What is a Stafford student loan?
The Stafford student loan is a federal loan program offered to eligible students. It is unique in that you are not required to make loan payments until six months after you are no longer attending college at least half time. The interest rates are variable and are normally lower than the typical bank loan. Although you choose a lender, you do not have to actually contact a bank. The loan application is made directly through the college's financial aid website.

Who qualifies for a Stafford student loan?
Most students qualify for a Stafford student loan as long as they are U.S. citizens or eligible non-citizens, are enrolled in an eligible program for at least 6 non-repeated credits per term, and are not in default on a student loan or owe a repayment to a federal grant program. There is a maximum of financial aid that you can receive while attending the college each year, so your Stafford loan eligibility could be limited if you are receiving your maximum financial aid through other sources. You can obtain further information on maximum financial aid at http://www.lsc.edu/financialaid/hwaiddet.cfm.

What is the difference between the subsidized and unsubsidized Stafford student loan?
A subsidized Stafford loan is "subsidized" by the federal government. The federal government pays the interest for you while you are in school. The unsubsidized Stafford loan does not qualify for government subsidies; therefore you are responsible for paying the interest that accrues while you are in school.

How many credits must I take to qualify for a Stafford student loan?
It is a federal regulation that you must be enrolled for a minimum of 6 non-repeated credits in an eligible program each semester to receive a loan.

What is the interest rate on the Stafford student loan?
Interest rates change every July 1st. The rate is currently 6.8% while you are in school or in deferment.

How much am I allowed to borrow in a Stafford student loan?
That varies, depending on your grade level, dependency status, and the other types of financial aid you are receiving. Normally the following applies: A dependant 1st year student is eligible for $2625 maximum for the academic year. A dependant 2nd year student is eligible for $3500 maximum for the academic year. An independent 1st year student is eligible for $2625 subsidized maximum and $4000 unsubsidized maximum for the year. An independent 2nd year student is eligible for $3500 subsidized maximum and $4000 unsubsidized maximum for the year.

When am I eligible to apply for a Stafford student loan?
You must have completed the Free Application for Federal Student Aid (FAFSA) and received an award letter prior to applying for the loan. Your award letter includes instructions on applying for the loan online.

What happens if I apply for a Stafford student loan before I receive an award letter?
Since you are not eligible to apply for a loan until you have received an award letter, the loan will not be processed. You will need to re-apply for the loan once you receive your award letter.

How do I apply for a Stafford student loan?
When you receive your award letter, you will be directed to go to www.lsc.edu and click on "current students" followed by "financial aid." You will find "Apply for Loans Online" in the Quick Links column. Make sure you choose the correct academic year.

If I don't want to work under the Work Study program, can I receive additional Stafford student loan funds?
In some cases students are eligible to decline their Work Study eligibility and receive additional Stafford student loan eligibility. However, this is only in the case where you have not already applied for the maximum amounts allowed for your dependency status and grade level and your current financial aid does not exceed your financial aid budget. If you feel you may be eligible for additional Stafford loan funding, you should contact the loan officer in the Enrollment Services Center or e-mail us at enroll@lsc.edu to request that your Work Study eligibility be removed.

I received grants/loans at another college but because I withdrew, I now have to repay part of the money. Can I still get loans at your college?
You cannot receive either federal grants or loans if you owe a repayment to a federal grant program. The Department of Education monitors that for us and notifies us when you owe a repayment. You will want to contact the college involved and make the repayment as quickly as possible. Once you have done so, you may provide us with a letter from the college verifying that it has been paid in full and we can offer you funding at our college.

I have defaulted on a student loan. Can I still receive loans if I attend your college?
If you have defaulted on a student loan, you cannot receive any financial aid until you have either repaid the defaulted loan or made satisfactory arrangements to repay the loan. This usually means making six consecutive monthly payments toward the defaulted loan. Once you have made satisfactory arrangements, you must provide us with a written statement from the Department of Education or collection agency stating that "satisfactory arrangements have been made and the student is eligible to receive Title IV funding."

I have borrowed numerous Stafford student loans while attending other colleges. What is the total amount of Stafford student loans I can borrow as a college student?
A dependent student cannot borrow more than a combined total of $23,000 in Stafford student loans. An independent student cannot borrow more than $23,000 in subsidized Stafford loans, with no more than a combined total of $46,000 in Stafford student loans.

How does bankruptcy affect my eligibility for student loans?
Student loan eligibility is not affected by bankruptcy.

What other loans can I apply for?
You may consider SELF loans, PLUS loans, or Alternative loan programs if you require additional funding to pay for your educational costs. You can access information about these loan programs at http://www.lsc..edu/financialaid/loans.cfm and apply for loans online at http://www.lsc.edu/financialaid/applyloanonline.cfm

If I decide I don't want all of the loan funds after I've applied, how do I cancel or return some of the loan funds?
You need to complete the Federal Stafford Loan Cancellation Request form available from the student services center. You can email us at enroll@lsc.edu and request a form. This form allows you to cancel all or part of your loan as long as the request is received within 14 days of the loan funds being applied to your account. Please submit the completed form to the Student Services Center.

For more Stafford Loan FAQ's: Apply Stafford Loans Online .