Loan Processing - New & Transfer Students Spring 2010
|
This page includes information regarding Federal loan processing for new and transfer students enrolling for the spring 2010 semester only. If you are a currently enrolled student and need information on Federal student and/or parent loans, please visit the links under Financing Options on the left menu bar or contact the Financial Aid Office toll free at 866.582.4236.
|
This page is in the process of being updated with information and instructions on the Federal Direct Loan program (DL).
Due to pending federal legislation, LVC will be participating in the DL program for new students only beginning with the spring 2010 semester. There will also be detailed loan processing information included in the financial award package mailed to students who have completed the aid application process. This includes completing the 2009-2010 FAFSA and LVC Institutional Data Form (IDF). You may access these forms online under Documents on the left menu bar. Award packages for spring will be mailed beginning in mid November.
The Federal Direct Loan - William D. Ford Federal Direct Loans are provided by the federal government. The loans are for undergraduate, graduate and professional degree students. You must complete the financial aid application process (FAFSA and IDF) to be eligible and be enrolled a minimum of 6 credits per semester.
There are two types of Direct Loans: subsidized and unsubsidized. The federal government will pay the interest that accrues on subsidized Direct Loans during periods of enrollment. You are responsible for the interest that accrues on the unsubsidized Direct Loans. You have the option of making quarterly interest payments during enrollment or if you choose not to, the interest will be capitalized once at repayment.
If you are a dependent student and your parent is denied the Federal Direct PLUS Loan, you (the student) are eligible to borrow additional funds through the unsubsidized Direct Loan program ($4,000/year for freshmen and sophomores and $5,000/year for juniors and seniors). You must notify the Financial Aid Office in writing or via email of the amount you would like to borrow in additional Direct Loan funds after the PLUS Loan is denied. You may send an email to finaid@lvc.edu. No additional Direct Loan funds will be processed without a written request.
Interest Rates for Subsidized Direct Loans
| |
|
| Loans disbursed on or after July 1, 2009 |
Fixed 5.6% |
| Loans disbursed on or after July 1, 2010 |
Fixed 4.5% |
| Loans disbursed on or after July 1, 2011 |
Fixed 3.4% |
| Beginning July 1, 2012, rates revert to 6.8% |
|
*Unsubsidized Direct Loans remain at a 6.8% fixed interest rate
The subsidized Direct Loan is a need-based loan. If you do not demonstrate financial need, you are eligible to borrow through the unsubsidized Direct loan. The Financial Aid Office will determine your eligibility based on the FAFSA.
For both subsidized and unsubsidized Direct Loans, a 1.5% origination fee is deducted by the government from each loan disbursement. As an incentive to encourage timely repayment of Direct Loans, a 1.0% rebate is offered at the time of disbursement. If you make all of the first 12 required monthly payments on time, you can keep the rebate for the life of the loan.
The following Direct Loan limits are based on cost of attendance and cumulative credits earned:
Undergraduate Students
| Credits Earned |
Dependent Students - Subsidized Direct |
Dependent Students - Unsubsidized Direct |
Independent Students and Students whose Parents are denied the PLUS Loan - Additional Unsubsidized Direct |
| 0 - 27 |
$3,500 |
$2,000 |
$4,000 |
| 28 - 55 |
$4,500 |
$2,000 |
$4,000 |
| 56 - 83 |
$5,500 |
$2,000 |
$5,000 |
| >=84 |
$5,500 |
$2,000 |
$5,000 |
Graduate Students (graduate students are considered independent)
| Subsidized Direct |
Additional Unsubsidized Direct |
| $8,500 |
$12,500 |
Application Instructions for First-time Direct Loan Borrowers
As a first-time Direct Loan borrower or a new transfer student who has previously borrowed a Federal Direct or Stafford Loan, you must complete Direct Loan Entrance Counseling. In addition, as a first-time federal borrower or a current borrower using the DL program for the first time, you must complete a Master Promissory Note (MPN).
You may access the online Entrance Counseling session on the Direct Loan website http://www.dl.ed.gov and complete the Master Promissory Note on the Direct Loan eMPN website http://dlenote.ed.gov. Our office will be notified electronically when you have completed these requirements.
Please be aware if you are a first-time federal loan borrower, the first disbursement of your Direct Loan will be delayed until the end of the drop/add period.
Application Instructions for Current Direct Loan Borrowers
If you would like to borrow a Direct Loan for the spring 2010 semester, you must complete the Borrowing Intention Form (BIF) that will be included in your financial award package. Packages will be prepared beginning in mid November and mailed on a rolling basis. You must list the amount you would like to borrow on the BIF, sign it and return it to the Financial Aid Office, 2nd Floor, Carnegie Building in order for the loan to be processed.
PLEASE NOTE: You must complete the aid application process before you will receive a financial award package. You may access the forms under Documents on the left menu bar. Please contact our office if you are not planning to apply for financial aid, finaid@lvc.edu.