Alternative loans are credit-based student loans offered by private lenders.  They are available to students who need funds in addition to their federal aid to meet educational expenses or for those students not eligible for federal aid.  If you have reached your loan limits for the Federal Stafford Subsidized and Unsubsidized loan programs, but you still need money for your education, the alternative loan can help you.  Additionally, the alternative loan option is beneficial to international students and to those students that are non-degree seeking or may be enrolled for less than halftime, or to dependent students whose parents are not willing to take out a Federal PLUS Loan.

Alternative loans are largely based on the applicant's creditworthiness. As with the Federal PLUS, the borrower may be eligible to borrow the difference between the cost of attendance and financial aid (some lenders may have annual caps on the maximum amount borrowed). Repayment on most of these loans, however, starts six months after the student leaves school. Loan terms vary from lender to lender--each uses its own formula for calculating interest, some lenders charge fees and others do not, and each company has its own definition of creditworthiness The interest rate is generally higher than that of the Federal Stafford Loans, and interest may be capitalized more frequently. Please check with the lender for more information on each loan. Before applying for an alternative loan, please discuss all of your options with the Financial Aid Office.

Please keep the following in mind:

• Variable vs. Fixed Interest Rates
• Delayed Repayment (in-school deferment) vs. Immediate Repayment
• Application, Processing, and Disbursement Fees
• Flexible Repayment Options (repayment after no longer enrolled)
• Repayment Incentives (interest rate reduction for one-time payments, electronic bill payment, etc.)
• Consolidation Options

Private Loan Self-Certification

This self-certification form MUST be completed and submitted to LCC. To complete the self-certification form, please visit our forms page.

Students must thoroughly investigate all funding options and lender differences prior to applying for an alternative loan. For your convenience, LCC has listed the lenders used by other students over the last three years. LCC does not promote, endorse, or recommend the educational loan products of these lenders. LCC will process a loan application from any alternative lender. Students can obtain information on other alternative lenders by conducting an Internet search for alternative student loans.

• Campus Door
• Chase
• CU Student Loans
• Fifth Third Bank
• Lake Trust Credit Union
• PNC Bank
• Sallie Mae
• Wells Fargo

LCC offers three types of Federal Direct Loans; the lender is the US Department of Education. You must complete the Free Application for Federal Student Aid (FAFSA) in order to determine your eligibility for these loans.

• Federal Direct Subsidized Stafford Loans are need-based, and interest-free while enrolled at least half time (minimum six credits). The loan is borrowed by the student.
• Federal Direct Unsubsidized Stafford Loans are not need-based, and accrue interest while you are enrolled at least half-time (minimum six credits) and during repayment. The loan is borrowed by the student.
• Federal Direct Parent Loan for Undergraduate Students (PLUS) Loans are not need-based and accrue interest while the student is enrolled at least half-time (minimum six credits). PLUS Loans are borrowed by a parent to pay for the educational costs of his/her dependent student.

• Federal Interest Rates Information
• Interest on Federal Direct Unsubsidized Loans accrues during half-time enrollment.
• You may choose to capitalize your interest. If you capitalize your interest, you will pay more over the life of your loan than you would if you choose to pay the interest only portion of your loan(s) while you are in school.
• You may choose to pay the interest while in school, you may decide that you can no longer afford to do so if you choose and switch to capitalizing the interest.

If you have earned fewer than 30 credits (including transfer credits) and have never borrowed a federal loan, federal regulations require that your first loan disbursement (1/2 of the total amount borrowed) be delayed until the 31st day of the semester.

If your federal loan is for one-semester only, federal regulations require your loan be disbursed in two equal payments with the second disbursement being available after the mid-point of the semester.

Visit Disbursements for additional information.

• Maintain a minimum of half-time status during the semester you wish to receive aid. At LCC, you must be actively enrolled for six credits to be considered half-time (this includes the Summer Semester).
• Complete all tracking requirements. Tracking requirements can be viewed by logging into the Banner Web Self-Service.
• Meet LCC's Satisfactory Academic Progress Policy.

