Federal Direct Subsidized Loan

This loan is available to undergraduate students with financial need, we will determine the amount you can borrow based on that need.  The U.S. Department of Education (DOE) will be your lender.

The DOE pays the interest on this loan while you're enrolled in school at least half time.  Repayment on this loan begins six months after you graduate, leave school, or drop below half-time enrollment.  You are required to complete an Exit Counseling any time one of the three previously mentioned scenarios occur at www.studentloans.gov

If you are a first time borrower on or after July 1, 2013, there is a limit on the maximum period of time you may receive Direct Subsidized Loans.  If this limit applies to you, you may not receive Direct Subsidized loans for more than 150% of the published length of your program. 

How to Apply

Complete a FAFSA

Eligibility Requirements

  • A U.S. citizen or eligible non-citizen as defined by the U.S. Department of Education
  • Enrolled in an eligible degree or certificate program
  • Demonstrate financial need
  • Register with Selective Service (males only)
  • Enrolled at least half time
  • In good standing in accordance with the LU Satisfactory Academic Progress Standards for financial aid
  • Cannot be in default of a student loan

Disbursement Requirements

How and When Your Loan will Disburse

Your loan will disburse no earlier than 10 days before your scheduled enrollment begins. Your disbursement may be delayed due to one of the following reasons:

  • Not being registered for enough hours
  • Not meeting Satisfactory Academic Progress
  • Having an outstanding requirement on the Self Service Banner
  • First time borrower 30 day waiting period

For any first time, first year borrower receiving Federal Direct Loans, the first loan disbursement will be delayed 30 days. This means your loan will not be disbursed until you have been attending 30 days.

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