LSCC Guide to Sensible Borrowing

  1. Pursue all other alternatives first
  2. Get the facts about each loan program
  3. Know the players in the student loan process and their language
  4. Estimate anticipated level of debt for your entire program of study
  5. Budget before you borrow
  6. Know manageable levels of debt, never borrow more than absolutely necessary
  7. Know the effects of multiple borrowing
  8. Take the time now to make the right decision; you can save money, time and frustration
  9. Pursue all other alternatives before you borrow!

Steps in Applying for a Federal Loan

Apply early, as processing backlogs could dramatically delay aid disbursement. Late applicants should be prepared to cover their tuition and living expenses until you receive your loan funds.


Step 1: Eligibility Requirements

  1. Have an overall cumulative all (all college) 2.0 grade point average unless you are a new student in college. Transfer grades will be included in the GPA calculation. It is the student’s responsibility to make sure that all transfer work is evaluated by the Records Office before the loan is processed

  2. Enroll in a minimum of 6 credit/load hours at LSCC. This does not include consortium agreements with other schools. Audit (X) courses will not be considered in the hour calculation for loan processing or loan disbursements

  3. Loans for the summer term will not be processed or disbursed if students are enrolled in A term or B term only. Students MUST enroll in a combination of A term and B term or AE term for processing of a Federal Direct Loan. Students must be enrolled in classes which begin in May and end in August.

  4. Please note: As part of LSCC’s Default Management Plan and federal regulations, students must maintain satisfactory academic progress for financial aid. For two term loans, students must successfully complete a minimum of six (6) credit/load hours with grades of A,B,C or S to receive the second disbursement of their student loan proceeds.

Step 2: Application Processing

  1. Apply for financial aid by completing FAFSA on the web at

  2. All first time borrowers at LSCC are required to complete entrance counseling prior to a loan being processed. You may do your entrance counseling on-line at

  3. ALL STUDENTS must complete the Master Promissory Note (MPN) electronically (please see instructions above).

  4. Students will not be allowed to fill out a Direct Loan Request form until they have completed Step 1 and 2.

Step 3: What Happens Next?

  1. You will be sent a notice of loan guarantee from the U.S. Department of Education detailing estimated disbursement dates and other specifics.

  2. Your student loan funds will be sent to LSCC on a set schedule Once the funds have been posted to students' accounts, they can look for their refund through Higher One (

Step 4: Deferment of Tuition

  1. Students awarded a loan, will receive automatic deferment of tuition and fees provided the Financial Aid Office has processed their loan prior to the fee payment deadline.

  2. Students will be allowed to purchase books against their loan awards provided the award EXCEEDS their charges.

Step 5: Disbursement of Loan Funds

  1. First time borrowers in the first year of study will receive their first disbursement approximately thirty (30) days after the term begins, if processed and Master Promissory Note has been received and approved.

  2. Every Federal Direct loan period is required to have at least 2 disbursements. It is defined as the start of each semester for 2 term loans or the beginning and midpoint for one term loans.

  3. Estimated disbursement dates will be posted each semester in the Financial Aid Newsletter posted on the LSCC website. Be sure that the Admissions Office has your correct mailing address.

  4. All debt owed to the college will be deducted before refunds are issued. If the amount of your loan proceeds does not cover your obligation in full, you will be responsible for paying the balance to the cashier’s office.

  5. Students have the option to pay their tuition and fees prior to receiving their loan funds. 6. Any changes to your schedule after the term starts can result in ineligibility for loan disbursements. Please check with the Financial Aid Office prior to making changes to your schedule.