{"id":117,"date":"2022-07-27T21:49:04","date_gmt":"2022-07-27T21:49:04","guid":{"rendered":"https:\/\/www.lvc.edu\/admission-aid\/federal\/"},"modified":"2025-09-24T16:17:01","modified_gmt":"2025-09-24T20:17:01","slug":"federal","status":"publish","type":"page","link":"https:\/\/www.lvc.edu\/admission-aid\/financial-aid-costs\/loans\/federal\/","title":{"rendered":"Federal Student Loans"},"content":{"rendered":"<section\n    class=\"\n        basic-hero\n                    basic-hero--no-image\n            \"\n    >\n        <div class=\"basic-hero__inner\">\n        <h1 class=\"basic-hero__heading\">\n            <div class=\"basic-hero__heading-text-container\">\n                                    <span class=\"basic-hero__heading-text \">Federal Student Loans<\/span>\n                            <\/div>\n        <\/h1>\n        <div class=\"basic-hero__breadcrumbs\">\n                    <\/div>\n    <\/div>\n<\/section>\n\n\n<section\n    class=\"body body--white body--line-left body--line-left-light-blue body--line-left-full \"\n    >\n    <div class=\"body__container\">\n                <div class=\"body__content\">\n            <p>Federal loans are borrowed funds that you must repay with interest. A federal student loan allows students and their parents to borrow money to help pay for college through loan programs supported by the federal government. They have low-interest rates and offer flexible repayment terms, benefits, and options.<\/p>\n<p>You are responsible for repaying these funds according to the information contained in the promissory note. More information about repayment options including loan consolidation, interest rates, monthly payments, deferment, forbearance, and cancellation or to defer repayment of loans for service, may be found at <a href=\"https:\/\/studentaid.gov\/\" target=\"_blank\" rel=\"noopener\">studentaid.gov.<\/a><\/p>\n<p>LVC\u2019s three-year cohort default rate for those entering repayment in 2020, 2021, and 2022, the latest default period published by the Department of Education, is 0.00%.<\/p>\n\n        <\/div>\n            <\/div>\n    <\/section>\n\n\n<section\n    class=\"body body--white  body--line-right-yellow body--line-right-full body--line-right\"\n    >\n    <div class=\"body__container\">\n                    <div class=\"body__heading\">The Federal\u00a0Direct Loan<\/div>\n                <div class=\"body__content\">\n            <div>\n<div>\n<p>Federal Direct Loans are provided by the federal government. The loans are for undergraduate as well as graduate and professional degree students. You must complete the financial aid application process (FAFSA) to be eligible and be enrolled for a minimum of 6 credits per semester.<\/p>\n<\/div>\n<p><strong>There are two types of Direct Loans (DL): Subsidized and Unsubsidized.<\/strong> The\u00a0federal government\u00a0will pay the interest that accrues on a\u00a0subsidized\u00a0DL during periods of enrollment. You are responsible for the interest that accrues on\u00a0an unsubsidized\u00a0DL. You have the option of making quarterly interest payments during enrollment or if you choose not to, the interest will be capitalized once at repayment. If you would like to make interest\u00a0payments while enrolled, you should contact your servicer for information on their in-school interest billing processes.<\/p>\n<p>&nbsp;<\/p>\n<h4>Interest Rates for <em>Subsidized and Unsubsidized<\/em> Direct Loans disbursed on or after July 1, 2024:<\/h4>\n<ul>\n<li><strong>Undergraduate Students <\/strong>(subsidized and unsubsidized) &#8211; Fixed Interest Rate of 6.53%<\/li>\n<li><strong>Graduate\/Professional Students <\/strong>(only eligible for unsubsidized) &#8211; Fixed Interest Rate of 8.08%<\/li>\n<\/ul>\n<p>The following Federal Direct Student Loan limits are based on the cost of attendance and cumulative credits earned:<\/p>\n<p>&nbsp;<\/p>\n<h4>Undergraduate Students<\/h4>\n<div>\n<div>\n<div class=\"wysiwyg__tableWrapper\">\n<table style=\"height: 168px; width: 100%;\" role=\"presentation\">\n<thead>\n<tr style=\"height: 75px;\">\n<td style=\"width: 142.95px; height: 75px;\">Credits Earned<\/td>\n<td style=\"width: 176.733px; height: 75px;\">Subsidized Direct Loan<\/td>\n<td style=\"width: 205.133px; height: 75px;\">Unsubsidized Direct Loan<\/td>\n<td style=\"width: 196.183px; height: 75px;\">Students whose parents are denied the PLUS Loan-<br \/>\nAdditional Unsubsidized Direct Loan<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"height: 15px;\">\n<td style=\"width: 142.95px; height: 15px;\">0-27<\/td>\n<td style=\"width: 176.733px; height: 15px;\">$3,500<\/td>\n<td style=\"width: 205.133px; height: 15px;\">$2,000<\/td>\n<td style=\"width: 196.183px; height: 15px;\">$4,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<td style=\"width: 142.95px; height: 15px;\">28-55<\/td>\n<td style=\"width: 176.733px; height: 15px;\">$4,500<\/td>\n<td style=\"width: 205.133px; height: 15px;\">$2,000<\/td>\n<td style=\"width: 196.183px; height: 15px;\">$4,000<\/td>\n<\/tr>\n<tr style=\"height: 15.6px;\">\n<td