Loan Counseling
For each of these loan opportunities, you must first complete the Free Application for Federal Student Aid (FAFSA). It is important to note that all loans MUST be repaid, but there are repayment plan options available. If you have never received a Direct Loan through the Federal Student Aid Programs, you will be required to sign a Master Promissory Note (MPN) and complete Entrance Counseling. Once you graduate, leave school, or drop below half-time, you will be required to complete Exit Counseling. To access your MPN and Entrance and Exit Counseling go to: www.studentaid.gov and log in with 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 program is available to students with demonstrated financial need as determined by the federal government. Students must be enrolled at least half-time to qualify. Repayment begins six months after graduation, leaving college, or dropping below half-time enrollment. For subsidized loans, the U.S. Department of Education pays the interest while you are enrolled at least half-time, during the six-month grace period, and any deferment period. Students may sign a Master Promissory Note (MPN) for the Direct Loan.
Federal Direct Unsubsidized Loans - Students who are not eligible for all or part of the subsidized loans may receive additional funding through the unsubsidized loan. This federal, non-need-based loan helps eligible students cover the cost of education. There is no priority funding deadline. Students must be enrolled at least half-time to qualify. Borrowers are responsible for paying interest during all periods. If interest is not paid while in school, during the grace period, deferment, or forbearance, it will accumulate and be added to the principal amount. For more information, visit 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.