Carl Sandburg College participates in the Federal Direct Student Loan Program. To receive a loan, students must first complete their Free Application for Federal Student Aid (FAFSA) and receive notification from CSC that a student loan/s has been awarded.

Federal Direct Stafford Loan
This is a low interest educational loan offered by the federal government to help students pay educational costs. Repayment begins six months after graduation or when the student drops below half time enrollment. Minimum enrollment is 6 credit hours per semester. The federal government withholds an origination fee of 0.5% when the loan is made. THIS MONEY MUST BE REPAID. A freshman (based on hours in the academic program) may borrow up to $3,500 per academic year and a sophomore up to $4,500. The interest rate for loans made after July 1, 2011 are 3.4% for subsidized and 6.8% for unsubsidized. Loan funds are disbursed 30 days after the first day of each semester. Loans are recalculated based on the student´s actual enrollment at the time of disbursement each semester. First time borrowers at CSC must complete loan counseling prior to the first disbursement of their loan.

Subsidized Direct Stafford Loan
This loan is based on financial need so not everyone will qualify. The government pays the interest while the student is enrolled at least half-time.

Unsubsidized Direct Stafford Loan
This program is available to students who do not qualify for need based loans or who do not qualify for the maximum loan limits under the Subsidized Direct Stafford Loan. The borrower is responsible for all interest which occurs during any enrollment, grace, deferment, or forbearance period. You can choose to pay the interest or allow it to be added to the principle amount of the loan.

Important Information About Loans
CSC evaluates all loans on a case by case basis. Federal regulations allow an institution to refuse to certify a student loan or certify a loan amount that is less than the student’s determination of need. Students will be notified in writing of the institutions decision. CSC will not discriminate against any borrower or applicant in obtaining a loan on the basis of race, national origin, religion, sex, marital status, age or disability status.

Student Loans and Debt Management
$6,096 is the average loan indebtedness of a CSC student.
Borrowing money for college has long-term financial implications. Like any other debt, a student loan is a serious financial obligation that must be repaid. In addition to the principle amount borrowed, interest is charged for the use of the funds. The principle amount, plus interest charged, divided by the repayment period determines the amount of the monthly payments after leaving school. Failure to make monthly payments on time can affect your credit rating and your ability to borrow for other purposes, such as a car or a house.

To determine a manageable amount of indebtedness after graduation, students should consider their expected starting salary; earning prospects and lifestyle, and then estimate their anticipated level of debt. Consumer credit experts estimate that total commercial debt should not exceed 8% of the student's annual income. A student who borrows $10,000 can anticipate monthly payments of approximately $121 for ten years. Alternatives to loans which students may want to consider are employment, tighter budgeting, living at home rather than an apartment, alternating semesters of study with semesters of work, or using the college's deferred tuition payment plan.

Federal Direct Parent Loan for Undergraduate Students (Plus)
This is a loan that allows parents of dependent students to borrow to help pay for educational expenses. Financial need is not considered; therefore, the program is open to almost any family who does not have an adverse credit history. The family can borrow up to the cost of education, less other aid received. The interest rate is 7.9%. Repayment begins 60 days after disbursement. Please contact the Financial Aid Office for more information.

Repayment Information:
It is your responsibility to notify the Loan Servicing Center promptly of any changes in your name, address, college or enrollment status or employers name and address. The Direct Loan Servicing Center's phone number is (888) 447-4460 and their hours are Monday-Friday 8 a.m. To 8:30 p.m. (EST).

Alternative Loans / Private Loans
Carl Sandburg College will certify alternative loans as requested. Students may search for alternative loans on the web. Provisions are different for each loan and students are encouraged to seek federal student aid grants and loans before alternative loans.