style=\"width: 142.95px; height: 15.6px;\">56-83<\/td>\n<td style=\"width: 176.733px; height: 15.6px;\">$5,500<\/td>\n<td style=\"width: 205.133px; height: 15.6px;\">$2,000<\/td>\n<td style=\"width: 196.183px; height: 15.6px;\">$5,000<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<td style=\"width: 142.95px; height: 15px;\">&gt;84<\/td>\n<td style=\"width: 176.733px; height: 15px;\">$5,500<\/td>\n<td style=\"width: 205.133px; height: 15px;\">$2,000<\/td>\n<td style=\"width: 196.183px; height: 15px;\">$5,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div>\n<h4>Graduate Students<\/h4>\n<div>\n<div><\/div>\n<\/div>\n<\/div>\n<p>Unsubsidized Direct Loan: <strong>$20,500*<\/strong><\/p>\n<div>\n<p>*Graduate students are considered independent and are only eligible to receive the Federal Direct Unsubsidized Loan.<\/p>\n<p>&nbsp;<\/p>\n<h4>Aggregate Maximum<\/h4>\n<div>\n<div>\n<div class=\"wysiwyg__tableWrapper\">\n<table style=\"height: 101px; width: 100%;\" role=\"presentation\" width=\"100%\">\n<thead>\n<tr style=\"height: 15px;\">\n<td style=\"width: 237.367px; height: 15px;\"><\/td>\n<td style=\"width: 236.5px; height: 15px;\">Subsidized<\/td>\n<td style=\"width: 237.133px; height: 15px;\">Total (Subsidized &amp; Unsubsidized)<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr style=\"height: 15px;\">\n<td style=\"width: 237.367px; height: 15px;\">Dependent Undergraduate<\/td>\n<td style=\"width: 236.5px; height: 15px;\">$23,000<\/td>\n<td style=\"width: 237.133px; height: 15px;\">$31,000<\/td>\n<\/tr>\n<tr style=\"height: 30px;\">\n<td style=\"width: 237.367px; height: 30px;\">Independent Undergraduate &amp; Dependent Students whose parents are denied the PLUS Loan<\/td>\n<td style=\"width: 236.5px; height: 30px;\">$23,000<\/td>\n<td style=\"width: 237.133px; height: 30px;\">$57,500<\/td>\n<\/tr>\n<tr style=\"height: 15px;\">\n<td style=\"width: 237.367px; height: 15px;\">Graduate and Professional Students<\/td>\n<td style=\"width: 236.5px; height: 15px;\">N\/A<\/td>\n<td style=\"width: 237.133px; height: 15px;\">$138,500 (includes undergraduate and graduate borrowing)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n        <\/div>\n            <\/div>\n    <\/section>\n\n\n<section\n    class=\"body body--white body--line-left body--line-left-medium-blue body--line-left-full \"\n    >\n    <div class=\"body__container\">\n                    <div class=\"body__heading\">Application Instructions for First-time Direct Loan Borrowers<\/div>\n                <div class=\"body__content\">\n            <div>\n<div><\/div>\n<p>As a first-time Federal Direct Loan borrower, you must accept\/reduce\/decline your loan eligibility by logging into AccessLVC.<\/p>\n<p>You may complete the online Entrance Counseling session and complete the MPN\u00a0at\u00a0<a href=\"https:\/\/studentaid.gov\/\" target=\"_blank\" rel=\"noopener\">studentaid.gov<\/a>. Our office will be notified\u00a0electronically upon completion.<\/p>\n<\/div>\n\n        <\/div>\n            <\/div>\n    <\/section>\n\n\n<section\n    class=\"body body--white  body--line-right-dark-blue body--line-right-full body--line-right\"\n    >\n    <div class=\"body__container\">\n                    <div class=\"body__heading\">Application Instructions for Current Direct Loan Borrowers<\/div>\n                <div class=\"body__content\">\n            <p>As a returning student borrower, you must accept\/reduce\/decline your loan eligibility by logging into AccessLVC. Aid offers for\u00a0current students\u00a0will be prepared during the month of June and released the first week in July. You will be notified by email when your aid offer is available.<\/p>\n\n        <\/div>\n            <\/div>\n    <\/section>\n\n\n<section\n    class=\"body body--white body--line-left body--line-left-light-blue body--line-left-full \"\n    >\n    <div class=\"body__container\">\n                    <div class=\"body__heading\">Exit Counseling<\/div>\n                <div class=\"body__content\">\n            <div>\n<p>Student borrowers of Direct Loans who are graduating, leaving school, or dropping below half-time enrollment are required by law to complete <a href=\"https:\/\/studentaid.gov\/exit-counseling\" target=\"_blank\" rel=\"noopener\">exit counseling<\/a>. Exit counseling provides important information students will need as they prepare to repay their federal student loan(s).<\/p>\n<\/div>\n\n        <\/div>\n            <\/div>\n    <\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":0,"parent":1125,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-117","page","type-page","status-publish","hentry"],"acf":{"section_menu":194,"menu":false,"language":"en","alternate_language_urls":false},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Federal Student Loans - Admission and Financial Aid<\/title>\n<meta name=\"description\" content=\"A federal student loan allows students and their parents to borrow money to help pay for college through loan programs supported by the federal government. 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