Loan Counseling

For each of these loan opportunities, you must first complete the Free Application for Federal Student Aid (FAFSA). It is important to note that all loans MUST be repaid, but there are repayment plan options available. If you have never received a Direct Loan through the Federal Student Aid Programs, you will be required to sign a Master Promissory Note (MPN) and complete Entrance Counseling. Once you graduate, leave school, or drop below half-time, you will be required to complete Exit Counseling. To access your MPN and Entrance and Exit Counseling go to: and log in with your FSA ID and Password.

How much should you borrow?

Watch this video on Responsible Borrowing from the student aid website to learn about borrowing student loans. For more insightful videos on financial aid go to

Types of Loans

Federal Direct Subsidized Loans - this is a loan program available to students who are found to have a financial need as determined by completing the FAFSA. These low-interest loans are funded by the federal government. Students must be enrolled at least half-time to be eligible for the Direct Loan program. Repayment does not begin until six months after the student graduates, leaves college, or is enrolled less than half-time. For a subsidized loan, the U.S. Department of Education pays the interest while you are in school at least half-time; for the first six months after you leave school (grace period); and during a period of deferment. To sign a master promissory note (MPN) for direct loan visit

Federal Direct Unsubsidized Loans - Students who may not be eligible for any or all of the subsidized loans may be awarded for the difference through the unsubsidized loan. This federal loan is a non-need-based loan program and is designed to assist eligible students by providing additional funds to meet the cost of education. Contact the Financial Aid Office for more information. There is no priority funding deadline for an unsubsidized loan. Students need to be enrolled at least half-time to qualify. You are responsible for paying the interest during all periods. If you choose not to pay the interest while in school, or during the grace period, the deferment period or the forbearance period your interest will accumulate and will be added to the principal amount. For more information go HERE.

Federal Parent Loan for Undergraduate Students (PLUS) - enables parents with good credit history to borrow money for educational expenses of each child who is a dependent undergraduate student enrolled at least half-time. To request a PLUS loan at Lake Region State College you need to complete a PLUS request process. Information on interest rates and repayment requirements are available by contacting the Financial Aid Office.

Alternative Loans

A number of private lenders have loans that are very similar to the Stafford Subsidized and Unsubsidized Loans. A student may borrow up to the budget established for an academic year. This loan is in addition to funds already awarded either on campus or from outside sources. A borrower must have a credit history or have a credit-worthy co-signer on the loan(s). Students may select the alternative loan program they wish to use and will need to complete a separate application with the lender. LRSC, through FAST Choice, offers a Historical Lender List that includes lenders we have worked with within the past. If students are interested in pursuing an alternative loan, they should contact the Financial Aid Office at 701-662-1517.