LANSING - Students attending Lansing Community College will have to wait weeks longer to receive their loan money. LCC administrators announced Thursday that instead of receiving 100% of their student loan payment in the first week of classes, students receiving loans will get the first half of the semester payment around the fourth week of semester, with the second half being disbursed a week after the midpoint of the semester.
Students receiving federal money through grants and scholarships will be paid all of that money around the fourth week of the semester, once students are enrolled and attending classes.
The change was made because 12% of recent LCC students defaulted on their federal loans. The federal government requires colleges to taker corrective steps when the default rate passes 10%. LCC students receive $104 million in federal student aid.
Students receiving financial aid to pay for books and other school supplies will receive up to $500 before classes begin. That is $100 more than previous financial aid payments.
The changes go into effect for this coming fall semester.