Remember, borrowing a student loan is a serious responsibility.
If you have any questions, please contact the CSN Financial Aid office .
- Students are encouraged to seek other funding sources as a means to reduce student debt. Several options can help reduce the burden of student debt likeCollege Work-StudyandScholarships.
- The Army assists soldiers to pay off student loans that have been taken out in the past. For more information, visit www.goarmy.com
- For further information visitthe Federal Student Aid website on Loans .
The Federal Student Aid Information Center
Federal Student Aid Office Ombudsman
Delinquent & Defaulted Student Loan Payments
Federal Direct Loans For Students
A Federal Subsidized Loan is awarded based on financial need and grade level limits. The U.S. government pays (or subsidizes) the interest on this loan while you are enrolled at least half-time and during periods of deferment.
A Federal Unsubsidized Loan is awarded regardless of need up to the amount of the Cost of Attendance (minus other financial aid) and grade level limits. Interest begins accruing once the federal loan is disbursed and you may either make or defer interest payment while you are in school and during periods of deferment. If you defer your interest payments, the accumulated interest will be capitalized, or added, to the principal of your federal loan when you enter repayment. All future interest charges are based on the new, higher principal federal loan amount. It is less expensive over the long run if you pay the interest while you’re in school.
Steps to Receive a Federal Direct Loan at CSN
Federal Loan Application Process:
- Submit a current year FAFSA and complete verification (if applicable) and submit any other required documents.
- Complete the undergraduate Subsidized/Unsubsidized Master Promissory Note using your FSA User ID at studentaid.gov(if required).
Complete Loan Entrance Counseling using your FSA User ID at studentaid.gov . The session includes information on loan repayment obligations and the consequences of loan default.
- Accept any subsidized loan offer in your MyCSN in the Financial Aid section.
- Complete and submit the Direct Loan Request form located on the CSN Financial Aid forms pageif you are interested in borrowing an unsubsidized loan.
Important things to know
Loans are typically originated within 4-6 weeks (depending on the time of year) of receipt of a completed and signed loan application form, and a valid government- issued photo ID with a clear photo.
Students must be enrolled in at least 6 credits required for their certificate or degree to be eligible for a loan. Please refer to the Check Course Eligibility webpage and the FA Dept Degree Guidance communications in the MyCSN Communication Center to confirm course eligibility.
First-time borrowers for Subsidized and Unsubsidized are subject to a 30-day delay of their loan funds.
Loans are typically originated within 4-6 weeks (depending on the time of year) of receipt of a completed and signed Federal Direct Parent (PLUS) Loan Application, and a student and parent valid government-issued photo ID with a clear photo.
Federal Direct Parent (PLUS) Loan Applications must be submitted to CSN Financial Aid Office no later than 30 days before the last day of instruction.
Federal Direct PLUS Loan eligibility is determined by credit check. If you are denied a PLUS loan, you can add a co-signer to the loan application and his/her credit score will be reviewed.
If the student completes less than 6 credits in a semester, part of the Federal Direct PLUS Loan may have to be repaid immediately.
Repayment begins on the day of the final disbursement of the PLUS loan. Parent borrowers can request an In-School Deferment if the student is enrolled in at least six credits. To learn more about postponing PLUS loan payments, please go to www.studentaid.gov/manage-loans.
Students must maintain Satisfactory Academic Progress. The CSN Satisfactory Academic Policy is available on our Satisfactory Academic Progress web page.
Loan funds will be disbursed, according to the disbursement schedule, to students' CSN accounts to pay any balances due. If any funds are remaining, a refund will be issued. For faster and safer refunds, students may choose direct deposit through MyCSN.
How to cancel a Federal Direct Loan?
Within 120 Days of Disbursement:
Students have the right to cancel all or part of any disbursement of a Federal Direct Loan without being charged interest and other federal loan fees as long as the cancellation is processed within 120 days of the original disbursement date. The disbursement date is the date the funds were disbursed to the CSN student account.
To request a cancellation, students must provide a 2021-2022 Request for Change to Financial Aid Form reflecting the canceled amount and the affected semester. The canceled amount must be repaid by cashier's check, money order, or cash. Personal checks are not accepted.
