Financial Aid Office
Frequently Asked Questions
- How do I apply for a student loan?
- How much money will I be able to borrow?
- How do I know if I am an Independent or a Dependent student for 2009-10?
- What is an EFC and how is it calculated?
- How do I get my excess financial aid?
- What is a Stafford Subsidized and Unsubsidized Loan?
- What is a PLUS Loan?
- Is there a deadline for filing a loan application?
- What is the interest rate or costs to receive my student loan?
- When do I have to start payments on my student loan?
How do I apply for a student loan?
Whether you apply for a grant, student loan or other type of financial aid, all
potential borrowers have to complete and file a Free Application for Federal
Student Aid (FAFSA). Most students file on-line at www.fafsa.ed.gov. It is helpful to complete the FAFSA worksheet before filing on-line. The worksheets can be obtained from the student's high school counseling office, or
the financial aid office at the college the student plans to attend, or downloaded from the FAFSA web site.
LSSU's Federal School Code is 0 0 2 2 9 3.
If you applied for federal student aid the prior year, you will probably receive a reminder notice from FAFSA at your home address in December.
If you have any questions about the Renewal FAFSA,
please check with the financial aid office at LSSU, or go on-line at www.fafsa.ed.gov.
How much money will I be able to borrow?
The following are the maximum annual loan amounts that can be borrowed
through the Federal Stafford Loan Program:
Dependent Students (Sub + Unsub)
| |
Subsidized |
Unsubsidized |
Total
|
| 1st year undergraduate |
$ 3,500 |
$2,000 |
$5,500 |
| 2nd year undergraduate |
$ 4,500 |
$2,000 |
$6,500 |
| 3rd year (up to graduate) |
$ 5,500 |
$2,000 |
$7,500 |
|
For dependent students whose parents cannot borrow under the PLUS Program,
the amount a student can borrow under the unsubsidized program is the same
as for an independent student.
Independent Students
| |
Subsidized |
Unsubsidized |
Total |
| 1st year undergraduate |
$ 3,500 |
$ 6,000 |
$ 9,500 |
| 2nd year undergraduate |
$ 4,500 |
$ 6,000 |
$10,500 |
| 3rd year (up to graduate) |
$ 5,500 |
$ 7,000 |
$12,500 |
| Graduate/Professional |
$ 8,500 |
$12,000 |
$20,500 |
|
Loan limits may be subject to prorating.
Maximum Federal Stafford Aggregate Loan Limits
| Dependent Undergraduate |
$ 31,000 |
| Independent Undergraduate |
$ 57,500 |
| Graduate/Professional |
$138,500 |
|
The aggregate loan limits (both Undergraduate and Graduate/Professional)
also include any portion of a borrower's Consolidation loan which was used
to repay a Stafford loan.
The loan amount a borrower may receive is determined by subtracting
the amount of other financial aid that the borrower will receive from the
total cost of attendance for the applicable academic year. In determining
subsidized Stafford loan eligibility, the expected family contribution
is also subtracted from the cost of education. However, LSSU's financial
aid office will certify loan eligibility.
Loan Limits for a PLUS Loan
The maximum that may be borrowed may not exceed the student's cost of
attendance, as determined by the school, minus any financial
aid the student has been or will be awarded during the period of enrollment.
There are no aggregate limits on these loans.
Again, as with Stafford loans, LSSU's financial aid office will certify
loan eligibility.
How do I know if I am an Independent or a Dependent student for 2009-10?
- Were you born before January 1, 1986?
- As of the day you filed your FAFSA, were you married?
- At the beginning of the 2009-2010 school year, will you be working on a master's or doctorate program (such as an MA, MBA, MD, JD, PhD, EdD, graduate certificate, etc.)?
- Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training?
- Are you a veteran of the U.S. Armed Forces?
- Do you have children who will receive more than half of their support from you between July 1, 2009 and June 30, 2010?
- Do you have dependents (other than your children or spouse) who live with you and who receive more that half of their support from you , now and through June 30, 2010?
