Pay for School
Student Loans
As of July 1, 2010, the U.S. Department of Education became the sole provider of federal education loans. The loans the Department makes to students and parents through the William D. Ford Federal Direct Loan Program are known as Direct Loans and are serviced by one of four large servicers under contract to the Department.
Private lenders who participated in the Federal Family Education Loan Program (FFELP) no longer offer new Stafford (subsidized and unsubsidized), PLUS or Consolidation Loans; however, most all continue to service the loans they made before July 1, 2010. Students who have previously received a federal student loan from a private lender under the FFELP must complete a new promissory note to receive a loan under the Direct Loan Program. Contact the financial aid office at the student's school for more specific application instructions.
William D. Ford Federal Direct Loan Program
Direct Loans are available for use at any instate or out-of-state college or university that is eligible to participate in the federal loan program. More information is available at the Department's website Student Aid on the Web.
Direct Subsidized and Unsubsidized Loans for students
For undergraduate or graduate students
A Direct Subsidized Loan is available to students who have a financial need. A Direct Unsubsidized Loan is an option for students who do not demonstrate financial need. Need is determined based on information you provide in the Free Application for Federal Student Aid (FAFSA).
- First year of undergraduate school - $5,500 with no more than $3,500 being subsidized
- Second year of undergraduate school - $6,500 with no more than $4,500 being subsidized
- Third year and beyond of undergraduate school - $7,500 with no more than $5,500 being subsidized
- First year of undergraduate school - $9,500 with no more than $3,500 being subsidized
- Second year of undergraduate school - $10,500 with no more than $4,500 being subsidized
- Third year of undergraduate school - $12,500 with no more than $5,500 being subsidized
- Graduate/professional students - $20,500 with no more than $8,500 being subsidized
- Dependent undergraduate students - $31,000, no more than $23,000 may be subsidized
- Independent undergraduate students - $57,500, no more than $23,000 may be subsidized
- Graduate students (includes any undergraduate loans) - $138,500, no more than $65,500 may be subsidized
Dependent students
Independent students
Aggregate lifetime maximum for Direct Subsidized and Unsubsidized Loans
Direct PLUS Loans for Graduate/Professional Students
For graduate or professional students
Do not have to demonstrate financial need to borrow a PLUS Loan, but must have a good credit history and have already applied for your annual loan maximum eligibility under the Direct Subsidized or Unsubsidized Loan program. Maximum loan amount is the cost of attendance less other financial aid received.
Direct PLUS Loans for Parents
For parents of dependent undergraduate students under age 24
Do not have to demonstrate financial need to borrow a Direct PLUS Loan, but must have a good credit history. Maximum loan amount is the cost of attendance less other financial aid received.
Direct Consolidation Loans
After graduation or leaving school, some borrowers may consider combining multiple eligible federal student loans into one Direct Consolidation Loan. Comparing other repayment options first may save you money on your loan. Visit Direct Consolidation Loans for additional information.
Contact an LGFCU Financial Counselor
LGFCU staff is happy to help you with questions you may have regarding the federal student loan program. Call us toll free at 877.367.5428.
