Loans
Loans play a role in most students' college financing. While it's always wise to keep borrowing to a minimum, student loans can be regarded as an investment in your future and often make sense when you otherwise would be unable to continue your studies. There are countless borrowing options, but LCU recommends that, as a general rule, you limit your borrowing to loan programs offered by the U.S. government. These loan options are spelled out below. FEDERAL STAFFORD LOAN William D. Ford Direct Loan Program There are two types of Federal Direct Loans: The Subsidized Stafford Loan and the Unsubsidized Stafford Loan. It is not unusual for students to be eligible for both types of loans and its important to understand the differences between the two. If you borrow a Subsidized Stafford Loan, the Federal government will pay the interest on your loan and generally you do not need to begin repaying the loan until six months after you have graduated or ceased to attend college at least half time. You must show financial need to recieve this loan. The interest rate for most Subsidized Stafford Loans is 4.5% for undergraduate borrowers. There is a fee of 1 percent of the loan, which is deducted from the amount of the loan at the time you borrow. The amount of your Subsidized Stafford Loan is determined largely by your need as determined by submitting a FAFSA. The Unsubsidized Stafford Loan is very smiliar but is available to you regardless of financial need. The interest rate for most Unsubsidized Stafford Loans is 6.8% for undergraduate borrowers. Interest begins to accrue as soon as your loan is disbursed. While you are not required to begin repayment until six months after you have graduated or ceased attending college at least half time, many say it is wise to at least make interest-only payments while you are in college. Under the Direct Loan program, students borrow from the federal government. Freshman may borrow up to $5,500, sophomores up to $6,500, and juniors/seniors up to $7,500 per academic year. First-time borrowers at LCU must complete entrance loan counseling. Click here to apply for a Stafford loan. Federal Perkins Loan With a 5% interest rate, the Perkins Loan is a very attractive program available only to LCU students with exceptional financial need. Funds are limited and annual awards range up to $4,000. Students borrow directly through Lincoln Christian University. Repayment begins nine months after the borrower ceases to be enrolled at least half-time and may extend over a ten-year period. If you have been offered a Perkins Loan by LCU, you can click here to download our Perkins Loan Application. Federal PLUS Loan Parents, stepparents, or legal guardians of a dependent student may borrow through this program regardless of the student's financial need. In other words, this is a loan that parents can borrow on behalf of their child. Parents may borrow up to the cost of education (minus other aid). The interest rate for PLUS loans is 7.9% Repayment normally begins within 60 days of the second disbursement. All PLUS loans require credit checks. Click here to apply for a Federal PLUS loan. Other Loans If you are not eligible for a federal loan or federal loans are not sufficient to meet your needs, you may consider borrowing an "alternate loan." Students may borrow an alternative loan regardless of their financial need. These loans usually charge higher interest rates than federal loans do and most undergraduates must have a co-signer to apply. ONLINE LOAN COUNSELING Before you can receive your federal student loan, you will need to complete entrance counseling. If you have been approved for a Stafford Loan, you can click here to complete this self-paced tutorial. Once you have successfully completed this counseling program, your student loan can be disbursed to you, though no loan proceeds will be paid prior to the first day of classes. Contact the Financial Aid Office for answers to any questions about this counseling session (Call 217-732-3168 or email the Financial Aid Office). In addition, federal law requires that all loan borrowers complete an exit counseling session when ready to graduate or drop below half-time attendance. Lincoln Christian University offers you a self-paced tutorial, available here, to fulfill this requirement. The tutorial will show you how to manage your student loans after your time at LCU. Contact the Financial Aid Office for answers to any questions about this counseling session. You may call 217-732-3168 and ask for the Financial Aid Office or (email). |