Direct Loans

Applying for Direct Loans:

Loans are available to assist you(the student) in meeting your educational goals.

Complete the FAFSA, located online at www.studentaid.gov. Students will not be awarded any financial aid until all documentation/forms and transcripts requested by the CBC Financial Aid Office have been submitted and any necessary corrections made.

All students interested in borrowing a loan must contact the Financial Aid office for borrowing loan requirements.

- Loan sessions during COVID were via email.
- CBC loan application and quiz will be emailed to students along with loan information requirements.

Students must go to www.studentaid.gov to complete their Master Promissory Note (MPN) and their Entrance Counseling.

Please allow two weeks from the date you complete entrance counseling and your CBC Loan Request before you receive the award letter.

These steps are the responsibility of the student and must be completed before you can receive loan funds.

TYPE OF LOANS

For additional information on Direct Loan Programs. Click here

Direct Subsidized Loans are based on financial need. The federal government pays the interest for the student during the following periods:

While the student is in school
During the six-month grace period after leaving school or after the student drops below half-time enrollment
During deferments (periods when payments are temporarily postponed)

Direct Unsubsidized Loans are not based on financial need. Direct Unsubsidized Loans are for students who do not qualify for a subsidized loan or to supplement a student's subsidized loan. Students are responsible for all of the interest on unsubsidized loans.

Requirements to receive a loan

Students must meet the Satisfactory Academic Progress requirements of the institution to be eligible to receive any type of financial aid (grants, work-study or loans).
Students must not be in default on a student loan or owe an overpayment on other federal educational aid.

If this is the case, they cannot receive any further loans or financial aid until the default or overpayment has been resolved.

Entrance Counseling

Students who are a first time borrow are required to complete entrance counseling.
Entrance counseling is available at www.studentaid.gov
For additional information on responsibilities and rights as a student borrower. Click here

Exit Counseling

Students who are enrolled less than half time, withdraw, or graduate are required to complete exit counseling.
Students will receive a letter in the mail with instructions and website to complete exit counseling.
Students can complete exit counseling at www.studentaid.gov.
For additional information on repayment of federal student loans. Click here

IMPORTANT FACTS

Once the student's loan has been placed into the their CBC account, the funds will be eligible for use on tuition, fees, books, housing, meal plans, etc.
Students who have not used all their funds will receive a refund. CBC borrowers cannot receive loan funds until 30 days after the first day of each enrollment period.
Please note that the federal government will collect an origination fee.
Student loans are repayable forms of financial aid.
When you get money through these programs you will be in debt.
Don't borrow more money than you need to help meet school-related expenses.

The National Consumer Law Center recently published a report on the causes and effects of student loan defaults. It offers a comprehensive look at borrowers who default and what policymakers, consumers, and colleges can do to help address this growing problem.

Student Loan Borrower Assistance
A Resourse for Borrowers, their Families and Advocates
www.student loan borrowerassistance.org