Financial Aid Loans

Tuition Installment Plan

Lake-Sumter Community College now offers the Tuition Installment Plans (TIPS) through Nelnet Business Solutions. This plan allows a student to pay tuition and fees over a time period each semester rather than all in one lump sum.

Students are expected to promptly pay all other fees (application fees, graduation fees, outstanding student fees, etc). Students with delinquent accounts are subject to being removed from all courses. For more information, please visit the payment information page.

Federal Loans

Student loans are the type of financial aid that must be repaid. For this reason, loans are considered to be a ‘self-help’ form of assistance.

Borrowing is a serious financial obligation. Therefore, before applying for a student loan, be sure to seek other forms of financial aid funds that do not have to be paid back – such as grants and scholarships.

LSCC Changing to the Federal Direct Lending Program for 2010-11

Beginning with the 2010-11 academic year, LSCC will be processing Federal Loans through the Direct Lending Program. LSCC will no longer use the Federal Family Education Loan Program (FFELP) to process Stafford and Parent PLUS loans. Under the Direct Loan Program, loan funds will come directly from the federal government. This is a change from the FFELP program, where the loan funds come from a bank or credit union (or other lender that participates in FFELP). However, the loan amounts and eligibility remain the same under both DL and FFELP programs.

How the Change May Affect You

• LSCC will only be processing loans through the Direct Loan Program beginning with eht 2010-11 academic year. Therefore, if students  have a current Stafford Loan under FFELP, they will not be able to continue using a private lender to receive federal loan funds.
• Parent borrowers using the federal Parent Loan for Undergraduate Students (PLUS) will also change to the Federal Direct Loan program beginning with the 2010-11 academic year. LSCC will no longer be processing PLUS loans through private lenders.
• Consolidation of all federal loans under the FFELP and Direct Loan programs will be an option after you graduate or fall below half-time enrollment.

*Please note: Students must apply for financial aid using the FAFSA application at www.fafsa.gov and complete their financial aid file prior to applying for a student loan.

Eligibility

• A minimum cumulative 2.0 GPA
• Enrollment in a minimum of 6 credit/load hours at Lake-Sumter Community College
• Degree seeking

A minimum cumulative 2.0 GPA and enrollment in a minimum of 6 credit/load hours at Lake-Sumter Community College are also required to meet eligibility.

*NOTE: First-time borrowers must complete entrance counseling at https://www.osfaffelp.org/studentcounseling/ prior to turning in a Direct Loan Request Form. In addition, Loan Request Forms must be turned in to the Office of Financial Assistance by the posted deadline in the semester you are applying for.
Fax copies will not be accepted.

Borrower rights and responsibilities

It’s important that you are aware of your rights and responsibilities regarding your student loans.

Your rights as a borrower

• You may accept all, some, or none of the student loan funds offered.
• You are entitled to a copy of your promissory note, which outlines the terms and conditions of your student loan, and will receive it before or after the loan is made.
• Before you begin to repay, your loan holder is required to give you a payment schedule and detailed information about interest rates, fees, the balance you owe, and your repayment options.
• You have a right to defer payments for certain defined periods or to request forbearance, if you qualify.
You may be eligible to repay under a graduated or income-based repayment plan.
• For federal student loans and most private student loans, you may prepay in whole or in part at any time without penalty.

Your responsibilities as a borrower

• You must notify your school if you want to borrow less than the amount that has been awarded.
• You must repay your student loans on time and in full even if you do not finish your education, get a job, or feel satisfied with the education you received.
• You must notify your loan holder or servicer immediately of any change to your name, address, telephone number, or Social Security number.
• You must make scheduled monthly payments even if you do not receive a bill or coupon booklet.
• First-time Stafford and Perkins borrowers must receive entrance counseling before funds can be disbursed.
• Students are required to complete exit counseling when you graduate, withdraw, drop to less than half-time enrollment, or do not return for the next term. Students can access exit counseling online at: https://www.osfaffelp.org/StudentCounseling/Home.aspx.

Federal Direct Subsidized Student Loan

Direct Subsidized Loans are for students who have financial need. With a subsidized Stafford Loan, the federal government will pay the interest while you’re enrolled at least half-time, during your grace period, and during deferment periods.The amount of a subsidized loan cannot exceed a student’s financial need.

Undergraduate students may borrow up to $3,500 for the first year (1-29 credits) and up to $4,500 in the second year (30 credits or more). This loan is subject to verified financial need and not to exceed educational costs. Repayment begins six months after you graduate, leave school, or drop below half-time enrollment, with a fixed interest rate of 4.5% percent for loans disbursed after July 1, 2010.

Federal Direct Unsubsidized Student Loan

Direct Unsubsidized loans do not require students to have financial need. With an unsubsidized Loan, you are responsible for paying the interest during all periods, starting from the date the loan is first disbursed. Information regarding repayment can be obtained from the Office of Financial Assistance.

