STAFFORD LOAN (SUBSIDIZED OR UNSUBSIDIZED)

Lake City Community College Policy

All students applying for a Federal Stafford Loan must have twelve (12) credit hours completed with a 2.0 GPA to be eligible.  This is  required by Lake City Community College as part of our Default and Prevention Management Plan.

If this is your first time to receive a Federal Stafford Loan, complete the Entrance Interview.  If this is your last semester at LCCC, complete the Exit Interview.

What is a Federal Stafford Loan?

Federal Stafford Loans help you meet your educational expenses.  Unlike gift aid, loans must be repaid.  Federal Stafford Loans are offered in two forms; subsidized and unsubsidized.  For subsidized loans, loan interest is paid on your behalf by the government while you are enrolled as at least a half-time student and during grace or deferment periods.  For unsubsidized loans, loan interest accrues within sixty days of disbursement and can be paid while you are in school or capitalized.  Capitalized interest is added to the principal amount outstanding.  For both subsidized and unsubsidized loans, repayment of principal and interest begins six months after you cease to be enrolled at least half-time.

How much can I borrow?

The amount you can borrow annually is based on your dependency status and grade level.  Your total financial aid, including Federal Stafford Loans, can never exceed your cost of education.  Your award notice recommends the amount you are eligible to borrow.  You are not required to borrow that full amount.  The limits indicated in the following chart are the federal maximums, which you can receive during two terms of enrollment.

ACADEMIC YEAR LOAN LIMITS

How will I be paid?

Stafford Loan - Your school will disburse your loan in two installments; no installment will be greater than half the amount of your loan.  If you're a first year undergraduate student and a first time borrower, your first disbursement can't be made until 30 days after the first day of your enrollment period.

Whatever your loan type, your loan money must be first used to pay for your tuition, fees, and room and board.  If loan funds remain, you'll receive them by check in the mail.

Can I cancel my student loan if I change my mind, even if I've signed the promissory note agreeing to the loan's terms?

Yes.  You can notify your school prior to the disbursement in writing to cancel the loan.  If you receive your loan funds by check, you may refuse the funds by returning the check to the school.

How much will I have to repay and how often?

Your repayment amount will depend on the size of your debt and the length of your repayment period.  Usually, you'll pay monthly.  If you have a FFEL or Direct Stafford Loan, the amount you'll pay also depends on the repayment plan you choose.  Federal Perkins Loans do not have different repayment plans.

Postponing and Consolidating Your Loan can be done through your lender.  By contacting your lender there options provided through deferments, forebarances,or consolidation.