Student Loans

A student loan is designed to help students pay for tuition, books, and living expenses. Student loans may differ from other types of loans in that the interest rate may be substantially lower and the repayment schedule may be deferred while the student is in higher education. Listed below are loan options for LSCS students.

If this is not your first enrollment period at Lone Star College System and you received Title IV financial aid, your refunds for course withdrawals are calculated according to the Title IV refund guidelines. Title IV financial aid includes Federal Direct Loans (both subsidized and unsubsidized), and the Federal Parent Loan for Undergraduate Students (PLUS).

Loans disburse after the official day of record (repeat borrowers). A 30 day delay applies to all first year, first time borrowers.

William D. Ford - Direct Loan Program

Lone Star College is part of the William D. Ford Direct Loan Program. With us becoming part of the Direct Loan family students will now receive their dollars directly from the Federal Government. Because of the volatile credit markets along with many legislative changes to the FFEL program many lenders exited the student loan programs. LSC chose the Direct Lending option as a way to continue student loan service to our students.

Loans are awarded based on financial need and must be repaid. Repayment agreements are arranged at the time the loan is secured. Begin the application process by going to Financial Aid Steps.

Federal Direct Subsidized Stafford Loan

The purpose of the Subsidized Stafford or Direct Loan is to provide low interest educational loans that enable a student to pay the cost of attendance. The federal government pays the interest on these loans while a student is in school, during a grace period and during authorized periods of deferment.

A 1% origination fee is deducted from the proceeds of each loan disbursement. Currently, there are no guarantee or insurance premium fees. Loans that are first disbursed on or after July 1, 2008 will have a fixed annual (simple interest) rate of 6.00% or less for the life of the loan. The borrower is not responsible for the interest accruing while he/she is enrolled at least half-time, during the six-month grace period, and during certain authorized deferment periods. Interest is not capitalized at any time and may be paid as it accrues.

Repayment of the loan begins six months after the student ceases to be enrolled at least half-time. The loan repayment schedule will require a minimum monthly payment of $50.00 or an amount required to repay the loan within 10 years, whichever is greater. Borrowers may be eligible for postponement of loan repayment under certain circumstances.

Federal Direct Unsubsidized Stafford Loan

The purpose of the Federal Unsubsidized Stafford or Direct Loan is to provide low interest educational loans that enable a student to pay the cost of attendance. The borrower is responsible for interest that accrues while in school, during a grace period, or during authorized periods of deferment or forbearance.

A 1% origination fee is deducted from the proceeds of each loan disbursement. Currently, there are no guarantee or insurance premium fees. Loans that are first disbursed on or after July 1, 2008 will have a fixed annual (simple interest) rate of 6.80% for the life of the loan. Interest accrues from the date the funds are issued until the loan(s) are paid in full. Interest may be capitalized at the discretion of the lender.

Repayment of the loan begins six months after the student ceases to be enrolled at least half-time. The loan repayment schedule will call for a minimum monthly payment of $50.00 or an amount required to repay the loan within 10 years, whichever is greater. Borrowers may be eligible for postponement of loan repayment under certain circumstances.

Federal Direct Parent Loan for the Undergraduate Student (PLUS)

If you are their dependent, your parents may request a PLUS loan to borrow up to the cost of your attendance minus any other financial aid received. This loan is a credit-based loan.