Loans are calculated using cost of attendance (COA) and expected family contribution (EFC).

Review the Federal Direct Loan section above for important information regarding loan types and requirements.

The following charts explain maximum annual loan amounts available to students for the current academic year. If you attend multiple institutions during an academic year, the total loans you receive between the institutions cannot exceed the amounts listed.

Loan Limits Table

*A Dependent Student whose parent has been denied a PLUS Loan is eligible for the amounts listed in the independent table.

Once an award offer is made, you can accept, reduce, or decline the amounts by logging into the Banner Web Self-Service.

If it is your first time borrowing a Stafford loan at LCC, you must complete:

• Entrance Counseling
  • Tutorial about Federal Direct Subsidized and Unsubsidized Loans.
  • From the Direct Loan Servicing Website, select the Entrance and Exit Counseling link at the top of the page.
  • Click Go in the Entrance Counseling section.
  • Click Tutorial and Quiz in the Stafford Loan section.
  • Follow the instruction provided.
  • LCC will receive electronic notification that you have completed the session 2-4 business days after you have done so.
• Master Promissory Note
  • The agreement between you and the federal Government to repay the Federal Direct Loans you receive.
  • You will use the 4 digit PIN number that you used to electronically sign your FAFSA.
  • From the MPN website, select "Complete New MPN for Student Loans" from the left side of the screen.
  • On the follow page select Subsidized/Unsubsidized.
  • Follow the instructions provided.
  • LCC will receive electronic confirmation that you have signed your MPN 2-4 business days after you have done so.

Before you graduate (or if you drop below half-time attendance), federal regulations require that you complete an Exit Counseling Session.

• Exit Counseling
  • Click Exit Counseling link.
  • Follow instructions provided.
  • Login by providing the information requested.
  • Complete tutorial and quiz.
  • Proceed until you receive a confirmation page.
  • LCC will receive electronic confirmation that you have completed the session 2-4 days after you have done so.

If you have questions regarding repayment, you must contact your servicer. The federal government contracts with many servicers.

• Your servicer has the following online resources to assist you:
  • View your account
  • Make payments
  • Deferment information and forms
  • Forbearance information and forms
  • Consolidation information and forms
  • E-Mail servicer staff

• To determine your servicer(s) and view your total Direct Loan history:
  • Log into the National Student Loan Data System.
  • Click Financial Aid Review and follow the directions to confirm your identity and login.
  • This system includes all Federal Loans borrowed.

Review the Federal Direct Loan section above for important information regarding loan types and requirements.

PLUS Loans:

• Are borrowed by a parent to pay for the educational costs of his/her dependent student.
• Are based on the parent's credit. The credit check is conducted by the lender (the U.S. Department of Education).
  • Students whose parent has been denied a PLUS loan based on credit may qualify for additional Federal Direct Unsubsidized Stafford Loans.
  • Parents may choose to get an Endorser (co-signer).
  • If you wish to get an Endorser or appeal the credit decision made, please contact Applicant Services at 1-800-557-7394.
  • Begin repayment sixty days after the first disbursement of the loan.
  • Accrue interest while the student is enrolled half-time.

To apply for a PLUS Loan:

• Student and parent must complete the FAFSA.
• Parent and student must complete LCC's Parent Loan Application (you will be directed to our forms page; please select the form from the appropriate aid year).
• Parent must complete a Master Promissory Note (MPN)
  • The agreement between the parent and the Federal Government to repay the Federal Direct Loans received to pay for the son/daughter(s) educational costs.
  • The parent will use the 4 digit PIN number that he/she used to electronically sign the FAFSA.
  • From the MPN website, select "Complete new MPN for Parent PLUS Loans" from the left side of the screen.
  • Follow the instructions provided.
  • LCC will receive electronic confirmation that the parent has signed his/her MPN 2-4 days after the parent has done so.