Stafford Student Loan Program and Short-Term Loans

Core Deferment Form Checklist

Short Term Loans

Federal Direct Loans

 

Short Term Loans

Lamar State College - Port Arthur provides short-term loans. Short-term loans are offered through the Business Office. Complete information may be found here.

Federal Direct Loans

Lamar State College – Port Arthur participates in the Federal Direct Loan Program offered by the Department of Education. Federal Direct Loans are student loans that must be repaid and are available to eligible students.

Lamar State College – Port Arthur does not participate in the Parent Plus Loan Program nor do we certify Private Loans.

Types of Direct Loans Available:

If you are borrowing a Direct Loan, you may be awarded a subsidized or unsubsidized loan depending on your financial need.

Types of Loans
Type Basis of Award Interest
Subsidized* Student has financial need. Interest will not accrue on your loan while you are enrolled at least half-time
Unsubsidized** Student does not have financial need. You will be responsible for the interest while in school
 

* If you are a first-time borrower on or after July 1, 2013, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. For more information on the maximum eligibility period for Direct Subsidized Loans, visit StudentAid.gov.

** Unsubsidized loan borrowers will receive quarterly interest statements on your unsubsidized loan from your lender. It is recommended that you pay this interest every quarter. If you do not, the interest will be added to your loan amount, which will result in your paying interest upon interest.

Loan Limits:

Annual Loan Limits
Dependent
Undergraduates
Subsidized Unsubsidized Total
First Year $3,500 $2,000 $5,500
Second Year $4,500 $2,000 $6,500
*Independent
Undergraduates
Subsidized Unsubsidized Total
First Year $3,500 $6,000 $9,500
Second Year $4,500 $6,000 $10,500
 

*Includes students whose parents are unable to borrow under the PLUS (parent loan) program.

 
Aggregate Loan Limits
Aggregate Limits Subsidized Unsubsidized Total
Dependent Undergraduates $23,000 $8,000 $31,000
Independent Undergraduates $23,000 $34,500  $57,500
 

For additional information on Direct Loans please visit www.StudentLoans.gov or www.StudentAid.gov



 

Repayment:


Student Loan Knowledge Headquarters

You must begin repayment of your student loan, once you:
  • Withdraw from school
  • Drop below half-time status (fewer than 6 hours during a long semester)
  • Graduate

1. Complete Exit Counseling:

If you are a Direct Loan borrower at Lamar Sate College Port Arthur, you are required to complete exit counseling prior to leaving. To complete your exit counseling, visit www.studentloans.gov.

2. Grace Period:

A set period of time after you graduate, leave school, or drop below half-time enrollment before you must begin repayment on your loan. The grace period gives you time to get financially settled and to select your repayment plan. Not all federal student loans have a grace period. Note that for most loans, interest will accrue during your grace period.

3. Choose the right repayment plan:

If you are having problems with making your payment it is very important that you contact the Direct Loan representative immediately. They are there to help you find a way to make your payments. There are multiple options to lower your payments.

4. Avoid Default:

Failure to make a payment on time, you're considered delinquent on your Direct Loan. If you do not make payments for 270 days, you are considered to be in default. Default has severe and long-lasting consequences, including the following:

  1. The Internal Revenue Service can withhold your federal income tax refund.
  2. Your wages may be garnished. This means they will automatically take it out of your paycheck
  3. The default will be reported to national credit bureaus. Your credit rating will be damaged, which will make it difficult for you to make purchases such as a car or house.
  4. You are ineligible for Title IV student aid.
  5. You are ineligible for deferments.
  6. The Department of Education can immediately demand repayment of the total amount due on the loan.
  7. The Department will attempt to collect the debt and may charge you for the costs of collecting

5. Deferments:

A deferment is a period during which repayment of the principal and interest of your loan is temporarily delayed. There are several deferment options available to students who may need to suspend their payments for a short period of time. Most deferments are not automatic, and you will likely need to submit a request to your loan servicer, the organization that handles your loan account. If you are enrolled in school at least half-time and you would like to request an in-school deferment, you’ll need to contact your loan servicer and submit the deferment request through the National Student Clearinghouse.

 
Inceptia
 

You’re not alone when it comes to student loans. LSCPA has partnered with Inceptia, a division of National Student Loan Program (NSLP), to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Inceptia’s friendly customer representatives may reach out to you during your grace period to answer questions you have about your loan obligation and/or repayment options. Inceptia is not a collection agency. We’ve partnered with them to inform you of a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. Inceptia will stay in touch with you via phone calls, letters, and/or emails to help you understand your repayment timing and options.

For additional resources including information on repayment options, please visit Inceptia’s Federal Student Loan Overview website at Inceptia.org/FAQ.
 

Eligibility Requirements:

  1. You must be enrolled at least half-time to participate in the direct loan program.
  2. As part of our institution’s default prevention policy, you must be meeting Satisfactory Academic Progress (SAP). Please see the college’s SAP policy.

Extra Steps for Loan Borrowers:

Students interested in receiving loan funds have a few more steps to follow once they have been awarded.

  1. Accept / Decline your Loan Offer:

    Eligible students will receive a loan offer with their aid package. You must accept this loan offer through your My.LamarPA portal. You do not have to accept the full amount of your offered loan. You can lower your loan amount at your own choice. You cannot raise your loan amount. Directions to accept a loan may be found here: Directions to Accept Loans.
     
  2. Complete Entrance Counseling:

    If you are a first-time Direct Loan borrower at Lamar Sate College Port Arthur, you are required to complete entrance counseling prior to your loan being disbursed. To complete your entrance counseling, visit www.studentloans.gov.
     
  3. Complete your Master Promissory Note (MPN):

    After you have accepted your loans your eligibility will be double checked. If you are eligible your name will be sent to the Department of Education and within a week you should be able to return to www.studentloans.gov and complete a Master Promissory Note (MPN). You only have to do this once.

    An MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s); for instance, it will include information on how interest is calculated, when interest is charged, available repayment plans, and deferment and cancellation provisions.

Timing of disbursements:

Loans begin being applied to a student’s Lamar-Port Arthur account 7 days before the first day of class.

  1. If you are first time borrower your funds for the loan will not be applied until 30 days after the first day of class. You may be asked to confirm that you are attending your classes.
     
  2. All loans are applied in two disbursements. The first half will be applied at the beginning of the semester. The second half will be disbursed at the 50% point of each semester. If you drop below half time before the 50% point, the second disbursement will not be disbursed.