Student Loans
Lincoln College participates in the William D. Ford Federal Direct Loan Program. The Direct Loan Program is the alternative to the traditional Federal Family Education Loan Program (FFEL) which involves a Lender (e.g., a bank or credit union) and a Guaranty Agency.
The terms and conditions of a Direct or a FFEL loan are similar. The major differences between the two are the source of the loan funds, some aspects of the application process, and the available repayment plans.
Direct and FFEL Stafford Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need, an unsubsidized loan is not. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period.
NOTE: Lincoln College can refuse to certify your loan application or can certify a loan for an amount less than you would otherwise be eligible for, if the Financial Aid Office documents the reason for its action and explains the reason to you in writing. The school's decision is final and cannot be appealed to the U.S. Department of Education.
The amounts given below are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. You may receive less than these yearly maximum amounts if you receive other financial aid that is used to cover a portion of your cost of attendance.
If you're a dependent undergraduate student at Lincoln College you can borrow up to:
- $3,500 if you're a first-year student enrolled in a program of study that is at least a full academic year;
- $4,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.
If you're an independent undergraduate student or a dependent student whose parents are unable to get a PLUS Loan, you can borrow up to
- $9,500 if you're a first-year student enrolled in a program of study that is at least a full academic year (only $3,500 of this amount may be in a subsidized loan; the remainder will be unsubsidized).
- $10,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (only $4,500 of this amount may be in subsidized loans; the remainder will be unsubsidized).
Students who have not previously borrowed under the William D. Ford Federal Direct Student Loan Program are required to complete entrance loan counseling. After students have been awarded the William D. Ford Federal Direct Student Loans, they will receive information about the entrance loan counseling.
Students who have not previously borrowed under the William D. Ford Federal Direct Student Loan Program are required to complete new MPN for the Stafford Student Loan on the Direct Loan website.
Parent Loan for Undergraduate Students (PLUS)
PLUS Loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time.
Lincoln College participates in the William D. Ford Federal Direct Loan Program. The Direct Loan Program is the alternative to the traditional Federal Family Education Loan Program (FFEL) which involves a Lender (e.g., a bank or credit union) and a Guaranty Agency.
- Are there any borrowing requirements my parents have to meet?
Yes. To be eligible to receive a PLUS Loan, your parents generally will be required to pass a credit check. If they don't pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan, promising to repay it if your parents should fail to do so. Your parents might also qualify for a loan even if they don't pass the credit check if they can demonstrate that extenuating circumstances exist. You must meet the general eligibility requirements for federal student financial aid. Your parents must also meet some of these general requirements. For example, your parents must meet citizenship requirements and may not be in default or owe a refund to any Student Financial Aid Program.
- How much can my parents borrow?
The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. For example, if your cost of attendance is $6,000 and you receive $4,000 in other financial aid, your parents could borrow up to--but no more than--$2,000.
Parents who have not previously borrowed under the William D. Ford Federal Direct Student Loan Program are required to complete new MPN for the Stafford Student Loan on the Direct Loan website.
Further, all PLUS loan borrows must yearly complete the Consent to Obtain Credit Application by printing it out completing it and returning it to the Lincoln College Financial Aid Office
NOTE: Lincoln College can refuse to certify your parents' loan application, or can certify a loan for an amount less than they would otherwise be eligible for, if the Financial Aid Office documents the reason for its action and explains the reason to your parents in writing. The school's decision is final and cannot be appealed to the U.S. Department of Education.
Updated
4/29/09
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