Financial Aid - Adult Education

A federal loan program is available to all students.

Federal Direct Loans are available to eligible students who complete the Free Application for Federal Student Aid (FAFSA). This federal student aid is made available through the William D. Ford Federal Direct Loan Program to help pay for educational expenses. The Financial Aid Office offers a Direct Subsidized or Direct Unsubsidized Loan, or a combination of both loans, based on financial need.

The information you report on your FAFSA is used to determine your Expected Family Contribution (EFC), which is a calculated formula established by law. Your EFC is not equal to the amount you and your family must pay, but rather an index that allows colleges to determine financial need. To determine your financial need, your EFC is subtracted from your cost of attendance.

• Federal Direct Subsidized Loan
  A Federal Direct Subsidized Loan is offered based on your demonstrated financial need. The federal government pays interest on a subsidized loan, while you are enrolled in school at least half-time and during grace and other deferment periods. The interest rate for Federal Direct Subsidized loans disbursed on or after July 1, 2020 until June 30, 2021 is fixed at 2.75%.
• Federal Direct Unsubsidized Loans
  A Federal Direct Unsubsidized Loan is not based on your financial need. The interest rate for Federal Direct Unsubsidized Loans disbursed on or after July 1, 2020 until June 30, 2021 is fixed at 2.75%. You are not required to pay the interest on this loan while in school, but we recommend that you do. You will be charged interest, starting at disbursement until the loan is paid in full. If the interest accumulates, it will be added to the principal amount of the loan and increase the amount to be repaid.
• Additional loans and grants may be available to you. We recommend visiting the following sites:
  • studentloans.gov (Federal Student Loan website)
  • pheaa.org (Pennsylvania State Grant website)
  • educationplanner.org (scholarship search website)
  • studentaid.ed.gov (information on federal student aid programs)
  • fafsa4caster (federal financial aid calculator)

Loan Limits

Annual Subsidized Limits

• First year undergraduates = $3,500
• Second year undergraduates = $4,500
• Remaining undergraduate years = $5,500
• Preparatory coursework needed to enroll in graduate program if student has a baccalaureate = $5,500

Annual Unsubsidized Limits

• Dependent undergraduates whose parents can borrow PLUS = $2,000
• First and second year undergraduate dependent students whose parents cannot borrow PLUS and independent students = $6,000
• Remaining undergraduate years for dependent students whose parents cannot borrow PLUS and independent students = $7,000
• Preparatory coursework needed to enroll in graduate program if student has baccalaureate = $7,000

Aggregate Limits

• Undergraduate dependent students = $31,000 (up to $23,000 may be subsidized)
• Undergraduate independent students and dependent students whose parents cannot borrow PLUS = $57,500 (up to $23,000 may be subsidized)

Student Loan Repayment and Disputes

Students and parents who borrow Federal Direct Loans will repay their loans to a Federal Loan Servicer. Students are required to participate in Entrance Loan Counseling prior to their first disbursement of a federal student loan, and will be notified of the requirement to complete Exit Loan Counseling at the time of withdrawal or graduation. Exit Loan Counseling will inform students of their Federal Loan Servicer. This information is also available to students and parents at any point during their education on the National Student Loan Data System.

Detailed information about federal student loans, repayment and deferment is found at studentloans.gov. Students are also encouraged to contact their LBC Financial Aid Advisor with any questions.

If issues arise during student loan repayment that cannot be resolved with the Federal Loan Servicer, students or parents may contact the FSA Student Loan Ombudsman Group. The Federal Student Aid Ombudsman Group of the U.S. Department of Education is dedicated to helping resolve disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans. The Ombudsman Group is a neutral, informal, and confidential resource to help resolve disputes about your federal student loans.

