Loan Frequently Asked Questions

  • Federal loans assist with the costs associated with your education.
  • Borrow at a lower interest rate than private loans.
  • You have several repayment options available.
  • No credit check.

Subsidized Loans

  • Need based.
  • No interest accrued until 6 months after you leave school.

Unsubsidized Loans

  • Non-need based.
  • Interest accrues while you are attending school.

  • Eligibility is determined based on completion of the Free Application for Federal Student Aid (FAFSA).
  • You must be enrolled for at least 6 credits per semester.
  • You must be in good academic standing.

  • Accept your loans as part of your financial aid offer on WarriorWeb.
  • You must complete Entrance Counseling when you first borrow at studentaid.gov
  • You must complete a Master Promissory Note (MPN) at studentaid.gov
  • An MPN needs to be completed once every ten years unless you have a stop out period of greater than a year.

  • There is an annual limit and an aggregate limit based on dependency status.
  • Dependent students (had to provide parental information on the FAFSA) can borrow up to the following amounts annually:
    • Freshman (0-25 credits) - $5500 (no more than $3500 of this amount may be in subsidized loan)
    • Sophomore (26-57 credits) - $6500 (no more than $4500 of this amount may be in subsidized loan)
    • Junior/Senior (58+ credits) - $7500 (no more than $5500 of this amount may be in subsidized loan)
  • Aggregate limit for a dependent student is $31,000. Subsidized loan limit cannot exceed $23,000.
  • Independent Students (did not have to provide parental information on the FAFSA) can borrow up to the following amounts annually:
    • Freshman (0-25 credits) - $9500 (no more than $3500 of this amount may be in subsidized loan)
    • Sophomore (26-57 credits) - $10,500 (no more than $4500 of this amount my be in subsidized loan)
    • Junior/Senior (58+ credits) - $12,500 (no more than $5500 of this amount may be in subsidized loan)
  • Aggregate limit for an independent student is $57,500. Subsidized loan limit cannot exceed more than $23,000.
  • Student may borrow up to listed amounts above, but cannot exceed the Cost of Attendance.

  • Fixed interest rate for the 2024-2025 academic year is 6.53%.
  • The interest rate changes each July 1 for the next academic year.

  • There is an origination loan fee assessed to each loan disbursement.
  • 1.057% is the origination fee for a loan first disbursed on or after October 1, 2020 and before October 1, 2025.

LC State provides enrollment data each semester to the loan servicers.

Your loan servicer will contact you once you are reported as graduated, withdrawn or attending less than half-time.

You will have a one-time 6 month grace period before payments will begin.

  • For information on your loans, including your current loan amounts borrowed and who your servicer is, log into the Federal Student Aid website at studentaid.gov
  • You will need to use your FSA ID and password to log in.

  • Check with the Financial Aid Office to determine eligibility.
  • Complete the "Request a New Loan" option on the Financial Aid page of WarriorWeb for the amount you would like to borrow.
  • If you haven't already done so, you will need to complete your Master Promissory Note (MPN) and Entrance Counseling at studentaid.gov
  • You will receive a Revised Aid Offer notification in your LCMail.
  • Be sure to accept additional funds on WarriorWeb (if necessary).

  • Your parent(s) may be eligible for a Parent Loan for Undergraduate Students (PLUS).
  • Your parent(s) complete a PLUS Loan application at studentaid.gov. They log into the website using their FSA ID.
  • If approved, your parent(s) would need to complete the Master Promissory Note (MPN) on that same website.
  • If denied, you would be eligible for additional unsubsidized loan funding (see How do I apply for additional loan funds?).
  • You also have the option of applying for a private/alternative education loan with an outside lender/bank. You will need a creditworthy co-signer.
  • You would apply directly with the lender/bank. Examples:  Discover or Navient (formerly SallieMae).
  • LC State has no affiliation with these private/alternative education loan lenders/banks nor does LC State promote one lender/bank over another.

  • You have the option to apply for a private/alternative loan with an outside lender/bank. You may need a creditworthy co-signer.
  • You would apply directly with the lender/bank. Examples:  Discover or Navient (formerly SallieMae).
  • LC State has no affiliation with these private/alternative education loan lenders/banks nor does LC State promote one lender/bank over another.