Types of Loans

Federal Direct Subsidized Loans - This low-interest loan is for students with demonstrated financial need. Repayment begins six months after graduation, leaving school, or dropping below half-time. For subsidized loans, the U.S. Department of Education pays interest while enrolled and during the grace period. Students must sign a Master Promissory Note (MPN) for the Direct Loan.

Federal Direct Unsubsidized Loans - Students ineligible for a subsidized loan may use this federal, non-need-based option. Half-time enrollment is required. Borrowers are responsible for interest at all times; unpaid interest accrues and is added to the principal. For details, visit the Federal Student Aid website or contact the Financial Aid Office.

Federal Parent Loan for Undergraduate Students (PLUS) - Parents with good credit may borrow money for educational expenses. This applies to dependent undergraduates enrolled at least half-time. To request a PLUS loan at LRSC, complete the PLUS request process. Information on interest rates and repayment requirements is available by contacting the Financial Aid Office.

New Parent PLUS Loan Changes | Current Parent PLUS Loan Charges

Schedule of Reductions (SOR)

Due to federal changes under the One Big Beautiful Bill Act, federal student loan amounts will be adjusted for students enrolled less than full-time beginning in the 2026-2027 academic year.

LRSC is closely monitoring these changes. While some information is currently available, many provisions require additional guidance from the U.S. Department of Education. The information below reflects what is known at this time and is subject to change as final regulations and guidance are released. We will continue to update this information as guidance is provided.

Key Points to Understand

• If you are enrolled less than full-time (fewer than 12 credit hours that count toward your program of study), your federal loan eligibility may be reduced based on your enrollment rather than receiving the full annual loan limit.
• Enrollment changes matter: Dropping courses, withdrawing, or attending less than full-time may result in recalculation of your loan amounts and affect future disbursements.

What Is LRSC Doing?

2026-27 Financial Aid Offers are packaged based on full-time enrollment.

Before aid is disbursed, the Financial Aid Office will review your enrollment and adjust your loans based on the SOR calculation, if needed.

The Financial Aid Office will also review your actual enrollment after the fall semester and adjust your spring aid, if necessary.

What Can You Do?

We encourage you to:

• Review your financial aid offer carefully.
• If you know you will not be enrolled full-time, contact the Financial Aid Office to estimate any SOR adjustments.
• Monitor your disbursement dates and amounts.
• Contact the Financial Aid Office if you anticipate changes to your enrollment or want to learn more about how they may affect your aid.

How Much Should I Borrow?

Watch the Responsible Borrowing video below to learn more about borrowing student loans. Additional financial aid videos are available at studentaid.gov/resources. To estimate your loan payments, use the Federal Student Aid Loan Simulator or the Bank of North Dakota salary-to-debt calculator.

Loan Counseling

To apply for these loans, first complete the Free Application for Federal Student Aid (FAFSA). All loans must be repaid, though repayment plan options are available. First-time Direct Loan borrowers must sign a Master Promissory Note (MPN) and complete Entrance Counseling. After graduation, leaving school, or dropping below half-time, Exit Counseling is required. Access your MPN and counseling at studentaid.gov using your FSA ID and password.