Student Loans

Before you apply for a Student Loan

Understanding student loans is very important, please read Your Federal Student Loans guide for detailed information. Before applying for a loan you should make sure that you fully understand its terms and conditions. You should also be aware of your rights and responsibilities. You can learn more about these on the Student Rights and Responsibilities page.

Read the Los Angeles City College Student Loan Guide for important information about student loans and general financial aid eligibility.

2023-2024 Deadlines

Fall 2023: November 17, 2023 is the last day to submit a loan application for attendance in fall.
Winter 2024: January 12, 2024 is the last day to submit a loan application for attendance in winter.
Spring 2024: April 26, 2024 is the last day to submit a loan application for attendance in spring.
Summer 2024: August 9, 2024 is the last day to submit a loan application for attendance in summer.

Borrower eligibility

Complete a Free Application for Federal Student Aid (FAFSA) at Studentaid.gov.
LACC must be the student's home school within the Los Angeles Community College District.
Pursue a financial aid eligible academic program at LACC.
Satisfy the general student financial aid eligibility requirements.
Have received an Award Letter or a letter stating you are ineligible for any need-based aid for the academic year.
Be enrolled in a minimum of six (6) units applicable to your academic program. Students under an extension appeal contract students must be enrolled in six (6) financial aid approved units. The six (6) units must be active to be counted for loan eligibility.
Comply with Entrance Loan Counseling requirements.
Have an active Master Promissory Note.
Maintain Satisfactory Academic Progress.

Types of Student Loans

Subsidized and Unsubsidized loans are federal student loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. The U.S. Department of Education offers eligible students at participating schools Direct Subsidized Loans and Direct Unsubsidized Loans. Some people refer to these loans as Stafford Loans or Direct Stafford Loans.

How to request a Federal Direct Stafford Loan

FAFSA: Complete the Free Application for Federal Student Aid (FAFSA) at StudentAid.gov
Award Notification: Complete your financial aid file and receive your award notification or an email indicating that your file was reviewed but you are not eligible for need-based aid.
Direct Loan Entrance Counseling: New borrowers must go to login on studentaid.gov to complete the Entrance Counseling. Once on the site, click “Complete the Financial Aid Process” and then click on “Complete Entrance Counseling” to access the page. This requirement does not apply to repeat borrowers. Follow this link for the Direct Loan Entrance Counseling Guide.
Master Promissory Note: Borrowers must have an active Master Promissory Note. To confirm status or complete a new Master Promissory Note go to studentaid.gov. Once on the site, click “Complete the Financial Aid Process” and then “Complete Master Promissory Note” to access the page.
Log in or create an account on your Financial Aid Portal
Click on the "Manage Requests" button on the top right corner to create a Loan task
- Student Loan Data Form - LA City College 1 is for a first loan request
- Student Loan Data Form - LA City College 2 and 3 are for additional requests after the first request is processed and you would like to increase the loan amount awarded (additional loan awards are not guaranteed).
Complete the Student Loan Data Form and upload it with a valid government issued ID
It may take up to 45 calendar days to process a student loan. During peak periods the processing time may take longer.
The processing calendar DOES NOT begin until you have complied with all the requirements in the checklist.
Submitting a loan request does not guarantee eligibility.

Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.

Before you apply for a Parent PLUS Loan

Read Your Federal Student Loans. Understanding student loans is very important. Before applying for a loan you should make sure that you fully understand its terms and conditions. You should also be aware of your rights and responsibilities a s a student. You can learn more about these on the Student Rights and Responsibilities page.
Read the Los Angeles City College Student Loan Guide for important information about Stafford Loans and general financial aid eligibility.
Visit the Department of Education website to apply and for more information about the Parent PLUS Loan

Parent Eligibility

Be a U.S. Citizen or National or Permanent Resident/Other Eligible Non-Citizen
Be the biological/adoptive parent of the student (step parents must be the spouse of the student's parent)
Be in good standing for any of the Title IV programs (e.g. Federal Perkins Loan, Federal Pell Grant, a Federal Student Loan) - must not have any Title IV loans in default or outstanding overpayments.
Available only to the parent of dependent undergraduate students
The borrower of a Parent PLUS Loan must not have an adverse credit history (if a parent has an adverse credit history, the parent can still borrow from the Parent PLUS Loan program with an endorser (cosigner) who does not have an adverse credit history)
Parent must be eligible to complete a Master Promissory Note (MPN) and entrance Counseling (the parent that completes and sign the MPN should request the loan)

