Federal Direct Student Loans
Federal student loans are a form of financial aid that can help you pay for tuition, books, and living expenses. They also offer more flexibility than private loans. Repayment is deferred until you graduate or leave school.
Lincoln College offers the following loans:
Direct Subsidized Loan
This is a federal loan program for students who have financial need as determined by the Department of Education. Interest does not accrue on subsidized loans while you are enrolled in school at least half-time.
Direct Unsubsidized Loan
This is a federal loan program which does accrue interest while a student is in school and must be paid back. The interest rate is fixed at 6.8%.
Parent PLUS Loan
The parent of a dependent undergraduate student may borrow funds to help pay for education expenses up to the cost of attendance minus all other financial assistance. Borrowers must be credit worthy and complete a credit application. The interest rate is fixed at 7.9%.
Things to remember about federal student loans:
- Students must maintain at least a half-time enrollment status (6 credit hours or more per semester) to receive a loan.
- All first time student loan borrowers will receive their first loan disbursement no earlier than 30 days after the start of the semester according to federal regulations.
Before Awarding Your Student Loans
- Entrance counseling is required for first-time Federal Loan borrowers. Counseling can be completed online and will help you understand your rights and obligations as a student loan borrower. Loan counseling must be completed before you can receive loans. You must also sign a Master Promissory Note (MPN) before your loan can be disbursed. You will need your FAFSA pin to sign. The Federal Direct Loan MPN is valid for 10 years. You have to sign a Loan MPN only once while you are enrolled at Lincoln College.
Both the Master Promissory Note and Entrance counseling are available online at www.studentloans.gov.
This is a private student loan offered by banks or lending institutions to help students and parents bridge the gap between the cost of education and the amount of financial aid received. These are loans that are not guaranteed by the federal government. Terms and conditions can vary according to lending institution guidelines. In most cases lending institutions will review the student’s credit history and a co-signer may be required. The actual amount a person can borrow varies according to each student’s individual circumstances.
Lincoln College encourages all students to apply first for federal and state financial aid.
The first step to request an alternative student loan is to complete the approval form.