Federal Direct Student Loan Program
Effective July 1, 2026, the changed how annual Federal Direct Loan eligibility is determined.
Previously: Students enrolled in at least 6 units (half-time) could generally qualify for the
full annual Direct Loan amount, depending on their grade level and remaining eligibility.
Now: Annual Federal Direct Loan eligibility is based on your enrollment level. Annual loan
limits for students enrolled less than full-time will be reduced proportionally. Your
enrollment will be reviewed before each loan disbursement. If your enrollment changes
before a scheduled disbursement, your remaining loan eligibility and future disbursement
amounts may be adjusted accordingly. For more information please visit studentaid.gov
Responsible Borrowing & Resources
- Borrow only what you need to minimize your debt.
- Check your loan history:
- Estimate future loan payments:
- Learn about debt relief options:
Types of Federal Direct Loans
- Subsidized Loan: Available to students who demonstrate financial need. The federal government pays the interest while the student is in school and during the grace period.
- Unsubsidized Loan: Available to students regardless of financial need. Interest accrues while the student is in school and must be paid by the borrower.
Eligibility Requirements
To qualify for a Direct Loan, students must:
鉁� Complete the FAFSA and submit required financial aid documents.
鉁� Meet Satisfactory Academic Progress (SAP) requirements.
鉁� Be enrolled in at least 6 units at 91重口 in an eligible degree or certificate program.
鉁� Have a Student Educational Plan (SEP) on file.
鉁� Not be in default on any prior student loans or owe a repayment of Title IV financial aid.
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Application Process
Step 1: Submit FAFSA
- Complete the 2026-2027 FAFSA:
- You must ensure all required financial aid documents are submitted
(You can review unsatisfied documents on MyPortal)
Step 2: Complete Entrance Counseling & Master Promissory Note (MPN)
- Click the following to login to Federal Student Aid account to complete:
Step 3: Submit Direct Intake Form/Loan Application
- Please complete the loan intake form to proceed with your loan application
Email us to request a Direct Intake Form lpcfinaid@laspositascollege.edu - Complete the Direct Loan Application
(Once a staff member approves your intake loan request, you will have access to complete the Federal Direct Loan Application)
Step 4: Loan Disbursement & Exit Counseling
- Loans are disbursed in two payments per semester.
- is required before receiving the second disbursement.
(Your 2nd disbursement WILL NOT disburse if this requirement is not successfully completed).
Funds are released via BankMobile Disbursements.
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Application Period for 2026-2027
| Fall |
September 01, 2026 - November 30, 2026 |
| Spring | February 01, 2027 - April 30, 2027 |
Interest Rates & Fees 2026-2027
| Federal Student Loans | Interest Rate | Origination Fee 2026-2027 |
| Direct Subsidized | 6.52% | 1.057% |
| Direct Unsubsidized Undergraduate | 6.52% | 1.057% |
Annual & Lifetime Borrowing Limits
Annual Federal Direct Loan eligibility is based on full-time enrollment (12+ units). Students enrolled less than full-time will have their loan limit reduced proportionally.
Subsidized Loan Limits
- $3,500 鈥� First-year students (0-29 completed units)
- $4,500 鈥� Second-year students (30+ completed units)
Unsubsidized Loan Limits
- Dependent Students:
- $5,500 (Freshman) or $6,500 (Sophomore) in combined Subsidized/Unsubsidized loans.
- Independent Students:
- May qualify for an additional $6,000 in Unsubsidized loans per year.
Lifetime Loan Limits
Your Maximum undergraduate Aggregate Loan amount may not exceed:
- Dependent Undergraduates: $31,000 total (max $23,000 Subsidized)
- Independent Undergraduates: $57,500 total (max $23,000 Subsidized)
Loan Disbursement & Refund Schedule for 2026-2027
| Academic Year Loan Period | Inclusive Dates | First Payment | Second Payment |
|---|---|---|---|
| Fall 2026 & Spring 2027 |
09/2026-05/2027 | 09/28/2026 | 01/20/2027 |
| Fall 2026 Only | 09/2026-12/2026 | 09/28/2026 | 10/19/2026 |
| Spring 2027 Only | 01/2027-05/2027 | 02/15/2027 | 04/05/2027 |
Please note that these dates are subject to change and reflect the current timeline
for returning federal loan borrowers, as well as the implementation of recent changes
under the One Big Beautiful Bill Act (OBBBA), effective July 1, 2026.
- Loans will not be disbursed until the Add/Drop Period is completed.
- New borrowers must wait 30 days into their first semester to receive funds.
- Students in late-start courses must have at least 6 units started before funds are released.
Loan Approval & Denial Policies
The Financial Aid Office may deny loans if a student:
- Has a history of loan default or excessive student loan debt.
- Demonstrates poor academic progress or attendance.
- Is not making satisfactory academic progress in their program.
- Fails to meet financial aid eligibility requirements.
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Loan Frequently Asked Questions
For more information, visit:
- Federal Student Aid:
- Financial Aid Information:
