Types of Aid

Financial Aid

Albany Campus
Takena Hall, Room 117
faoffice@linnbenton.edu
541-917-4850, 541-917-4864 (fax)

  • Monday: 9:00am - 4:00pm
  • Tuesday: 9:00am - 4:00pm
  • Wednesday: 9:00am - 2:00pm
  • Thursday: 9:00am - 4:00pm
  • Friday: 9:00am - 3:00pm

There are three basic sources of federal and state funds for college: grants, loans, and federal work-study. Most students rely on a combination of these sources to finance their education. By completing the FAFSA, you are applying for all three. Scholarships need to be applied for separately. Learn more about LBCC's tuition and fees as well as our cost of attendance.

 

The One Big Beautiful Bill Act (OBBBA) was signed on July 4, 2025, and includes significant reform to Federal Student Aid programs. These changes may affect how much you can borrow and which federal loan programs are available to you.

You should review this information if you:

  • Receive Title IV (TIV) Federal Aid (Federal Pell Grant and/or Federal Direct Loans)
  • Plan to change academic programs or institutions

What Is Changing on July 1, 2026

The new law introduces several key structural changes to the federal loan landscape and the Pell Grant:

  • Less-Than-Full-Time Loan Reduction: The College will be required to adjust the annual loan limit for borrowers enrolled less-than-full-time.
  • New Borrowing Limits: The act establishes updated annual, aggregate, and lifetime borrowing limits.
  • Parent PLUS: Changes include new annual and aggregate parent PLUS Loan limits for new borrowers.
  • Legacy Provisions: Some students may still qualify for previous loan structures under a limited legacy provision, provided they meet specific eligibility requirements.
  • Federal Pell Grant Eligibility: Students are ineligible for Pell if their cost of attendance is fully covered by non-federal sources or if their Student Aid Index (SAI) is over twice the maximum Pell Grant.

Less-Than-Full-Time Loan Reduction

Prior to the 2026–2027 award year, you may have been eligible for the maximum annual loan limit for your academic year. Effective July 1, 2026, your loan eligibility will be determined in part by your enrollment status. Students enrolled less-than-full-time will have their loan eligibility reduced proportionally to their level of enrollment.

Parent Plus Loan Changes

Effective July 1, 2026, new annual and aggregate limits will apply to parent PLUS Loans:

  • Annual Limit: $20,000 per dependent student
  • Aggregate Limit: $65,000 per dependent student

Legacy Provision

For parent PLUS Loan borrowers to continue borrowing parent PLUS Loans under the previous loan limits instead of the new loan limits, a student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, and either:

  • The parent borrower must have had a parent PLUS Loan disbursed for that same program before July 1, 2026, or
  • The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026.

If the above requirements are met, the new parent PLUS Loan limits do not apply while the student is completing their program, for up to the earlier of three academic years or the student’s time to credential, provided the student remains continuously enrolled.

Parents of current students who do not currently meet these criteria can still qualify for this legacy provision if:

  • The parent borrows a parent PLUS Loan, and a disbursement is made before July 1, 2026, or
  • The student borrows a Direct Loan (subsidized or unsubsidized), and a disbursement is made before July 1, 2026.

The new limits will apply to any other dependent student in the family who first borrows on or after July 1, 2026.

Federal Pell Grant Eligibility

Students who receive grants or scholarships from non-federal sources (institutional, state, or private) that cover their entire cost of attendance (COA) are ineligible to receive a Pell Grant, even if otherwise eligible for the program.

Students are ineligible for a Pell Grant if their SAI exceeds twice the maximum Pell Grant award. Students with an SAI equal to or greater than 14,790 (twice the maximum Pell Grant) are ineligible to receive a Pell Grant.

 

Grants do not need 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. Each student's award is determined on the basis of family circumstances and cost of attendance. After you file your FAFSA, the Department of Education sends you a Student Aid Report (SAR) that indicates whether you are Pell-eligible.

