Loan Counseling

To apply for these loans, first complete the Free Application for Federal Student Aid (FAFSA). All loans must be repaid, though repayment plan options are available. First-time Director Loan borrowers must sign a Master Promissory Note (MPN) and complete Entrance Counseling. After graduation, leaving school, or dropping below half-time, Exit Counseling is required. Access your MPN and counseling at studentaid.gov using your FSA ID and Password.

How much should I borrow?

Watch the Responsible Borrowing video below to learn more about borrowing student loans. Additional financial aid videos are available at  studentaid.gov/resources. To calculate your loan, use the Federal Student Aid Loan Simulator or the Bank of North Dakota salary-to-debt calculator. 

Types of Loans

Federal Direct Subsidized Loans - This low-interest loan is for students with demonstrated financial need. Repayment begins six months after graduation, leaving school, or dropping below half-time. For subsidized loans, the U.S. Department of Education pays interest while enrolled and during the grace period. Students must sign a Master Promissory Note (MPN) for the Direct Loan.

Federal Direct Unsubsidized Loans - Students ineligible for full or part of a subsidized loan may use the unsubsidized loan, a federal, non-need-based option. Half-time enrollment is required. Borrowers are responsible for interest at all times; unpaid interest accrues and is added to the principal. For details visit the Federal Student Aid website or contact the Financial Aid Office. 

Federal Parent Loan for Undergraduate Students (PLUS) - allows parents with good credit history to borrow money for the educational expenses of each child who is a dependent undergraduate student enrolled at least half-time. To request a PLUS loan at LRSC you need to complete a PLUS request process. Information on interest rates and repayment requirements is available by contacting the Financial Aid Office.

Alternative Loans

A number of private lenders have loans that are very similar to the Stafford Subsidized and Unsubsidized Loans. A student may borrow up to the budget established for an academic year. This loan is in addition to funds already awarded either on campus or from outside sources. A borrower must have a credit history or have a credit-worthy co-signer on the loan(s). Students may select the alternative loan program they wish to use and will need to complete a separate application with the lender. LRSC, through FAST Choice, offers a Historical Lender List that includes lenders we have worked with in the past. If students are interested in pursuing an alternative loan, they should contact the Financial Aid Office at 701-662-1517.