The William D. Ford Direct Loan Program
Long Beach City College participates in the William D. Ford Federal Direct Loan Program (Direct Loans). This is a low-cost student loan program and is a suitable option for students. As a low-cost community college with grants and fee waivers available, we feel that it provides sufficient financial support to students in need and 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 Need to Know About 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 for 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 on an unsubsidized loan.
- Independent students can apply for up to $6,000 and dependent students up to $2,000 for an Additional Unsubsidized Loan after eligibility for the Subsidized Loan is determined.
- All loans are disbursed in two payments usually once during the Fall semester and once in the Spring semester. We are required by federal regulations to wait 30 days to authorize the first disbursements for first-time borrowers. Funds reach BankMobile approximately two weeks later.
- A minimum of half-time enrollment (6 units) 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.
- First-time LBCC borrowers must complete the Entrance Counseling and Master Promissory Note available at the official Government Student Loans website.
- To receive a direct loan, students must submit a Direct Loan Application.