Academic Catalog 2011-12

Loans

Federal Perkins Loan

The Federal Carl Perkins Loan program is for students enrolled at least half time in an eligible program who need a loan to meet educational expenses.

Students may borrow up to $5,500 for each year of undergraduate study. The lifetime loan limit for undergraduates is $27,500. The amount awarded by the University is generally less due to limited funds.

Repayment begins nine months after students graduate or drop below half-time enrollment. There is a 10-year pay back period, at five percent interest on the unpaid balance of the loan principal.

The amount of the repayment depends on the size of the debt and ability to pay. In most cases, students must pay at least $40 a month. Any agreement for a lesser amount must be attributable to extraordinary circumstances such as prolonged unemployment.

Default: If a student defaults on a Perkins Loan and the school is unable to collect, the federal government will take action to recover the loan. In cases of bankruptcy, total or permanent disability or death, loan obligations are canceled.

Deferment of payment is available if:

1. you are enrolled and attending as at least a half-time student at an institution of higher education.
2. for any period not to exceed three (3) years you :
   1. are unable to find full-time employment.
   2. are experiencing economic hardship.
   3. are active in certain military service.

Cancellation: Loans may be canceled for:

1. certain types of teaching,
2. full-time qualified provider of early intervention services for the disabled,
3. full-time nurse or medical technician,
4. full-time law enforcement or corrections officer, firefighters,
5. death or disability of the student,
6. full-time staff of Head Start Educational Program,
7. full-time provider of services to high-risk children at a child or family service agency,
8. certain military service,
9. public defenders,
10. certain speech pathologists,
11. certain librarians,
12. faculty member at a tribal college,
13. volunteer service.

Federal Direct Stafford Loan (Student)

Qualified applicants must be a United States citizen or eligible alien. Students may borrow up to $5,500 the first year of undergraduate study, $6,500 as a sophomore and $7,500 as a junior or senior. The lifetime maximum amount is $31,000 for dependent students and $57,500 for independent undergraduate students.

The student loan program is administered through the Financial Aid Office under the Direct Loan Program. A loan fee is charged on all loans, under federal law. Loans are disbursed in two equal disbursements (one-half in the fall semester; one-half in the spring semester).

Subsidized loans are eligible for federal interest benefits. For subsidized loans, the federal government does not charge interest while attending school at least half-time, during the six-month grace period, and during deferments (postponements of repayments). Financial need must be shown to receive this type of loan.

For students without financial need, the Direct Loan Program offers Direct Unsubsidized Loans. The federal government charges interest on these loans while attending school, in the grace period, and in deferment.

Once enrolled at Lake Superior State University, students must meet the satisfactory progress standards to be eligible for additional loans. Students must file a Free Application for Federal Student Aid (FAFSA) each year to qualify for a student loan.

Repayment begins six months after graduation or the date the student attends school less than half-time. Interest rates are set each June for the following academic year.

Federal Direct PLUS Loan (Parent)

Parents may borrow up to the difference between the cost of education and other financial aid for which the student is eligible. The interest rate is adjusted annually for new loans; the 2011/12 fixed interest rate is 7.9%.

Students must meet the satisfactory progress standards to be eligible and must file a Free Application for Federal Student Aid (FAFSA) each year to obtain a Federal Direct PLUS loan.
An origination fee is deducted from each of two disbursements made in a school year. Repayment begins within 60 days of disbursements, or may be deferred until six months after student graduates or drops below half time. Interest rates are set each June for the following academic year.

Federal Nursing Student Loan

The Nursing Education Loan Program provides loans of up to $4000 a year for bachelor’s degree or completion nursing programs. Payment assistance is available by annual application to the Department of Health and Human Services at hrsa.gov/loanscholarships/repayment. Eligibility requirements include United States citizenship, enrollment of at least half-time and demonstrated financial need.

Federal TEACH Loan Forgiveness Program

The TEACH Grant is a Loan Forgiveness Program for students who plan to become teachers in certain fields and for teachers who are seeking a graduate degree.

Qualified students may borrow up to $4,000 per year if full time, prorated for part time.
Maximum of $16,000 for undergraduate student.

Maximum of $8,000 for Masters with lifetime limit of $24,000.

Award becomes an unsubsidized federal student loan with interest accruing from initial point of disbursement if student does not meet forgiveness criteria within eight years.

Qualifications:

1. Student must be admitted into an approved major- see list on website @ www.lssu.edu/finaid/teachlist.php.
2. Student must have scored above 75th percentile on admissions test or Graduate Records Exam (GRE). Submit a copy of your original ACT results clearly showing your score above the 75th percentile.
3. Student who did not meet the test criteria must have a cumulative GPA of 3.25 or higher.
4. If qualified by GPA, must meet that minimum each semester.
5. Student must complete Entrance Counseling, Interim and Exit Counseling.
6. Student must complete Agreement to Serve each year.

Criteria for forgiveness of loan for students:

1. Must complete four years of teaching within eight years of finishing program.
2. Must perform teach service as a highly-qualified teacher.
3. Must teach in a high-need subject area for at least four years at a school serving low-income students.
4. Must be a full-time teacher with majority of time spent teaching one of the high need subjects:
   1. Bilingual Education and English Language Acquisition
   2. Foreign Language
   3. Mathematics
   4. Reading Specialist
   5. Science
   6. Special Education
   7. Other teacher shortage areas documented as high need by Federal, State or local education agency and listed in Department of Education Annual Teacher Shortage Area Nationwide at the time the student begins teaching.

Canada Student Loan

Canadian students who need financial help to earn a degree at Lake Superior State University may apply for aid through the Ontario Student Assistance Program (OSAP).

To qualify for a loan, the student must:

1. be a Canadian citizen or have landed immigrant status;
2. be a resident of a province that participates in the plan;
3. have attained a satisfactory scholastic standard;
4. be enrolled, or qualified to enroll in a post-secondary course of studies;
5. be taking at least 60 percent course load (eight credits);
6. complete an application for OSAP at osap.gov.on.ca;
7. bring Program Information Form to the LSSU Registrar’s Office to be completed and mailed by LSSU.

The loans are interest free for full-time students and until six months after graduation or termination of full-time studies. After the interest-free period has expired, students are responsible for the repayment of principal and the interest on the outstanding balance at a loan rate in effect when repayment begins.

Application forms are available on-line at www.osap.gov.on.ca.

Short-Term Educational Loan

Several short-term loan funds are available. These funds provide cash with a small loan to meet immediate, temporary financial problems.

Generally, loans up to $300 are allowed for no longer than 30 days during the school year when classes are in session. These loans are signature loans and do not bear interest if repaid when due. A minimum service charge is assessed on all loans.

Student Emergency Fund

Established in 2000 through the Bud Mansfield Endowment, this fund is used to assist students in crisis. Application for funds is made at the Financial Aid Office. Students with insufficient resources to meet textbook needs or other obligations may apply for one-time assistance through this fund.

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