How to request a Parent PLUS Loan

Student

must complete a Free Application for Federal Student Aid (FAFSA) at StudentAid.gov.
must have been awarded financial aid at LACC for the academic year or received a notification stating that he/she is ineligible for any need-based

Parent

must login on studentaid.gov to complete the Entrance Counseling. Once on the site, click “Complete the Financial Aid Process” and then click on “Complete Entrance Counseling” to access the page. This requirement does not apply to repeat borrowers.
must have an active Master Promissory Note or complete a new Master Promissory Note at studentaid.gov. Once on the site, click “Complete the Financial Aid Process” and then “Complete Master Promissory Note” to access the page.
must apply for credit.
must Complete the Parent PLUS Loan Application and email it to finaid@lacitycollege.edu from the LACCD student email account.

It may take up to 45 calendar days to process a student loan. During peak periods the processing time may take longer. The processing calendar DOES NOT begin until both, the parent and the student, have complied with all the requirements in the checklist. Requesting a PLUS loan does not guarantee eligibility.

Private loans are typically more expensive than Stafford loans. Students that are interested in a private loan must do their own research to find and compare the loans that are available. The college will determine a student’s eligibility for a private loan after the student’s eligibility for all federal aid has been determined. The student’s eligibility will be constrained by his/her unmet cost. Los Angeles City College does not have relationships nor does endorse any private lender.

How to request/apply for Private Student Loans

Complete a Free Application for Federal Student Aid (FAFSA) at StudentAid.gov
LACC must be your home school within the Los Angeles Community College District.
Pursue a financial aid eligible academic program at LACC.
Satisfy the general student financial aid eligibility requirements.
Apply for Federal Direct Stafford Loans (to determine possible eligibility for federal student loans)
Research private student loan lenders to find and compare available loans
Complete the application with the lender of your choice
The lender will evaluate eligibility and will contact Los Angeles City College Financial Aid Office to process a disbursement of the approved loan

Borrowers Eligibility

Complete a Free Application for Federal Student Aid (FAFSA) at StudentAid.gov.
Pursue an eligible academic program at Los Angeles City College.
Any other eligibility criteria as determined by the lender.

Before you apply for Private Loans

There are significant differences between federal student loans and private loans. The following chart summarizes those differences:

	Federal Loans	Private Loans
Repayment	You will not have to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time.	Many private student loans require payments while you are still in school.
Interest Rates	The interest rate is fixed and is often lower than private loans—and much lower than some credit card interest rates.	Private student loans can have variable interest rates, some greater than 18%. A variable rate may substantially increase the total amount you repay.
Subsidies	Undergraduate students with financial need will likely qualify for a subsidized loan where the government pays the interest while you are in school on at least a half-time basis.	Private student loans are not subsidized. No one pays the interest on your loan but you.
Credit Check	You don’t need to get a credit check for most federal student loans (except for PLUS loans). Federal student loans can help you establish a good credit record	Private student loans may require an established credit record. The cost of a private student loan will depend on your credit score and other factors.
Cosigner	You won’t need a cosigner to get a federal student loan in most cases.	You may need a cosigner.
Taxes	Interest may be tax deductible.	Interest may not be tax deductible.
Loan Consolidation	Loans can be consolidated into a Direct Consolidation Loan. Learn about your consolidation options.	Private student loans cannot be consolidated into a Direct Consolidation Loan.
Payment Postponement	If you are having trouble repaying your loan, you may be able to temporarily postpone or lower your payments.	Private student loans may not offer forbearance or deferment options.
Repayment Options	There are several repayment plans, including an option to tie your monthly payment to your income.	You should check with your lender to find out about your repayment options.
Repayment Penalties	There is no prepayment penalty fee.	You need to make sure there are no prepayment penalty fees
Loan Forgiveness	You may be eligible to have some portion of your loans forgiven if you work in public service. Learn about our loan forgiveness programs	It is unlikely that your lender will offer a loan forgiveness program.
Assistance	Free help is available at 1-800-4-FED-AID and on our websites.	The Consumer Financial Protection Bureau's private student loan ombudsman may be able to assist you if you have concerns about your private student loan.