Types of Financial Aid
A college education is a powerful investment in your future. At Lake Area Tech, we understand that paying for college can be challenging, which is why we offer information on a range of financial aid options. Our goal is to help students make informed decisions about paying for college and guide them through the process of applying for financial aid. Learn more about the financial aid options available including grants, federal loans, private loans, federal work study, part-time jobs, other agency funding, and other helpful resources.
Grants
Grants usually are awarded on the basis of financial need and are not required to be repaid. You must complete the Free Application for Federal Student Aid (FAFSA) to apply for federal grants.
Federal Pell Grant
Federal Pell Grants are funds available to undergraduate students who have not previously earned a bachelor’s degree. Eligibility is based on need and determined by your Student Aid Index (SAI) listed on your Student Aid Report, if your SAI is high, you may not qualify for a Pell Grant. The amount of Pell Grant that a student is eligible for will be adjusted each semester and is based on the number of credits a student is enrolled in. Learn more at www.studentaid.gov.
Federal Supplemental Educational Opportunity Grant (FSEOG)
The Federal Supplemental Educational Opportunity Grant (FSEOG) is a grant that is awarded to an undergraduate student who demonstrates exceptional financial need to help pay for their education. Priority is given to students with the lowest Student Aid Index (SAI) and must also be Federal Pell Grant recipients.
South Dakota Education Access Foundation Grant
The South Dakota Education Access Foundation Grant (SDEAF Grant) is a private grant program available to undergraduate students who show need and meet eligibility requirements as determined by the institution. Must be enrolled at least half-time and submit a FAFSA.
South Dakota Need-Based Grant
The South Dakota Need-Based Grant (SDNBG) is a state grant program awarded to undergraduate South Dakota residents enrolled at least half-time. A FAFSA must be submitted to determine eligibility.
Federal Loans
Federal Direct Loans
Federal Direct Loans, borrowed from the federal government through the Federal Direct Loan Program, are low-interest loans that can help you pay for college expenses. Federal loans must be repaid even if you don’t complete your program or if you don’t find employment. If you borrow a Federal Direct Loan, you must complete a Master Promissory Note (MPN), which is the application for all direct loans. Only first-time borrowers need to complete the MPN. If you wish to receive Federal Direct Loans in subsequent years, only the FAFSA needs to be completed. First-time borrowers need to complete entrance counseling at www.studentaid.gov before funds are distributed.
Direct Loans can either be subsidized or unsubsidized. The current interest rate is 6.5333%.
- A Subsidized Direct Loan is based on financial need. The government pays the interest for you while you are enrolled in school at least half-time, during the grace period (six months after you finish/leave school, and during a deferment or postponement of loan payments).
- An Unsubsidized Direct Loan is not based on financial need. You are responsible for interest from the time the loan is disbursed until it is paid in full. The loan principle is deferred while you are enrolled in school at least half-time and for six months after you drop below half-time status.
| Year in School | Dependent | Additional Unsub for Dependents | Independent | Additional Unsub for Independents |
| 1st Year (1-33 credits) | $3,500 | $2,000 | $3,500 | $6,000 |
| 2nd Year (34+ credits) | $4,500 | $2,000 | $4,500 | $6,000 |
There is a 1.057% loan fee deducted from each disbursement. For more information on Federal Direct Loans, please visit www.studentaid.gov.
Federal Direct PLUS Loan
Federal Direct PLUS Loans are loans available to parents of a student who wish to help cover the costs of their child’s educational expenses. Before applying for the Direct PLUS Loan, the student for whom the loan is being sought must have a valid FAFSA on file at Lake Area Technical College. The PLUS Master Promissory Note (PLUS MPN) is also required for first-time applications. The parent borrower must complete the PLUS MPN online using their own FSA ID. A credit check will be conducted on the borrower.
The Direct PLUS Loan will remain in the name of the parent borrower for the life of the loan. The current interest rate on the Direct PLUS Loan is 9.08%, which is a fixed rate for the life of the loan. Additionally, loan fees of up to 4.228% apply. For more information on the Federal Direct PLUS Loan or to apply, please visit www.studentaid.gov.
Loan Counseling Information
Entrance Loan Counseling
The purpose of Entrance Loan Counseling is to ensure that students understand their rights and responsibilities as a student loan borrower. All first-time Federal Direct Loan borrowers must complete Entrance Loan Counseling and a Master Promissory Note before their loan funds can be disbursed. You can complete both the online entrance loan counseling and the Master Promissory Note at https://studentaid.gov/.
Note: When completing Entrance Loan Counseling, select the “I am an Undergraduate Student” option.
