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FEDERAL DIRECT LOAN PROGRAM
Carl Sandburg Community College administers three Federal Direct Student Loans. Students must first complete their Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov and have received notification from CSC that a student loan(s) has been awarded and offered.
FEDERAL DIRECT STAFFORD LOAN
Subsidized Direct Stafford Loans: Low interest educational loan offered by the federal government and awarded on the basis of need. The federal government pays the interest while the student is enrolled at least half-time. Repayment begins six months after graduation or when the student drops below half time enrollment. The federal government withholds an origination fee of 1.5%.
Unsubsidized Direct Stafford Loans: Low interest educational loan offered by the federal government and not awarded on the basis of need. 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 accumulate. If you allow it to accumulate, it will be capitalized meaning it will be added to the principal amount of your loan and will increase the amount you have to repay. Repayment begins six months after graduation or when the student drops below half time enrollment. The federal government withholds an origination fee of 1.5%.
IMPORTANT INFORMATION ABOUT LOANS
Potential borrowers must meet the loan eligibility requirements. CSCīs Default Reduction Plan adds some additional restrictions to the student loan program. A student must have completed 12 credit hours with a 2.0 GPA before they may borrow a student loan. If the student does not meet this restriction and they feel they have special circumstances, s/he may submit an appeal to the Financial Aid Office. Students who are placed on financial aid probation or dismissal may be denied Stafford Loans.
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 8a.m. To 8:30p.m. (EST).
$6,096 is the average loan indebtedness of a CSC student.
STUDENT LOANS AND DEBT MANAGEMENT
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 principal amount borrowed, interest is charged for the use of the funds. The principal 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 LOANS (PLUS)
This is a loan that allows parents of dependent students to borrow to pay for educational expenses. Family income is not taken into consideration; therefore, the program is open to almost any family who qualifies based on credit. You must not have an adverse credit history. The family can borrow up to the cost of education, less other aid received. The interest rate is 8.5%. Repayment begins immediately. Please contact the Financial Aid Office for more information and to request an application.
ALTERNATIVE LOANS
The following alternative loans are for your information only and are listed in alphabetical order for your convenience. We have not researched these loans or the lenders in any way, nor do we suggest any particular lender over another. Furthermore, you may want to research other alternative loans on the internet, as we will certify any alternative loan request.
Campus Door:
Hana Private Loans
National Ed Select Campus Door Loans:
Wells Fargo Education Advancement Private
Wells Fargo Education Connection
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