Federal and State Programs
There are three basic sources of funds for college: grants and scholarships, loans, and part-time employment. Most students rely on a combination of these sources to finance their education. For a complete description of federal student financial assistance, please see The Student Guide
Grants and Scholarships
Grants and scholarships are monies that do not have to be repaid.
The Federal Pell Grant is a need-based grant made available by the federal government to undergraduate students who have not earned a bachelor's degree. The Federal Pell grant ranges from $400 to $4310 per year. Each student's award is determined on the basis of family circumstances and cost of attendance. After the Free Application for Federal Student Aid (FAFSA) is filed, the Department of Education sends you a Student Aid Report (SAR) that indicates whether you are Pell eligible.
The Federal Supplemental Educational Opportunity Grant (FSEOG) is a federal grant administered by the LBCC Financial Aid Office. Funds are awarded to undergraduates with Pell eligibility and exceptional financial need as determined by the institution.
The Federal Academic Competitiveness Grant (ACG) is a need-based grant made available by the federal government to undergraduate students who have not earned a bachelor's degree and who are eligible to receive a Federal Pell Grant, who are U.S. citizens, and who are enrolled full time. First academic year undergraduate students must be enrolled in an eligible program (associate's degree); must have completed a rigorous secondary school program of study; must not have been previously enrolled as a regular student in an undergraduate education program; and must have graduated from high school after January 1, 2006. The first year award is up to $750. Second year students must be enrolled in an eligible program (associate's degree); have completed a rigorous secondary school program of study; have graduated from high school after January 1, 2005; and have at least a 3.00 GPA for the first academic year of their program. The second year award is up to $1300.
The Oregon Opportunity Grant is a state grant administered by the Oregon Student Assistance Commission (OSAC) http://www.osac.state.or.us and awarded to undergraduate Oregon residents based on need and allowable funding. Twelve terms of eligibility are possible. The grant is awarded to eligible students attending half-time or more. This grant is not available during summer term.
Scholarships are available from a variety of sources with varied eligibility criteria. In researching the various sources of college funding, students are encouraged to seek out sources that provide free services and information. Please contact the LBCC Financial Aid Office for more scholarship information.
Loans
Loans are borrowed money that you must repay with interest to the lender. To receive a loan, you must be enrolled at least half time. Since the federal government may be subsidizing a portion of the interest and permitting the postponement of payments, loans are regarded as financial aid. Educational loans usually carry a low-interest rate and offer a grace period with repayment generally beginning within 6-9 months after graduation or when you stop attending school at least half-time.
Federal Perkins Loan is a need-based college administered federal loan with a 5% interest rate. The interest is paid by the government while the student is enrolled at least half time. Repayment begins nine months after graduation or withdrawal.
The maximum loan amount per year at LBCC depends on available funds. The federal maximum amount for undergraduates per year is $4000, up to the maximum aggregate amount of $8000 for any student who has not completed two academic years of undergraduate work.
Payments and the length of the repayment period depend on the size of your debt with up to 10 years to repay. Deferments are possible under certain conditions.
Federal Stafford Loans are loaned to you from a bank, credit union, or other lender that participates in the Federal Family Education Loan (FFEL) Program. A 3% administrative fee may be taken from the amount of the loan before the funds are disbursed. The maximum yearly amounts for any combination of Subsidized and Unsubsidized Stafford loan as set by the federal government and based on class rank are:
- $3500 for the first year of your program;
- $4500 for the second year of your program.
The subsidized Federal Stafford Loan is need-based, with the government paying the interest on the loan while you are enrolled. The unsubsidized Federal Stafford Loan is non-need based; you will be responsible for paying the interest while you are enrolled. You may choose to defer the interest by having it added to the principal; this is called capitalization.
The loans have a fixed interest rate of 6.8%. You must be enrolled at least half time, and repayment begins six months after graduation or withdrawal. First time borrowers are required to complete an online entrance counseling session prior to receiving the loan funds. Entrance counseling information is available from the LBCC Financial Aid Office.
If you are a dependent undergraduate student, you may be eligible to borrow an additional Unsubsidized Stafford Loan amount. If you are a dependent undergraduate, you may not borrow from this program unless a financial aid adviser makes an exception because your parent was denied the FPLUS loan. The additional loan limit is $4,000 for the first and second years of a program.
The Federal Parent Loan for Undergraduate Students (PLUS) is a federal loan borrowed by the parent on behalf of a dependent student to assist with educational expenses. Parents may borrow up to the cost of attendance as determined by the LBCC Financial Aid Office, minus any other financial aid the student may receive.
The PLUS is a non-need based loan at a fixed interest rate of 8.5%. Interest is charged on the loan to the borrower from the date the first disbursement is made until the loan is paid in full. Repayment generally begins within 60 days after the final loan disbursement. An administrative fee of up to 4% is deducted proportionately by the federal government each time a loan payment is made.
