Lake-Sumter Community College


Duck on Little Silver Lake at LSSC

Federal Loans

Student loans are the type of financial aid that must be repaid. For this reason, loans are considered to be a ‘self-help’ form of assistance.

Borrowing is a serious financial obligation. Therefore, before applying for a student loan, be sure to seek other forms of financial aid funds that do not have to be paid back – such as grants and scholarships. Many times, grants and scholarships will cover tuition, fees, and books.

 

 Responsible Borrowing

 

 

Your eligibility for Direct Loan is part of your Financial Aid Award.  You are not required to take out all or any of the Direct Loans offered to you.  You can accept, decrease or decline your Direct Loan offer through your LOIS account, under your financial aid award.

Below is a sample Loan Repayment schedule.  To find out more information about Direct Loans at https://studentaid.ed.gov/sa/types/loans, students can estimate their Direct Student Loan repayment at https://studentloans.gov.

Based on a total Direct Loan Debt of $22,000.00 at 4.5% interest rate. Income payment plans are based on one income of $25,000.00. 

 

FA loan Repayment Schedule Image.png


Federal Direct Subsidized Student Loan

Direct Subsidized Loans are for students who have financial need. With a subsidized Stafford Loan, the federal government will pay the interest while you’re enrolled at least half-time, during your grace period, and during deferment periods. The amount of a subsidized loan cannot exceed a student’s financial need.
 
This loan is subject to verified financial need and not to exceed educational costs. Repayment begins six months after you graduate, leave school, or drop below half-time enrollment, with a fixed interest rate of 5.045% percent for loans disbursed after July 1, 2018 and before July 1, 2019.
 

Federal Direct Unsubsidized Student Loan 

Direct Unsubsidized loans do not require students to have financial need. With an unsubsidized Loan, you are responsible for paying the interest during all periods, starting from the date the loan is first disbursed. Information regarding repayment can be obtained from the Financial Aid Office.
Repayment begins six months after you graduate, leave school, or drop below half-time enrollment, with a fixed interest rate of 5.045% percent for loans disbursed after July 1, 2018 and before July 1, 2019.
 

Federal Direct Parent Loans for Undergraduate Students

Parents of dependent students can borrow from the PLUS loan program. They require that the applicant not have an adverse credit history and have an interest rate fixed at 7% for loans disbursed after July 1, 2017 and before July 1, 2018. Repayment begins on the date the loan is fully disbursed. If a parent is borrowing on behalf of a dependent undergraduate student, the student and parent must meet the general eligibility requirements for federal student aid.

 

Federal Student Loan Fee

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. 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 disbursed.

 

Loan Type​ ​First Disbursement Date ​Loan Fee
​Direct Subsidized Loans and Direct
Unsubsidized Loans
​On or after 10/1/16 and
 before 10/1/17
​1.069%
​On or after 10/1/17 and
 before 10/1/18
​1.066%
​​Direct PLUS Loans On or after 10/1/16 and
 before 10/1/17
​4.276%
​On or after 10/1/17 and
 before 10/1/18
​4.264%
   

The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans  

 

Year

Dependent Students

Independent Students

First-Year Undergraduate Annual Loan Limit $5,500—No more than $3,500 of this amount may be in subsidized loans. $9,500—No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit $6,500—No more than $4,500 of this amount may be in subsidized loans. $10,500—No more than $4,500 of this amount may be in subsidized loans.
Bachelor Degree Students ONLY
Third-Year and Beyond  Undergraduate Annual Loan Limit
$7,500—No more than $5,500 of this amount may be in subsidized loans.
$12,500—No more than $5,500 of this amount may be in subsidized loans.
Subsidized and Unsubsidized Aggregate Loan Limit
$31,000—No more than $23,000 of this amount may be in subsidized loans.
$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.
 

If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.

 

Private Education Loans (Alternative Loans)

Private loans are non-federal, credit-based education loans borrowed from a private lending institution that must be repaid. The loans are typically issued in the student's name with a required cosigner. The maximum amount a student may borrow is the cost of attendance minus any other financial aid or the maximum limit established by the lender. Families are encouraged to fully explore federal loan options, (e.g. Perkins, Direct Subsidized, Direct Unsubsidized and Direct Parent PLUS Loans), before securing a private loan due to the benefits and consistencies that the federal loan programs provide. Funds are posted to the student's account each semester following enrollment verification, which generally occurs after the second week of the semester.

Selecting a private education loan and lender is a personal decision. The Office of Financial Aid strongly recommends researching private education loans and lenders before completing a loan application online or signing any loan paperwork. Research should include: a comparison of interest rates, fees, repayment terms, and the level of customer service provided by the lender.

Compare Federal Direct Loans vs Private Educational Loans.

Loan Eligibility

  • Students must apply for financial aid using the FAFSA application at www.fafsa.gov and complete their financial aid file prior to applying for a student loan
  • A separate application is required if you are applying for a Federal Direct Subsidized/Unsubsidized Loan. Loan packets are available in the Financial Aid Office.
  • Degree seeking
  • Must be meeting SAP standards
  • Select only those courses in a AA or AS degree or approved certificate program at LSSC. Courses taken outside of those LSSC programs will not be paid for by financial aid.
  • Enrollment in a minimum of 6 credit/load hours at Lake-Sumter State College.   

Class/Grade Level

Freshman - students who have earned up to 29 credits of college work

Sophomore - students who have earned 31 or more credits of college work

Junior - students who are accepted into a Bachelors program and have earned 61-90 credits of college work

Senior - students who are accepted into a Bachelors program and have earned 91 or more credits of college work

Status will be determined at the time of processing based on information available on the system.
 

LSSC is an equal access / equal opportunity institution