Leeward Community College
Programs of Study How to Apply Paying for College Services for Students About Leeward CC Catalog and Courses

Financial Aid Applying for Federal Direct Loans

2015-2016 Steps to Apply for a Federal Direct Student Loan:

  1. Complete the 2015-2016 Free Application for Federal Student Aid (FAFSA) at https://fafsa.ed.gov and submit all required documents requested by the Financial Aid Office.
  2. Complete the Loan Entrance Counseling Session and the Master Promissory Note (MPN) at https://studentloans.gov (only if applicable):
    • NEW first-time borrowers are required to complete the Loan Entrance Counseling and MPN prior to receiving the first disbursement of a Direct Loan. If you have already completed an Entrance Counseling and/or MPN at another school, you must still complete one for Leeward CC.
  3. Complete and submit the 2015-2016 Federal Direct Student Loan Request Form to the Financial Aid Office
  4. Complete and submit the Budget Worksheet to the Financial Aid Office.

***Please allow up to one week for our office to receive notification that you completed your Entrance Counseling and/or MPN***

THE DEADLINE TO APPLY FOR A FALL ONY LOAN IS DECEMBER 4, 2015.
THE DEADLINE TO APPLY FOR A FALL AND SPRING OR SPRING ONLY LOAN IS MAY 2, 2016.

Federal Direct Subsidized Loan - 4.29% fixed interest rate

  • Awarded to students who demonstrate financial need as determined by your Free Application for Federal Student Aid (FAFSA) and the Financial Aid Office. Interest is paid by the Federal government while you are enrolled at least half-time status and during any approved deferment periods.
  • Effective for first-time borrowers on or after July 1, 2013, there is a time limit on the maximum period of time you can receive Federal Direct Subsidized loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period”. If you continuously enroll and do not complete your program (or you transfer to a program of equal or less length), you can lose the interest subsidy on your Federal Direct Subsidized Loan(s) for the remaining life of the loan(s). Please visit https://studentloans.gov/myDirectLoan/directSubsidizedLoanTimeLimitation.action for more information on the time limitation on Direct Subsidized loan eligibility.

Federal Direct Unsubsidized Loan - 4.29% fixed interest rate

  • Typically awarded to students who do not demonstrate financial need. You are responsible for the interest that accrues on the loan, which starts after the loan is disbursed. Although principal payments can be postponed, interest will be capitalized, meaning the lender will add the accrued interest to the principal balance you owe.

How Much Can I Borrow?

The maximum amount a student may borrow each academic year depends on the following:

  1. Grade level in college as determined by credits completed
    • Freshmen = 0-29.99 credits
    • Sophomore = 30+ credits
  2. Length of academic program
  3. Cost of attendance
  4. Dependency status (dependent or independent)

 

Dependency Status & Grade Level

Base
(Subsidized & Unsubsidized)

 

Additional Unsubsidized

 

Maximum Combined

Dependent Freshmen

$3,500

$2,000

$5,500

Dependent Sophomore

$4,500

$2,000

$6,500

Independent Freshmen

$3,500

$6,000

$9,500

Independent Sophomore

$4,500

$6,000

$10,500

Things to know:

  • You must be enrolled for at least half-time status (6 credits) to be eligible for a student loan.
  • If you are eligible for a student loan, the award will be based on full time enrollment (12 credits or more).  If you are enrolled for less than full time status, please inform us (in writing or email) of the actual number of credits you are enrolled in so that your cost of attendance can be adjusted and your loan(s) may be disbursed.  Please note that your loan amount(s) may need to be reduced.
  • If you are a first-time, first year borrower at Leeward CC, there will be a 30-day delay in the disbursement of your loan funds.
  • If your loan period is for a single semester (Fall 2015 only OR Spring 2016 only), your loan funds will be disbursed in two equal installments during the single semester, one at the beginning and one at the midpoint. If you drop below half-time status before the midpoint disbursement, undisbursed funds will be cancelled.
  • There is a loan origination fee of 1.073% for loans disbursed before October 1st, 2015. For loans disbursed on or after October 1st, 2015, the loan fee will be 1.068%. The loan fee will be automatically deducted from each loan disbursement.
  • When you leave school (graduate/transfer/officially withdraw) or enroll for less than half-time status, our office is required to perform an exit of your student loans and your grace period will begin. If you leave school or enroll for less than half-time for six consecutive months, your grace period expires and loan repayment begins. You may complete an In-School Deferment Request Form if you return to school at least half-time status and want to defer your loan payments. You may contact the Direct Loan Servicing Center at 1-800-848-0979 for more information regarding repayment. You may also check your loan history through the National Student Loan Data System (NSLDS) at https://www.nslds.ed.gov/.

2015-2016 Steps to Apply for a Federal Direct PLUS Loan (Parent Loan):

  • Complete the 2015-2016 Free Application for Federal Student Aid (FAFSA) at http://fafsa.ed.gov.
  • Complete the Direct PLUS Loan Request (application) at https://studentloans.gov. The PLUS loan requires a credit approval and the approval is valid for only 90 days. 
  • Sign the Federal Direct PLUS Master Promissory Note (MPN) at https://studentloans.gov.
  • Complete and submit the Federal Direct PLUS Loan Request Form to the Financial Aid Office.

THE DEADLINE TO APPLY FOR A FALL ONY LOAN IS DECEMBER 4, 2015.
THE DEADLINE TO APPLY FOR A FALL AND SPRING OR SPRING ONLY LOAN IS MAY 2, 2016.

Federal Direct PLUS Loan Information

Federal Direct PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay education expenses. The student must be enrolled at least half-time status in a degree-seeking program at Leeward CC. The Direct PLUS Loan is a loan that must be repaid and repayment begins 60 days after the loan is fully disbursed. For additional information regarding the Federal Direct PLUS Loan program, please visit: https://studentaid.ed.gov/types/loans/plus

Parent eligibility requirements for a Direct PLUS Loan:

You must be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at Leeward CC.

Additional requirements to receive a PLUS Loan:

PLUS loan borrowers cannot have an adverse credit history (a credit check will be done). In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.

Credit check & endorser alternative:

When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan.

Loan limits, interest rate, and loan fees:

The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received.

The interest rate for the Direct PLUS Loan is a fixed rate of 6.84%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact the Direct Loan Servicing Center at 1-800-848-0979.

There is a loan origination fee of 4.292% for loans disbursed before October 1st, 2015. For loans disbursed on or after October 1st, 2015, the loan fee will be 4.272%. The loan fee will be automatically deducted from each loan disbursement.

Repayment:

Repayment begins within 60 days after your loan is fully disbursed and lasts ten years. Parent borrowers may contact the Direct Loan Servicing Center at 1-800-848-0979 for more information.

***Dependent students whose parents have applied for but were denied a PLUS Loan may be eligible to receive additional Direct Unsubsidized Loan funds. Parent must submit their PLUS Denial Letter and increases in Unsubsidized loans are upon written request by the student only.***

Financial Aid Office Information

Hours: Monday through Friday, 8:00 AM to 4:30 PM
Address: 96-045 Ala Ike, AD-210
               Pearl City, HI 96782
Phone: (808) 455-0606
Fax: (808) 453-6371
Email: lccfao [at] hawaii [dot] edu
Federal School Code: 004549

       Related Interest

Copyright 2011-2015 - University of Hawai'i Community Colleges - Leeward Community College
96-045 Ala Ike, Pearl City, Hawaii 96782 • Phone: (808) 455-0011
For inquiries related to this website, email: leeward@hawaii.edu

Map & Directions
Disclaimer | Accessibility