Lake-Sumter Community College

LSSC Guide to Sensible Borrowing

  1. Pursue all other alternatives first
  2. Get the facts about each loan program
  3. Know the players in the student loan process and their language
  4. Estimate anticipated level of debt for your entire program of study
  5. Budget before you borrow
  6. Know manageable levels of debt, never borrow more than absolutely necessary
  7. Know the effects of multiple borrowing
  8. Take the time now to make the right decision; you can save money, time and frustration
  9. Pursue all other alternatives before you borrow!


Effective July 1, 2013, new law limits a first-time borrower's eligibility for Direct Subsidized loans to a period not to exceed 150% of the length of the borrower's educational program. It also causes first-time borrower's who have exceeded the 150% limit to lose the interest subsidy on their Direct Subsidized loans.

For more information, click on this link Direct Subsidized loan time limitation.

Steps in Applying for a Federal Loan


Step 1: Eligibility Requirements

  • File a Free Application for Federal Student Aid (FAFSA)
  • Complete your LSSC Financial Aid File
  • Enroll in a minimum of 6 credit/load hours at LSSC. Audit (X) courses will not be considered in the hour calculation for loan processing or loan disbursements
  • Please note: As part of LSSC’s Default Management Plan and federal regulations, students must maintain satisfactory academic progress for financial aid.

Step 2: Application Processing

  • Your Loan will be part of your Financial Aid Award Letter. 
  • It is recommended to complete the Financial Awareness Counseling at prior to accepting your Loan
  • Accept your Loan through you LOIS Account.
  • All first time borrowers at LSSC are required to complete entrance counseling prior to a loan being processed. You may do your entrance counseling on-line as well as a Master Promissory Note (MPN).  Both forms can be completed at:

Step 3: What Happens Next?

  • You will be sent a notice a Disclosure Agreement from the U.S. Department of Education detailing estimated disbursement dates, amounts and other specifics.
  • You have the right at any time to contact Financial Aid and request to cancel your Loan.

Step 4: Deferment of Tuition

  • Students who have accepted their loan and completed all required paperwork, will receive automatic deferment of tuition and fees provided the Financial Aid Office has processed their loan prior to the fee payment deadline.
  • Students will be allowed to purchase books against their loan awards provided the award EXCEEDS their charges.

Step 5: Disbursement of Loan Funds

  • Attendance is confirmed by end of Second full week of courses, if still enrolled in 6 credit hours loans will disburse to the student’s accounts. Business Services has 14 days to process refunds.
  • First time borrowers in the first year of study will receive their first disbursement approximately thirty (30) days after the term begins.
  • Every Federal Direct loan period is required to have at least 2 disbursements. It is defined as the start of each semester for 2 term loans or the beginning and midpoint for one term loans.
  • All debt owed to the college will be deducted before refunds are issued. If the amount of your loan proceeds does not cover your obligation in full, you will be responsible for paying the balance to the cashier’s office.
  • Students have the option to pay their tuition and fees prior to receiving their loan funds.
  • Any changes to your schedule after the term starts can result in ineligibility for loan disbursements. Please check with the Financial Aid Office prior to making changes to your schedule.
  • You will be required to fill out Loan Exit Counseling within 30days of graduation, or if you drop below 6 credits of enrollment.  Exit Counseling can be completed at