Student Loans

Educational Loans
Federal educational loans are a form of need-based financial aid awarded to the student from Federal government funds. Federal educational loans include the following:

  • Federal Perkins Loans
  • Federal Direct Student Loans 
  • Federal Direct Parents' Loans for Undergraduate Students (PLUS)
  • Federal Direct Graduate Plus Loans for Graduate Students

Unlike educational grants and scholarships, educational loans must be repaid after a degree program has been completed or the student stops attending.


Federal Perkins Loan Program
Students may borrow up to $20,000 for undergraduate study. Loans are available to students enrolled at least half-time in an approved post-secondary institution. The College will give priority to students with "exceptional need." Application is made through the College Financial Aid Office.

The current interest rate, payable during the repayment period, is five percent of the unpaid principal. Repayment begins nine months after graduation or leaving school and may extend over a 10-year period, and may be deferred for up to three years. Borrowers who work in certain fields such as early intervention, teachers at designated low-income schools, full-time nurses, and Peace Corps, VISTA, or other national volunteers may be eligible for cancellation of the loan. A professional internship deferral is limited to two years.


Federal Direct Student Loan Program

The student may borrow up to $3,500 as a freshman, $4,500 as a sophomore, and $5,500 in each of the remaining undergraduate years with total borrowing limited to $23,000. There are two types of Federal Direct Loans — subsidized and unsubsidized.

Federal Direct Subsidized Loans are subsidized, meaning that no interest must be paid on the loan while the student is in school, or during a 6-month grace period after the student leaves the school. Repayment begins after the student leaves school or drops below half-time enrollment in any semester. The interest rate is a variable rate, adjusted annually based on the 91-day Treasury bill plus 3.1% with a cap of 8.25%. The loans are subject to a 1.5% origination and insurance fee. These fees will be subtracted from the amount that is actually credited to the student's college account; however, the student will be responsible for repayment of the full amount borrowed.

The loan will be divided into at least two parts event if the loan is for only one semester.

Federal Direct Unsubsidized Loan terms and conditions are the same as the Subsidized Loan, except the student is responsible for interest payments while in school and during deferment periods. The accrued interest may be paid or capitalized, that is, the interest which should be paid can be added to the original amount of the loan.

To be eligible for a Federal Direct Student Loan, a student must meet the following requirements:

  • Be a U.S. citizen or permanent resident alien
  • Be enrolled in or admitted as a matriculated student, on at least a half-time (six-credit) basis
  • Not be in default or refund status for any federal Title IV program at any institution
  • Have been determined to be eligible or ineligible for a Pell Grant
  • If applicable, be registered with the Selective Service
  • Have a Social Security number
  • Demonstrate financial need
  • Attend a loan entrance workshop

Federal Direct Parents' Loans for Undergraduate Students (PLUS)
The parents of students may annually borrow the total cost of education less any financial aid that the student is receiving. In order to receive this aid, the parent can apply on line at www.studentloans.gov.  Parents may be denied access to a PLUS due to adverse credit histories.

Tardiness in paying bills is not considered an adverse credit history.
To be eligible for a PLUS loan, a parent must meet the following requirements:

  • Be a U.S. citizen or permanent resident alien 
  • Be the natural or adoptive parent or guardian of a dependent full-time undergraduate student
An origination fee of 3% will be assessed by the lending institution. The interest rate is based on the 52-week Treasury bill plus 3.1% and adjusted annually. The interest rate is capped at 9%. Repayment starts shortly after disbursement of the loan funds. Deferments are based on the parent's in-school status, not the student's.

Federal Direct Graduate Plus Loans for Graduate Students

Students may apply for a Graduate Plus Loan at www.studentloans.gov.  If approved, the College is sent an electronic notification. The student also needs to inform the Financial Aid Counselor that they are receiving this loan so that it can be put on their award letter and the loan can be processed.  Electronic notification of disbursement is made to the students CNR email account.