Student Loans

Loans (Self-Help) Are Funds You Must Repay!

 

You are not obligated to borrow a loan. All loans require a minimum unit enrollment of six (6) approved units at Los Angeles Southwest College. If you have defaulted on a student loan, you are ineligible for financial aid with the exception of a Board of Governors Fee Waiver. Contact the Financial Aid Office to discuss possible options for resolving your student loan default.

 

Students who request a loan are required to attend Loan Entrance and Exit Counseling Sessions. These sessions inform the borrower about his/her rights and responsibilities as a student borrower. Students must have received an Award Letter prior to signing up to attend an Entrance Counseling session.

 

Federal Perkins Loan Program

The Federal Perkins Loan Program is a low 5% interest loan to help students with exceptional need meet their educational expenses. Loan amounts will be determined annually based on funding. Priority funding will be given to students who submit all paperwork by the May 1st priority date.

 

William D. Ford Federal Direct Loan Program

Federal Direct Loans (Subsidized and Unsubsidized) are loans borrowed from the federal government (which serves as the lender) and must be repaid.

 

Subsidized Direct Loan: Interest does not accrue on a subsidized loan while students are enrolled in school at least half-time (six (6) units) and during the six-month grace period after they leave school.

 

Unsubsidized Direct Loans: Interest begins accruing on an unsubsidized loan at the date of disbursement by the lender. Students must pay the interest or allow it to be capitalized (added to the principal or original loan amount) while they are enrolled in school in at least half-time (six (6) units) and during the grace period.

 

The current (2010-2011) interest rate charged on a Direct Subsidized Loan is fixed at 4.5%.  The interest rate for a Direct Unsubsidized Loan is 6.8%. These rates are applicable to loans disbursed on or after July 1^st, 2010. Visit http://www.dlservicer.ed.gov/ to obtain the current loan interest rate, repayment, deferment, cancellation, and consolidation information.

 

Please Note: Should a student experience unforseen circumstances with any of the loan programs discussed above which prevent repayment at the minimum level, please contact the Financial Aid Office or the Loan Servicing Center immediately. We do not want you to default on your student loan(s) because there are serious consequences which will negatively affect your future. There may be other options available, so please do not hesitate to contact the Financial Aid Office.