Federal Aid

The Federal Pell Grant (Pell) is a need-based, federally funded grant that does not have to be repaid, except in rare cases.

How is Pell eligibility determined?

Pell eligibility is based on the Student Aid Index (SAI). SAI is the calculated result that is based on the information provided on the FAFSA. Students who have earned a bachelor degree or higher level degree are not eligible for the Federal Pell Grant.

How is the Pell amount determined?

The amount of the Pell award a student may receive is based on multiple factors. First, the annual award amount is based on the SAI from the student’s FAFSA for the award year. Secondly, the semester amount is based on the student’s enrollment level for the term. See Enrollment Intensity.

Pell Limits

A student may only receive up to 600% of annual Pell Lifetime Eligibility Usage. This typically translates to 6 academic years or 12 semesters of full-time enrollment.

Year-Round Pell

Students are not required to maintain half-time enrollment in the Summer term. All eligible students will be able to receive up to 150% of their annual Pell eligibility, depending on their enrollment intensity.

The Federal Supplemental Educational Opportunity Grant (SEOG) is a need-based, federally funded grant that does not have to be repaid, except in rare cases.

SEOG is a limited fund that is awarded to students on a first-come, first-served basis. Students must be enrolled in at least 6 credit hours. SEOG awards are adjusted based on the student’s SAI from their FAFSA.

Federal Work Study (FWS) is a need-based, federally funded, self-help award. Awarded students would earn these funds through working part-time in a work study position through LCC. Earned work study funds never have to be repaid.

Who is eligible for FWS?

• Must demonstrate financial need

• Must be enrolled in at least 6 credit hours

• Awarded as long as funds are available

• Must be meeting Satisfactory Academic Progress

How do students receive FWS funds?

FWS is not disbursed to student accounts/applied to LCC charges like other financial aid. Students must apply for and be hired for a work study position. As students work, they will earn FWS funds as a paycheck.

What is the FWS process?

1. Students will be notified on their LCC Student Portal, if they are eligible.

2. Students must apply for a work study position. Postings can be found on Luna's Workday Careers website.

3. Students who are hired, must go through the normal hiring process with their supervisor and HR.

4. Students can begin working and earning their work study funds.

Federal Direct Loans are self-help government loans that must be repaid with interest. The U.S. Department of Education is the lender. Students are required to be enrolled at least half-time. Students must complete the FAFSA to qualify. For more information visit: Loans | Federal Student Aid 

The Federal Direct Subsidized Loan (Sub Loan) is a need-based federally funded loan. Interest begins accruing with the first disbursement to the student account; however, the U.S. Department of Education will pay the interest that accrues while the student is enrolled at least half-time and during the student's grace period.

ALL LOANS MUST BE REPAID.

Any students who drops below half-time enrollment for any reason must complete Student Loan Exit Counseling. This can be done online by visiting: Exit Counseling | Federal Student Aid 

Federal Direct Loans are self-help government loans that must be repaid with interest. The U.S. Department of Education is the lender. Students are required to be enrolled at least half-time. Students must complete the FAFSA to qualify. For more information visit: Loans | Federal Student Aid 

The Federal Direct Unsubsidized Loan (Unsub Loan) is a non-need based, federally funded loan. Interest begins accruing with the first disbursement to the student account and the student will be responsible for any interest that accrues.

ALL LOANS MUST BE REPAID.

Any students who drops below half-time enrollment for any reason must complete Student Loan Exit Counseling. This can be done online by visiting: Exit Counseling | Federal Student Aid 

The Federal Direct Parent PLUS Loan is a credit-based, federally funded loan that must be repaid with interest. The U.S. Department of Education is the lender. Students are required to be enrolled at least half-time. Students must complete the FAFSA to qualify. For more information visit: Parent PLUS Loans | Federal Student Aid 

Is there a separate application?

Yes. In addition to the FAFSA, PLUS borrowers must also complete the PLUS Loan Application. This can be done online by visiting: Apply for a Direct PLUS Loan as a Parent | Federal Student Aid 

Who can borrow a Parent PLUS Loan?

A Parent PLUS Loan borrower must be:

• a U.S. citizen AND

• the legal parent (or step-parent listed on the FAFSA) of a dependent student

What are the steps to apply?

1. Complete the FAFSA

2. Complete the PLUS Application at Apply for a Direct PLUS Loan as a Parent | Federal Student Aid 

3. You will be notified immediately of the credit decision

4. Complete the PLUS Master Promissory Note

NOTE: Credit checks and the Parent PLUS Loan approval are only valid for 180 days.

What kind of credit check is performed?

A "soft" credit check will be performed by the U.S. Department of Education once the PLUS application has been submitted. A borrower may be denied if they have an adverse credit history; however, the credit check for the Parent PLUS Loan is more lenient than most traditional credit check processes.

What if my credit is denied?

There are two options:

1. Appeal the credit decision

   • Instructions for appealing the credit decision will be provided in the denial notification

2. Pursue an Endorser

   • If the parent borrower chooses to pursue an endorser, the endorser must visit: Endorse a PLUS Loan | Federal Student Aid 

If either option is taken, the parent borrower must also complete PLUS Credit Counseling online at: PLUS Loan Credit Counseling | Federal Student Aid 

If the parent borrower is denied due to adverse credit history and chooses not to appeal the credit decision or pursue an endorser or the parent borrower is not a U.S. citizen, the student may request additional Unsub loan funds up to the independent student limit.

When must a Parent PLUS Loan be repaid?

The parent PLUS Loan enters repayment 60 days after the last disbursement of that PLUS Loan UNLESS the borrower requests an In-School Deferment. This is an option on the PLUS application. The parent borrower may also requests a grace period. This will appear as an option on the PLUS application, if the borrower chooses an In-School Deferment.

If the borrower chooses the In-School Deferment and the grace period on the PLUS application, repayment for the Parent PLUS Loan would operate just as the Federal Direct Loans the student borrows.