Federal Student Loans
Federal loans are borrowed funds that you must repay with interest. A federal student loan allows students and their parents to borrow money to help pay for college through loan programs supported by the federal government. They have low-interest rates and offer flexible repayment terms, benefits, and options.
You are responsible for repaying these funds according to the information contained in the promissory note. More information about repayment options including loan consolidation, interest rates, monthly payments, deferment, forbearance, and cancellation or to defer repayment of loans for service, may be found at studentaid.gov.
LVC’s 2019 Federal Cohort Default Rate (CDR) is 0.8%. The 2019 CDR is the percentage of a school’s borrowers who enter repayment on their federal student loans between Oct. 1, 2018, to Sept. 30, 2019, and defaulted in 2019, 2020, 2021.
Federal Direct Loans are provided by the federal government. The loans are for undergraduate as well as graduate and professional degree students. You must complete the financial aid application process (FAFSA) to be eligible and be enrolled for a minimum of 6 credits per semester.
There are two types of Direct Loans (DL): Subsidized and Unsubsidized. The federal government will pay the interest that accrues on a subsidized DL during periods of enrollment. You are responsible for the interest that accrues on an unsubsidized DL. You have the option of making quarterly interest payments during enrollment or if you choose not to, the interest will be capitalized once at repayment. If you would like to make interest payments while enrolled, you should contact your servicer for information on their in-school interest billing processes.
Interest Rates for Subsidized and Unsubsidized Direct Loans disbursed on or after July 1, 2024:
- Undergraduate Students (subsidized and unsubsidized) – Fixed Interest Rate of 6.53%
- Graduate/Professional Students (only eligible for unsubsidized) – Fixed Interest Rate of 8.08%
The following Federal Direct Student Loan limits are based on the cost of attendance and cumulative credits earned:
Undergraduate Students
| Credits Earned | Subsidized Direct Loan | Unsubsidized Direct Loan | Students whose parents are denied the PLUS Loan- Additional Unsubsidized Direct Loan |
| 0-27 | $3,500 | $2,000 | $4,000 |
| 28-55 | $4,500 | $2,000 | $4,000 |
| 56-83 | $5,500 | $2,000 | $5,000 |
| >84 | $5,500 | $2,000 | $5,000 |
Graduate Students
Unsubsidized Direct Loan: $20,500*
*Graduate students are considered independent and are only eligible to receive the Federal Direct Unsubsidized Loan.
Aggregate Maximum
| Subsidized | Total (Subsidized & Unsubsidized) | |
| Dependent Undergraduate | $23,000 | $31,000 |
| Independent Undergraduate & Dependent Students whose parents are denied the PLUS Loan | $23,000 | $57,500 |
| Graduate and Professional Students | N/A | $138,500 (includes undergraduate and graduate borrowing) |
As a first-time Federal Direct Loan borrower, you must accept/reduce/decline your loan eligibility by logging into AccessLVC.
You may complete the online Entrance Counseling session and complete the MPN at studentaid.gov. Our office will be notified electronically upon completion.
As a returning student borrower, you must accept/reduce/decline your loan eligibility by logging into AccessLVC. Aid offers for current students will be prepared during the month of June and released the first week in July. You will be notified by email when your aid offer is available.
Student borrowers of Direct Loans who are graduating, leaving school, or dropping below half-time enrollment are required by law to complete exit counseling. Exit counseling provides important information students will need as they prepare to repay their federal student loan(s).