Student Loans

The Federal Direct Loan Program
Loan Processing Fees
Borrowing Limits
Repayment
Direct Loan Application Process
Direct Loan Contact Information
Direct Parent PLUS Loans
Alternative Loans
Loan Code of Conduct 

Students and parents who previously received loans through the Federal Family Education Loan (FFEL) program will now borrow through the Direct Loan Program. The Direct Loan Program offers the same type of loans as the FFEL program. The Direct Loans generally have the same terms and conditions as the FFEL program had, but instead of a bank lending the money, the U.S. Department of Education (the Department) lends the money directly to students and parents through the school.

To determine eligibility for federal student loans, you must first apply for financial aid with the Free Application for Federal Student Aid (FAFSA). You will use the same PIN to complete your FAFSA and your Direct Loan Master Promissory Note (MPN). Visit www.pin.ed.gov to apply for a pin or to ask questions about a previously assigned PIN.

The Federal Direct Loan Program
The Direct Loan Program offers two types of low interest, variable rate loans for student borrowers: Direct Subsidized Loans and Direct Unsubsidized Loans. Both have a variable interest rate, with a cap of 8.25 percent. The subsidized and unsubsidized loans both require the student be registered in at least six degree-required credits. The average amount that students borrowed at CBC during the 2009-2010 academic year was $5,370.72.

Direct Subsidized Loans
Direct Subsidized Loans are interest free while you are attending school. To qualify for a Direct Subsidized Loan, you must demonstrate financial need by submitting the Free Application for Federal Student Aid (FAFSA). The results reveal how much you and your family should contribute toward your education costs. Your cost of attendance minus your expected family contribution establishes your financial need.

Direct Unsubsidized Loans
With a Direct Unsubsidized Loan, you are responsible for interest payments, even while you are in school. You can either make interest payments or postpone them. If you postpone interest payments, interest will be added to your principal balance. This is known as capitalization. Capitalization increases the total amount you will repay. You will save money by making your interest payments. Financial need is not required to qualify for a Direct Unsubsidized Loan, but the cost of your education must exceed any other financial aid you have been awarded.

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Loan Processing Fees
Federal Direct Loans are subject to origination fees. These fees offset administrative costs. Loan origination fees will be deducted from your loan proceeds prior to disbursement, and you are responsible for the repayment of all such fees.

Borrowing Limits
The Direct Loan Program has limits on the amount you can borrow each year. The CBC Financial Aid office personnel will determine how much you are eligible to borrow.

Keep in mind that you may be repaying your Direct Loan for as long as 10 years. The more you borrow, the higher your monthly payment will be. Borrow only what you need. The size of your monthly payments may make the difference between manageable and unmanageable debt in your future.

If you have been accepted into the Bachelors in Applied Science (BAS) degree program, contact the Financial Aid office regarding borrowing limits.

Repayment
When you graduate, leave school, or drop to less than half-time status, you will have a six-month grace period before repayment begins. Once your grace period ends, you must begin repaying your loan(s). Please go to https://studentloans.gov for information about repayment options. You may prepay all or part of your loan at any time without penalty. You will save money by paying off your loans early.

The Application Process

1. CBC originates Direct Loan applications electronically.
2. You will be sent a Financial Aid Notification by postal mail or email with the maximum amount you are eligible to receive or the maximum amount of your request, whichever is lower.
3. Your loan funds will be disbursed via Higher One. You must be sure that your tuition/fees are paid and that you are enrolled in at least six degree-required credits. Two disbursements in one quarter will be made for one-quarter loan periods.
4. Federal regulations require you to complete an Exit Counseling session upon termination at CBC, whether you graduate or withdraw. This session will give you additional information about your rights and responsibilities as a borrower. CBC requires you to complete your Exit Counseling before your last check for the academic year will be released to you. You will be notified of Exit Counseling session dates and times.
5. To apply for a Direct Loan, you must complete all of the following steps: (Read all steps before you begin.) 
   1. Complete your financial aid application at CBC and be determined to be eligible for a loan.
   2. Complete an Entrance Counseling each academic year prior to applying for your loan. The purpose of the Entrance Counseling session is to help you understand your rights and responsibilities as a borrower so that you can properly manage your future indebtedness. Click on the Sign In button in the Manage My Direct Loan box at https://studentloans.gov to complete your Entrance Counseling.
   3. At the end of your entrance counseling click on the Master Promissory Note (MPN) link.  Next click on the Subsidized/Unsubsidized link to apply.  If you have closed your browser,  return to this link by clicking on Master Promissory Note.  Once you have completed your MPN click on the Logout link in the top right of your screen.
   4. Complete, print, and submit the debt/salary wizard screen showing your estimated monthly payments and required salary to repay these loans. Use the debt/salary wizard to complete this step.
   5. Complete, print, and submit the 2012-2013 Student Loan Worksheet (Fall 2012 - Summer 2013) along with your debt salary wizard if you are applying for loans for the upcoming academic year.
      
      *If you have been accepted into the Bachelors of Applied Science (BAS) degree program contact the Financial Aid office before completing this step.

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Contact Information
Contact information for Direct Loans:
Direct Loan Servicing Center
Phone: 1-800-848-0983
www.dl.ed.gov

Direct PLUS Loans are non-need based loans available to parents of dependent students to help with educational costs. Dependency status is determined by information on the student's FAFSA. The yearly maximum loan limit cannot exceed the total cost of attending CBC minus other financial aid awarded. The interest rate is 7.9 percent and is charged beginning on the date your loan's first disbursement. Please visit https://studentloans.gov for more information about PLUS Loans and to apply.

Alternative Loans
Alternative loans are non-need based private loans. Eligibility and loan criteria are determined by the lending institutions. When considering alternative loans here are some questions for your prospective lenders: What is your lowest interest rate and fee combination and how can I get it? Is the rate only for a limited period, or is it for the life of the loan? Is there a limit on how high the variable rate can go? How often is the interest rate adjusted, and how is it determined? What interest rate can I get on a fixed-rate loan? How long will I be repaying the loan? Is there any penalty for paying it off early? What proportion of your borrowers get the discounts you offer? Are your discounts guaranteed or are they subject to change later?

Student Loan Code of Conduct Objective and Responsibilities
In concert with federal regulations, CBC's Code of Conduct for educational loans prohibits the following:

• Revenue sharing arrangements with any lender
• Receiving gifts from a lender, a guarantor, or a loan servicer
• Contracting arrangement providing financial benefit from any lender or affiliate of a lender
• Directing borrowers to particular lenders, or refusing or delaying loan certifications
• Offers of funds for private loans
• Call Center or Financial Aid office staffing assistance
• Advisory Board compensation