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Student Loans

Student loans are educational funds that must be repaid with interest. We strongly encourage you to consider all other options for financing your education first, and use a student loan only as a “last resort” only to borrow what is absolutely needed. Lake Land College is a low-cost institution, and we want to keep your student loan debt at a minimum upon graduation or transfer to a four-year institution.

Types of Student Loans

Lake Land College participates in the Federal Direct Loan program. Under the Federal Direct Loan program, loan eligibility is determined by the Lake Land College Financial Aid Office and the loans are made by the U.S. Department of Education.

There are two types of federal loans available, Direct Loans for students and Parent Loans for Undergraduate Students (PLUS) for parents. Private loans may also be available. Students must seek out a private loan through the lender of their choice and Lake Land may or may not certify the loan depending on eligibility requirements.

Direct Loan Program

There are two types of Direct Loans: subsidized and unsubsidized.

A subsidized Direct Loan is a need-based loan which means students must demonstrate need according to data submitted on the FAFSA. Interest begins accruing on the loan at the time the loan funds are disbursed, but the federal government pays (subsidizes) the interest for students while they are enrolled in school on at least a half-time basis.

An unsubsidized Direct Loan is not based on need. Interest begins accruing on the loan at the time the loan funds are disbursed and the student is responsible for paying the interest while in school. Interest can be capitalized which means the student would not have to pay the interest while in school, but the interest accruing is added to the amount borrowed, so the loan amount continues to increase.

PLUS Loans

A PLUS loan is a loan that parents of dependent students can receive to cover educational expenses for their dependent undergraduate student.

Important Websites

  • You should check the status of your student loan on IRIS within the Laker Hub. Any important information or updates regarding your student loan will be sent to your Laker email so be sure to check it regularly.
  • Visit the Department of Education’s Student Loan website to manage your Direct Loans, complete a Master Promissory Note, complete Online Entrance Counseling, and complete Online Exit Counseling. Parents wishing to request a Parent PLUS loan must complete the application and Master Promissory Note through this website.
  • For the most complete information about financial aid programs and student loans, you will want to visit the Department of Education’s Federal Student Aid website. You may also quickly log in to this website and access the My Federal Student Aid section which will show you your student loans and lenders.
  • Visit the National Student Loan Data System (NSLDS) to review your student loan history.

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