Loans – Undergraduate, Graduate, and Seminary
Federal Direct Loans (Subsidized and Unsubsidized)
The William D. Ford Federal Direct Loan Program amounts are determined by the year of study and the dependency status of a student. First-time borrowers at LCU must complete loan counseling, as required by law.
There are two types of Federal Direct Loans:
- Subsidized Loans – Under certain conditions the Federal Government will pay the full interest charged on the loan while the borrower is attending school and prior to the beginning of the repayment period. These are called subsidized loans.
- Unsubsidized Loans – With unsubsidized loans, the interest accumulates over the period of the loan.
Repayment on a direct loan begins six months after the borrower completes his or her course of study or drops below half-time status. Students who have filed the FAFSA are automatically considered for this program.
Federal Perkins Loan Program
The Federal Perkins Loan is a low-interest loan program for students with exceptional financial need. LCU is responsible for the administration of this federal program. The repayment period begins nine months after the borrower ceases to be enrolled at least half-time in an institution of higher education and may extend over a 10-year period. Students who have filed the FAFSA are automatically considered for this program.
Federal Direct PLUS Loan
Parents or legal guardians of a dependent student may borrow through the Federal Direct PLUS Loan program. Parents may borrow up to the cost of education (minus other aid). This program is not based on financial need. Repayment normally begins within 60 days of the second disbursement. All Federal Direct PLUS loans require a credit check.
Private banks and loan companies may also offer student and parent loan programs. These loans can be at a variable or fixed interest rate. Lenders will base rates on a borrower’s credit score and will often require a cosigner. Click here to compare lenders.
Graduate and Seminary Loans
The Financial Aid Office administers the William D. Ford Direct Loan program and the Perkins Loan program for Graduate and Seminary students. A student must complete the Free Application for Federal Student Aid (FAFSA) to determine loan eligibility. LCU’s federal school code for the FAFSA is 001708. Visit the FAFSA website to fill out the form. Students are urged to be good stewards of their finances in applying for loans, given the limited financial compensation typically associated with leadership ministry.