Federal Loans

Loans are awarded based on financial need and must be repaid. Repayment agreements are arranged at the time the loan is secured. If you are not making satisfactory academic progress as defined by the college, you may have restrictions imposed on your application.

The Free Application for Federal Student Aid (FAFSA) form must be filed with the federal processing center to begin the loan application process. For more information: www.fafsa.ed.gov.

You may complete the Lone Star College System Financial Aid application process by going to Financial Aid Steps. For your convenience, we've provided a preferred list of lenders from which to choose.

There are two types of Stafford Loans:

• Subsidized which means the federal government subsidizes (pays) the interest on the loan as long as the recipient is enrolled in college in at least half-time status (6 credit hours) and during the six-month grace period that starts when the recipient leaves college or enrollment drops below half-time status.

• Unsubsidized means the federal government does not subsidize (pay) the interest on the loan.  The borrower is responsible for principal and interest from the time loan proceeds are disbursed (delivered to the recipient).

If you are their dependent, your parents may request a PLUS loan to borrow up to the cost of your attendance minus any other financial aid received. This loan is a credit-based loan. Federal loans are dispersed no earlier than 30 days after classes begin.

With this plan, you must pay the down payment and $20 application fee before the first day of the semester. Payment dates and late fees of $25 are established for each semester and detailed in a Promissory Note that you sign. Specific information and contracts can be obtained at the business office of each college. This option is not available for summer classes.