The Federal Direct Stafford Loan is a low-interest loan available from the federal government, either as a subsidized or unsubsidized student loan. If you qualify for a need-based subsidized student loan, the federal government pays the interest on your loan while you are in school. An unsubsidized student loan is not based on financial need, and you will be charged interest on the loan as soon as the funds are disbursed. (You may choose to pay the interest while in school or defer interest payments until you have finished school, in which case the interest will be added to the amount you owe.)

Both loan types require that repayment begin six months after you drop below half-time enrollment. The maximum annual loan amounts are:

• First year
  • $5,500 dependent students
  • $9,500 independent students
  • Only $3,500 can be subsidized if eligible*
• Second year
  • $6,500 dependent students
  • $10,500 independent students
  • Only $4,500 can be subsidized if eligible

*Students are able to request additional subsidized funds if their grade level changes during the academic year by contacting LLCC Financial Aid.

Steps to apply for a Direct Loan at LLCC:

1. Complete the Free Application for Federal Student Aid (FAFSA)
2. Review and respond (accept or decline) to online loans awarded on your LoggerCentral account.
3. Visit the Federal Student Aid website and sign in to your FSA ID account to complete the online processes for your Direct Loan to be processed:
   • Online Entrance Counseling
   • Master Promissory Note (MPN)

Loan Simulator

The Loan Simulator helps you calculate your potential student loan payments based on individual need. You can use this tool to help estimate payments when you're struggling with payments or if you are looking into what would happen if you borrow more.

Five percent of students at LLCC use student loans. LLCC's cohort default rate is currently 0.0%; the national average is 0.0%.

The Direct PLUS Loan is unsubsidized, so interest accrues while the student is enrolled at least half-time and during deferment periods. Eligibility is not based on financial need, and graduate students and parents of undergraduates may borrow up to the amount of the student’s cost of attendance, minus any other financial assistance a student receives.

The Direct PLUS Loan may be of particular interest to students and parents who: 

• are not eligible for other types of financial aid
• have unusual costs above the standard student expense budgets
• have remaining financial need after other forms of financial aid have been awarded

Repayment usually begins 60 days from the date of disbursement. Contact LLCC Financial Aid for additional information.

If families are considering a Parent PLUS loan, complete the steps below:

1. Students must complete Free Application for Federal Student Aid (FAFSA) for the coordinating school year.
2. Visit the Federal Student Aid website. Sign in and select “Apply for a PLUS Loan” under the Parent Borrower section using your U.S. Department of Education FSA ID. If you need an FSA ID, create an account at studentaid.gov. Do not use your student's FSA ID.
3. Follow the steps to complete the application and credit check. In the School Name section, be sure to select Lincoln Land Community College
4. The results of your credit check will be available immediately. If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note. If your credit is not approved, you will have the option to obtain an endorser, appeal the credit decision or not pursue the loan.

Borrowers must repay student loans. In order to help manage student debts and successfully repay loans, students should:

• Open and read any mail you receive regarding your student loans.
• Keep accurate records.
• Stay up to date with payments.

Before you get your Direct Student Loan, you are required by federal regulations to complete the Direct Loan Entrance Counseling and Direct Loan Master Promissory Note. It shows you how to manage your student loans, both during and after college.

Before you start, gather the following information:

• Your social security number
• Your driver’s license number
• Name, address and phone number of two references at different addresses
• Your FSA ID (the same username and password you used to complete your FAFSA)

The Master Promissory Note is a legal document where you promise to pay back your student loan(s) and any interest or fees that accrue with it to your loan lender. In order for loan funds to disburse to your account, students must complete the Direct Loan Master Promissory Note (MPN) and Direct Loan Entrance Counseling.

In order to complete the MPN you will need the following:

• Your FSA ID (the same username and password you used to complete your FAFSA)
• Your social security number
• Your driver’s license (if applicable)
• Two references with different U.S. addresses

Students are required to complete exit counseling whenever student borrowers graduate or drop below half-time enrollment. This counseling session helps borrowers understand their rights and responsibilities in repayment and helps them choose a repayment plan. You must use your Department of Education FSA ID to access this counseling session.

You can review your federal student loan history by logging in to your FSA ID account at the Federal Student Aid website. For a better understanding of how to repay your student loan and your repayment options, visit manage loans.

A variety of repayment options are available when your loan enters repayment status. Once the repayment option is selected and shortly before your grace period begins, you will receive a repayment disclosure from the Department of Education.

If you are unable to make your monthly payments, contact your lender immediately to avoid default by considering alternative repayment options. Additionally, depending on your circumstances, you may qualify for loan forbearance or forgiveness.