Step One: Lakeland's
Entrance Counseling Information
(Please read all information below. You must complete both STEP
ONE and TWO.) Federal regulations require
that we provide entrance counseling for
Federal Stafford loan borrowers before releasing their first loan check at
Lakeland Community College. We believe this is an important requirement
because it provides
us the opportunity to explain the loan program to be sure you understand
your obligations, and to provide you with additional information about
Lakeland's
financial
aid policies and procedures.
Most loans at Lakeland will be disbursed in one installment at the
beginning of each term. Your disclosure notice will inform you of the dates
your funds will be sent to the school, the amount of your loan disbursements,
the
interest
rate, the origination fee, the total amount borrowed to date and your lender's
name.
If you have a loan for more than one term,e.g., Fall, and Spring,
please be aware that you must remain enrolled for six (6) credit hours or
more to receive your second disbursement. If you drop below six hours or withdraw
from
school your second disbursement will be returned to the lender and you may
have to submit a new application for the balance of your eligibility.
You
need to realize that Federal Stafford funds must be repaid. A loan was made to
you. You signed a note promising to repay these funds. This is a loan, not a grant
or scholarship. You are obligated to repay the full amount of the loan even if
you do not complete this program, are unable to find employment upon completion
of the program, are dissatisfied with the school, or do not receive the education
or services purchased from the school.
BORROWERS RESPONSIBILITIES
You must meet the standards published in the Standards of Academic Progress
Policy for Federal Aid to continue receiving the loan. The policy establishes
the following criteria as minimum requirements for the receipt of federal funds:
The
minimum grade point average a student must maintain is an accumulative 2.0;
The
minimum number of credit hours a student must complete for each term of attendance
is 66% of credit hours attempted, for example, if the student is enrolled in
12
credits he or she must successfully complete 8 credits.
The maximum number
of credit hours a student can take to earn a degree (the maximum time frame)
is 150% of the number of credit hours published in the College Catalog as
required to earn the degree.
You must maintain contact with your lender, and
notify your lender if you:
change your name
change your address
transfer
to another school
graduate, withdraw or drop to less than six credit hours
fail
to enroll in school for the period for which you are receiving your loan
wish
to defer your payments
have difficulty repaying your loan
THE LIFE CYCLE OF
A STUDENT LOAN
Stage 1 - In-School
The In-school stage lasts as
long as the borrower remains continuously enrolled at least six credit hours.
Dropping below six credit hours or sitting out a term moves you to stage 2.
Stage
2 - Grace period
The Grace Period is a six month period beginning
whenever the borrower ceases to be enrolled for at least six credit hours.
Stage
3 - Repayment
You will be required to start repaying your loan
six months after you stop attending or drop to less than six credit hours.
Your lender or loan servicer will send you notice of the exact date your repayment
begins
and the monthly payment schedule.
Active Repayment
During active repayment
the borrower is making monthly payments as agreed.
Inactive
Repayment
Deferment -In the deferment option, payments
have been suspended because the borrower meets qualifications as defined on the
enclosed Deferment Eligibility Chart.
Forbearance - In the
forbearance option, payments have been lowered or suspended because the lender
has granted a temporary cessation due to some economic hardship encountered by
the borrower.
Delinquency - During delinquency the borrower is in active
repayment but has not made payment as agreed. After 270 days a delinquency becomes
a default.
Default - If you do not make the required payments on your loan,
you will be considered deliquent. If you are 270 days deliquent, you will
go into default on your loan. This has very serious consiquences.
Ramifications
of Non-payment /Default
The loan becomes due and payable in full
immediately.
You will lose the right to make monthly payments and the right
to any future deferments.
You will not be eligible for any future financial
aid to attend any school.
National credit bureaus are informed, seriously
affecting your credit rating.
Collection agencies will pursue you for payment.
Legal
action can be taken against you unless you make satisfactory arrangements to pay
your defaulted loan.
Any income tax refund you are owed by the U.S. Internal
Revenue Service (IRS) or the state will be seized.
For more information or questions on the entrance counseling
please send an email to Melissa Amspaugh (mamspaugh@lakelandcc.edu).
Step Two: Online Entrance Counseling
