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Federal Direct Loans
Federal loans are a part of many financial aid awards. Federal regulations require colleges to confirm student eligibility for federal aid. To comply with these regulations, all students at CC must file the Free Application for Federal Student Aid (FAFSA) before the Federal Direct Stafford Loan or the Federal Direct PLUS Loans will be processed. If you do not have a PIN, you may request one from the official PIN website.
First-time Federal Direct Stafford Loan borrowers:
For entering students with a Federal Direct Stafford Loan, the financial aid office will initiate processing the loan when the student returns the signed award letter accepting the loan as part of the aid award. To complete the loan process, the student will complete an Entrance Counseling Session and a Master Promissory Note (MPN).
- Entrance Counseling for the Federal Direct Stafford Loan:
In compliance with federal requirements, students who are borrowing for the first time at Colorado College must complete an online Entrance Counseling Session before funds could be credited to their account. This session helps students understand their rights and responsibilities when borrowing this loan.
- Master Promissory Note (MPN) for the Federal Direct Stafford Loan:
The student will be required to complete a Master Promissory Note (MPN) online with an e-signature. The MPN is a promissory note that can be used to borrow multiple years while at CC. If the student is not able to complete this online, they should contact the financial aid office.
FEDERAL UPDATE: INCREASED ANNUAL LOAN LIMITS FOR UNSUBSIDIZED STAFFORD LOANS
Recent federal legislation has increased the annual loan limit for Unsubsidized
Stafford Loans in the Federal Direct Stafford Loan program. This provides an additional Unsubsidized Stafford loan amount of $2,000 for dependent students in addition to annual loan limits of $3,500 for a freshman, $4,500 for a sophomore or $5,500 for a junior or senior. Based on other aid received, students may be eligible to apply for this additional amount. If you would like to apply for the additional Federal Direct Unsubsidized Stafford Loan of $2,000, contact the Financial Aid Office at financialaid@coloradocollege.edu to confirm your eligibility and to apply for the loan. If your parents will be borrowing a Federal Direct PLUS Loan, you should consider borrowing this additional amount first. If your parent is denied a Federal Direct PLUS Loan, you may be able to apply for even more Unsubsidized Stafford Loan.
Federal Direct PLUS Loan for parents
To receive a Federal Direct PLUS loan, a parent must be a biological or adoptive parent of the student for which the loan is being borrowed. The loan is based on the credit worthiness of the parent. The maximum a parent can borrow is the cost of education at Colorado College minus all financial aid the student receives. The interest on this loan begins to accrue when it is disbursed to the student's account, and continues to accrue until the loan is paid in full.
- Application for the Federal Direct PLUS Loan
To borrow a Federal Direct PLUS Loan, first, the PLUS Loan application form must be completed and mailed or faxed (719/389-6173) to the Financial Aid Office. The Financial Aid Office will certify your eligibility for the loan and send it to the Department of Education for processing. The parent will be required to complete the Master Promissory Note (MPN) online. If there is any difficulty completing the MPN online, the parent should contact the Financial Aid Office.
- Master Promissory Note (MPN) for the Federal Direct PLUS Loan
The MPN is a promissory note that can be used to borrow multiple loans for multiple academic years (up to 10 years). While attending Colorado College, parents will only need to complete one MPN and this requirement will be for all first-time borrowers of a Federal Direct PLUS Loan who do not have any adverse credit issues. The MPN can be completed on-line here* using your Department of Education issued PIN. If you do not have a PIN, you may request one from the official PIN website.
FEDERAL UPDATE: GRACE PERIOD FOR PARENT PLUS BORROWERS
Because of recent federal legislation increasing annual loan limits for dependent students by $2,000 for an additional Federal Direct Unsubsidized Stafford Loan, your student may want to apply for this additional amount before you calculate the amount you would like to borrow in a Federal Direct PLUS Loan. The interest rate for the additional Unsubsidized Stafford Loan is 6.8% compared to 7.9% for the Federal Direct PLUS Loan. Your student is the borrower of the additional $2,000 Unsubsidized Stafford Loan.
The recent legislation also included a Grace Period for Parent PLUS Loan Borrowers who may now request to delay repayment of their loan until six months after the dependent student for whom they borrowed ceases at least half-time enrollment. For more information about the delayed repayment of your Federal Direct PLUS Loan, contact Borrower Services at the Direct Loan Servicing Center at 1-800-848-0979. Alternative Student Loans
The student should always consider federal loans before considering an alternative student loan. Additional information about various lenders offering alternative loans can be reviewed at http://www.finaid.org.
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