Loan Application Process:
Step 1: Fill out the FAFSA and have your financial aid file with Las Positas completed
Step 2: Fill out a loan application and take the entrance counseling exam
Step 3: Loan approval or denial
Step 4: Complete an MPN and submit it to the lender
Step 5: Receiving your check
Step 6: Exit counseling
Step 7: Loan Repayment
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Step 1: Fill out the FAFSA and have your financial aid file with Las Positas completed
- You must first file a Free Application for Federal Student Aid (FAFSA) and complete your financial aid file. The fastest way to apply is to secure a federal pin number at www.pin.ed.gov, then apply online at www.fafsa.ed.gov. This takes about 10 days to process. While you may choose to submit a paper FAFSA, available in the financial aid office; please be aware that paper FAFSAs may take up to 4 weeks to process. Click here for more information on applying for financial aid and filling out a FAFSA.
- Once you have received your processed FAFSA results (Student Aid Report) you need to complete your file; to determine what you must do, check your financial aid account on CLASS-WEB (http://banner-web.clpccd.cc.ca.us:7000/), or contact the financial aid office directly.
Step 2: Fill out a loan application and take the entrance counseling exam
- Please see Loan FAQs for information on loan application dates
- stop by the LPC financial aid office to pick up a loan application
- To complete the entrance exam, logon to www.edfund.org, click on ‘ED TEST’ at the top right of the page; go to the ‘STUDENT ACCESS’ section and select ‘CALIFORNIA’ as the state and ‘LAS POSITAS COLLEGE-LIVERMORE’ as the appropriate school; then click on ‘ENTRANCE EXAM’. When you are finished, print out the ‘PROOF OF COMPLETION’, sign and date it, and submit it to the Financial Aid Office along with the loan application.
Step 3: Loan approval or denial
- All loan applications are subject to review and approval by the financial aid officer.
- For new students to the college and for students with a history of questionable academic or financial aid progress, the financial aid office will forward a verification of attendance and academic progress directly to instructors. Instructor responses to the verification will be considered in the loan approval process.
- Loans will not be approved for students not currently making good overall academic progress or showing poor attendance.
- Students will be notified in writing if a loan has been denied and will be informed of the reasons. As with all financial aid decisions, students may appeal a loan denial by writing a letter of appeal to the Student Services Appeals Committee and submitting it to the financial aid office. Appeals are usually reviewed within 15 days of receipt.
- Las Positas College uses EDFUND as our guarantor for all loans, and we participate in ED FUND’S Automated Loan Guarantee Program. This is the only method LPC will use to authorize a loan.
Step 4: Complete an MPN and submit it to the lender
- The Financial Aid Office will process your loan request information electronically; once your loan is guaranteed EDFUND (or your lender) will mail to you a partially completed Master Promissory Note (MPN). You must complete the MPN and submit it directly to the Lender.
- Your check should be ready for you to pick up at the college approximately 7 working days after the indicated disbursement date on your promissory note.
- You may sign your promissory note online to save time at the appropriate websites of our recommended lenders:
EFSI - www.efsi.net
SOUTHWEST – www.sssc.com
CHELA – www.chelastudentloans.org
Step 5: Receiving your check
A 1% ORIGINATION FEE will be deducted from your loan check as a service charge, and will be itemized on a disclosure statement you will receive with your check.
- Loans will not be released prior to the 30th day after classes begin in accordance with federal regulations and LPC’s default prevention plan.
- Lenders are required by law to disburse your loan money in more than one check; a check in the amount of 1/2 of your requested loan will be issued each semester. In addition, you must remain enrolled in six or more units for the ENTIRE period of your loan or the remaining check(s) will be returned to the lender.
- You will be notified by mail (or email if you have provided a current address) once your check is ready to be picked up. You must first obtain a check release form from the Financial aid Office; submit this form to the College Business Office, Building 100, in order to receive your check.
- Please see Loan FAQs for loan disbursement dates
Step 6: Exit counseling
- Attendance at a Loan Exit Counseling Session is MANDATORY before a student can receive their second disbursement. Loan exit sessions are live and will be scheduled throughout the semester. You will be notified of the dates, and you may attend any session during the semester you will be receiving your second loan check. Repeat borrowers must attend a loan exit session each year.
Step 7: Loan Repayment
- REPAYMENT begins six months after you either graduate OR drop below six (6) units. Payments average $50.00 per month or more, depending on the cumulative amount borrowed.
- You need to stay in contact with your lender and notify them of any changes in your academic status, school, address, graduation date, personal information, or educational goal. Most lenders have a toll free number to make it easier for you to contact them, but it is best to follow up in writing and keep copies.
Here is a typical repayment schedule. Please note that your repayment schedule may not look the same.
Loan Amount |
Number of payments |
Payment at 6% interest (subsidized loans) |
Payment at 6.8% interest (unsubsidized loans) |
|---|---|---|---|
$3,500 |
90 |
$50 |
$50 |
$4,500 |
120 |
$50 |
$52 |
$5,500 |
120 |
$61 |
$63 |
$8,000 |
120 |
$89 |
$92 |
$10,000 |
120 |
$111 |
$115 |
$25,000 |
120 |
$278 |
$288 |
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