Independent students may borrow an additional $4,000 if they qualify. Dependent students are only eligible for Unsubsidized loans if they are not eligible for Subsidized or are not eligible for the maximum Subsidized loan. Repayment begins six months after you graduate, leave school, or drop below half-time enrollment, with a fixed interest rate of 6.8% percent for loans disbursed after July 1, 2006.

Federal Direct Parent Loans for Undergraduate Students

Parents of dependent students can borrow from the PLUS loan program. They require that the applicant not have an adverse credit history and have an interest rate fixed at 7.9%. Repayment begins on the date the loan is fully disbursed. If a parent is borrowing on behalf of a dependent undergraduate student, the student and parent must meet the general eligibility requirements for federal student aid.

LSCC Guide to Sensible Borrowing

1. Pursue all other alternatives first
2. Get the facts about each loan program
3. Know the players in the student loan process and their language
4. Estimate anticipated level of debt for your entire program of study
5. Budget before you borrow
6. Know manageable levels of debt, never borrow more than absolutely necessary
7. Know the effects of multiple borrowing
8. Take the time now to make the right decision; you can save money, time and frustration
9. Pursue all other alternatives before you borrow!

Steps in Applying for a Federal Loan

Apply early, as processing backlogs could dramatically delay aid disbursement. Late applicants should be prepared to cover their tuition and living expenses until you receive your loan funds. Step 1: Eligibility Requirements

1. Have an overall cumulative all (all college) 2.0 grade point average unless you are a new student in college. Transfer grades will be included in the GPA calculation. It is the student’s responsibility to make sure that all transfer work is evaluated by the Records Office before the loan is processed.
2. Enroll in a minimum of 6 credit/load hours at LSCC. This does not include consortium agreements with other schools. Audit (X) courses will not be considered in the hour calculation for loan processing or loan disbursements
3. oans for the summer term will not be processed or disbursed if students are enrolled in A term or B term only. Students MUST enroll in a combination of A term and B term or AE term for processing of a Federal Direct Loan. Students must be enrolled in classes which begin in May and end in August.
4. Please note: As part of LSCC’s Default Management Plan and federal regulations, students must maintain satisfactory academic progress for financial aid. For two term loans, students must successfully complete a minimum of six (6) credit/load hours with grades of A,B,C or S to receive the second disbursement of their student loan proceeds.

Step 2: Application Processing

1. Apply for financial aid by completing FAFSA on the web at www.fafsa.gov.
2. Complete the Direct Loan Request Form and submit it to the Office of Financial Assistance.
3. All first time borrowers at LSCC are required to complete entrance counseling prior to a loan being processed. You may do your entrance counseling on-line at https://www.osfaffelp.org/studentcounseling.

Step 3: What Happens Next?

1. You will be sent a notice of loan guarantee from the U.S. Department of Education detailing estimated disbursement dates and other specifics.
2. You will be sent a Master Promissory Note (MPN) from the U.S. Department of Education. Please follow the instructions provided on the MPN and return promptly to receive loan funds.
3. Your student loan funds will be sent to LSCC on a set schedule after a completed Master Promissory Note has been received.

Step 4: Deferment of Tuition

1. Students awarded a loan, will receive automatic deferment of tuition and fees provided the Office of Financial Assistance has processed their loan prior to the fee payment deadline.
2. Students will be allowed to purchase books against their loan awards provided the award EXCEEDS their charges. 

Step 5: Disbursement of Loan Funds

1. First time borrowers in the first year of study will receive their first disbursement thirty (30) days after the term begins, if processed and Master Promissory Note has been received and approved.
2. Every Federal Stafford loan period is required to have at least 2 disbursements. It is defined as the start of each semester for 2 term loans or the beginning and midpoint for one term loans.
3. Estimated disbursement dates will be posted each semester in the Financial Aid Newsletter posted on the LSCC website. Be sure that the Admissions Office has your correct mailing address.
4. All debt owed to the college will be deducted before balance checks are disbursed. If the amount of your loan proceeds does not cover your obligation in full, you will be responsible for paying the balance to the cashier’s office.
5. Students have the option to pay their tuition and fees prior to receiving their loan funds.
6. Any changes to your schedule after the term starts can result in ineligibility for loan disbursements. Please check with the Office of Financial Assistance prior to making changes to your schedule.

Important Loan Information

Freshman/Sophomore Status
Freshman – students who have completed up to 29 credits of college work.
Sophomore – students who have completed 30 or more credits of college work.
Status will be determined at the time of processing based on information available on the system.

Maximum Aggregate Loan at LSCC
Recommended maximum aggregate amount that a student should borrow in both subsidized and unsubsidized loans for the duration of their attendance at LSCC is $17,875.

Maximum Loan Amounts

*Subsidized - government pays interest while enrolled in school at least (6) hours and during grace period
**Unsubsidized – interest accrues while in school or student my pay accrued interest