There are a variety of loans available to qualified undergraduate students and their parents at LMU.
Because loans must be repaid, it is important that students understand the terms and conditions associated with each loan program before deciding to borrow. Federal loans require students to complete entrance loan counseling prior to receiving loan funds. Some loans require the borrower to meet specific credit requirements.
FEDERAL LOAN PROGRAMS
Federal Perkins Loan Program
The Federal Perkins Loan is a need-based, low-interest rate loan for students. Review the Federal Perkins Loan Terms and Conditions.
Federal Subsidized and Unsubsidized Stafford Loans
What is a Federal Stafford Loan?
A federal loan awarded to all students who apply for financial aid and who are U.S. Citizens or permanent residents. The student must be enrolled at least half-time in a degree seeking program to be eligible for the Federal Stafford Loan.
Subsidized vs. Unsubsidized Federal Stafford Loans
If you are offered a subsidized loan, it means that the federal government pays the interest that accrues on your loan while you are enrolled at least half time and during a six month grace period after you graduate, withdraw or cease to be enrolled at least half-time. After the six-month grace period, you must begin to repay your loan and you are responsible for the interest. Eligibility for the Subsidized Stafford Loan is determined based on financial need.
If you are offered an unsubsidized loan, it means that you are responsible for the interest from the time the loan is disbursed. While you are enrolled at least half-time you may defer interest payments and capitalize the interest. Capitalization means that the interest is added to the loan balance, increasing the loan's size and cost. To reduce the total cost of your loan, consider making in-school interest only payments.
How much am I eligible to receive in Federal Stafford Loans?
Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below on an annual basis. Please note Subsidized Stafford Loans are limited by your financial need and Unsubsidized Stafford Loans are limited by your cost of attendance less other aid received.
Annual Undergraduate Federal Loan Limits
|
|
Base Amount |
Additional Unsubsidized Amount |
|
All Students |
Dependent Undergraduates (except students whose parents are denied PLUS loans) |
Independent Students and Dependent Students whose parents are denied PLUS loans |
|
1st Year Undergraduate
(0-29 Units) |
$3,500 |
$2,000 |
$6,000 |
|
2nd Year Undergraduate
(30-59 Units) |
$4,500 |
$2,000 |
$6,000 |
|
3rd Year+ Undergraduate
(60+ Units) |
$5,500 |
$2,000 |
$7,000 |
Aggregate Federal Loan Limits
Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below for their entire academic careers.
|
Dependency and Program of Study |
Subsidized Stafford |
Maximum Subsidized and
Unsubsidized Stafford |
|
Dependent Undergraduates |
$23,000 |
$31,000 |
|
Independent Undergraduates |
$23,000 |
$57,500 |
|
Graduate/Professional Students |
$65,500 |
$138,500 |
|
Certain Health Professional Students (MD, DDS, MHA, MPH) |
$65, 500 |
$224,000 |
What is the interest rate?
The interest rate on the Federal Stafford Loan is a fixed rate.
- Undergraduate Subsidized Federal Stafford Loans
5.6 percent for loans first disbursed July 1, 2009 to July 1, 2010
4.5 percent for loans first disbursed July 1, 2010 to July 1, 2011
3.4 percent for loans first disbursed July 1, 2011 to July 1, 2012
- Undergraduate Unsubsidized Federal Stafford Loans
6. 8 percent for all loans first disbursed after July 1, 2006
How will the loan funds be sent to the LMU?
Provided that you have completed the online Loan Entrance Counseling session and the Master Promissory Note (MPN), the loan will be sent in two disbursements; First disbursement in the fall semester and the second disbursement in the spring. These funds arrive via Electronic Fund Transfer (EFT) and are applied directly to your LMU student account.
When do I pay the loan back?
Repayment on this loan will begin after your grace period, 6 months after you graduate or cease to be enrolled at least half-time. You have 10 years to pay the loan back. Various repayment options are available and the loan period can be extended, if needed via consolidation. There is no prepayment penalty, so you can pay the loan earlier if you wish.
Apply for the Federal Stafford Loan.
Federal Parent (PLUS) Loan
The U.S. Department of Education administers a loan program for students called the Federal Parent (PLUS) Loan. Parents can borrow a PLUS Loan to help pay your education expenses if you are a dependent, undergraduate student enrolled at least half-time in an eligible program at an eligible school. There are two methods by which the Department of Education administers the PLUS Loan, either through the Federal Family Educational Loan program (FFEL), where the funds for the PLUS loan come from a bank, credit union, or other lender selected by the borrower that participates in the FFEL program or through Direct Lending, where funds for the loan come directly to the school from the federal government.
In 2009-2010 Federal PLUS Loans at LMU are processed through the FFEL program and your parent will need to select a bank or credit union to process their PLUS loan. Parents must also be creditworthy.
How much can my parents borrow?
The annual limit on a Federal Parent (PLUS) Loan is equal to LMU’s Estimated Cost of Attendance minus any other financial aid you receive. For example, if your cost of attendance is $10,000, and you receive $6,000 in other financial aid, your parents can borrow up to $4,000.
What's the interest rate?
For FFEL PLUS Loans disbursed on or after July 1, 2006, the interest rate is fixed at 8.5 percent. Interest is charged on a PLUS Loan from the date of the first disbursement until the loan is paid in full.
When do my parents begin repaying the loan?
For PLUS loans borrowed for 2009-2010, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or to begin repayment six months after you graduate or cease to be enrolled on at least a half-time basis.
How do my parents apply for a PLUS Loan?
You will need to complete the Free Application for Federal Student Aid in order for your parents to apply for a PLUS Loan. Your parents will need to select a lender and undergo a credit check by that lender.
Apply for the Federal Parent (PLUS) Loan.
For more information about all federal loan programs visit www.studentaid.ed.gov.
INSTITUTIONAL LOAN PROGRAMS
LMU California Student Loan
The LMU California Student Loan is a need-based, low-interest rate loan for students. Eligibility for this loan is determined by the Financial Aid Office. Review the LMU California Student Loan Terms and Conditions.
Shandler Student Loan
The Shandler Loan is a need-based, low-interest rate loan for students. Eligibility for this loan is determined by the Financial Aid Office. Review the Shandler Student Loan Terms and Conditions.
Private (Alternative) Loans
Private (Alternative) loans are credit-based loans offered by a variety of lenders. These loans are borrowed by the student and require the student to have a satisfactory credit history or a creditworthy co-borrower. Students may borrow up to their LMU cost of attendance, minus any other financial aid they receive. Loan fees, interest rates, and repayment terms vary by lender, so please review all application information very carefully.
Please Note that :
- The Financial Aid Office encourages all students to apply for university, state and federal financial aid programs prior to applying for a private loan.
- Students are required to meet with a financial aid counselor prior to applying for a private loan.