Student Loans Student loans can be an excellent resource to assist in paying for one’s education. The Federal Direct Stafford Loan is the most widely used education loan sponsored by the U.S. government. If you have been offered a student loan as part of your financial aid package, you have the option of reducing or refusing the loan altogether. If you are refusing or reducing the amount of the loan, please let us know by emailing the Office of Financial Aid at finaid@lycoming.edu. If you do not change the loan amount, it will be processed for the amount offered. Declining a loan will not affect any other portion of your financial aid award. All loans MUST BE REPAID whether or not the loan recipient completes his or her academic program. Students must be aware of their rights and responsibilities if they decide to participate in the student loan programs. Subsidized Stafford Loan (for interest rate go to www.studentaid.gov/understand-aid/types/loans/interest-rates). A subsidized Stafford Loan is a need-based loan. The interest on this loan is paid by the government while you are in school. Lycoming determines eligibility for the subsidized Stafford Loan based on your FAFSA data. Eligibility for the subsidized loan may change if you receive additional non-college aid that was not known by the College at the time the award notice was printed, or if corrections, which change the EFC, are made to the FAFSA. Unsubsidized Stafford Loan (for interest rate go to www.studentaid.gov/understand-aid/types/loans/interest-rates). Students who do not qualify for a subsidized Stafford Loan will likely qualify for an unsubsidized Stafford Loan. The unsubsidized Stafford Loan is not a need-based loan. Borrowers are responsible for any interest that accrues on the loan from the time the loan is disbursed. Borrowers have the option to pay the interest while in school or defer the interest until repayment. If the interest is deferred, then it will be capitalized or added to the principal amount of the loan. 6
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