Exit Loan Counseling
The purpose of Exit Loan Counseling is to provide student loan borrowers with essential information to ensure they understand their student loan obligations and are prepared for repayment. Before graduating or dropping below half-time enrollment status, students with federal student loans must complete exit loan counseling. You can complete the online exit loan counseling at https://studentaid.gov/.
Additional Information
Federal Direct Loan Servicer – Student loan borrowers can find out who their Federal Direct Loan Servicer is by logging into https://studentaid.gov/ using their FSA ID and password. Student loan borrowers can then set up an online account with their loan servicer.
Federal Student Aid Ombudsman – Students who have a dispute or other problem involving their federal student loans that they feel has not been resolved by the school or their loan servicer can contact the Federal Student Aid Ombudsman Group for assistance. More information can be found here.
Questions – Students with questions regarding Entrance Loan Counseling and Exit Loan Counseling can contact the LATC Financial Aid Office at 605.882.5284 or 800.657.4344 or via e-mail at financialaid@lakeareatech.edu.
Private Education Loans
Private education loans are offered by several lenders through their own private loan programs. Students should exhaust all Federal Financial Aid options before applying for a private education loan. If you decide to borrow a private education loan, you must select your private education loan lender. Lake Area Tech does not endorse specific lender(s), and you’re free to borrow from any participating lender, not just those identified. Be sure to compare benefits, and select the program that best fits your borrowing needs.
Learn more about the private education loan lenders Lake Area Tech has worked for in the past by clicking here. You can also apply for a private education loan through this link. If you still have questions or need more information, please contact the Financial Aid Office.
Federal regulations require lenders to send borrowers and co-signers three disclosure notices to ensure they are properly informed of the loan’s terms and conditions. Because of that, this process will take longer than usual, and it may take up to four weeks to receive your loan funds after you apply.
Borrowers of private education loans are required to fill out a Self-Certification of Private Loans. (Most lenders will provide this.) Click here for the Self-Certification of Private Loans document.
Helpful Hints
- Loans are disbursed by semester, unless otherwise requested.
- Start planning early to ensure your funds are available when school starts.
- Apply online, if possible.
Work-Study and Part-Time Jobs
The Federal Work-Study program provides part-time jobs for college students with a financial need. College students who qualify for Federal Work-Study are paid $15 per hour. These funds should be used to cover indirect college costs as the student is paid monthly throughout the school year.
How Do I Qualify?
If you’re enrolled at Lake Area Technical College at least half time and demonstrate financial need, Federal Work-Study may be available to you. To determine financial need, first complete your FAFSA as soon as possible. Those offered Work-Study can view and accept these funds along with other aid in their financial aid offer.
I’ve Accepted Work-Study, What’s Next?
- Familiarize yourself with the Work-Study program by viewing our Work-Study Handbook, located on MyPortal.
- Search for available positions by speaking with your program instructors, visiting with Elizabeth Clobes,
Student Success and Career Services Coordinator, at elizabeth.clobes@lakeareatech.edu or by contacting the Lake Area Technical College Financial Aid Office. - Gather two forms of ID AND either a voided check OR your bank routing/account information. You will need these documents to complete your employment paperwork.
- As a new Work-Study student, you will be notified via LATC email to attend a Work-Study orientation meeting at the start of the fall semester. At this meeting, you will learn about the Work-Study program and complete employment paperwork (I-9, W-4 and direct deposit).
Part-Time Jobs
If you are interested in a part-time job that is not based on Federal Work-Study eligibility, please visit the South Dakota Department of Labor and Regulation Office, located in the Net on the Lake Area Tech campus or visit the South Dakota Department of Labor and Regulation website here: http://dlr.sd.gov/.
Other Agency Sources
Lake Area Tech works with the following agencies and programs to assist in providing additional funding sources for our students:
Tribal Funding
If you believe that you may be eligible for funding through your native tribe, you may obtain application materials through your local Tribal Education Office. The Tribal Education Offices typically have deadlines for reviewing applications and making awards. Lake Area Technical College will assist you in meeting these deadlines.
Vocational Rehabilitation
South Dakota’s Vocational Rehabilitation Services offer individuals with disabilities support on their journey to higher education. Students may contact the Lake Area Tech Disabilities Coordinator, who will coordinate facilitation with a representative from the SD Vocational Rehabilitation Services. More information can be found at dhs.sd.gov.
Workforce Innovation Act (WIA)
The Workforce Innovation and Opportunity Act (WIOA) was signed into law on July 22, 2014. WIOA is designed to help specific vulnerable populations obtain access to employment, education, training and support services to succeed in the labor market and to match employers with the skilled workers they need to compete in the global economy. https://dlr.sd.gov/workforce_services/wioa/default.aspx
