As you may have heard, there have been many changes in the student loan industry over the past several months.
- There are still many lenders willing to work with you to provide you Stafford loan funding to continue your education.
- While many lenders once covered the origination and default fee, because of cuts to the loan program, they are no longer able to do this. This means you could receive less loan funding once your loan is dispersed.
- For summer loans, 1.5% could be removed from your loan money. For example, if you take out a $5,500 loan, you will receive $5,414.50
- For loans after July 1, the fee is reduced to 1%. For example, if you take out $5,500 loan you will receive $5,445.
Subsidized and Unsubsidized Loans
Upon completion of the Free Application for Federal Student Aid (FAFSA), you may qualify for either a subsidized or unsubsidized Stafford loan, or a combination of both. The Financial Aid Office will calculate your loan eligibility for each loan type. The amount for which you are eligible will appear on your award letter. The interest rates are variable and is capped at 8.25%. The interest rates are subject to change every July 1. Once a student graduates, withdraws or drops below half time attendance, there is a six month grace period before repayment begins.
Subsidized
The Federal Subsidized Stafford Loan is an interest deferred loan awarded to students who demonstrate financial need as determined by the FAFSA. Amounts are subject to annual loan limits. Students are not required to make payments nor pay interest while enrolled on at least a half time basis. This is a loan and must be repaid.
Stafford Subsidized Interest Rates
First disbursed between |
Interest Rate |
July 1, 2006 and June 30, 2008 |
6.8% |
July 1, 2008 and June 30, 2009 |
6.0% |
July 1, 2009 and June 30, 2010 |
5.6% |
July 1, 2010 and June 30, 2011 |
4.5% |
July 1, 2011 and June 30, 2012 |
3.4% |
|
Unsubsidized
The Federal Unsubsidized Stafford Loan is not an interest deferred loan. It is awarded to students who do not demonstrate need for the full annual limit of Subsidized Stafford Loans. This loan is not based on financial need. The borrower is responsible for the interest on this loan. The interest may either be paid on a quarterly basis or added to your principal balance through a process called capitalization. Note: If your loan interest is capitalized, it will increase the amount you have to repay. This is a loan and must be repaid.
Stafford Unsubsidized Interest Rates
First disbursed between |
Interest Rate |
July 1, 2006 and June 30, 2008 |
6.8% |
|
Eligibility Rules and Loan Limits
The amount you are eligible to borrow annually in Stafford Loan funds is limited by your grade level and whether you are a dependent or an independent student, as defined by federal regulations. You cannot borrow more than your financial need or the cost of attendance at Cox College of Nursing.
Dependent Undergraduates
Year |
Amount |
1st (0-30 hours) |
$3,500, subsidized + $2,000 unsubsidized |
2 nd (31-60 hours) |
$4,500, subsidized + $2,000 unsubsidized |
3rd & 4 th (61 & up hours) |
$5,500, subsidized + $2,000 unsubsidized |
Maximum total at the undergraduate level: $31,000 (no more than $23,000 of which can be subsidized)
Independent Undergraduates
Year |
Amount |
1st (0-30 hours) |
$9,500, no more than $3,500 of which may be in subsidized loans |
2nd (31-60 hours) |
$10,500, no more than $4,500 of which may be in subsidized loans |
3rd & 4 th (61 and up hours) |
$12,500, no more than $5,500 of which may be in subsidized loans |
Maximum total at the undergraduate level: $57,000, no more than $23,000 of which may be in subsidized loans.
Steps to a Stafford Loan
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Complete the Free Application for Federal Student Aid (FAFSA) at http://www.fafsa.ed.gov. Indicate Cox College as your school choice. |
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Review and electronically sign your award letter. |
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Click here to access the Financial Aid Award Acceptance/Decline Form. |
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Complete your entrance counseling. Federal Stafford Loan borrowers must complete entrance loan counseling before the loan can be disbursed. If you are a NEW borrower at Cox College you will be required to complete entrance loan counseling before your loan will be processed.
Before graduation, transfer to another institution, or otherwise separating from Cox College, Federal Stafford Loan borrowers must complete exit loan counseling.
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Sign your Master Promissory Note (MPN), if necessary. Click here to choose a lender and complete your MPN and to view the preferred lender list. |
If you have borrowed Federal loans while attending Cox College in the past ten years, and you have previously signed a Master Promissory Note, you do NOT need to sign another one unless you are changing your lender. Federal Stafford Loan borrowers must sign a MPN before the loan can be disbursed. An MPN lists the terms under which you are borrowing and agree to pay back the loan. It is a promissory note under which you may receive loans for multiple award years. Therefore, you have to sign an MPN only once while you are enrolled at Cox College, unless you choose to change lenders.
