LOANS
Los Angeles City College offers a variety of student loan programs. The student loan programs are available to students whose financial aid awards are insufficient to cover the cost of their educational expenses. Unlike grants, work-study or scholarships, a loan must be repaid back with interest by the student borrower to the lender of the loan. Students who plan to transfer are advised to consider borrowing student loans after they transfer to a four-year university if possible.
Applying for loans is available only for those students who have processed financial aid applications and are also receiving aid at Los Angeles City College. A student loan applicant must be enrolled half-time or six (6) eligible units within the Los Angeles Community College District to apply for a loan (at least one of the eligible units must be at Los Angeles City College). Please follow the steps listed below in order to ensure timely processing of your loan(s):
ALL STEPS MUST BE COMPLETED EVEN IF YOU RECEIVED A LOAN IN A PRIOR YEAR. MISSING ANY STEPS OR ITEMS WILL DELAY PROCESSING.
Step 1: Submit a FAFSA online at www.fafsa.ed.gov.
Step 2: After processed FAFSA is received by Financial Aid Office submit all follow-up documents required to complete financial aid file.
Step 3: Receive a financial aid award letter from Financial Aid Office.
Step 4: Complete a Direct Loan Application.
Step 5: Complete the online entrance counseling session at www.studentloans.gov. Print out the final results and foward to the Financial Aid Office.
Step 6: Complete and sign the electronic promissory note at www.studentloans.gov. (Please check www.nslds.ed.gov to see if you already have a promissory note on file with the Department of Education. If you do, then skip this step.)
Step 7: Submit the Direct Loan Application, the loan entrance counseling results, a copy of your Master Promissory Note, and a copy of your financial aid award letter (you may print a copy from the LACCD Student Information System) to the Financial Aid Office.
Step 8: If you are 1) enrolled only in ESL/remedial courses, 2) requesting a loan amount that, combined with any previous loans, will exceed the amount of $12,500 (you may check your previous loan amounts at www.nslds.ed.gov), or 3) requesting an unsubsidized loan then you may be required to attend an additional counseling session
Step 9: Student receives a disclosure notice from the Direct Loan Servicing Center confirming that the loan has been processed.
What Happens Next?
If you have followed all of the above steps, you should receive the first loan disbursement 3-4 weeks after signing the electronic promissory note (first time students will receive their first disbursement a minimum of 30 days after beginning of semester). Plan only to receive half of the requested loan amount during the fall semester while the remainder will be disbursed in the spring. If the loan application process is completed in the spring,then the entire requested loan amount will be disbursed in one payment during the spring semester.
The following table shows a comparison of federally funded loan programs available at Los Angeles City College:
| LOANS | ELIGIBILITY | AWARD AMOUNTS | INTEREST RATE | LENDER/LENGTH OF REPAYMENT |
| Effective July 1, 2010 | ||||
|
Perkins Loan |
Must be Pell Grant eligible | $2,600 per year | 5% | Los Angeles Community College District Up to 10 years to repay, depending on amount owed |
|
Direct Loan
|
Must be enrolled in at least 6 eligible units in the Los Angeles Community College District (at least 1 unit must be at Los Angeles City College) | $2,624 - 1st year students enrolled in preparatory (non-degree applicable)coursework $3,500 – 1st year students enrolled in degree applicable coursework $4,500 – 2nd year Independent students may apply for an additional $6,000 in Unsubsidized loan |
5.6% fixed for Subsidized Direct Loan
6.8% fixed for Unsubsidized Direct Loan |
U.S. Department of Education Between 10 to 30 years to repay, depending on amount owed and type of repayment plan selected |
|
Direct PLUS Loan
|
Parents of dependent undergraduate students enrolled at least half time; parents must not have bad credit history | Student's Cost of Attendance minus other financial aid student receives | 7.9% fixed | U.S. Department of Education Between 10 to 30 years to repay, depending on amount owed and type of repayment plan selected |