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Loans

Loans

Columbus State Community College has joined forces with Great Lakes to encourage wise Money Management in an effort to help students prevent excessive indebtedness and reduce loan default rates. By reducing student loan debt and default rates we can improve students' lives and empower them for a strong financial future. To reduce or cancel any portion of your loan please submit an Award Revision Form.

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Previous loan borrowers:  To find your current student loan balance visit the National Student Loan database at www.NSLDS.gov

 

*Important Loan Revision/Cancellation Information*

The loan amount(s) offered on a student financial aid award letter is the maximum loan eligibility. However, students have the right to request a lower loan amount or cancel any Direct Loan or Parent Plus Loan.

To Do:
View your currently scheduled loan amounts on your Financial Aid Award Letter

  • To reduce/cancel a Direct Loan, you must submit a completed and signed Award Revision Form to the Financial Aid Department within 30 days of the disbursement date. Cancelling or reducing a disbursed loan may result in a balance due on your CSCC account.
  • To cancel a Parent Plus Loan, you must submit a completed and signed Parent Plus Loan Cancellation form within 30 days of the disbursement date.

If students or parents wish to cancel a loan after 30 days from the date of disbursement, they must contact the servicing agency handling their loan. Students can determine the appropriate agency and obtain contact information for that agency by visiting the National Student Loan Data System (NSLDS) website at www.nslds.ed.gov or by contacting the Financial Aid Department at Columbus State Community College.

 

Federal Direct Student Loans

How to Apply:

  • Complete and submit the FAFSA at www.fafsa.ed.gov.
  • First time borrowers and transfer students must complete Loan Entrance Counseling at www.studentloans.gov. Students will be required to use his/her FSA ID from the U.S. Department of Education to complete this process.
  • First-time borrowers (or it has been over 10 years) must complete a Master Promissory Note (MPN) at www.studentloans.gov. Students will need his/her FSA ID from the U.S. Department of Education to complete this process.
  • Students who are first-time borrowers must wait for 30 days after the first day of the term to receive the first disbursement of the loan.  For additional information please contact the financial aid office.

Federal Direct Subsidized Loans

In order to qualify, student must:

  • Have unmet financial need as determined by the FAFSA
  • Be enrolled at least half-time (6 credit hours)
  • Meet all other eligibility criteria for receiving Federal Student Aid

Interest rates

  • For loans first disbursed on or after 7/1/15 and before 7/1/16 the interest rate is 4.29%.
  • For loans first disbursed on or after 7/1/16 and before 7/1/17 the interest rate is 3.76%.

 

  • The U.S. Department of Education pays the interest on a Direct Subsidized Loan

○     while you’re in school at least half-time

○     for the first six months after you leave school (referred to as a grace period)

○     during a period of deferment (a postponement of loan payments).

 

Repayment

Begins when student graduates or ceases to be enrolled at least half time for a period of at least 6 months.

 

Eligibility Amounts

  • First year students (30 semester credit hours or less): $3,500 per academic year.
  • Second year students (students who have completed more than 30 semester credit hours): $4,500 per academic year.
  • The allowable aggregate amount of Direct Loans for an undergraduate student is $23,000.

Loan Fees

A loan fee is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as noted below:

 Origination Fee:  
First disbursement on or after October 1, 2015 and before October 1, 2016 Fee = 1.068%

Limit On Direct Subsidized Loan Eligibility For Undergraduates Borrowing For The First Time On Or After July 1, 2013

Subsidized loans can be borrowed for up to 150% of the published length of the program of study. For a 2-year associate degree program, the maximum period of subsidized loan eligibility is 3 years. Read for more information on the 150% Federal Direct Subsidized Loan Limit.

Federal Direct Unsubsidized Loans

In order to qualify student must:

  • Have completed FAFSA results on file.
  • Be enrolled at least half-time (6 credit hours)
  • Meet all other eligibility criteria for receiving Federal Student Aid

Interest rates and repayment options:

For loans first disbursed on or after 7/1/15 and before 7/1/16 the interest rate is 4.29% for Undergraduate students.

For loans first disbursed on or after 7/1/16 and before 7/1/17 the interest rate is 3.76% for Undergraduate students.

The student is responsible for paying the interest on a Direct Unsubsidized Loan during all periods. 

  • Repayment begins when student graduates or ceases to be enrolled at least half time for a period of at least 6 months.
  • Repayment period of 10 years.

Eligibility Amounts:

  • First year independent students (students who have completed less than 30 semester credit hours): $6,000
  • Second year students (students who have completed more than 30 credit hours): $6,000
  • Dependent students are eligible for up to $2,000 in unsubsidized loans annually, but must submit an Award Revision Form requesting the additional loan funding.
  • Dependent students whose parents have applied for and been denied a PLUS loan are eligible for Unsubsidized Loans in the same amounts.
  • The allowable aggregate amount of Subsidized and Unsubsidized Loans for an undergraduate student is $57,500.

