LDSBC Financial Aid Guide

Federal Direct Stafford Loans

Stafford loans are offered through the Direct Loan program, which is administered by the Department of Education. Students applying for a Stafford loan must submit a Free Application for Federal Student Aid (FAFSA) and meet the General Eligibility and Satisfactory Academic Progress requirements for financial aid. For more information on how to apply view our application process. For a description of how the loan type and amount is determined please visit the General Eligibility Requirements page and review the section titled "Determining Financial Aid Eligibility."

Two types of Stafford Loans – subsidized and unsubsidized--are offered. Both types have a fixed interest rate (see Interest Rates below) and an origination fee (see Loan Fees below). No payments are required while the student is in school at least half time (6+ credits). When the student drops below half-time attendance, the student enters a six-month grace period. Payments begin at the end of the grace period. Stafford loans in repayment may be deferred if a student returns to school at least half time.

Subsidized Loans

Subsidized Loans are loans in which the interest is paid by the government as long as the student is attending college at least half time (6+ credit hours). This loan has a fixed interest rate (see Interest Rates below). The student is responsible for the interest when the loan enters repayment and may also be responsible for interest during the grace period.

  • The student is responsible for interest during the grace period for loans first disbursed July 1, 2012 - June 30, 2014.
  • The student can choose whether or not to make interest payments during the grace period. Unpaid interest is capitalized. This means that as the interest accrues the unpaid interest is added to your loan. Interest is then calculated on this new amount.

150% Completion Rate and Subsidized Loan Eligibility - Due to the "Moving Ahead for Progress in the 21st Century Act", a new student borrowing loans on, (or after) July 1, 2013 cannot receive loans past the 150 percent completion rate for the borrower's education program. For example, if a student's program is 60 credits, the student will only be eligible for subsidized loans for up to 90 credits. Once the 150 percent of the program is reached, the student will then be only eligible to receive unsubsidized loans.

Unsubsidized Loans

Unsubsidized Loans are loans in which the interest begins to accrue at the time the loan is disbursed, and continues to be charged until the loan is paid in full. The student can choose whether or not to make interest payments during in-school, grace, and deferment periods. Students who choose not to make interest payments during these periods will pay more in the long run. Due to this students are strongly encouraged to make interest payments as the interest accrues. Interest which is not paid is capitalized. This means that as the interest accrues the unpaid interest is added to your loan. Interest is then calculated on this new amount.

For example, a student has an unsubsidized loan of $1500. The student loan is charged $8.50 in interest and the student chooses not to make the payment. The $8.50 is added to the principle loan amount of $1500, and interest is then charged on the new balance of $1508.50.

To see estimates of what interest will accrue each month view the Monthly Accrued Interest chart.

Interest Rates

Loan interest rates are based on when the first disbursement of the loan is made. Unsubsidized Stafford Loans disbursed after July 1, 2006 have a fixed interest rate of 6.8%. See the chart below for subsidized Stafford Loan interest rates.

Subsidized Stafford Loans
Disbursement Date Fixed Interest Rate
July 1, 2012 - June 30, 2013 3.4%
July 1, 2013 -after 3.86%
Loan Fees (Direct Loan Program)
For loans first disbursed: Origination Fee* Up-front Interest Rebate
July 1, 2012 - June 30, 2013 1.0% None
July 1, 2013 - after 1.051% None

*The origination fee is a fee that is charged before the loan is disbursed to the student. For example, a student who requests $1000 in a loan is charged a 1% origination fee of $10, for a disbursement amount of $990. The up-front interest rebate of $5 is then added back to the loan, bringing the amount to $995. The student receives $995, but will be required to repay $1000 when the loan enters repayment (see "Repaying Your Loans" below for more information).

Base Stafford Loans
Base Stafford Loan* Annual Loan Limits
Freshman (0-29 credit hours) $3500
Sophomore (30+credit hours) $4500

*Eligible students will be offered up to the Base Annual Loan Limit in a subsidized Stafford Loan. Students not eligible for all or part in a subsidized loan will be offered an unsubsidized loan for the portion which is not subsidized.

Additional Unsubsidized Stafford Loans
Dependent Students Annual Loan Limits**
Freshman (0-29 credit hours) $2000
Sophomore (30+ credit hours) $2000
Independent Students & Dependent Students Whose Parent Was Denied A Plus Loan Annual Loan Limits**
Freshman (0-29 credit hours) $6000
Sophomore (30+ credit hours) $6000

**A student may not be eligible for the maximum annual loan limit. All financial aid (grants, loans, scholarships, and other financial assistance) cannot exceed the Cost of Attendance for the term(s) the loan is being requested.

***Students must submit the Additional Stafford Request Form in order to request additional unsubsidized Stafford loans.

Aggregate Limits for Stafford Loans
School Status Subsidized Total (Subsidized & Unsubsidized)
Dependent Undergraduates $23,000 $31,000
Independent Undergraduates & Dependent Students whose parents can't get PLUS $23,000 $57,500
Graduate & Professional Students $65,500 $138,500

Students may not exceed the aggregate limits for Stafford loans. Stafford loans received by the student while attending any college are included in the aggregate limits.

Loan Counseling

Students who borrow a Stafford Loan are required to complete Stafford Entrance Counseling each academic year a loan is borrowed. Entrance Counseling is available online at You will be required to sign in using your FAFSA PIN. If you no longer have your PIN, you may request it at

Exit counseling is also required when a borrower drops below half-time enrollment at LDSBC. The Financial Aid Office will request Exit Counseling be completed when a student applies for graduation, does not enroll for a subsequent semester, drops or withdraws from classes to less than 6 credit hours, withdraws from all classes, or does not complete at least 6 credit hours in a semester. Exit counseling is available online at You can also access a printable version of the information in a PDF.

Master Promissory Note (MPN)

Students are required to sign an MPN before receiving a loan. The MPN is available online at You must have your FAFSA PIN ( when you go online to sign your MPN. You will also be requested to select the school you will be attending. Our school is listed on this site as "Latter Day Saints Business College."


Disbursements of loans for a semester begin 10 days prior to the first day of the semester, and continue bi-weekly throughout the semester for students whose loan is ready to be disbursed later. Loans will not be disbursed unless:

  • the loan has been accepted (check the Student Center in your MyBC account to see if the loan shows as accepted);
  • a Master Promissory Note (MPN) has been signed;
  • entrance counseling has been completed;
  • all To Do List Items (Student Center) are complete;
  • the student meets Satisfactory Academic Progress requirements;
  • the student is enrolled at least half-time (6+ credits);
  • the student does not have any holds (Student Center) which prevent financial aid from being disbursed; and
  • disbursements have begun for that semester.

Visit the Disbursements page for more detailed information regarding financial aid disbursements.

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