ANY eligible, participating lender.
The Nurse Education Assistance Loan Program (NEALP) provides financial assistance to Ohio students enrolled for at least half-time study (or accepted for enrollment) in an approved Ohio nurse education program. NEALP provides funding for nurses who intend to serve as instructors or students who intend to serve as nurses after graduation.
When it comes to repaying your federal student loan(s), there are many things to understand. The details of repayment can save students time and money. Understanding when loan repayment starts, how to make payments on them, the repayment plan options available, and what to do if you have trouble making payments on your Federal Student Loan(s) will all be essential.
If you are employed by a government or not-for-profit organization, you may be able to receive loan forgiveness under the Public Service Loan Forgiveness Program (PSLF). The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. To see if you qualify for PSLF, please review the program details.
If your PSLF application was denied because some or all of your payments were not made on a qualifying repayment plan for PSLF, you may be able to receive loan forgiveness under a temporary opportunity. To request consideration for loan forgiveness, review the details here.
Loan Disbursement Regulations
In an effort to incent student success and completion of courses and to reduce Lorain County Community College’s Federal Student Loan default rate, student loans will be disbursed in two payments during the fall and spring semesters. Summer semester will be disbursed in one payment. The fall and spring disbursements will be based on commencement of attendance and the midterm grades. For full term classes, the disbursements will occur about the fifth and tenth week of fall and spring semesters. At the first disbursement, students must commence attendance and be currently enrolled in a minimum of 6 credit hours. The second disbursement for Direct Student Loans occurs starting the 10th week of the semester pending at least 6 credit hours of successful mid-term grades. Final grades of F, W or U, or a midterm/final grade of FAW will not be counted towards the total hours for the minimum 6 credit hour disbursement requirement. Summer disbursements will be based on commencement of attendance in a minimum of 6 credit hours at the time of disbursement.
Final grades of F, W or U, or a midterm/final grade of FAW will not be counted towards the total hours for the minimum 6 credit hour disbursement requirement.
The following website provides more useful information about managing student loans: