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Federal Loans

Federal Loans

Federal Stafford loans are offered to undergraduate students at a low fixed interest rate. Students must be enrolled at least half time (6 units) to be eligible. Repayment begins six months after the student leaves school or drops below half-time status. Students must complete Entrance Counseling and a Master Promissory Note before they can receive their first disbursement (See section below).


The Federal Direct Loan Program offers the following types of loans:
    • Subsidized: for students who demonstrate financial need, as determined by federal regulations (FAFSA). No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods. The Subsidized loan MUST be accepted in full before accepting the Unsubsidized loan. 
    • Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. Student needs to have a FAFSA on file.
    • PLUS: Loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. To apply for the Parent PLUS loan, one parent needs to log in to complete the application process. The parent also needs to complete a Master Promissory Note on the same website.

Click here for more information about Federal Direct Loans 

Interest Rates

Subsidized/Unsubsidized Loans - 5.045% (Fixed - valid July 1, 2018 to June 30, 2019)

*Upcoming Interest Rate for Subsidized/Unsubsidized Loans - 4.529% (Fixed - valid July 1, 2019 to June 30, 2020)

 

Parent PLUS Loan - 7.595% (Fixed - valid July 1, 2018 to June 30, 2019)

*Upcoming Interest Rate for Parent PLUS Loans - 7.079% (Fixed - valid July 1, 2019 to June 30, 2020)

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Loan Fees
A loan fee (or origination fee) is an expense of borrowing a Federal Direct Loan (sub/unsub/PLUS). It is the percentage of the amount of each loan the borrower receives and is subtracted proportionately from each disbursement. Federal Direct Loans originated/disbursed on 10/1/2018 to 9/30/2019, the following loan fees will be applied:
 
Subsidized/Unsubsidized Loans   – 1.062% (10/1/2018 to 09/30/2019) 
Parent PLUS Loan                          – 4.248% (10/1/2018 to 09/30/2019)

 

Example: $5,500 loan for the 2018/2019 school year:

FA18 Disbursement -   $2,750 - 1.062%         = $2,721

SP19 Disbursement -   $2,750 - 1.062%         = $2,721

Total Received -                                          = $5,442

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 Undergraduate Loan Limits

                                                                      Dependent Students*                      Independent Students

Freshman (0-29 units)         $5,500 ($3,500 sub)         $9,500 ($3,500 sub)

Sophomore (30-59 units)    $6,500 ($4,500 sub)          $10,500 ($4,500 sub)

Junior (60-89 units)            $7,500 ($5,500 sub)          $12,500 ($5,500 sub)

Senior (90+ units)               $7,500 ($5,500 sub)          $12,500 ($5,500 sub)

Total                                      $31,000 ($23,000 sub)   $57,500 ($23,000 sub)

*Parent PLUS denials will allow an addition $4,000 of Unsubsidized loan (Freshman/Sophomore) and an additional $5,000 for Junior and Seniors - cannot exceed Independent aggregate limit.

Graduate Loan Limits
Graduate Total = $138,500

This includes undergraduate federal loans.

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Entrance Counseling & Master Promissory Note
Both are required for first time loan borrowers
 
Entrance Counseling - Is an interactive session that shows your rights and responsibilities as a loan borrower
Click Here to complete
Click Here for more information
 
Master Promissory Note - Is a legal agreement between the borrow and lender to repay the loans
Click Here to complete
Click Here for more information
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Exit Counseling
Exit counseling is required when you graduate, leave school, or drop below half-time enrollment. Exit counseling provides important information you need to prepare to repay your federal student loan(s)
Click Here to complete
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Parent PLUS Loan
The Parent PLUS loan is available to parents of dependent students (as determined by the FAFSA).  It can be used to help pay for any remaining educational expenses.

Interest Rate - 7.595% (Fixed - 07/01/2018 to 06/30/2019)

*Upcoming Interest Rate for Parent PLUS Loans - 7.079% (Fixed - valid July 1, 2019 to June 30, 2020)

Loan Fees - 4.248% (10/01/2018 to 09/30/2019)  
 
To be eligible for the Parent PLUS loan, the borrower:
    • Does not have adverse credit history, or
    • Has an adverse credit history but has obtained an endorser who does not have and adverse credit history and completes PLUS Loan Counseling offered by the Dept. of ED, or
    • Has an adverse credit history but documents to the satisfaction of the Dept. of ED that extenuation circumstances exist and completes PLUS Loan Counseling offered by the Dept. of ED.

Click Here to complete the PLUS Application or PLUS Counseling (parent's FSAID is needed to log in)

Click Here for more information

 

**Parent PLUS Loans for the 2019/2020 award year will be available on April 8, 2019**

 

Private/Alternative Loans

Private/Alternative Loans

Private loans are available to students who do not qualify for Federal loans or need additional aid.  The following link has a list of lenders that have provided excellent customer service and benefits designed to meet the needs of students.  Please visit each lenders website to learn more about their features and benefits. 

Click Here for CBU's established lenders

 

***Private Loans for the 2019/2020 award year will be available on April 1, 2019***

Loan FAQs

Loan FAQs
 
What is the difference between a subsidized Stafford and an unsubsidized Stafford loan?
The federal government pays the interest on a subsidized loan for you while you are in school. However, the interest on an unsubsidized loan will accrue while you are in school. 
 

Do I have to pay the interest on an unsubsidized Stafford loan while I am in school?

No, you do not have to pay any interest while you are in school. However, you may choose to make payments in an effort to keep the interest down. When you leave school, the accrued interest on the unsubsidized loans will be capitalized (added to the principal). You will then pay interest on the interest that has been capitalized.

 

Why didn’t I receive a subsidized Stafford loan?

Your eligibility for a subsidized Stafford loan is determined by the results of the FAFSA. The calculation also includes any other grants or scholarships that you may receive.

 

Why don't I see my loans posted to my account on my expected disbursement date?

The Department of Education authorizes loan delivery approximately two business days after the expected loan disbursement. If you are a first time borrower, please insure you have completed a MPN and Entrance Counseling with studentloans.gov. Loans are certified once all documents have been received and reviewed. 

 

How soon can I expect a refund?

If your loans create a credit balance, contact Student Accounts to see when they send out refund checks.