Students must file a Free Application for Federal Student Aid (FAFSA) each year to qualify for a federal student loan. Qualified applicants must be a U.S. citizen or eligible alien. Lake Superior State University evaluates the FAFSA information and determines which types of loans you are eligible for and sends you an Official Offer of Award. First time borrowers will need to complete Entrance Counseling and sign a Master Promissory Note (MPN) prior to loan funds disbursing to their account. Once enrolled at LSSU, students must meet the Satisfactory Academic Progress (SAP) standards to be eligible for additional loans.
Subsidized (Sub.) Loan
The federal government does not charge interest on subsidized loans while a borrower is attending school at least half-time (6 or more credits), during the six-month grace period and during deferments (postponements of repayment). Financial need (determined from the FAFSA) must be shown to receive this type of loan.
Unsubsidized (Unsub.) Loan
For students without financial need, the Direct Loan Program offers Direct Unsubsidized Loans. Unlike the subsidized loan, the federal government charges interest on unsubsidized loans while borrowers are attending school, during the six-month grace period and during deferments. If borrowers do not wish to pay the interest while in school, the interest amounts will be capitalized (added) to the principal loan balance.
|
YEAR
|
DEPENDENT
UNDERGRADUATE |
INDEPENDENT
UNDERGRADUATE* |
|---|---|---|
| Freshman 0-25 credits earned |
$5,500 No more than $3,500 may be in subsidized loans. |
$9,500 No more than $3,500 may be in subsidized loans. |
| Sophomore 26-55 credits earned |
$6,500 No more than $4,500 may be in subsidized loans. |
$10,500 No more than $4,500 may be in subsidized loans. |
| Junior/Senior 56+ credits earned |
$7,500 No more than $5,500 may be in subsidized loans. |
$12,500 No more than $5,500 may be in subsidized loans. |
| Aggregate Loan Limits(maximum lifetime eligibility) | $31,000 No more than $23,000 may be in subsidized loans. |
$57,500 No more than $23,000 may be in subsidized loans. |
*The independent undergraduate loan limits also apply to dependent students whose parents are unable to borrow under the Parent PLUS loan program.
The Following are sample disclosure statements and borrower rights:
Parents and/or step-parents of undergraduate dependent students may utilize the Federal Direct Parent PLUS Loan to assist in paying the student’s educational expenses. Parents may borrow up to the difference between the cost of education and other financial aid for which the student is eligible. The maximum amount available for the year is shown on the student’s Official Offer of Award as the “Maximum Parent PLUS or Alternative Loan” option.
There are two ways to apply:
Please DO NOT complete both an online application and a paper application. Choose only one method.
Both application methods will generate a credit check on the parent who is applying for the loan. The credit check is valid for 180 days.
If your parent’s application is denied due to adverse credit history, contact the LSSU Financial Aid Office to discuss your options. Beginning March 29, 2015, PLUS loan counseling will be required if you are determined to have adverse credit history, but qualify for a PLUS loan by documenting extenuating circumstances or obtaining an endorser. This can be completed at https://studentloans.gov/myDirectLoan/index.action.
Please note: PLUS Loan applications must be completed every year as part of the Federal Student Aid Application process.
The approved loan (less fees) will disburse to the student’s account after all steps are completed. Please allow 10 days for processing. If the approved loan is for the full academic year, it will be divided in half, with 50% of the loan disbursing in the fall and 50% in January.
Repayment begins on the PLUS loan immediately after the loan is fully disbursed. Parent borrowers may contact their loan servicer to request a deferment while the dependent student is enrolled at least half time and for an additional six months after the student ceases to be enrolled at least half time. Parent borrowers can also select the deferment option during the on-line application; however, this may not automatically defer the payments.
Sample disclosures for PLUS loans:
The Nursing Education Loan Program provides loans of up to $5,000 a year for students working towards a degree in the nursing program.
Eligibility requirements include, but are not limited to;
ATTN: Nursing Students
Apply for repayment assistance with the Department of Health and Human Services by clicking here.
Alternative loans are private, credit-based education loans. Students can borrow up to their Cost of Attendance (COA) less any other aid they receive. It is strongly encouraged that students complete the FAFSA to utilize their maximum federal aid eligibility first. The maximum amount that you could borrow is listed as the “Parent PLUS or Alternative Loan” option on your Official Offer of Award, assuming that you will utilize your federal loans first. Borrowing can be costly and we encourage students to exhaust all other options before applying for an alternative loan.
For your convenience, we have provided a list for you to compare and contrast different lenders. ELM Select is a third party site that provides a neutral comprehensive list of private education loan lenders that LSSU students have borrowed from within the past three years, listed in random order. LSSU does not endorse, recommend, or promote any of the listed lenders. You are not obligated to borrow only from the lenders listed. LSSU will process alternative loans from lenders who are not listed, but remember that each lender has certain loan eligibility requirements that if not met by the student, may not allow us to process the loan request.
When completing an application for an alternative loan, the lender will ask that you select the loan period most applicable for the semester(s) you wish to borrow. Select the loan period that most closely matches one of the loan periods indicated below.
Loan periods for LSSU are:
Fall Only: August – December
Fall & Spring: August – May
Spring Only: January – May
Summer Only: May-Aug (Use the entire summer semester period even if you are only attending a 6-week session.)
Once you have submitted your application to the lender and completed any additional steps, the lender will send your loan request to the school. We review your loan request to make sure it fits within your cost of attendance budget. If the amount you requested is more than what your budget will allow, we will reduce your loan to an amount that will fit within your budget. The loan request is processed by our school and sent back to the lender. The lender will then send the borrower a final loan disclosure, giving you a three day cancellation period. Most lenders will send the loan funds to LSSU electronically. The funds are applied directly to your account. Any excess amount remaining after the funds have been applied will be refunded to you. The total processing time from the time you apply for a loan to the time the funds are sent to the school can range from 2-4 weeks.
Sample forms that lenders may ask you to complete during the application process:
Canadian students who need help paying for a college or university education may apply for aid through the Ontario Student Assistance Program (OSAP). OSAP offers a mixture of grants and loans.
To be considered for OSAP, you must meet the following requirements (additional qualifications may by required):
Students who complete an OSAP application may be eligible for the Canada-Ontario Integrated Student Loan (COISL). The loan is funded by both the Government of Ontario and the Government of Canada. The loan is issued through the National Student Loans Service Centre (NSLSC).
For more information, visit the OSAP web site at: www.osap.gov.on.ca.
Another loan option for Canadian students is available through Global Education Management Services (GEMS). Visit www.myglobaled.com for loan features, program requirements and how to apply.