Loans & Financing Options
Federal Direct Stafford Loans
Luzerne County Community College provides two Federal loan options for students under the U.S. Department of Education's William D. Ford Direct Stafford Loan Program to help offset the cost of higher education:
- Direct Subsidized Loan: Undergraduate students can borrow directly from the U.S Department of Education without a credit evaluation. Loan eligibility is based on financial need. A completed FAFSA is required for each academic year of loan consideration. Interest does not accrue in-school, but will accrue while in the six month grace period and deferment. Repayment begins upon termination of college enrollment on at least a half-time basis.
- Unsubsidized Stafford Loan: Undergraduate students can borrow directly from the U.S Department of Education without a credit evaluation. A completed FAFSA is required for each academic year of loan consideration. The student (borrower) is charged interest. Interest accrual begins immediately, while a student is in school and continues through the grace period and deferment. Repayment begins upon termination of college enrollment on at least a half-time basis.
Students who are awarded a Stafford Direct Loan(s) will receive an award notification to the email address on file with the college. The initial loan offer is placed on a student's Financial Aid Self Service Portal. A loan offer must be electronically accepted by the student on Self Service for the loan to originate with the Department of Education. Two federal requirements also must be completed for the loan to disburse onto a student account:
- Direct Loan Entrance Counseling: Counsels students on Direct Loans, the borrowing process and on a student's rights and responsibilities as a borrower. Entrance Counseling is found at studentaid.gov. Students must log into the site using his/her FSA ID.
- Master Promissory Note: A legal document, signed by the student, which promises to repay a loan and any accrued interest and fees to the Department of Education. The MPN is found at studentaid.gov. Students must log into the site using his/her FSA ID.
Students must have Satisfactory Academic Progress and be enrolled in a minimum of 6 credits for each term a federal loan is secured. Federal Direct Stafford Loan applications must be certified by the Financial Aid Office by the last day of the semester. Loans disbursed between July 1, 2021 and June 30, 2022 have a fixed interest rate of 3.73% for both the Subsidized and Unsubsidized loans during this period. Loans disbursed on or after 10/1/2020 and before 10/1/2022 have a loan fee of 1.057%
Loan Limits per Academic Year
There is a limits to the amount of federal loan money a student can receive. Please refer to the chart below for annual and aggregate federal Stafford loan limits. For periods of study shorter than an academic year, the amount students can borrow may be less than those listed. Also, loan amounts may be less if students receive other financial aid that is used to cover a portion of their cost of education.
Annual and aggregate limits for subsidized and unsubsidized loans.
First-Year Undergraduate Annual Loan Limit
Dependent Students: $5,500 - No more than $3,500 of this amount may be in subsidized loans.
Independent Students: $9,500 - No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit
Dependent Students: $6,500 - No more than $4,500 of this amount may be in subsidized loans.
Independent Students: $10,500 - No more than $4,500 of this amount may be in subsidized loans.
Subsidized and Unsubsidized Aggregate Loan Limit
Dependent Students: $31,000 - No more than $23,000 of this amount may be in subsidized loans.
Independent Students: $57,500 for undergraduates - No more than $23,000 of this amount may be in subsidized loans.
How Do I Adjust My Loan Offer?
Students are initially offered a subsidized Stafford loan. The loan offer is on students' Financial Aid Self Service Portal. The loan offer must be electronically accepted by a student under "Review and Accept Financial Aid Package." Students can decrease a loan amount before accepting on Self Service. However, students must request the unsubsidized Stafford loan and any subsequent loan increases in writing to the Financial Aid office. Loan increase request can also be emailed to email@example.com. All request must be signed by the student and provide a Student ID number.
Additional Federal Financing Options
The U.S. Department of Education offers a Direct Plus Loan option to parent(s) of dependent students to help finance educational costs not covered by financial aid. Direct Plus Loan eligibility is not based on financial need, but a credit check is required. Parents approved for the Direct Plus Loan can borrow up to the difference between the student's financial aid award and his or her Cost Of Attendance. To secure the loan, a parent must complete an application, credit check and Master Promissory Note at studentaid.gov. Parent PLUS loans disbursed between July 1, 2021 and June 30, 2022 have a fixed interest rate of 6.28% during this period. Loans disbursed on or after 10/1/2020 and before 10/1/2022 have a loan fee of 4.228%. Dependent students whose parent(s) get denied a PLUS loan based on their credit history may be eligible for up to an additional $4,000 in unsubsidized loan eligibility for the loan period.
When do I repay my Federal Loans?
To learn about how Federal Loan repayment works, please go to studentaid.gov and click on Repayment & Consolidation.
Alternative Loan Options
Alternative student loan options are available for students and parents of students who are not eligible to receive Federal Aid or whose financial aid does not fully cover the cost of education. Private or alternative educational loan programs vary by lender. Please click on the box below to view the complete list of LCCC approved lenders. Please contact specific lenders to find out about terms and conditions to apply.