Lakewood University's

Student Loans

Student Loans

Loans can be a good option to help meet educational costs but need to be repaid and most accrue interest while a student is in-school.  Students are encouraged to borrow wisely and compare the different benefits, eligibility requirements, and repayment options available. Student loans can be awarded if applicable to the University.

FEDERAL DIRECT STAFFORD LOANS

Federal Direct Stafford Loans (Subsidized and Unsubsidized) are made available to degree-seeking students, that are enrolled at least half-time, through the U.S. Department of Education. To apply for a federal student loan, you must complete and submit a Free Application for Federal Student Aid (FAFSA). Based on the results of your FAFSA, Lakewood will send you a financial aid offer, which may include a combination of subsidized and unsubsidized federal student loans.

Direct Subsidized Loans

Loans offered to eligible undergraduate students who demonstrate financial need, as determined by the FAFSA, to help cover the costs of higher education.  With Subsidized loans, the U.S. Department of Education will cover the interest accrued while a student is attending school at least half-time and during eligible deferment periods.

Direct Unsubsidized Loans

Loans offered to eligible undergraduate, graduate, and professional students; whose eligibility is not based on financial need.  With Unsubsidized loans, you are responsible for paying the interest that accrues while attending school and during the post-enrollment grace period.

You may choose to defer the interest, but if this option is selected, the interest will be capitalized (added to the principal loan amount) upon repayment.

Additional Requirements

Before you receive your loan funds, you will be required to complete Loan Entrance Counseling (LEC) and sign a Subsidized/Unsubsidized Master Promissory Note (MPN):

  • Entrance Counseling– To ensure you understand your loan responsibilities and obligations.
  • Master Promissory Note– A legal document in which you promise to repay your federal student loan(s) and any accrued interest and fees to your lender.
  • Exit Counseling– Required each time you drop below half-time enrollment, graduate, or leave school (even if transferring to another school). Please note that completing exit counseling does not cause your loans to enter repayment.
  • You must not be in default on previously borrowed student loans, exceeded your lifetime loan limits or have any other markings that make you ineligible for borrowing student loans. This information can be viewed on National Student Loan Data System (NSLDS).

All requirements can be completed online at StudentLoans.gov; you will need to login using your FSA ID.

Loan Limits:

There are limits on the amount of Federal Direct Stafford Loans that you may be eligible to receive each academic year (annual loan limits) and the total amount that you may borrow as an undergraduate or graduate/professional student (lifetime loan limits). Different loan limits also apply to dependent vs. independent undergraduate students.

Helpful Links:
Direct Subsidized and Unsubsidized Interest Rates
Direct Loan Repayment Information
Federal Student Loans – Basics for Students

DIRECT PARENT PLUS LOAN

Parents of dependent undergraduate students may apply for the credit-based Direct Parent PLUS Loan from the U.S. Department of Education to help cover educational expenses.

To receive a Parent PLUS Loan, you must:

  • be the biological or adoptive parent (or stepparent, if included on the FAFSA) of a dependent undergraduate student enrolled at least half-time at an eligible school
  • not have an adverse credit history; and
  • meet the general eligibility requirements for federal student aid.
To Apply:

Complete the Direct PLUS Loan Application for Parents online at StudentLoans.gov.

Applications are available beginning May 1, 2020 for the 2020-2021 academic year.

Important Note: The Parent must sign onto StudentLoans.gov using their FSA ID and password.  Repaying the Parent PLUS Loan is the legal responsibility of the parent borrower.

Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive parent PLUS loans, even if they have had the primary responsibility for raising the student.

Some private loan options may be available for parents that are not the biological or adoptive parent, but wish to borrow a loan to support the student’s educational goals.

Additional Requirements:

Before PLUS loan funds are received, the parent will be required to:

  • Complete the PLUS Master Promissory Note(MPN) for Parents – A legal document in which you promise to repay your federal parent loan(s) and any accrued interest and fees to your lender.
Refund of “Excess Funds” Policy:

Disbursements for Direct PLUS Loans will be deposited in the student’s Lakewood account. Disbursements will be used to pay current educational charges and minor non-educational charges. PLUS Loan proceeds disbursed in excess of these charges will be refunded to the student as authorized by the parent on the PLUS Loan Request.

The parent borrower can choose to directly receive any excess PLUS loan funds when completing the PLUS Loan Request. The proceeds of the Direct PLUS Loan are first applied to the student’s school account to pay tuition, fees, room, board, and other authorized charges (even if these charges have been previously paid by other funds). If any excess PLUS loan funds exist, paper checks are issued and mailed to the parent borrower approximately 10 days following disbursement notification.

DIRECT GRADUATE PLUS LOAN

Graduate or professional students may apply for the credit-based Direct Graduate PLUS Loan from the U.S. Department of Education to help cover educational expenses if applicable to the University.

To receive a Graduate PLUS Loan, you must:

  • be a graduate or professional student enrolled at least halftime at an eligible school in a program leading to a graduate or professional degree or certificate
  • not have an adverse credit history; and
  • meet the general eligibility requirements for federal student aid.
To Apply:

Complete the Direct PLUS Loan Application for Graduate/Professional Students online at StudentLoans.gov.

Applications are available beginning May 1, 2020 for the 2020-2021 academic year.

Additional Requirements

Before PLUS loan funds are received, the student will be required to complete:

  • The PLUS Master Promissory Note(MPN) for Graduate/Professional Students – A legal document in which you promise to repay your federal loan(s) and any accrued interest and fees to your lender.
  • Entrance Counseling– Be sure to select “as a graduate or professional student”, which fulfills counseling requirements for both the Direct Stafford and Direct PLUS Loans.
Helpful Links:

More Info on PLUS Loans for Graduates/Professionals

PRIVATE/BANK LOANS (“ALTERNATIVE” LOANS)

Private loans may be a good option to help bridge the costs of education after a student has been awarded full federal grant and loan eligibility, as well as any scholarship or institutional aid offered.

  • Private loans can be borrowed up to the cost of attendance, less other aid received.  Schools are required to certify loan eligibility and enrollment in accordance with a lender’s specific loan and borrower requirements.
  • Private loans are now available to parents seeking an alternative to the traditional Federal Direct Parent PLUS Loan.  Parents are encouraged to compare the federal and private loan options and choose the loan that best meets their needs.
Helpful Link:
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