Types of State & Federal Aid
There are three basic sources of funds for college: Grants and Scholarships, Loans, and Federal Work-study. Most students rely on a combination of these sources to finance their education. By completing the FAFSA, you are applying for grants, Federal Work-study, and loans. Scholarships need to be applied for separately. Please view our scholarship page for additional information on scholarships. For a complete description of federal student financial assistance, please see The Student Guide.
Grants and Scholarships
Grants and Scholarships do not need to be repaid
The Federal Pell Grant is a need-based grant made available by the federal government to undergraduate students who have not earned a bachelor's degree. Each student's award is determined on the basis of family circumstances and cost of attendance. After the Free Application for Federal Student Aid (FAFSA) is filed, the Department of Education sends you a Student Aid Report (SAR) that indicates whether you are Pell eligible.
The Oregon Opportunity Grant is a state grant administered by the Oregon Office of Student Access and Completion (OSAC) and awarded to undergraduate Oregon residents based on need and allowable funding. Twelve terms of eligibility are possible. The grant is awarded to eligible students attending half-time or more. This grant is not available during summer term.
The Oregon Promise Grant was created by the Oregon Legislature beginning with the 2016-2017 year. The Oregon Office of Student Access and Completion (OSAC) is responsible for the awarding and administering of the program. Continuation of the program in future years is contingent upon state funding.
The Federal Supplemental Educational Opportunity Grant (FSEOG) is a federal grant administered by the LBCC Financial Aid Office. Funds are awarded to undergraduates with Pell eligibility and exceptional financial need as determined by the institution.
Scholarships are available from a variety of sources with varied eligibility criteria. In researching the various sources of college funding, students are encouraged to seek out sources that provide free services and information. Please contact the LBCC Financial Aid Office for more scholarship information.
More information on scholarships is available on our Scholarship page.
Loans are borrowed money that must be repaid with interest
To receive a loan, you must be enrolled at least half time. Since the federal government may be subsidizing a portion of the interest and permitting the postponement of payments, loans are regarded as financial aid. Educational loans usually carry a low-interest rate and offer a grace period with repayment generally beginning within six months after graduation or when you stop attending school at least half-time. The two main types of loans at LBCC are the Federal Direct Loan and the Federal Parent Loan for Undergraduate Students (PLUS).
Federal Direct Loans are loaned to you from the federal government. An administrative fee may be taken from the amount of the loan before the funds are disbursed. The maximum yearly amounts for base loans are set by the federal government and based on class rank. To be considered a second year student, you must have completed at least 45 credits that are applicable to your major. Base loans may be either subsidized, unsubsidized, or a combination of the two, depending on the student's established unmet need.
Below are the annual maximums for Direct Loans. Depending upon the amount of room
a student has under the Cost of Attendance, students may or may not be able to receive these full amounts. Your total financial
aid package cannot exceed your Cost of Attendance, which is prorated by term.
The Subsidized Direct Loan is need-based, with the government paying the interest on the loan while you are enrolled. The Unsubsidized Direct Loan is non-need based; you will be responsible for paying the interest while you are enrolled. You may choose to defer the interest by having it added to the principal; this is called capitalization. Subsidized loans disbursed during the 2020-21 academic year have a fixed interest rate of 2.75%. Unsubsidized loans also have a fixed interest rate of 2.75%. You must be enrolled at least half time, and repayment begins six months after graduation or withdrawal.
Borrowers are required to complete online Entrance Counseling and a Master Promissory Note (MPN) prior to receiving the loan funds. Entrance Counseling and MPN information is available from the LBCC Financial Aid Office. Students who have already been awarded financial aid and accepted their loans on their WebRunner account will receive an e-mail with the Entrance Counseling and MPN information.
A new limit on eligibility for Direct Subsidized Loans for new borrowers on or after July 1, 2013 was implemented effective July 1, 2013. New borrowers who begin their college enrollment on or after July 1, 2013 will not have access to subsidized loan funds beyond 150% of the credits required for their degree or certificate program.
For Subsidized Direct Loans, interest will not accrue while you are attending at least half time. However, interest subsidies during the six month grace period were eliminated for new subsidized loans made on or after July 1, 2012.
The Federal Parent Loan for Undergraduate Students (PLUS) is a federal loan borrowed by the parent on behalf of a dependent student to assist with educational expenses. Parents may borrow up to the Cost of Attendance as determined by the LBCC Financial Aid Office, minus any other financial aid the student may receive.
The PLUS is a non-need based loan at a fixed interest rate of 5.30% for the 2020-21 year. Interest is charged on the loan to the borrower from the date
the first disbursement is made until the loan is paid in full. Repayment generally
begins within 60 days after the final loan disbursement.
PLUS loans must be requested separately by completing the Parent PLUS Loan Application.
Linn-Benton Community College will offer private loans for our high cost accelerated programs only*. Currently, our standard Cost of Attendance (COA) allows students to receive their maximum federal direct loans.
This change in processing was implemented by the financial aid office at Linn-Benton
Community College (LBCC) as part of our default management plan. As a community college,
it is our responsibility to ensure that students are not over borrowing for their
education. As we strive to maintain an environment of learning, we are compelled
to utilize debt management tools to ensure that students will be able to repay their
loans upon completion of their degrees at LBCC.
LBCC’s accelerated programs are:
- Automotive Technology
- Dental Assistant
- Diagnostic Imaging
- Heavy Equipment/Diesel Technology
- Machine Tool Technology
- Non-Destructive Testing and Evaluation
- Occupational Therapy Assistant
- Sleep Technology
- Surgical Technician