- At any time since you turned age 13, were both your parents deceased, were you in foster care, or were you a dependent or ward of the court?
- Are you or were you an emancipated minor as determined by a court in your state of legal residence?
- Are you or were you in legal guardianship as determined by a court in your state of legal residence?
- At any time on or after July 1, 2008, did your high school or school district homeless liaison determine that you were an unaccompanied youth who was homeless?
- At any time on or after July 1, 2008, did the director of an emergency shelter or transitional housing program funded by the U.S. Department of Housing and Urban Development determine that you were an unaccompanied youth who was homeless?
- At any time on or after July 1, 2008, did the director of a runaway or homeless youth basic center or transitional living program determine that you were an unaccompanied youth who was homeless or were self-supporting and at risk of being homeless?
If you answered "No" to all of the questions above, you are considered a "Dependent" student.
If you answered "Yes" to any of the questions above, you are considered an "Independent" student.
What is an EFC and how is it calculated?
The EFC stands for "Estimated Family Contribution". It is calculated by the Federal
Government when you file the Free Application for Federal Student Aid. It takes into
account such items as your tax information, your spouse's or parents' tax information (if applicable),
your (and your family's) assets, the number of people in your household, and the number of family members in
college.
How do I get my excess financial aid?
If your financial aid exceeds your tuition and room & board charges, you will receive the excess
in check form issued at the Student Service Center or EFT to your bank account.
What are Stafford Subsidized and Unsubsidized Loans?
A Subsidized Federal Stafford Loan is a loan in which the interest due on the
loan is paid by the Federal Government while you are in school, during your
6-month grace period following cessation of at least half-time enrollment, and for
any periods of authorized deferment after you begin repayment.
An Unsubsidized Federal Stafford Loan has all the same terms as the
subsidized Federal Stafford loan including deferments, and loan
limits. However, you are responsible for the interest payments while you are in
school, during periods of authorized deferments and during your grace and
repayment periods. You have the option of paying the interest quarterly as it accrues, or not paying it and allowing it to capitalize (adding the interest to the unpaid principle balance).
What is a PLUS Loan?
Federal PLUS loans enable parents or legal guardians with good credit histories
to borrow to pay the educational expenses of each child who is a dependent
undergraduate. The student must be enrolled in school at least half-time.
Again, to be eligible for a PLUS loan, a parent must possess a good credit
history. If a parent does not possess a good credit history, he/she might be able to
qualify for a PLUS loan if someone who can pass the credit check agrees to
endorse the loan and sign a promissory note. It is important that the parent(s)
contact the Financial Aid Office in regard to obtaining a PLUS loan even if credit
seems to be a problem. Sometimes extenuating circumstances can warrant a
parent obtaining this loan.
Is there a deadline for filing a loan application (FAFSA)?
It is important that students check with the financial aid office at LSSU to comply
with deadlines in filing appropriate documents. To be considered for priority financial
aid consideration for 2009-10, the completed 2009-2010 FAFSA should be received by the Federal Processor by March 1, 2009.
What is the interest rate of my student loan?
Stafford Loans
The 2009-10 rate is fixed at 5.6% for Direct Student Loans.
PLUS Loans
The 2009-10 rate is fixed at 7.9% for PLUS loans.
When do I have to start payments on my student loan?
Stafford Loans
Stafford loan borrowers begin repayment after a 6-month grace period.
Students enter their grace period after dropping below at least half-time
enrollment status from the school they are attending.
On the subsidized Stafford loans the government pays all interest during
the grace period. If the students receive unsubsidized Stafford loans,
the students are responsible for paying all interest that accrues during
the life of the loan. Borrowers having unsubsidized loans may choose to
pay the interest payments or allow the interest charges to accrue towards
their loans' principal balance.
PLUS loan borrowers may begin repayment of their loans within sixty (60)
days of the final loan disbursement, or choose to defer payment of interest and/or principle until 6 months following the student's enrollment of less than half-time status. there is no penalty for prepayments.
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