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Financial Aid Applying for Federal Direct Loans

Steps to Apply for a Student Loan:

  1. Complete the 2014-2015 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 Entrance Counseling at https://studentloans.gov.
  3. Complete the Financial Awareness Counseling at https://studentloans.gov.
  4. Complete the Master Promissory Note (MPN) at https://studentloans.gov (only if applicable):
    • For NEW first-time Direct Loan borrowers, you must complete the MPN online.  Loan funds will not be disbursed until your MPN is completed.
    • For CONTINUING Direct Loan borrower, your MPN is still valid and you do not need to complete another MPN. 
  5. Complete and submit the Federal Direct Student Loan Request Form to the Financial Aid Office.

***Please allow up to one week for our office to receive notification of your completed Entrance Counseling, Financial Awareness Counseling, and/or Master Promissory Note***

THE DEADLINE TO APPLY FOR A FALL ONLY LOAN IS DECEMBER 5, 2014.  THE DEADLINE TO APPLY FOR A FALL AND SPRING OR SPRING ONLY LOAN IS MAY 1, 2015.

Federal Direct Subsidized Loan – 4.66% 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. 
  • NEW: 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. 

Federal Direct Unsubsidized Loan – 4.66% 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 earned
    • Freshmen = 0-24 earned credits
    • Sophomore = 25+ earned credits
  2. Length of academic program
  3. Cost of attendance
  4. Dependency status (dependent or independent)

Annual loan limits are as follows:

 

Dependency Status and 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

General Direct Loan Information:

  • You must be enrolled for at least half time status (6 credits) to be eligible for a student loan.
  • If you are a first-time, first year borrower at LCC, there will be a 30-day delay in the disbursement of your loan funds.
  • If your loan period is for a single semester (Fall 2014 only OR Spring 2015 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 1.072% loan origination fee on all subsidized and unsubsidized loans.  The loan fee will be proportionately deducted for each loan disbursement.
  • You may decline your loan funds and/or cancel future disbursements by submitting a written statement to the Financial Aid Office.
  • 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.  
  • Federal student loans are considered to be financial aid and are subject to our Satisfactory Academic Progress (SAP) Policy.

Steps to Apply for a Parent PLUS Loan:

  1. Complete the 2014-2015 Free Application for Federal Student Aid (FAFSA) at http://fafsa.ed.gov.
  2. Complete the PLUS Loan application at https://studentloans.gov.  The PLUS loan requires a credit approval and the approval is valid for only 90 days. 
  3. Complete the Federal Direct PLUS Master Promissory Note (MPN) at https://studentloans.gov.
  4. Complete and submit the Federal Direct Parent PLUS Loan Request Form to the Financial Aid Office.

THE DEADLINE TO APPLY FOR A FALL ONLY LOAN IS DECEMBER 5, 2014.  THE DEADLINE TO APPLY FOR A FALL AND SPRING OR SPRING ONLY LOAN IS MAY 1, 2015.

Federal Direct Parent PLUS Loan

Direct Parent PLUS loans are unsubsidized loans for the parents of dependent students. Parent PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. These loans are awarded to dependent undergraduate students who meet the following criteria:

  • Enrolled in an eligible degree-seeking program at Leeward Community College (LCC)
  • Enrolled at least half-time (6 credits)

Parent eligibility requirements for a Direct PLUS Loan:

You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time (6 credits) at LCC.

Additional requirements to receive a Parent PLUS loan:

Parent 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 Parent 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 Direct Parent PLUS Loans is a fixed rate of 7.21%. 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 4.288% loan origination fee on all Direct Parent PLUS Loans.  The fee will be proportionately 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 Parent 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

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96-045 Ala Ike, Pearl City, Hawaii 96782 • Phone: (808) 455-0011
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