Student Loans
Student Loans are a form of financial aid that requires repayment
of the funds received, usually with interest. Some loans may be
in either the student's or the parents' name. All loans require
a promissory note, and some require a separate application.
Federal Stafford Loans
There are two types of Federal Stafford Loans: subsidized and unsubsidized. Subsidized Stafford Loans are based on financial need as determined by the FAFSA application. Both loans carry a fixed interest rate of 6.8%.
Stafford Loans may be charged a 0 to 3% origination and guarantee
fee deducted when funds are disbursed. If a Stafford Loan appears
on your award notice, you should anticipate receiving 97 to 100%
in net funding. However, different lenders charge different amounts.
Lincoln College is pleased to recommend the following commonly used
lenders that do not charge an origination fee for the processing
and origination of Federal Stafford Loans.
Sallie Mae Education Trust - Lender Code: 802218
National City - Lender Code: 808942
Students must complete Entrance Counseling as a Federal requirement
before receiving Stafford loan funds. Entrance Counseling may be
completed online at www.mappingyourfuture.org. Contact the Financial Aid Office for more information.
Subsidized Stafford Loans:
Eligibility for a subsidized Stafford Loan is based on financial
need as determined by the FAFSA form.
Subsidized Stafford Loans allow for a deferment of principal payments
while the student is enrolled as at least a half-time student in
a degree-seeking program.
Students are allowed a six-month grace period upon leaving college
before making payments on principal and interest of the loan.
Interest subsidies while the student is in school are paid by the
federal government.
Unsubsidized Stafford Loans:
Unsubsidized Stafford Loans allow for deferment of principal payments
while the student is enrolled as at least a half-time student in
a degree-seeking program.
Students are allowed a six-month grace period upon leaving college
before making payments on the principal of the loan.
Important: With the Unsubsidized Stafford Loan,
interest subsidies while the student is in school are assumed by
the student borrower, not the federal government. This means that
interest will accrue on the loan during the in-school and 6-month
grace period. Students are strongly encouraged to make monthly interest
payments on the unsubsidized Stafford Loan while in school. Deferring
the interest allows it to be capitalized, and this accrued amount
will be added to the loan principal when repayment begins.
Federal Perkins Loan
The Financial Aid Office awards Federal Perkins Loans to students
based on a combination of significant need as demonstrated on the
FAFSA form and the availability of funds.
The interest rate for the Perkins Loan is 5%, and no interest or
principal payments are due until 9 months after a student graduates
(or drops below half-time status).
Federal PLUS Loans
PLUS Loans are borrowed by parents to assist in paying college costs
for their children. The PLUS Loan carries a fixed interest rate
of 8.50%. Parents may borrow up to the cost of education minus all
other financial aid being received by the student.
A PLUS Loan amount appearing on a student’s financial aid
award notice is only a recommendation. A pre-application is available
in the Financial Aid Office and also included in the financial aid
packet to initiate processing.
PLUS Loans are charged a 3% origination fee when funds are disbursed.
Students should anticipate receiving 97% in net funding.
Alternative Loans
Learn more about alternative loans.
Updated
5/1/08
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