Federal Loans

-- LRC participates in the Federal Family Educational Loan Program (FFELP). All students and parents who plan to apply for a Stafford and/or PLUS loans must do so through our office. Our office utilizes the ELM Resources System to electronically transmit all certified loan records/applications to lenders for processing. Our office cannot certify applications made by students and parents directly to the lender

Note: You must be attending at least half-time and have completed a Free Application for Student Aid to be eligible for any federal student loans.

Federal Perkins Loan – a low interest rate (5%) loan for students with financial need. The loan is made with government funds with a share contributed by the College. You must be attending full-time to be eligible to receive this loan. The government pays the interest while you are in school as a half-time to full-time student. You must begin repaying this loan to L-R nine months after graduation or when attendance drops to less than half-time. Depending on when you apply, your level of need, and the funding level, you can borrow up to $4,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $20,000.

Federal Stafford Loan – there are two types of Stafford Loans: 1) the subsidized loan (the government pays the interest while you are in school as a half-time to full-time student), and 2) the unsubsidized loan (you are responsible for the interest costs during school). 

The interest rate is variable, but it is currently capped at 6.8%. Repayment begins six months after graduation or when attendance drops to less than half-time. 

Dependent student borrowing limits for the subsidized and unsubsidized Stafford Loans:

$3,500 for Freshman year
$4,500 for Sophomore year
$5,500 for Junior year
$5,500 for each remaining year
$23,000 total for all undergraduate years

Federal Parent Loan for Undergraduate Students (PLUS) – Parents can borrow up to the cost of education, less all student aid. Parent loans are not based on financial need, however; borrowers do have to go through a credit check. The interest rate is variable, but is currently capped at 8.5%. Repayment on the loan begins 60 days after full disbursement.