Direct Loan Program
Requirements
In order to be considered for a Direct Loan, students must meet the following eligibility requirements:
- Be admitted to Lake Land College in a degree seeking program or approved certificate program
- Be enrolled in at least six credit hours
- Complete the Free Application for Federal Student Aid (FAFSA)
- Have a completed and verified student aid record on file with the Lake Land College Financial Aid Office
- Complete the Online Student Loan Request found in the Laker Hub under “Financial Aid”
- Meet Satisfactory Academic Progress Standards
- Not be in default on any educational loan, show an unwillingness to repay an educational loan, or owe any refund on a grant or student loan
Formula to Determine Financial Eligibility
Subsidized = Cost of Attendance (COA) – Student Aid Index (SAI) – Expected Financial Assistance
Unsubsidized = Cost of Attendance (COA) – Expected Financial Assistance
Borrowing Limits
| Academic Level | Credits Earned | Maximum Subsidized Amount | Per Semester Limit |
| Freshman | 0 – 28.5 hours | $3,500 | $1,750 |
| Sophomore | 29 hours + | $4,500 | $2,250 |
Additional unsubsidized loan funds may be available for students with remaining unmet cost of attendance.
Interest Rate
For the 2024-2025 academic year, the interest rate on subsidized and unsubsidized Direct Loans is 6.53%.
Entrance Loan Counseling
Because borrowing under the Direct Loan program is a serious financial obligation that should not be entered into lightly, all students who borrow a Direct Loan must complete an entrance loan counseling session before loan funds can be disbursed. The entrance loan counseling session is designed to inform students about their rights and responsibilities as a borrower, explain the importance of loan repayment, and make sure students understand the consequence of defaulting on a student loan.
Students complete the online loan counseling through the U.S. Department of Education’s Direct Loans website. Click on the “Log in to Start” in the Undergraduate Student option.
Master Promissory Note
Because Direct Loans must be repaid with interest, all students borrowing under the Direct Loan program must sign a promissory note. This is your promise to repay the loan and it is a legally-binding document between you and the U.S. Department of Education.
The MPN is completed online through the U.S. Department of Education’s Direct Loans website. Click on the “Log in to Start” in the Undergraduate Student option.
Exit Loan Counseling
When a student graduates or drops below half-time attendance, exit loan counseling must be completed. The exit loan counseling session will review your repayment obligation, provide information regarding monthly repayment amounts, explain deferment and forbearance options and stress the serious consequences of defaulting on a federal student loan.
Students complete the online exit counseling through the U.S. Department of Education’s Direct Loans website. Click on “Complete Counseling” and then select “Exit Counseling”.
Disbursement
Lake Land College disburses loan money by crediting the student’s account and will mail any excess funds directly to the student. All loans require two separate but equal disbursements.
Repayment
When you receive your Direct Loan, you will be contacted by your loan servicer. The loan servicer will provide you with information on how and when to repay your loan. For more information on Direct Loans and to determine your Direct Loan servicer, you may log in to My Federal Student Aid.
Typically, repayment of a Direct Loan begins 6 months after the student is no longer enrolled at least half-time or graduates.
Request a Direct Loan
Log in to the Laker Hub and select “Request a Student Loan” under the Financial Aid section. Be sure to read and complete all required steps, including the Master Promissory Note and online entrance counseling at the end of the request.