The William D. Ford Federal Direct Loan Program amounts are determined by the year of study and the dependency status of a student. First-time borrowers at LCU must complete loan counseling, as required by law.
There are two types of Federal Direct Loans:
Repayment on a direct loan begins six months after the borrower completes his or her course of study or drops below half-time status. Students who have filed the FAFSA are automatically considered for this program.
The Federal Perkins Loan is a low interest loan program for students with exceptional financial need. Lincoln Christian University is responsible for the administration of this federal program. The repayment period begins nine months after the borrower ceases to be enrolled at least half-time in an institution of higher education and may extend over a 10-year period. Students who have filed the FAFSA are automatically considered for this program.
Parents or legal guardians of a dependent student may borrow through the Federal Direct PLUS Loan program. Parents may borrow up to the cost of education (minus other aid). This program is not based on financial need. Repayment normally begins within 60 days of the second disbursement. All Federal Direct PLUS loans require a credit check.
Private banks and loan companies may also offer student and parent loan programs. These loans can be at a variable or fixed interest rate. Lenders will base rates on a borrower’s credit score and will often require a co-signer.
The Financial Aid Office administers the William D. Ford Direct Loan program and the Perkins Loan program for Graduate and Seminary students. A student must complete the Free Application for Federal Student Aid (FAFSA) to determine loan eligibility. Lincoln Christian University's federal school code to be used on the FAFSA is 001708. Visit the FAFSA website at www.fafsa.gov. Students are urged to be good stewards of their finances in applying for loans, given the limited financial compensation typically associated with leadership ministry.