Federal Loans and Grants

more pages

Grants

Federal Pell Grant

This grant is only available to undergraduate students.  The award amount is determined by the federal government and is based upon the information reported on the FAFSA. The federal government has limited the number of semesters for which you may receive a Pell Grant to 12 semesters (or 600%).

Federal Supplemental Educational Opportunity Grant

This grant is only available to undergraduate students.  The award amount is determined by the student's financial need and the availability of the funds at the school. 

Texas Tuition Equalization Grant (TEG)

This state funded need-based grant is available to undergraduate students who are Texas residents.  The award amount is determined by the student's financial need and the availability of the funds at the school.  Students receiving athletic scholarships are not eligible for this grant. 

Award Chart

Pell Grant (need-based)$5,730 max per year
SEOG (need-based)$1,000 max per year
TEG (must be Texas resident)$3,250 max per year

Loans

Student loans can come from the federal government and private institutions. These loans offer low interest rates and special student repayment schedules. Some loans require repayment to begin immediately, while others begin repayment 6 to 9 months after graduation.

Federal Stafford loans are the most popular federal loans available to help students pay for college. These loans have low interest rates and do not require credit checks or collateral. Stafford loans also provide a variety of deferment options and extended repayment terms and the Subsidized Stafford does not accrue interest until after the student graduates or leaves school.

A Federal Stafford Loan can be either Subsidized or Unsubsidized:

*Subsidized - Subsidized loans are for students who show a demonstrated need for financial aid. For these loans, the government pays the interest while the student is in school.

*Unsubsidized - An Unsubsidized Stafford is a non need-based loan on which interest is paid by the borrower not the federal government and will be charged from the time the loan is disbursed until it is paid in full.

Awards are limited to award year and aggregate maximums based on the borrower's grade level, cost of education, program length and dependency status.

Federal Stafford Loan

Terms and Features

Enrollment - You need to be enrolled at least half-time to qualify for the Federal Stafford loan.

Interest Rate - The interest rate for undergraduate Subsidized Stafford loans first disbursed on or after July 1, 2011 and before July 1, 2013 will be fixed at 3.4%. The interest rate on Unsubsidized Stafford loan will be fixed at 6.8%.

Origination Fee - There is an origination fee of up to 1.0% on the loan. This means 1.0% will be taken from the amount you borrow to cover the loan origination costs.

Payment - Payment is not required until 6 months after the student drops below half-time enrollment.

Borrowing Limits for Dependent Undergraduate Students - Eligibility may be less based on your cost of education or program length. These totals include the Subsidized and Unsubsidized loans.

  • 1st Year Students (less than 30 hours) up to $3,500 a year.
  • 2nd Year Students (30-59 hours) up to $4,500 a year.
  • 3rd, 4th and 5th Year Students (60+hours) up to $5,500 a year.
  • Total Amount: The maximum a dependent undergraduate can borrow is $31,000 with no more than $23,000 in subsidized loans. *(Undergraduate students may borrow an additional $2,000 per year in unsubsidized loan funds.)

Borrowing Limits for Independent Undergraduate Students - Eligibility may be less based on your cost of education or program length. These totals include the Subsidized and Unsubsidized loans.

  • 1st Year Students (less than 30 hours) up to $7,500 a year.
  • 2nd Year Students (30-59 hours) up to $8,500 a year.
  • 3rd, 4th and 5th Year Students (60+hours) up to $10,500 a year.
  • Total Amount: The maximum an independent undergraduate can borrow is $57,500 with no more than $23,000 in subsidized loans. *(Undergraduate students may borrow an additional $2,000 per year in unsubsidized loan funds.)

Federal Perkins Loan

The Federal Perkins Loan is a need-based loan available to students enrolled half-time or more. The interest rate is 5% and does not accrue interest while the student is enrolled half-time or more. Repayment begins 9 months after the student drops below half-time enrollment. In addition to deferment benefits, loan cancellation for employment in designated teaching and public service areas are offered.

* Borrowing Limits for Undergraduate Students Undergraduates can borrow up to $5,500 a year, and a maximum of $27,500.

Note: Federal Perkins Loan funds are very limited.

Federal Parent Loan for Undergraduate Students (PLUS)

The Federal Parent Loan for Undergraduate Students is a credit-based loan program parents can use to help pay education costs. It is offered through Department of Education and is available to the parents of dependent students who enroll at least half-time. Eligibility is not based on financial need. Repayment begins 60 days after full disbursement of the loan amount. The interest rate is fixed for loans first disbursed on or after July 1, 2006 at 7.9%. Awards are limited to the student's cost of attendance less financial aid (including any Subsidized and Unsubsidized Stafford Loan eligibility).

Private Educational Loans

Private Educational Loans should only be considered once a borrower has taken advantage of all free monies (grants and scholarships) and Federal Loan programs (Stafford and/or Parent PLUS Loans).  Private Educational Loans provide funding options but may have higher interest rates or different repayment terms and options.  Potential borrowers should carefully compare all loan terms and conditions.

To view a historical lender list (lenders that have been used by LCU student in previous years), please click here.

A student borrower may select any lender and it is NOT restricted to the lenders presented on the historical lender list provided.

Last Updated: May 06, 2014