Direct Loan Process
ALL students wishing to borrow must complete the following steps:
3. Exit Counseling for students graduating or withdrawing
Sign in using your Federal FSA-ID and password. This is the same as you used to complete the FAFSA. Complete the Entrance Counseling for undergraduate students and then go back and complete the Master Promissory Note (MPN)
Our office will correspond with you via email regarding the completion of the listed steps.
Iowa Lakes Community College Federal Direct Student Loans
Iowa Lakes Community College administers three Federal Direct Student Loans. Students must first complete their Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov and have received notification from Iowa Lakes Community College that a student loan(s) has been awarded and offered. The three types of loans include:
- Federal Direct Subsidized Loan Low interest educational loan offered by the federal government and awarded based on need. The federal government pays the interest while the student is enrolled at least half-time. Repayment begins six months after graduation or when the student drops below half-time enrollment.
- Federal Direct Unsubsidized Loan Low interest educational loan offered by the federal government and not awarded based on need. The borrower is responsible for all interest, which occurs during any enrollment, grace, deferment, or forbearance period. The borrower can choose to pay the interest or allow it to accumulate. If the borrower allows the interest to accumulate, it will be capitalized meaning it will be added to the principal amount of their loan and will increase the amount they have to repay. Repayment begins six months after graduation or when the student drops below half-time enrollment.
- Federal Direct PLUS (Parent) Loan For parents of dependent undergraduate students. Please contact the Financial Aid Office for more information or go to the link above for Direct Loan MPN (number 2) to apply. The parent will log-in using their FSA ID and password. When logged-in the parent will complete the Parent Plus Request Process.