Students and parents may want to consider borrowing federal loans as an option for financing educational expenses. The U.S. Department of Education is the lender for these loans. Federal regulations require colleges to confirm a student's eligibility for federal aid. To comply with these regulations, all students at Colorado College must file the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov before the Federal Direct Stafford Loan or the Federal Direct PLUS Loan for Parents will be processed. If the student or the parent does not have a PIN to file the FAFSA, they may request a PIN at the PIN Website which will be used in the application process.
Federal Direct Stafford Loans
The Federal Direct Stafford Loan Application Process for First-time Borrowers:
When a student accepts the Federal Direct Stafford Loan on their award OR if they submit a separate application to apply for the Federal Direct Stafford Loan for the first time, they will need to complete the following TWO steps to meet federal requirements before Colorado College will originate the loan with the Department of Education.
Step 1: 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.
Step 2: Master Promissory Note (MPN) for the Federal Direct Stafford Loan:
The MPN is the legal agreement that the student will repay the loan in the future. The student will be required to complete a Master Promissory Note (MPN) and will only be required to complete the MPN once while attending Colorado College.
Before applying for a Stafford Loan, the student and parent should review the current Federal Loan Interest Rates and Loan Limits. The Subsidized Stafford Loan is 4.29% and the Unsubsidized Stafford is 4.29%. Since the Stafford Loan interest rates are lower than the 6.84% for the Federal Direct Plus Loan for Parents (see below), the student may want to consider borrowing the maximum Stafford Loan eligibility before the parent requests a PLUS Loan. If the parent is denied the PLUS Loan, the student may be able to borrow an additional Unsubsidized Stafford Loan.
Federal Direct PLUS Loans for Parents
If it has not already been filed, the parent and student can request a PIN at the official PIN Website and complete the FAFSA at www.fafsa.gov. To receive a Federal Direct PLUS Loan for Parents, a parent must be a biological or adoptive parent of the student enrolled at CC. 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.
Before applying for a PLUS Loan the parent and student should review the current Federal Loan Interest Rates and Loan Limits. The PLUS Loan has a fixed interest rate of 6.84%. The Subsidized Stafford Loan is 4.29% and the Unsubsidized Stafford Loan is 4.29%. Since the Stafford interest rates are lower than the PLUS Loan, the student may want to consider borrowing the maximum Stafford Loan eligibility before the parent requests a PLUS Loan. If the parent's credit is denied for the loan, the student will be eligible to borrow additional Unsubsidized Stafford Loan funds.
The Federal Direct PLUS Loan Application Process:
After the parent and student have filed the FAFSA, Colorado College will originate the Federal Direct PLUS Loan with the U.S Department of Education when the following TWO requirements have been completed.
- Application for the Federal Direct PLUS Loan
To borrow a Federal Direct PLUS Loan, first, the PLUS Loan application must be completed. The parent will be asked to provide information including the loan amount requested.
Complete PLUS Request Process
- Master Promissory Note (MPN) for the Federal Direct PLUS Loan
The MPN is a promissory note that can be used to borrow up to10 years while their student is enrolled at Colorado College. The MPN can be completed using the parent's PIN that was used when filing the FAFSA.
Master Promissory Note (MPN)
The borrower of a PLUS Loan may request a deferment to delay repayment of their loan until six months after their student ceases at least half-time enrollment at Colorado College. For more information about the deferred repayment option for Federal Direct PLUS Loan, the parent should contact Borrower Services at the Direct Loan Servicing Center at 1-800-848-0979 or go to www.direct.ed.gov/student.html.
Contact the Financial Aid Office
800-260-6458 or 719-389-6651
Spencer Center, 1st Floor
14 E. Cache La Poudre St.
Colorado Springs, CO 80903
Hours of operation: Monday - Friday, 8:30am - 5:00pm