Loans are amounts borrowed which must be repaid according to the terms and conditions of the loan program.
Federal loans are insured through the U.S. Department of Education, which may provide safeguards to the borrower such as deferment, forbearance and forgiveness options. Private loans are issued through lending institutions and are generally exempt from those federal benefits.
The following federal student loans are available to students who qualify. These loans are not based on credit approval, but do require submission of a FAFSA every year:
A low-interest loan available to students who demonstrate financial need
Interest is subsidized (paid by the federal government) while the student is in school. Repayment begins six months after the student borrower ceases to enroll at least half-time. For undergraduate student borrowers, the fixed interest rate for Direct Subsidized Loans first disbursed on or after July 1, 2024, and before July 1, 2025, is 6.53% during repayment.
A low-interest loan for students who are not eligible, or only partially eligible, for a Direct Subsidized Loan
Interest begins accruing at the time of the first loan disbursement. Students may choose to pay the interest while in school or let it accrue, to be added to the principal amount of the loan. Repayment of the combined interest and principal begins six months after the student ceases to be enrolled at least half-time. For undergraduate student borrowers, the fixed interest rate for Direct Unsubsidized Loans first disbursed on or after July 1, 2024, and before July 1, 2025 is 6.53% during repayment.
UNDERGRADUATE FEDERAL STUDENT LOAN LIMITS – BASED ON GRADE LEVEL
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Freshman |
Sophomore |
Junior |
Senior |
|
Subsidized Loan |
$3,500 |
$4,500 |
$5,500 |
$5,500 |
|
Unsubsidized Loan |
$2,000 |
$2,000 |
$2,000 |
$2,000 |
Dependent students whose parent is denied credit approval for a Federal Parent PLUS Loan may be eligible to borrow additional unsubsidized loan funding.
Sample Loan Repayment Schedule
All loans borrowed must be repaid. The sample loan repayment schedule below helps illustrate the difference in your monthly payments based on your choice of repayment plan. Several repayment plans are available. Review the features of each repayment plan to determine what is the best option for you based on your actual loan debt at https://studentaid.gov/loan-simulator/
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The sample loan repayment schedule below is based on the standard repayment plan: 6.53% Fixed Interest Rate |
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|
Total Loan Balance |
Number of Payments |
Estimated Monthly Payment Amount |
|
$1,000 |
21 |
$51 |
|
$5,500 |
120 |
$63 |
|
$10,000 |
120 |
$114 |
|
$15,000 |
120 |
$171 |
|
$20,000 |
120 |
$227 |
|
$25,000 |
120 |
$284 |
|
$30,000 |
120 |
$341 |
The minimum monthly payment amount is $50 under the 10-year Standard Repayment Plan, but may be more depending on how much you borrow.
Repayment of Federal Student Loans – Avoiding Default
If you are a student borrower, you don’t have to begin repaying your Stafford loans until you leave school or are enrolled less than half-time. Failure to repay your loans will result in them defaulting. This default will have a negative impact on your financial status and creditworthiness.
Please visit https://studentaid.gov/sa/repay-loans/understand/plans for additional information regarding repayment options.
The following additional loan options may be available, subject to credit approval:
Available to credit-approved parents of undergraduate students to cover additional educational expenses
The maximum loan amount is determined by subtracting the total financial assistance received from the total cost of attendance. Repayment (principal and interest) begins 60 days after the second disbursement, but may be deferred while the student is enrolled at least half-time. The current fixed interest rate for parent borrowers is 9.08%. The student must have a FAFSA on file in order to receive PLUS loan funding.
If a parent is denied credit approval for a PLUS loan, there are a few options:
- The parent may appeal the credit decision to the Department of Education,
- The parent may add a credit-approved endorser in order to secure the requested PLUS loan amount, OR
- The student may be eligible to borrow additional unsubsidized student loan funds.
Parents can begin the PLUS application process on StudentAid.gov under "Parent Borrowers."
Non-federal loans available to credit-worthy student borrowers and/or cosigners to cover additional educational expenses.
The maximum loan amount a student may borrow is determined by subtracting the total financial assistance received from the total cost of attendance.
Interest rate and repayment options vary, based upon the lender and loan program you select. Because these loans vary greatly in their terms and do not carry the same safeguard benefits as the Federal loans, it is strongly recommended that students maximize their Federal funding before pursuing private loan options.
Students applying for a private education loan are required to complete a Private Education Loan Applicant Self-Certification form (PDF) with the lender.
Loan Requirements
First-time Federal Direct Loan borrowers must complete the following loan requirements prior to disbursing Federal loan funds. In order to complete these requirements, you will need your Federal Student Aid ID (FSA) username and password.
Federal Direct Loan Master Promissory Note (MPN)
The MPN is a legal document confirming your promise to repay your loan (including interest and fees). You may complete an electronic MPN at https://studentaid.gov. After signing in with your FSA ID, click on Complete a Master Promissory Note (MPN) for Undergraduates. Be sure to complete the MPN for Direct Subsidized and Direct Unsubsidized Loans.
Federal Direct Loan Entrance Counseling
The Entrance Counseling is a brief question and answer session that goes over the terms and conditions of your loan and your rights and responsibilities. This session provides an overview of what a loan is, how interest accrues, different loan repayment plan options, and how to avoid defaulting on a loan. You may complete an electronic Entrance Counseling at https://studentaid.gov. After signing in with your FSA ID, click on Complete Entrance Counseling. Complete the Entrance Counseling for Undergraduate Student.
Parents approved for a Federal PLUS Loan must also complete a Parent PLUS Master Promissory Note (MPN):
Federal Direct PLUS Loan Master Promissory Note (MPN)
The MPN is a legal document confirming your (parent) promise to repay your loan (including interest and fees). Parent may complete Federal Direct PLUS Loan MPN at https://studentaid.gov. Parent must sign in using their FSA ID username and password and then click on Complete a Master Promissory Note (MPN) for Parents.
Federal PLUS Credit Counseling
If parent had adverse credit at initial time of application and was then approved through an endorser/appeal, parent will need to complete the PLUS Credit Counseling requirement prior to disbursing any Federal PLUS Loan funds. The PLUS Credit Counseling will help parents understand the obligations associated with borrowing a PLUS loan and will help them make careful decisions about taking on student loan debt. Parent may complete this requirement at https://studentaid.gov.
All student borrowers who received Federal student loans at CUC and have applied for graduation, are leaving CUC or enrolling in less than half-time status for a period of time, must complete the Federal Loan Exit Counseling requirement.
The federally required exit counseling will go over the next steps with your Federal student loans including different repayment options. You can complete the Loan Exit Counseling at https://studentaid.gov. You will need to log in with your Federal Student Aid ID username and password. The Office of Financial Aid will receive electronic confirmation upon the completion of this requirement.
All federal student loans obtained by you or your parent are reported and tracked on your Federal Student Aid account.
In order to access your Federal student loan history, you will need to log in to https://studentaid.gov, using your Federal Student Aid ID username and password. Your loan records will be accessible to all authorized users, including schools, student loan guaranty agencies, lenders, federal agencies, and other authorized users. Only federal loan information is reported to Federal Student Aid. Private educational loan information is not reported on Federal Student Aid.