Types of Financial Aid

The Federal Pell Grant (Pell) is a need-based, federally funded grant that does not have to be repaid, except in rare cases.

How is Pell eligibility determined?

Pell eligibility is based on the Student Aid Index (SAI). SAI is the calculated result that is based on the information provided on the FAFSA. Students who have earned a bachelor degree or higher level degree are not eligible for the Federal Pell Grant.

How is the Pell amount determined?

The amount of the Pell award a student may receive is based on multiple factors. First, the annual award amount is based on the SAI from the student’s FAFSA for the award year. Secondly, the semester amount is based on the student’s enrollment level for the term. See Enrollment Intensity.

Pell Limits

A student may only receive up to 600% of annual Pell Lifetime Eligibility Usage. This typically translates to 6 academic years or 12 semesters of full-time enrollment.

Year-Round Pell

Students are not required to maintain half-time enrollment in the Summer term. All eligible students will be able to receive up to 150% of their annual Pell eligibility, depending on their enrollment intensity.

The Federal Supplemental Educational Opportunity Grant (SEOG) is a need-based, federally funded grant that does not have to be repaid, except in rare cases.

 SEOG is a limited fund that is awarded to students on a first-come, first-served basis. Students must be enrolled in at least 6 credit hours. SEOG awards are adjusted based on the student’s SAI from their FAFSA.

Federal Work Study (FWS) is a need-based, federally funded, self-help award. Awarded students would earn these funds through working part-time in a work study position through LCC. Earned work study funds never have to be repaid.

Who is eligible for FWS?

• Must demonstrate financial need
• Must be enrolled in at least 6 credit hours
• Awarded as long as funds are available
• Must be meeting Satisfactory Academic Progress

How do students receive FWS funds?

FWS is not disbursed to student accounts/applied to LCC charges like other financial aid. Students must apply for and be hired for a work study position. As students work, they will earn FWS funds as a paycheck.

What is the FWS process?

1. Students will be notified on their LCC Student Portal, if they are eligible.
2. Students must apply for a work study position. Postings can be found on Luna's Workday Careers website.
3. Students who are hired, must go through the normal hiring process with their supervisor and HR.
4. Students can begin working and earning their work study funds.

Federal Direct Loans are self-help, government loans that must be repaid with interest. The U.S. Department of Education is the lender. Students are required to be enrolled at least half-time (6 credit hours). Students must complete the FAFSA to qualify. For more information, please visit: Loans | Federal Student Aid 

ALL LOANS MUST BE REPAID.

First-time borrowers must complete Entrance Counseling and a Master Promissory Note.

Entrance Counseling

The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).

You may receive more than one loan under an MPN over a period of up to 10 years to pay for your or your child’s educational costs, as long as the school is authorized to use the MPN in this way and chooses to do so.

ALL First Time Loan Borrowers at Luna Community College must complete the MPN. The MPN must be completed before loan funds can be disbursed.

Exit Counseling ensures that you understand your student loan obligations and are prepared for repayment. You'll learn about what your federal student loan payments will look like after school.

         Anytime a student drops below half-time for any reason, they must complete Exit Counseling.

Loan Repayment Information

There are three time periods associated with Federal Direct Loans:

• In-School Deferment
• Grace Period
• Repayment

Default Prevention

A student defaults on a federal student loan when they have not made any satisfactory payments for 270 days (about nine months). Most students default because they are unaware of their options or they have not kept their information up to date with their federal loan servicer, so they miss important information. If a student defaults, that student is no longer eligible for federal student aid AND the U.S. Department of Education can garnish their wages, federal or state tax refund, or other federal benefits such as social security.

View the responsible borrowing video from Federal Student Aid:

Federal Direct Loans are self-help government loans that must be repaid with interest. The U.S. Department of Education is the lender. Students are required to be enrolled at least half-time. Students must complete the FAFSA to qualify. For more information visit: Loans | Federal Student Aid 

The Federal Direct Subsidized Loan (Sub Loan) is a need-based federally funded loan. Interest begins accruing with the first disbursement to the student account; however, the U.S. Department of Education will pay the interest that accrues while the student is enrolled at least half-time and during the student's grace period.

ALL LOANS MUST BE REPAID.

Any students who drops below half-time enrollment for any reason must complete Student Loan Exit Counseling. This can be done online by visiting: Exit Counseling | Federal Student Aid 

Federal Direct Loans are self-help government loans that must be repaid with interest. The U.S. Department of Education is the lender. Students are required to be enrolled at least half-time. Students must complete the FAFSA to qualify. For more information visit: Loans | Federal Student Aid 

The Federal Direct Unsubsidized Loan (Unsub Loan) is a non-need based, federally funded loan. Interest begins accruing with the first disbursement to the student account and the student will be responsible for any interest that accrues.

