LOANS

Los Angeles City College offers a variety of student loan programs. The student loan programs are available to students whose financial aid awards are insufficient to cover the cost of their educational expenses. Unlike grants, work-study or scholarships, loan must be repaid back with interest by the student borrower to the lender of the loan. Students who plan to transfer would be better off if they skip borrowing until they transfer to a four-year university.

A student loan applicant must be enrolled half-time or six (6) units at Los Angeles City College to apply for a loan. The following table shows a comparison of federally funded loan programs available at Los Angeles City College:

LOANS ELIGIBILITY AWARD AMOUNTS INTEREST RATE LENDER/LENGTH OF REPAYMENT
Effective July 1, 2007
Federal Perkins Loan Must be Pell Grant eligible $2,600 per year 5 percent Los Angeles Community College District

Up to 10 years to repay, depending on amount owed
Direct Stafford Loan Must be enrolled at least half time or 6 units $2,625 - 1st year students enrolled in preparatory coursework

$3,500 – 1st year

$4,500 – 2nd year

Independent students may apply for an additional $4,000 in Unsubsidized loan		 6.8 percent fixed U.S. Department of Education

Between 10 to 30 years to repay, depending on amount owed and type of repayment plan selected
Direct PLUS Loans Parents of dependent undergraduate students enrolled at least half time; parents must not have bad credit history Student's Cost of Attendance minus other financial aid student receives 7.9 percent fixed U.S. Department of Education

Between 10 to 30 years to repay, depending on amount owed and type of repayment plan selected


To apply for a loan, please follow these steps:


Step 1:
The student applies for aid by filling out the FAFSA (or a renewal FAFSA)

Step 2:
After receiving an Award Letter, the student completes the Loan Questionnaire form and submit to the Financial Aid Office for processing

Step 3:
The Financial Aid Office certifies student loan eligibility and determines the appropriate loan program for the student

Step 4:
The Financial Aid Office informs that student of loan eligibility and advice the student of required forms to complete.

Step 5:
First time borrowers at Los Angeles City College must complete entrance counseling or on-line counseling. Students who had previously borrowed two or more years of loans or those applying for an unsubsidized loan must attend additional individual loan counseling.

Step 6:
The school disburses the loan funds to student’s bank account or directly mailed to the borrower.