Loan Fees

A loan fee is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as noted below:

 Origination Fee:  
First disbursement on or after October 1, 2015 and before October 1, 2016 Fee = 1.068%

Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Federal Direct PLUS (Parent Loan for Undergraduate Students) Loan is available for a parent who wishes to access additional resources above what the student is currently eligible to receive. The loan option may cover up to the Cost of Attendance. The PLUS loan is borrowed by the natural or adoptive parent or step parent of a DEPENDENT student. In order for the parent to receive a Federal PLUS loan, the parent may not be in default on a prior education loan and must pass a mandatory credit check performed by the Direct Loan Servicing Center.

How to Apply for a Direct PLUS Loan

Step 1: Student must complete a Free Application for Federal Student Aid (FAFSA) for the appropriate year and the results must be on file with Columbus State Community College (CSCC).

Step 2: Parent borrower must complete the CSCC 2015-16 Federal Direct Parent PLUS Loan Application and submit the completed form to the Financial Aid Office.

Step 3: Parent borrower must complete a Master Promissory Note (MPN). The MPN can be completed online at www.StudentLoans.gov. Access the MPN through the link titled: “Sign Master Promissory Note” and follow the prompts to complete the form.

NOTE: To electronically sign the MPN, the parent will need a Department of Education FSA ID.  To apply for the FSA ID, the parent borrower may create the FSA ID here. (If the parent borrower provided income information on the student’s FAFSA and signed the form electronically, the same FSA ID may be used for the MPN signature.)

Upon receipt of the CSCC 2015-16 Federal Direct Parent PLUS Loan Application the Financial Aid office will submit the information to Direct Loan Servicing Center. The credit check will be performed and notification of approval or denial will be sent to the parent and to Columbus State Community College. This process may take between 5 to 7 business days.

Approved borrowers, who have completed the Master Promissory Note, will receive the Notice of Guarantee and Disclosure Statement from the Direct Loan Servicing Center. This will indicate the approved loan amount and estimated disbursement dates when funds will be sent to the college.

If the parent borrower is denied, CSCC will proceed based on the choice of options selected by the parent borrower on the 2015-16 Federal Direct Parent PLUS Loan Application.

Interest Rates and Loan Fees

Interest rates for the Parent PLUS loan are fixed for the life of the loan.

For PLUS loans first disbursed on or after 7/1/15 and before 7/1/16 the interest rate is 6.84%.

For PLUS loans first disbursed on or after 7/1/16 and before 7/1/17 the interest rate is 6.31%.

A loan fee is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed, as noted below:

 Origination Fee:  
First disbursement on or after October 1, 2015 and before October 1, 2016 Fee = 4.272%

For further detailed information regarding the Federal Parent PLUS Loan Program, please visit: www.studentaid.ed.gov/types/loans/plus

PLUS Counseling is required if the U.S Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documented to the satisfaction of the U.S Department of Education that there are extenuating circumstances related to your adverse credit history.

PLUS Counseling can be completed voluntarily at any time.  If PLUS Counseling is completed voluntarily and you are determined to have an adverse credit history by the U.S Department of Education within 30 days of PLUS Counseling completion, your PLUS Counseling requirement will be considered to be fulfilled.   Credit decisions are good for 180 days. 

 

 

Other Non-Federal Loans

Private/Alternative Educational Loans

Private Student Loans, also known as Alternative Loans, are originated through private lenders such as banks and credit unions. Columbus State Community College recommends that students complete a FAFSA and take advantage of Federal Student Loans and PLUS loans whenever possible before applying for and accepting Private/Alternative Loans. The Direct and the PLUS Loan programs almost always offer lower borrowing costs than Private/Alternative Loans.

  • Loan is usually made to the student, but often requires a credit worthy co-signer.
  • Loan proceeds can be used to offset educational costs such as tuition, room and board, and books and supplies.

Private/Alternative Loans may be a viable option for students if the student or parent is unable to borrow federal student loans or PLUS loans because they do not meet eligibility criteria for Federal Student Aid programs.

How to apply:

  • Columbus State Community College maintains a list of lenders who have indicated a willingness to process Private/Alternative Loans for CSCC students. You may view that list and apply for an alternative loan at the FastChoice website.
  • Student must submit a Private Education Loan Application Self-Certification form to the lender as part of the application process.
  • We suggest that you begin the application process as soon as you are registered for the minimum number of credit hours required by the lender.
  • Please allow 4-6 weeks for processing and disbursement of funds.
  • If you plan to attend more than one term, please consider applying for funds at one time instead of at the beginning of each quarter.

Eligibility amounts:

  • Student’s Cost of Attendance minus any other financial aid awarded.

 

 

 

 For more information about federal student loans including interest rates click here.

 

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