Lawrence Tech students and parents borrow from the Federal Direct Student Loan Program.
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When planning on how to pay for college, most students and their families think about scholarships and grants. Loans are seldom anyone’s first choice in funding an education.
Lawrence Tech participates in the Federal Direct Student Loan Program for student borrowers to assure the availability of student loan funding. If you have any questions contact the One Stop Center. Given the fiscal realities of the time, loans will remain the largest category of funding for a college education. We highly suggest that you research your cost and loan options very carefully before determining how much you need to borrow.
Either you or your parents can borrow an education loan, but there are different programs for students and parents. There are two kinds of education loans: loans based on financial need and loans that are not. Need based loans are more desirable because they have lower interest rates and the interest is subsidized (paid by the federal government) while you are enrolled at least 1/2 time.
An education loan is a form of financial aid that must be repaid, with interest. Education loans come in three major categories: student loans (e.g., Direct Student loans), parent loans (e.g., PLUS loans) and alternative student loans (also called independent student loans).
A great way to help pay back your student loans is by joining the Public Service Loan Forgiveness Program. Check out the PSLF quick fact sheet here: PSLF
You have to apply for financial aid and meet the financial need guidelines to receive one of these loans.
Federal Student loans are funded through the federal government. To receive a federal loan, you must first fill out the Free Application for Federal Student Aid (FAFSA) https://studentaid.gov/. For the on-line application and more information log on to https://studentaid.gov/.
Depending on the student’s financial need, you may borrow subsidized money for an amount up to the annual loan-borrowing limit. Students must demonstrate financial need to apply for a subsidized loan. If you are eligible for a subsidized loan, the government will pay the interest while you are in school.
The Federal Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. Your SAR (Student Aid Report) lists your cumulative loans, but it is important that you also keep records of all your loan transactions. You can also look up your loan history online at: https://studentaid.gov/.
| Student Level & Dependency Status | Maximum (subsidized & unsubsidized) | Maximum (subsidized) |
|---|---|---|
| Dependent freshman | $5,500 | $3,500 |
| Dependent sophomore | $6,500 | $4,500 |
| Dependent junior or senior | $7,500 | $5,500 |
| Independent freshman | $9,500 | $3,500 |
| Independent sophomore | $10,500 | $4,500 |
| Independent junior or senior | $12,500 | $5,500 |
| Graduate/professional | $20,500 | 0 |
| Student Level & Dependency Status | Maximum (subsidized & unsubsidized) | Maximum (subsidized) |
|---|---|---|
| Dependent undergraduate | $31,000 | $23,000 |
| Independent undergraduate | $57,500 | $23,000 |
| Graduate/Professional | $138,500* | $65,500* |
*The graduate debt limit includes loans received for undergraduate study prior to July 1, 2012.
If you reach your lifetime loan limit, you cannot receive any more of that type of loan. If you exceed your limit, aid already disbursed will be returned to the lender or may have to be repaid by you. We encourage that you borrow only what you need for educational expenses, and to keep track of your cumulative debt. If you need additional loan funding to assist you with continuing your education, alternative lending may be an option.
You have to apply for financial aid and meet the financial need guidelines to receive one of these loans.
Unlike a subsidized loan, the student is responsible for the interest from the time the unsubsidized loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate and be added to the principal amount of your loan.
The Federal Direct Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. Your SAR (Student Aid Report) lists your cumulative loans, but it is important that you also keep records of all your loan transactions. You can also look up your loan history online at: https://studentaid.gov/.
| Student Level & Dependency Status | Maximum (subsidized & unsubsidized) | Maximum (subsidized) |
|---|---|---|
| Dependent freshman | $5,500 | $3,500 |
| Dependent sophomore | $6,500 | $4,500 |
| Dependent junior or senior | $7,500 | $5,500 |
| Independent freshman | $9,500 | $3,500 |
| Independent sophomore | $10,500 | $4,500 |
| Independent junior or senior | $12,500 | $5,500 |
| Graduate/professional | $20,500 | 0 |
| Student Level & Dependency Status | Maximum (subsidized & unsubsidized) | Maximum (subsidized) |
|---|---|---|
| Dependent undergraduate | $31,000 | $23,000 |
| Independent undergraduate | $57,500 | $23,000 |
| Graduate/Professional | $138,500* | $65,500* |
*The graduate debt limit includes loans received for undergraduate study prior to July 1, 2012.
If you reach your lifetime loan limit, you cannot receive any more of that type of loan. If you exceed your limit, aid already disbursed will be returned to the lender or may have to be repaid by you. We encourage that you borrow only what you need for educational expenses, and to keep track of your cumulative debt. If you need additional loan funding to assist you with continuing your education, alternative lending may be an option.
A PLUS Loan for parents is available to parents of dependent students. The student must first complete a FAFSA. PLUS loans are credit worthy. Should a parent not pass the credit check the student will be offered an additional $4,000 in an unsubsidized loan.
Lawrence Tech parents borrow directly from the Federal Direct PLUS loan program.
Under the Federal Direct PLUS Program, parents (or stepparents) of dependent students may borrow up to the full cost of their child’s education minus other aid. Credit checks are required, and parents who have an adverse credit history (determined by federal credit regulation) may not be able to borrow under the PLUS program.
The Loan Maximum is the student’s cost of attendanceminus other financial aid received for the loan period. Youdetermine the amount to borrow based on the portion of your educational costs tobe financed. Visit our estimate page for an example of how to estimate your amount.
A parent borrowing the first time must complete an electronic master promissory note (MPN). Once we receive credit approval and acknowledgement of the signed MPN, the funds pay to the student’s account (no earlier than 10 days prior to the start of the semester).
PLUS Loan borrowers have the right to cancel their loan disbursements within 14 days of the disbursement notice. Should you decide to cancel the disbursement of your PLUS Loan, you should contact the One Stop Center at enrollmentservices@ltu.edu in writing within the specified time period. By canceling the disbursement, you will be responsible for any unpaid tuition and fees, as well as repayment of loan funds already paid to you.
It’s fast and easy – one parent logs on using his/her FSA ID; one link access for applying; receiving credit result and signing the Master Prom Note. If applying for the upcoming fall semester credit checks are available after May 1.
Lawrence Tech will receive an electronic document with the information necessary to process a PLUS loan for you. Be sure to indicate the amount of funds you want to borrow and at the same site you can request a deferment of payment.
If you are denied credit Direct Loan will ask if you would like to appeal the decision; get an endorser or accept the denial and have the Federal Direct Unsubsidized replacement loan processed for the student.
The Federal Direct Graduate and Professional PLUS loan program offers graduate and professional students the opportunity to borrow federal loans up to their cost of attendance minus all other aid sources.
To apply for a PLUS loan, graduate and professional students must:
PLUS loans may be used for tuition, housing, food, books and some transportation expenses.
Read more about the terms and conditions of this loan.
There are times when Federal Aid is not enough to cover the cost of tuition, housing, books and other essentials to complete your education. In those cases, alternative borrowing could fill the need.
Admitted students are automatically considered for merit awards, and additional competitive and donor-supported scholarships are offered for first-year, transfer, graduate, and current students.
Financial Aid counselors can answer any questions students may have regarding the FAFSA, the verification process, loans, and many other aid related topics. Our team has over 50 years of combined experience! Students are assigned to counselors by alphabetical order to ensure consistency while working with prospective or current students and families.
Phone: 248.204.2280
Fax: 248.204.2228
Email: financialaid@ltu.edu
Monday – Friday
8 a.m. – 4:30 p.m.
