Federal Student Loans

There are two types of federal loans that will be addressed in the following information:

  • Stafford Loan
  • Perkins Loan

The Federal Stafford Loan is for undergraduate, graduate and professional degree students. You must be enrolled a minimum of 6 credits per semester to be eligible.

There are two types of Stafford Loans: subsidized and unsubsidized. The U.S. Department of Education will pay the interest that accrues on subsidized Stafford Loans during periods of enrollment. You are responsible for the interest that accrues on the unsubsidized Stafford Loan. 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 your parents are denied the PLUS Loan, you (the student) are eligible to borrow additional funds through the unsubsidized Stafford 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 Stafford funds after the PLUS Loan is denied. You may send an email to finaid@lvc.edu. No additional Stafford funds will be processed without a written request.

Interest Rates for subsidized Stafford 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 Stafford Loans remain at a 6.8% fixed interest rate

The subsidized Stafford Loan is a need-based loan. If you do not demonstrate financial need, you are eligible to borrow through the unsubsidized Stafford loan. The Financial Aid Office will determine your eligibility based on the FAFSA.

Stafford Loan limits are based on cost of attendance and cumulative credits earned:

Undergraduate Students

Credits Earned Dependent Students - Subsidized Stafford Dependent Students - Unsubsidized Stafford Independent Students and Students whose Parent is denied the PLUS Loan - Additional Unsubsidized Stafford
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 Stafford Additional Unsubsidized Stafford
$8,500 $12,000

Application Instructions for First-time Stafford Loan Borrowers and Current Borrowers Wishing to Change Lenders

As a first-time Stafford Loan borrower, you must complete Stafford Loan Entrance Counseling (a federal requirement for first-time borrowers) and a Master Promissory Note (MPN). You will be directed to go through the entrance counseling session first prior to completing the MPN. One of the required fields on the MPN is selecting a lender. In addition, as a first-time borrower the first disbursement of the Stafford Loan will be delayed until the end of the drop/add period. The Financial Aid Office has prepared a list of preferred lenders; however, you are free to select any lender of your choice that participates in the Federal Family Educational Loan Program (FFELP).

Please view LVC's preferred Stafford lenders for first-time students and begin the application process. This list will be available beginning May 1, 2010.

Application Instructions for Current Student Borrowers

If you would like to borrow a Stafford Loan for the upcoming academic year, you must complete the Borrowing Intentions Form (BIF) that will be included in your financial award package. Packages will be prepared during the month of June and mailed to students the first week in July. 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 here. Please contact our office if you are not planning to apply for financial aid, finaid@lvc.edu.

By completing the BIF, you are indicationg you would like your loan to be processed through your current lender. If you would like to select another lender, please follow the application instructions for current borrowers wishing to change lenders listed above. Please bear in mind that if you choose a different lender than previously borrowed, you will be required to complete another Master Promissory Note (MPN).

You may view LVC's preferred lenders below. A link will also be available to access a list of all the participating Federal Family Educational Loan Program (FFELP) lenders. LVC's preferred Stafford lenders for current students.

The Federal Perkins Loan

The Perkins Loan is a need-based loan awarded to fulltime undergraduates. More specifically, at LVC these funds are distributed primarily to freshmen demonstrating the highest financial need.

  • Freshmen - $2,000 per year
  • Perkins loans are awarded from a limited source of funding which is why the dollars are targeted to the students who are not eligible to borrow as much through the Federal Stafford Loan program (freshmen). Here is some general information about the Perkins Loan:
  • 5% fixed interest rate
  • 9 month grace period prior to repayment
  • Eligibility and award amounts can vary among institutions

At LVC, if you are awarded both the Federal Stafford Loan and the Federal Perkins Loan and you decide that you only need to borrow through one loan program, you must forfeit the Perkins and borrow the subsidized and unsubsidized Stafford Loan. The Perkins is then re-awarded to other students in need.

First-time Perkins borrowers are required to complete entrance counseling and sign the MPN during the first week of classes of the fall semester. The Financial Aid Office will contact you regarding completing these requirements.

Current Perkins borrowers do not need to complete entrance counseling or sign another MPN; however, you must indicate your desire to borrow by completing the BIF and returning it to the Financial Aid Office, 2nd Floor, Carnegie Building, in order for the loan to be processed. As a reminder, the BIF will be included in the Financial Award package mailed in early July.