More than 120 days After Disbursement:
When canceling all or part of any loan disbursement more than 120 days after it was disbursed to your CSN account, it constitutes repayment of part or the entire loan amount and you must pay any accrued interest and/or fees.
The payment must be sent to Direct Loan Services (DLS); the address is available at https://studentaid.gov/manage-loans/repayment/servicers If the payment is intended for a particular loan, it must be accompanied by specific instructions, such as, "Please apply this $1,000 payment to my unsubsidized loan first disbursed on 02/25/10, paying off any accrued interest and then applying any remaining payment to the principal of that loan".
Payments made to DLS without instructions will be applied according to their business rules, which will usually pay down accrued interest and older loans before newer loans.
Federal Direct Parent Plus Loan
Who can apply for Plus Loans?
Federal Direct PLUS loans can be taken out by biological or adoptive parents (or in some cases, the stepparents) of dependent, undergraduate students enrolled at least half-time. You must have a completed financial aid file before your parent can apply for the Federal Direct PLUS loan. Credit checks are done by the Department of Education on parents applying for Federal Direct PLUS loans. Your parent must meet the citizenship requirement and cannot be in default or owe a refund on any Title IV program.
Steps to Receive a Federal Direct PLUS Loan at CSN
For the Student
Submit a current year FAFSA and complete verification (if applicable) and submit any other required documents.
For the Parent
At CSN, the loan process for the Federal Direct Parent PLUS Loan begins after a student completes the Free Application for Federal Student Aid (FAFSA) and has submitted all other required documents and completed verification (if applicable).
- Submit current year Federal Direct Parent PLUS Loan Request form to CSN Financial Aid Office.
- Complete the Master Promissory Note (MPN) and credit check at https://studentaid.gov/. Please note that the MPN is valid for up to 10 years but the credit check is valid for only 180 days thus, additional PLUS loan requests may require a separate credit check.
- If, after your credit check has been completed by the Department of Education, you have been denied a PLUS loan, the student may submit an additional Direct Loan Request Form with the Federal Parent PLUS Loan denial attached. The student may be eligible for the funds based on remaining need, up to the maximum loan amount for the year (up to the independent student limits).
How much can a parent borrow?
Federal Direct PLUS Loan amounts are based on the student’s Cost of Attendance (COA) minus other anticipated financial aid.
Alternative Student Loans
Alternative loans are not part of the Federal Student Loan Program. They are private loans for educational expenses, administered, and processed by commercial lending institutions. Since they are based on credit checks and generally do not offer the lowest interest rates and/or a variety of repayment options, they should be used only when all other options for financing education have been exhausted.
Students are free to choose any lender for an alternative loan. The interest rates and repayment terms are different for each lender. We strongly recommend that students do extensive research to ensure that their chosen lender best suits their needs and provides the lowest rates and most favorable repayment terms.
After choosing a lender, students must submit the Alternative Loan Certification Worksheet to SFS and must be enrolled in at least 6 accredited degree-seeking credits for certification of the loan. The processing time is 4 - 6 weeks from receipt.
- Interest Rates – are based on credit score and may be capitalized more often, increasing the amount of money you ultimately owe. Using a cosigner may result in slightly lower rates.
- Fees – are based on credit scores of lender and cosigner if students choose to use a cosigner, if applicable.
- Borrower Benefits – vary by lender.
- Repayment Terms – pay while enrolled, or deferment until after graduation.
- Eligibility Requirements - what are the requirements for the loan?
- Consolidation - can loans with different banks be considered into one when entering repayment? Under which terms?
Frequently Asked Loan Questions
What is the interest rate?
Federal Subsidized Student Loans Interest Rates: On or after July 1, 2021, the interest rate is fixed at 3.73%
Federal Unsubsidized Student Loans Interest Rates: on or after July 1, 2021, the interest rate is fixed at 3.73%
What is the interest rate for a Parent Plus loan?
Federal Direct Parent PLUS Loan Interest Rates: On or after July 1, 2021, the interest rate is fixed at 6.28%.
Are there any other costs associated with these loans?