Parent Loans for Undergraduate Students
PLUS Loans If you are a dependent undergraduate student, your parent* may qualify for a federal PLUS loan to help you pay college costs. The PLUS loan is available without regard to financial need; however, the lender will require a credit check to determine the borrower’s credit history. Repayment is the responsibility of the borrower. There is no grace period for these loans. The interest rate is variable and is adjusted every July 1. The rate cannot exceed 9%. Parents will be notified of interest rate changes throughout the life of their loan(s). Interest is charged on the loan from the date of the first disbursement is made until the loan is paid in full.
* The parent-borrower must be the student's biological or adoptive mother or father. The spouse of a parent who has remarried, that is, the student's step-parent, is also eligible to borrow a PLUS Loan on the student's behalf, if his/her income and assets will be taken into account when calculating the dependent student's expected family contribution (EFC). A legal guardian is not considered a parent for any federal student financial aid purposes.
If a parent does not meet creditworthy requirements, and is denied a PLUS loan, the student can borrow an additional unsubsidized student loan.
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It is the students responsibility to provide an original denial letter from the lender to the financial aid office. To complete an online PLUS loan pre-approval as well as sign your PLUS Master Promissory Note electronically, if approved, go to the appropriate link for the program.
A parent PLUS Loan borrower must meet the same citizenship and residency requirements as the student. Also like the student, the parent must not owe a refund on a federal student financial aid grant or be in default on a federal student financial aid loan.
Cox College Preferred Lender List
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Nelnet Academic Loan |
824573 |
|
US Bank |
808258 |
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Smartfunds |
806773 |
|
Commerce Bank |
813979 |
Listed below are some Terms of the FFELP Loans (Subsidized, Unsubsidized, and Parent Plus Loans)
Fees
Although the lender itself charges no fees, two types of loan fees are deducted from each loan. The U.S. Department of Education charges a 3% origination fee; additionally there is a 1% guarantee fee.
Repayment
The repayment on Stafford subsidized and unsubsidized loans begin automatically six months after you drop below half-time attendance.
Master Promissory Note (MPN)
The MPN is mandated by federal regulations. You will have to complete a promissory note only one time (in most cases) and return it to the lender. Your MPN can be completed online by clicking here - choose a lender then complete your MPN . Your MPN will then be in effect for future loans requested at Cox College. Transfer students must complete a new MPN the first time they borrow at Cox College even though they may have an MPN in effect at another school.
Eligibility Criteria
Students who are admitted to an eligible school as at least half-time students. Citizens, permanent residents of the U.S., or a permanent resident of an eligible trust territory. Students not currently in default, or who do not owe a refund on any Title IV Program: Federal Pell, SEOG, CWS, Subsidized Stafford, Unsubsidized Stafford, SLS, PLUS, or Consolidation Loan. Students who are maintaining satisfactory academic progress. Students who have satisfied all Selective Service Act requirements.
Disbursements
Loan funds are disbursed in two equal disbursements, half during the fall semester and half during the spring semester. Please note the items listed below that may affect the delivery of funds to your student account and any credit balance refund.
Verification
The Federal Processing Center selects and flags a certain number of SARs for verification. If you are selected, you will be required to complete and submit additional forms to the Financial Aid Office before funds can be released to your student account.
Previous Borrowers
You may obtain information regarding your student loans via the internet at http://nslds.ed.gov. You must have a student PIN to access your loan data.
To get a PIN, visit the web site at http://pin.ed.gov.
For assistance, call (800) 4-FED-AID (800 433-3243).
A student cannot get a PIN over the phone.
Alternative Loan Programs
Sometimes federal student and parent loans are not enough to cover all education expenses. For this reason you may consider applying for an alternative loan that may be used as a supplemental resource for paying college costs. Alternative loans are unlike Stafford or PLUS loans because they require a separate application, a credit check, and may require a co-signer.
Student Loan Consolidation
A Federal Consolidation Loan can be used to bring all of your federal student loans into a single new loan, including any Direct Loans you may have.
A Private Consolidation Loan lets you combine all of your private student loans into a single new loan, or refinance an existing private loan with more attractive payment terms.
