Direct Student Loans
CBC participates in the William D. Ford Federal Direct Loan Program to offer student loans.
Some of the benefits of subsidized and unsubsidized Direct Loans are:
- Lower, fixed interest rates
- No credit check is required
Direct Loans are subject to origination fees, which 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 fees. Loan amounts are determined based on your cost of attendance and other financial aid you have been awarded.
What's the difference between a subsidized and unsubsidized direct loan?
Direct Subsidized loans are based on financial need. The loans are interest-free while
you are attending school at least half-time and during the grace period.
Direct Unsubsidized Loans are not based on financial need and will accrue interest while you are attending school. You can save money in the long run by making your interest payments while attending college.
Direct Student Loans FAQs
Academic Grade Level/Loan Type |
Maximum Loan Amount |
|
| First-Year Undergraduates | Dependent Student | Independent Student |
| Base Direct Loan eligibility (Subsidized and Unsubsidized | $3,500 | $3,500 |
| Additional Unsubsidized Direct Loan eligibility | $2,000 | $6,000 |
| Maximum First-Year Total | $5,500 | $9,500 |
| Second-Year Undergraduates | ||
| Base Direct Loan eligibility (Subsidized and Unsubsidized) | $4,500 | $4,500 |
| Additional Unsubsidized Direct Loan eligibility | $2,000 | $6,000 |
| Maximum Second-Year Total | $6,500 | $10,500 |
| Aggregate (total) Undergraduate | $31,000 (no more than $23,000 of which may be subsidized) | $57,500 (no more than $23,000 of which may be subsidized) |
Bachelor in Applied Science (BAS) Loan Borrowing Limits:
Totals listed below are only for students accepted into a Bachelor in Applied Science
(BAS) program.
| Dependent Student | Independent Student |
|
| Base Direct Loan eligibility (Subsidized and Unsubsidized) | $5,500 | $5,500 |
| Additional Unsubsidized Direct Loan eligibility | $2,000 | $7,000 |
| Maximum BAS Yearly Total | $7,500 | $12,500 |
| Aggregate (total) Undergraduate | $31,000 (no more than $23,000 of which may be subsidized) | $57,500 (no more than $23,000 of which may be subsidized) |
Please allow 30 to 45 days for your loan to be processed. Complete all of the following steps:
- Submit your Free Application for Federal Student Aid (FAFSA) as soon after October 1 as possible for the upcoming school year. We will send an email to the email address you provided on your FAFSA which will contain all your additional steps. You can also access your Student Service Center for additional information. After notification that you have been offered grants or that you do not qualify for grants, proceed with the next steps.
- Verify you are enrolled in an eligible degree program and in at least six degree-required credits each quarter that you are requesting a loan.
- If you are a first-time borrower, complete the Entrance Counseling prior to applying for your loan. The Entrance Counseling session will help you understand your rights and responsibilities as a borrower so you can properly manage your future financial commitment.
- Complete your Master Promissory Note (MPN) If you are a first-time borrower, or your MPN has or will expire soon,
- Complete, print, and submit the 2023-2024 Federal Direct Loan Request Form (Fall 2023-Summer 2024). *A maximum of two loan requests will be accepted per academic year.
- You will receive a Financial Aid Notification email with the maximum amount you are eligible to receive or the maximum amount of your request, whichever is lower.
- Your loan funds will be disbursed via BankMobile Disbursements, a technology solution, powered by BMTX, Inc.
Federal regulations require you to complete an Exit Counseling session upon termination at CBC, whether you graduate or withdraw. This session will give you important information about repaying your Direct Student Loans.
Yes! We’ve teamed up with Solutions at ECMC to answer all of your student loan repayment questions. Solutions is a service of the non-profit organization ECMC and is dedicated to helping you manage educational loans. Their resources are available to you free of charge. To contact a Solutions Student Loan Repayment Advisor, visit the ECMC webpage for email or web chat, or call them at 877-331-3262.
When you begin student loan repayment it is important to make your payments on time. Your student loans become delinquent if you miss a required payment. Delinquency is reported to the credit bureaus and will hurt your credit rating.
Solutions at ECMC, a non-profit that partners with CBC, can help you navigate the student loan repayment process and help you avoid delinquency and default by taking advantage of options that are available to you. Their services are free to you as a CBC student. Visit the ECMC webpage for email or web chat, or call them at 877-331-3262.
If your loans are delinquent for 270 or more days, you will enter student loan default. Defaulting on your loans is very serious and can result in:
- Losing eligibility for future financial aid
- Damage to your credit history
- Garnishment of working wages and/or seizure of benefits or tax refunds
- Loss of eligibility for certain types of employment
Solutions at ECMC, a non-profit that partners with CBC, can help you navigate the student loan repayment process and help you avoid delinquency and default by taking advantage of options that are available to you. Their services are free to you as a CBC student. Visit the ECMC webpage for email or web chat, or call them at 877-331-3262.
The U.S. Department of Education measures the ratio of students from a college who enter student loan repayment each year and who later default on those loans. The ratio of students who default within three years of entering repayment is what determines a college’s default rate.
These are the student loan cohort default rates for CBC for the most recent cohort years calculated by the U.S. Department of Education:
Parent PLUS Loans
Parents of dependent undergraduate students can apply for a Parent PLUS Loan also offered through the William D. Ford Federal Direct Loan Program. The loans are not based on financial need, but a credit check is required. Parents can apply for a Parent PLUS Loan by completing the Direct PLUS Loan Application and Direct PLUS Loan Master Promissory Note. The Parent PLUS Loan amount is determined based on the cost of attendance and other financial aid awarded. Parent PLUS Loans will be processed 30 to 45 days after notification that you have been offered grants or that you do not qualify for grants.
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). Find out about your repayment options. You may repay all or part of your loan at any time without penalty and will save money by paying off your loans early.
Private Education Loans
You can apply for private education or alternative loans directly from your lender
of choice. These types of loans are not based on need and each lender determines the
eligibility criteria. Private education loans may be an option for you to pay for
college expenses not covered by federal or other financial aid. Loan amounts are determined
based on your cost of attendance and other financial aid you have been awarded. CBC
does not recommend a particular lender(s), but we can provide questions for you to
consider when researching prospective lenders:
- Is there a minimum enrollment level required?
- Is there a satisfactory academic progress requirement?
- 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?
- Are your discounts guaranteed or are they subject to change later?
Student Loan Code of Conduct Objective and Responsibilities
In compliance 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
