Long Beach City College participates in the William D. Ford Federal Direct Loan Program (Direct Loans). We know that this is the lowest cost student loan program and has the best options for students. As a low cost community college with grants and fee waivers available we feel that it provides sufficient loan funds. It is the only student loan program for which we will certify an application.

We believe that student loans are an investment in a student's future but discourage excessive borrowing that limits a student's future and choices. We remind all borrowers that all loans must be repaid and defaulting on a loan has serious negative consequences to the borrowers as well as future students at LBCC.

Things you must know about student loans:

• Direct loans may be subsidized or unsubsidized. For Subsidized Direct Loans, the federal government pays the interest rates while you're enrolled at least half time in school. For Unsubsidized Direct Loans, you're charged interest as soon as you receive the funds. While you're in school half time, you can choose to pay the interest (least expensive). If you don't, the interest will be added to the amount you borrow and when you begin repayment the interest you pay will be based on the total (most expensive).

• Freshman (under 30 units completed) can apply for up to $3500 in a subsidized loan; sophomores (30 units) can apply for up to $4500. Eligibility is based on need from your FAFSA results. If you're eligible for less than what you apply for you can receive the balance in an unsubsidized loan.

• Independent students can apply for up to $6,000 and dependent students up to $2,000 in an Additional Unsubsidized Loan after eligibility for the Subsidized Loan is determined through a separate application.

• All loans are disbursed in two payments usually once during the Fall semester and once in the Spring semester. We are required by law to wait 30 days to authorize the first disbursements for first time borrowers at LBCC. Funds reach Higher One approximately two weeks later. See "How we disburse financial aid".

• A minimum of half time enrollment (6units) is required to receive a loan. You may be awarded a loan before registration or when enrolled for 6 or more units. However, if you aren't enrolled in at least 6 units when it's time to disburse the award you won't receive the funds.

• You only need to repay funds that you actually receive. If for any reason you don't receive all or part of the loan, repayment isn't required.

• Apply for a Direct Loan