What Can You Use Loan Money For?
If you receive a federal loan, you can only use the money to pay for educational expenses at CLCC. These include: tuition and fees; books, supplies, and equipment; the rental or purchase of a personal computer; room and board; dependent child care expenses; transportation; and miscellaneous expenses.
Federal Student Loan Process
- Complete a FAFSA at https://studentaid.gov with all required verification completed.
- All first-time borrowers must complete Entrance Counseling online at www.studentloans.gov.
- All first-time borrowers must complete Master Promissory Note (MPN) for Subsidized/Unsubsidized Loans online at https://studentaid.gov
- If you would like a Federal loan processed, please complete a request form at https://tinyurl.com/CLCCLOANS. (NOTE: Please watch the email used on your FAFSA for information about your loan once processed or if there is anything else needed for your loan to be processed. If you have questions about your loan(s), please email firstname.lastname@example.org.)
We encourage you to borrow as little as possible. A Federal student loan is money YOU borrow and must pay back with interest. You can borrow up to your maximum federal loan eligibility as long as you have an unmet need within your cost of attendance budget.
Eligibility calculation: Cost of Attendance - FAFSA EFC - All Financial Aid Awards = Unmet Need
Other eligibility factors are you must be enrolled in at least 6 hours needed to complete your program of study and you meet the terms of the Satisfactory Academic Progress Policy
The annual loan limits for subsidized/unsubsidized loans are:
Dependent Undergraduates Subsidized Total (subsidized/unsubsidized)
First Year...................................................... $ 3,500............................... $ 5,500
Second Year................................................ $ 4,500................................ $ 6,500
Independent Undergraduates & Dependent Students whose parents can’t get PLUS
First Year....................................................... $ 3,500................................. $ 9,500
Second Year................................................. $ 4,500 ..............................$ 10,500
Parent Plus Loans
Parents who want to apply for a Parent Plus loan can go to https://studentaid.gov and complete the counseling and master promissory note under the Parent Borrowers tab.
Federal Loans vs. Private Loans
Federal loans are a better deal than loans from private lenders. Federal student loans generally have lower interest rates that are fixed, generous repayment plans, no repayment penalties, and no credit checks (except for PLUS loans).
Private Alternative Student Loans
Private alternative student loans are available to students and families needing additional expense funding. These loans may be more expensive than federal loans. A credit history and a co-signer may be required.
Copiah-Lincoln Community College does not endorse any lender or lending institution. To assist in your search, we do recommend using FASTChoice. FASTChoice is a tool for comparing a historical lender list of private alternative loan lenders. The lenders are listed in random order, and the information provided is accurate to the best of our knowledge. Click the link to apply for a Private Loan: https://choice.fastproducts.org/FastChoice/home/240200
They will process a private education loan from any lending institution. If you choose to borrow through a lender that is not on this list, we will process your application and certify your eligibility with that lender. Lenders are required to provide the borrower with a right-to-cancel period for their lender-approved and school-certified loans. The right-to-cancel period may take between 3 to 10 days, depending on the lender. Private loan funds are released to Copiah-Lincoln Community College after this period and then are disbursed to student accounts.
Track Your Loan History
You can track your student loan history at StudentAid.gov. All your federal loan information is reported to NSLDS, where you, your loan servicer, and other authorized users can access it.
Direct Loan Counseling Addendum
Direct Subsidized Loan Time Limitation If you receive your first federal student loan after June 30, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period." In addition, if you continue to be enrolled in any undergraduate program after you have received Direct Subsidized Loans for your maximum eligibility period, we will no longer (with certain exceptions) pay the interest that accrues on your Direct Subsidized Loans for periods when we would normally have done so. This is called losing interest subsidy. Remember: Loss of eligibility for Direct Subsidized Loans due to the time limitation has no impact on your eligibility for Direct Unsubsidized Loans. The periods of time that count against your maximum eligibility period are periods of enrollment (also known as "loan periods") for which you received Direct Subsidized Loans. If you enroll in a new program that is longer than your previous program, you may regain eligibility to receive Direct Subsidized Loans.
Maximum Eligibility Period to Receive Direct Subsidized Loans
There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your "maximum eligibility period". You can usually find the published length of any program of study in CLCC's catalog. For example, if you are enrolled in a 2-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is 3 years (150% of 2 years = 3 years). Your maximum eligibility period is based on the published length of your current program. This means that your maximum eligibility period can change if you change programs. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count against your new maximum eligibility period.
Effect of Borrowing While Enrolled Part-Time
If you receive a Direct Subsidized Loan when you are enrolled less than full-time, the period that is counted against your maximum eligibility period will be reduced. For example, if you are enrolled half-time and receive a Direct Subsidized Loan for a period of enrollment that covers a full academic year, this will count as only one-half of a year against your maximum eligibility period.
Summer Loan Eligibility
Please be aware that if you borrow all of your loan eligibility during Fall and Spring, you will not have any loan eligibility remaining for Summer. If your program requires attendance during the Summer semester, you may want to consider budgeting your annual loan eligibility across 3 semesters.
For More Information
- The federal government offers a lot of detailed information about loans at https://studentaid.gov
- To estimate eligibility to determine if you may qualify for Income-Based Repayment (IBR) visit www.ibrinfo.org.
- To view the Code of Conduct
- Budgeting for College Students
- 15 Tools for Managing Student Loans