FSA Student Loan Ombudsman Group Contact Information: 

FSA website

  877.557.2575   |      606.396.4821

  FSA Ombudsman Group
PO Box 1843, Monticello, KY 42633

• To apply for a federal direct loan, you must complete the FAFSA each year. To be eligible, you must be enrolled in a degree program for at least six (6) credits per semester and maintain LBC’s satisfactory academic progress standards.
• E-sign your Federal Direct (subsidized or unsubsidized) Loan Master Promissory Note (MPN). If you are a first-time borrower of the federal direct loan, you will be required to complete a Master Promissory Note (MPN) before the loan funds can disburse. In most cases, you will only need to complete one MPN during your college career.E-sign your federal direct loan MPN at studentloans.gov using your Federal Student Aid PIN.
  • Select Sign-In.
  • After you sign in, choose Complete MPN.
  • Select Subsidized/Unsubsidized.
  • Follow the four-step process listed on the studentloans.gov website to sign your MPN.
• If you are a first-time borrower of the federal direct loan, you are also required to complete loan entrance counseling before the loan funds can disburse. Complete this required counseling session by selecting Entrance Loan Counseling on the www.studentloans.gov website. This counseling session provides you with information that will help you understand your rights and responsibilities as a loan borrower, as well as other tools to assist you with managing your loans.Note: This requirement is separate from e-signing the loan MPN.*

An origination fee of 1.073% will be deducted from the gross amount of loan borrowed, so you need to take that into consideration when determining the amount you need to borrow.

It is important to know that loan funds will automatically credit to your student account if the Direct Loan Processor has a valid MPN on file for you, and you have completed loan entrance counseling. After you have completed your registration and semester classes begin, your student financial aid will begin to disburse into your student account.

If you wish to reduce or cancel your loan(s), please login to myLBC, and click on Financial Aid Awards.

Dropping courses and withdrawing from LBC are academic actions that often have financial implications. It is your responsibility to understand the effects that these actions will have on your student financial aid. Dropping courses after the official add/drop period may result in your financial aid being adjusted. Withdrawal from the college may result in having your financial aid refunded. (See our federal aid refund policy.)

Adult Education Undergraduate Degrees tuition refunds for a 6 week course are granted according to the following schedule:

On Campus Tuition Refunds:

Up to the first night of class for the module – 100%
After the first night of class for the module (whether attended or not) – 75%
After the second night of class for the module (whether attended or not) – 50%
After the third night of class for the module (whether attended or not) – no refund

Online Tuition Refunds:

0-10% of class completed – 100% refund
11-20% of class completed – 90% refund
21-30% of class completed – 75% refund
31-40% of class completed – 50% refund
41-50% of class completed – 25% refund
51-100% of class completed – No refund

Audit

No refund

When your total aid is greater than your billable charges for tuition, student service fee, and books, you may be eligible for a refund.

After a student’s aid money arrives at Lancaster Bible College, midway through the semester, and it creates a credit balance on their student account, our business office will automatically send a stipend check to the student address on file. LBC has up to 14 business days to process and mail a credit refund.

In order to maintain financial aid eligibility, a student must meet the following requirements of Satisfactory Academic Progress:

Maximum Time Frame for Completion of Education Objective:

Students must complete their degree program within 150% of the published length of their degree program.

Evaluation of Academic Progress:

For students enrolled in certificate programs or programs that are less than one year, evaluation of satisfactory academic progress will be done at the end of each payment period. If a student fails to make satisfactory academic progress at the end of the first payment period, they will be placed on “Academic Warning”. The student may continue to receive Title IV aid for one payment period and no appeal is necessary.

Otherwise all other students enrolled in programs longer than one year will be evaluated at the end of each academic year. The total (cumulative) academic record is considered when academic progress is considered when academic progress is evaluated (not just terms when financial aid was received).

Students who are not successfully completing courses at the minimum levels as outlined are considered to be making unsatisfactory progress and will not be eligible for financial aid for the following semester.

Appeal Process:

Students may appeal financial aid termination status in writing on the appeal form included with this policy. Such appeals must be made within 30 days after the date of the letter of notification and must include appropriate request documentation. The appeal must be in written form, addressed to the Financial Aid Director for consideration by the Financial Aid Committee. Mitigating circumstances which would be considered upon appeal as adequate reasons for reinstatement would be:

• student illness, accident or hospitalization
• death or illness of parent or relative
• other family emergencies or unusual circumstances

The appeal must include why the student failed to make satisfactory academic progress, what has changed that will allow the student to make satisfactory academic progress for the next semester.

If the appeal is granted the student will then be placed on “Academic Probation” and will be allowed to receive Title IV aid for the next payment period or be placed on academic plan that will ensure the student is able to meet satisfactory academic progress by a specific point in time.