ALL LOANS MUST BE REPAID.

Any students who drops below half-time enrollment for any reason must complete Student Loan Exit Counseling. This can be done online by visiting: Exit Counseling | Federal Student Aid 

The Federal Direct Parent PLUS Loan is a credit-based, federally funded loan that must be repaid with interest. The U.S. Department of Education is the lender. Students are required to be enrolled at least half-time. Students must complete the FAFSA to qualify. For more information visit: Parent PLUS Loans | Federal Student Aid 

Is there a separate application?

Yes. In addition to the FAFSA, PLUS borrowers must also complete the PLUS Loan Application. This can be done online by visiting: Apply for a Direct PLUS Loan as a Parent | Federal Student Aid 

Who can borrow a Parent PLUS Loan?

A Parent PLUS Loan borrower must be:

• a U.S. citizen AND
• the legal parent (or step-parent listed on the FAFSA) of a dependent student

What are the steps to apply?

1. Complete the FAFSA
2. Complete the PLUS Application at Apply for a Direct PLUS Loan as a Parent | Federal Student Aid 
3. You will be notified immediately of the credit decision
4. Complete the PLUS Master Promissory Note

NOTE: Credit checks and the Parent PLUS Loan approval are only valid for 180 days.

What kind of credit check is performed?

A "soft" credit check will be performed by the U.S. Department of Education once the PLUS application has been submitted. A borrower may be denied if they have an adverse credit history; however, the credit check for the Parent PLUS Loan is more lenient than most traditional credit check processes.

What if my credit is denied?

There are two options:

1. Appeal the credit decision
   • Instructions for appealing the credit decision will be provided in the denial notification
2. Pursue an Endorser
   • If the parent borrower chooses to pursue an endorser, the endorser must visit: Endorse a PLUS Loan | Federal Student Aid 

If either option is taken, the parent borrower must also complete PLUS Credit Counseling online at: PLUS Loan Credit Counseling | Federal Student Aid 

If the parent borrower is denied due to adverse credit history and chooses not to appeal the credit decision or pursue an endorser or the parent borrower is not a U.S. citizen, the student may request additional Unsub loan funds up to the independent student limit.

When must a Parent PLUS Loan be repaid?

The parent PLUS Loan enters repayment 60 days after the last disbursement of that PLUS Loan UNLESS the borrower requests an In-School Deferment. This is an option on the PLUS application. The parent borrower may also requests a grace period. This will appear as an option on the PLUS application, if the borrower chooses an In-School Deferment.

If the borrower chooses the In-School Deferment and the grace period on the PLUS application, repayment for the Parent PLUS Loan would operate just as the Federal Direct Loans the student borrows.

The New Mexico Opportunity Scholarship (NMOS) is a non-need based, state funded scholarship that does not have to be repaid.

Initial Eligibility Criteria

• Must be a resident of New Mexico
• Must have graduated from high school, or equivalent
• Must be enrolled in at least 6 credit hours
• Must be pursuing a program of study in a "high demand" field, as determined by NM Department of Workforce Solutions

Continuing Eligibility Criteria

• Must complete at least 6 credit hours each term enrolled
• Must maintain continuous enrollment in each Fall and Spring term, Summer is optional
• Must maintain a minimum 2.5 cumulative grade point average (GPA)
• Must not have earned a bachelor's degree or higher

Award Information

• Will be awarded for 100% of tuition charges and course-specific fees
• Can be awarded for Summer courses
• Can be awarded to pursue ONLY ONE associate degree
• Can no longer be awarded once the student has attempted 90 credit hours

Losing Eligibility

A student who fails to meet the Continuing Eligibility Criteria will lose the Opportunity Scholarship for a period of two years. After that time, the student may regain eligibility for the Opportunity Scholarship.

The Legislative Lottery Scholarship (Lottery Scholarship) is a non-need based, state funded scholarship that does not have to be repaid.

Initial Eligibility Criteria

• Must be a resident of New Mexico
• Must have graduated from a public or accredited-private New Mexico high school
• Must enroll full-time at a New Mexico public post-secondary educational institution within sixteen months of high school graduation
  • If the student enrolls at ANY out of state institution or private in-state institution the student shall forfeit eligibility

Continuing Eligibility Criteria

• Must maintain continuous enrollment in at least 9 credit hours, each Fall and Spring term AFTER the student's first, full-time semester
• Must complete at least 24 credit hours each award year
• Must maintain a minimum 2.5 cumulative grade point average (GPA)

Award Information

• AFTER the student's first, full-time semester, the Lottery Scholarship will be awarded for 100% of tuition charges
• The Opportunity Scholarship will cover course-specific fees
• The Lottery Scholarship can only be awarded up to 3 Fall/Spring semesters at Luna Community College
• Can be awarded for Summer courses

Losing Eligibility

If the student fails to meet any of the Eligibility Criteria outlined above, the student will lose both the Lottery and Opportunity Scholarship. After two years, the student may regain eligibility for the Opportunity Scholarship and would follow the Opportunity Scholarship Pathway.