The Oregon Opportunity Grant is a state grant administered by the Oregon Office of Student Access and Completion 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.

The Oregon Promise Grant is a state grant that helps to cover tuition costs at any Oregon community college for recent high school graduates and GED test graduates. Students must apply during their senior year or immediately after GED test completion. The Oregon Office of Student Access and Completion is responsible for the awarding and administering of the program. Continuation of the program in future years is contingent upon state funding.

The Federal Supplemental Educational Opportunity Grant (FSEOG) is a federal grant administered by LBCC's Financial Aid Office. Funds are awarded to undergraduates with Pell eligibility and exceptional financial need as determined by the institution.

Loans are borrowed money that must be repaid with interest.

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 six months after graduation or when you stop attending school at least half time. The two main types of loans at LBCC are the Federal Direct Loan and the Federal Parent Loan for Undergraduate Students (PLUS).

Learn more about federal student loans.

 

Federal Direct Loans are loaned to you from the federal government. An administrative fee may be taken from the amount of the loan before the funds are disbursed. The maximum yearly amounts for base loans are set by the federal government and based on class rank. To be considered a second-year student, you must have completed at least 45 credits that are applicable to your major. Base loans may be either subsidized, unsubsidized, or a combination of the two, depending on your established unmet need.

Below are the annual maximums for Direct Loans. Depending upon the amount of room you have under the cost of attendance, you may or may not be able to receive these full amounts. Your total financial aid package cannot exceed your cost of attendance, which is prorated by term.

Loan Type Independent Students Dependent Students
1st Year Subsidized Loan $3,500 $3,500
Unsubsidized Loan $6,000 $2,000
2nd Year Subsidized Loan $4,500 $4,500
Unsubsidized Loan $6,000 $2,000

The Subsidized Direct Loan is need-based, with the government paying the interest on the loan while you are enrolled. The Unsubsidized Direct 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. Subsidized loans disbursed during the 2025-26 academic year have a fixed interest rate of 6.39%. Unsubsidized loans also have a fixed interest rate of 6.39%. You must be enrolled at least half time, and repayment begins six months after graduation or withdrawal.

Borrowers are required to complete online entrance counseling and a master promissory note (MPN) prior to receiving the loan funds. Students who have already been awarded financial aid and accepted their loans on Webrunner will receive an email with the entrance counseling and MPN information.

New borrowers at LBCC are subject to a 30-day delay, meaning they cannot receive loan funds until after 30 days during their first term of enrollment. Loans during subsequent terms may disburse at the regular time.

Loan disbursements must occur in equal disbursements. If a loan is certified for one term only, the first disbursement will occur during the second week of the term, and the subsequent disbursement will occur after the midpoint of the term.

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 LBCC's 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 8.94% for the 2025-26 year. 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.

PLUS loans must be requested separately by completing the Parent PLUS Loan Application.

Federal Work-Study funds must be earned.

Federal Work-Study (FWS) is a need-based program made available by the federal government to qualifying students enrolled in at least six credits. Students awarded FWS need to secure a job on campus and work towards their maximum award amount. The maximum award amount is simply the most money that students can make in a term and does not represent what each student will receive. Students will receive paychecks based on their hourly wage and the hours they worked.

How do you get FWS? Students who marked on the FAFSA that they are interested in FWS will have it added to their award package if they qualify and funding is available. Unfortunately, funding for FWS is very limited and typically runs out early. To maximize your potential of getting awarded FWS, complete all the FAFSA application steps early. All awards will be given on a first-come, first-served basis.

 

 

Student Loan Repayment Counseling and Resources

ECME Solutions logoLBCC partners with ECMC Solutions to provide student loan counseling and support to borrowers as they navigate federal student loan repayment. Contact ECMC Solutions (1-877-331-3262) to make an appointment, connect through email, or web chat with a student loan counselor. The team at ECMC also offers a free webinar series to support borrowers as they navigate repayment.