Financial Aid – Loan Programs
LECOM participates in the William D. Ford Federal Direct Loan (Direct Loan) Program, which includes the Federal Direct Subsidized, Unsubsidized, and Direct PLUS loans.
Federal Direct Loan Program (Subsidized and Unsubsidized)
Students may be eligible to borrow from the Federal Direct Loan Program. The terms and conditions of the loan may be found in the Federal Direct Loan Master Promissory Note (MPN). The student is responsible for paying the interest on the unsubsidized loan from the day the loan is disbursed. Interest payment on the unsubsidized loan may be deferred during in-school, grace, and deferment periods, however, the accrued interest may be capitalized, or added to the principal.
Eligible medical and dental students may borrow up to $40,500 per nine-month academic year from the Federal Direct Unsubsidized Loan program. Eligible pharmacy students may borrow up to $33,000 per nine-month academic year from the Federal Direct Unsubsidized Loan program. The loan amounts may be prorated for 10, 11 and 12 month academic years, per federal guidelines.
Eligible graduate students may borrow up to $20,500 per academic year from the Federal Direct Unsubsidized Loan program.
Eligible dependent undergraduate students (excluding dependent undergraduates whose parents are unable to obtain Direct PLUS Loans) are eligible for an additional $2,000 in Direct Unsubsidized Loan funds each academic year. For these students, the annual loan limits are:
- $5,500 combined Direct Subsidized and/or Direct Unsubsidized plus $2,000 additional Direct Unsubsidized for dependent third-, fourth-, or fifth-year undergraduates.
There are higher additional unsubsidized annual loan limits for independent undergraduate students. These higher additional Direct Unsubsidized Loan limits also apply to dependent undergraduate students whose parents are unable to borrow Direct PLUS Loans due to adverse credit or other documented exceptional circumstances.
- $5,500 combined Direct Subsidized and/or Direct Unsubsidized plus $7,000 additional unsubsidized for independent third-, fourth-, or fifth-year undergraduates.
Total aggregate loan amounts include any Federal Stafford Loans, Federal Direct Loans, and Federal Consolidation Loans received as an undergraduate and/or graduate student. The total aggregate Federal Direct Subsidized and Unsubsidized loan limits are as follows:
- Medical, dental, and pharmacy students = $224,000
- Graduate students = $138,500
- Dependent undergraduate students = $31,000 (up to $23,000 may be subsidized)
- Independent undergraduate students and dependent undergraduate students whose parents cannot borrow PLUS = $57,500 (up to $23,000 may be subsidized.)
Federal Direct PLUS Loan Program (Graduate PLUS and Parent PLUS)
Eligible graduate students may borrow from the Federal Direct Graduate PLUS Loan. Dependent undergraduate students’ parents may borrow the Direct PLUS Loan. The annual loan limit of the PLUS Loan is the cost of education minus any other financial aid received. The credit approval of the PLUS Loan is based on federal standards. An endorser option is available if the borrower does not meet the credit requirements.
Interest rates for Federal Direct Unsubsidized and PLUS loans will be established each year for which the first disbursement of the loan is on or after July 1 through the following June 30. Interest rates will be a variable-fixed rate; borrowers will receive a new rate each year for each new loan, then that rate would be fixed for the life of the loan.
For Direct Loans first disbursed between July 1, 2018 and June 30, 2019 the interest rate for the graduate Direct Unsubsidized Loan is 6.6%; the interest rate for undergraduate Direct Subsidized and Unsubsidized Loans is 5.05%; the interest rate for the Direct PLUS Loan is 7.6%.
For Direct Loans first disbursed between July 1, 2019 and June 30, 2020 the interest rates will be determined in May 2019.
Federal Direct Loans are subject to loan fees which are deducted by Direct Lending before each disbursement. For Direct loans first disbursed on or after October 1, 2018 and before October 1, 2019, the Direct Subsidized and Unsubsidized Loan fee is 1.062%; the Direct PLUS Loan fee is 4.248%.
For more information and to apply for the Federal Direct and PLUS loans, go to https://studentloans.gov.
Private Educational Loans
Private educational loans are available through private lenders. The terms and conditions of the different private loans vary depending on the particular loan program. The annual loan limits of private educational loans are cost of education minus any other financial aid received. The approval of a private loan is contingent upon the borrower having a positive credit history. For a comprehensive list of private loans you may go to this site: http://www.finaid.org/loans/privatestudentloans.phtml.