The Loan Origination Fee for Federal Direct Student Loans : On or after 10/1/2020 and before 10/1/2021 is 1.057%.
The Loan Origination Fee for Federal Direct Parent PLUS Loans : On or after 10/1/2020 and before 10/1/2021 is 4.228%.
How is the money disbursed?
Your federal loan funds are sent in multiple disbursements and are disbursed to your CSN student account. The first disbursement is usually made at the beginning of each semester. If the federal loan is for one semester, federal regulations require two disbursements to be made, usually at the beginning of the semester and halfway through the semester. If you are a first-time borrower (with less than 30 completed units), your first disbursement will be disbursed to your CSN student account 31 days after your initial semester starts.
Will CSN ever change the amount of loan I'm offered?
Specific reasons your federal loan might be adjusted include additional awards not reflected in your original award, such as scholarships, awards from community organization or employers, Vocational Rehabilitation, tribal grants, or any other grants, etc., a change in Expected Family Contribution (EFC); or a change in enrollment, and for first-time borrowers after July 1, 2013, whose loans are subject to SULA (Subsidized Usage Limit Applies).
Can I postpone the repayment of my loan?
Yes, under certain conditions, you can receive a “deferment” or “forbearance” on your loan, as long as the loan isn’t in default. A deferment allows you to temporarily postpone payments on your loan. If you have a subsidized loan, you won’t be charged interest during the deferment. If your loan is unsubsidized, you’ll be responsible for the interest during the deferment. In that case, if you don’t pay the interest as it accrues, it will be capitalized and the amount you’ll have to pay will increase.
A forbearance is a temporary delay or reduction of payment when the borrower is willing, but unable, to pay the full payment. Interest continues to accrue during forbearance.
How will I repay my loan?
Repayment on a Federal Direct Subsidized or Federal Unsubsidized Loan starts six months after you graduate or cease to be enrolled at least half-time. You will make your payments to the Federal Direct Loan Servicer.
When you leave school, you will select the repayment plan that fits your financial circumstances. You may switch repayment plans at any time without penalty by contacting the Direct Loan Borrower Services Department. To review the current repayment options, please visit federal student loan repayment plans.
How much can I borrow?
The maximum amount a student may borrow each academic year depends on
- Student’s year in college as determined by credits
- Length of program
- Need as determined by the FAFSA and estimated cost of attendance, and
- Whether a student is dependent or independent
Federal Direct Loans are also subject to an annual and aggregate limit. Please review the chart below for the annual and aggregate limits.
- Federal Direct Loans are also subject to an annual and aggregate limit. Review the chart below for the annual and aggregate limits.
Maximum Annual Loan Limits Chart – Subsidized and Unsubsidized Direct Loans
$5,500-No more than $3,500 of this amount may be in federal subsidized loans.
$9,500 – No more than $3,500 of this amount may be in federal subsidized loans.
$6,500-No more than $4,500 of this amount may be in federal subsidized loans.
$10,500 - No more than $4,500 of this amount may be in federal subsidized loans.
THIRD AND FOURTH
(Bachelor programs only)
$7,500-No more than $5,500 of this amount may be in federal subsidized loans.
$12,500 - No more than $5,500 of this amount may be in federal subsidized loans.
MAXIMUM TOTAL DEBT FROM FEDERAL STAFFORD LOANS WHEN YOU GRADUATE
$31,000 - No more than $23,000 of this amount may be in federal subsidized loans.
$57,500 - No more than $23,000 of this amount may be in federal subsidized loans.
Effective July 1, 2013, first-time borrowers who do not complete their program in 150% of the published length of the program are no longer eligible for a subsidized student loan. This rule is referred to as SULA (Subsidized Usage Limit Applies) and more information can be found by visiting the following Department of Education's eligibility-time-limit webpage.
- If your loan eligibility is affected by SULA, the CSN Financial Aid Office will be notified of your remaining eligibility and may be required to cancel/reduce all or part of your Subsidized Direct Loan. If your loan is canceled or reduced, you may submit a Direct Loan Request Form to have your eligibility for an unsubsidized loan evaluated.