The purpose of this award is to encourage eligible New Mexico students to attend and complete an accredited public education department approved teacher preparation program at Luna Community College. The scholarship is intended to help cover the educational expenses charged by LCC including tuition, fees, books and course supplies and living expenses. The Teacher Affordability Preparation (TPRP) is a need-based, state funded scholarship that does not have to be repaid.

How do I qualify?

• Students must be a New Mexico resident
• Be enrolled in a teacher preparation program and is pursuing a teaching degree at any time later than 120 days following high school graduation (or equivalent)
• Has not already earned appropriate educational credentials to be licensed as a teacher by the public education department
• Demonstrates financial need, according to the FAFSA

How do I apply?

Students are identified by the Director of LCC's Education Department. Eligibility is then determined by the Financial Aid Office.

How much is awarded?

The award amount is based on LCC's allocation from the state, how many students qualify for the given semester, and the amount of demonstrated financial need, as determined by the FAFSA. The award amount will not exceed $6,000 in a single academic year.

The purpose of the Nursing Loan-For-Service is to increase the number of nurses in areas of the state which have experienced shortages by making educational loans to students entering nursing programs. As a condition of each loan, the student shall declare his/her intent to practice as a health professional in a designated shortage area within the state of New Mexico. For every year of service provided in a designated shortage area within New Mexico, a portion of the loan will be forgiven. If the entire service agreement is fulfilled, 100% of the loan is eligible for forgiveness. Penalties will be assessed if the service agreement is not satisfied.

The Nursing Loan-For-Service is a state funded, need-based loan that must be repaid, except in cases where the state determines the entire service agreement has been fulfilled.

How do I qualify?

• New Mexico Resident (12 consecutive months)
• Official Acceptance into a nursing program at a New Mexico public college or university
• Enrolled at least half-time
• Demonstrate financial need (meeting all FAFSA & SAP requirements)
• Student must declare his/her intent to practice as a health professional in a designated shortage area within the state of New Mexico

How do I apply?

• Student shall complete the FAFSA
• Complete the Loan-For-Service Application
• Submit the complete application packet to the New Mexico Higher Education Department via email
• Current program recipients will need to apply each year for funding

Deadlines

For more information visit: Nursing Loan-for-Service Program | NM Higher Education Department | NM Higher Education Department 

The New Mexico's State Student Incentive Grant (SSIG) is a need-based, state funded grant that does not have to be repaid.

 SSIG is a limited fund that is awarded to students on a first-come, first-served basis. Students must be enrolled in at least 6 credit hours. SSIG awards are adjusted based on the student’s SAI from their FAFSA.

New Mexico Work Study (NMWS) is a need-based, state funded, self-help award. Awarded students would earn these funds through working part-time in a work study position through LCC. Earned work study funds never have to be repaid.

• Must demonstrate financial need
• Must be enrolled in at least 6 credit hours each semester
• Must be a resident of New Mexico
• Awarded as long as funds are available
• Must be meeting Satisfactory Academic Progress

How do students receive NMWS funds?

NMWS is not disbursed to student accounts/applied to LCC charges like other financial aid. Students must apply for and be hired for a work study position. As students work, they will earn NMWS funds as a paycheck.

What is the NMWS process?

1. Students will be notified on their LCC Student Portal, if they are eligible.
2. Students must apply for a work study position. Postings can be found on Luna's Workday Careers website.
3. Students who are hired, must go through the normal hiring process with their supervisor and HR.
4. Students can begin working and earning their work study funds.

The Bridge Scholarship is a one time, non-renewable scholarship that covers full tuition and fees in the first semester for students on the New Mexico Lottery Scholarship Pathway.

Eligibility Criteria

• Must enroll full-time (12 credit hours) at Luna Community College in the Fall semester immediately following high school graduation
• There is no separate application
• Funding is limited
• Awarded on a first-come, first-served basis

Note: Students who complete at least 12 hours and maintain a 2.5 cumulative GPA in their first semester may be eligible for the New Mexico Lottery Scholarship in their second semester.

The LCC Foundation is a private 501 (c) 3 organization formed for the purpose of assisting LCC in performing its mission of providing training and education for careers in technical and vocational fields for post-secondary students. The LCC Foundation generates funding from private donors, fundraising activities, corporate grants, and employee contributions. Applications are available each Fall and Spring semester.

Requirements

• Completed Application
• Copy of most recent High School/College transcript
• Have a cumulative 2.0 GPA
• Must be an In-District resident

Applications are available on the LCC Foundation Website

Forms | LCC Foundation (lunafoundationnm.org)