2018-2019 Catalog

William D. Ford Federal Stafford Loan Program

CF students are eligible to participate in the William D. Ford Federal Direct Loan Program, including the Subsidized Stafford Loan, the Unsubsidized Stafford Loan and the Parent Loan for Undergraduate Students, PLUS.

Applicants must apply by completing the Free Application for Federal Student Aid, FAFSA. All borrowers must complete a Master Promissory Note before their loan can be processed. This can be done online at studentloans.gov.

First-time borrowers at CF must complete Entrance Counseling in order to receive a Federal Direct Stafford Loan. Loans will not be processed until entrance counseling is completed. This can be done online at studentloans.gov. The Entrance Counseling will provide important information regarding the loan, including deferment and repayment information.

To receive any loan, the student must enroll in at least six credit hours each semester, meet Standards of Satisfactory Academic Progress, and not have a previously defaulted loan(s).

In order for the loan to remain in school deferment, the student must enroll in at least six fundable credit hours (not including summer). Once the student has stopped attending at least six fundable credit hours, the six-month grace period begins and the student must complete exit counseling (also a requirement). Exit counseling may be done online at studentloans.gov. Exit counseling will give important information about repaying loan(s) and options that are available should there be a problem with the terms of the loan(s).

Note: If the student has defaulted (failed to make payments) on a prior student loan at any institution or has excessive loan debt, CF reserves the right to refuse to certify additional student loans.

Loan Limits

Loan Amounts: The annual loan amount will be disbursed in two equal payments over two semesters. If the student will only attend one semester, the student may be entitled to half of the annual loan amount. A one term loan will be prorated based on enrollment status and disbursed in two payments. Loan disbursements will begin each semester after attendance has been confirmed in a minimum of six fundable credit hours. For some students, this means that loans will not disburse until after the B term attendance has been noted.

Loan proration is a reduction of the standard annual loan limit for an undergraduate student. Proration of the loan amount is required if the student's program, or the remainder of the student's program, is less than a full academic year (24 credits) in length. 

Example maximum loan amounts:

Maximum Fall Loan Amount Maximum Spring Loan Amount
Dependent Student who has completed less than 30 credit hours toward current program of study $1,750 Subsidized $1,000 Unsubsidized $1,750 Subsidized $1,000 Unsubsidized
Dependent Student who is enrolled and has completed 30 or more credit hours toward current two-year program $2,250 Subsidized $1,000 Unsubsidized $2,250 Subsidized $1,000 Unsubsidized
Dependent Student who is enrolled and has completed 60 or more credit hours toward current bachelor's program $2,750 Subsidized $1,000 Unsubsidized $2,750 Subsidized $1,000 Unsubsidized
Independent Student who has completed less than 30 credit hours toward current program of study $1,750 Subsidized $3,000 Unsubsidized $1,750 Subsidized $3,000 Unsubsidized
Independent Student who is enrolled and has completed 30 or more credit hours toward current two-year program $2,250 Subsidized $3,000 Unsubsidized $2,250 Subsidized $3,000 Unsubsidized
Independent Student who is enrolled and has completed 60 or more credit hours toward current bachelor's program $2,750 Subsidized $3,500 Unsubsidized $2,750 Subsidized $3,500 Unsubsidized
Independent Student who is graduating in fall with a two-year degree (amounts will be pro-rated upon enrollment) $2,250 Subsidized $3,000 Unsubsidized 0

Expected enrollment statusStudents must maintain enrollment of at least six semester hours for each semester of the loan period. The most common loan period is fall/spring. If the student's loan period does not include summer, he or she may take the summer off without penalty. If the loan is canceled or enrollment drops below half time, exit counseling is required and a one-time grace period may be used.

Loan ProcessLoans will be awarded and students will have 14 days to cancel the loans and/ or change the loan amounts. If a student does not respond in writing to cancel or change the loan, the loan will be processed.

Please note: Borrowing money for college is a serious financial obligation. In addition to principal borrowed, interest is charged for the student's use of the funds. We strongly urge students to carefully consider the amount of debt incurred, and we strongly advise against double borrowing (multiple loan types - subsidized and unsubsidized). Students may be required to complete Financial Awareness Counseling. First-time borrowers at CF must complete a Master Promissory Note and a loan entrance counseling session before any loan funds are disbursed. Master Promissory Notes, Loan Entrance Counseling, and Loan Exit Counseling are available at www.StudentLoans.gov. A student's complete aid history is available at www.nslds.ed.gov.

Subsidized Federal Stafford Loan

This loan is a federally funded loan provided to students through the U.S. Department of Education. This loan requires unmet financial need. The federal government will subsidize the interest while the student is enrolled in at least six credit hours. The student must repay the loan plus a variable or fixed rate of interest beginning six months after leaving the school or dropping to less than half-time status.

150% Time Limitation on Loan Subsidy

This legislation limits the time frame for which students are eligible to receive the subsidy on Federal Direct student loans and it impacts students considered to be new borrowers after July 1, 2013. New borrowers include: those who have never borrowed a Federal Direct student loan prior to July 1, 2013 and those who have previously borrowed, but had a zero balance due as of July 1, 2013. This legislation limits Federal Direct Subsidized loans to 150% of the length of a student's academic program. For example, new student borrowers in a 2-year program can only receive subsidized loans for 3 years. The length of time is measured in academic years. Students who reach this limit may be eligible for Federal Direct Unsubsidized loans if they are otherwise eligible to receive them.

Furthermore, students who reach the 150% point and have not yet completed their program will lose the subsidy on all outstanding subsidized loans. The loans do not enter repayment at this point; however, the borrower becomes responsible for paying the interest rather than the government. This limit is based on the amount of time a student is enrolled in a program and not the amount the student borrows (with some exceptions). Less than full-time enrollment status will impact the length of time a borrower is eligible for the interest subsidy. The legislation was passed in hopes of encouraging students to complete programs of study more quickly and allowances are granted when a student completes a degree/certificate within the 150% time frame.

It is important to note that this loan subsidy time limitation is separate from Satisfactory Academic Progress and aggregate loan limits. Approval of Satisfactory Academic Progress appeals will not extend the length of time in which you will qualify for the subsidy on student loans. 

Additional information is located at studentloans.gov.


Unsubsidized Federal Stafford Loan

This is a federally funded loan that is provided to students through the U.S. Department of Education. This loan does NOT require unmet financial need; however, the student still must complete the FAFSA. The student must be enrolled at least half time (six credit hours) and is responsible for the interest while the loan is in deferment and during the six-month grace period. The student may pay the interest while in school or may contact the loan servicing center to request that the interest be deferred until the time of repayment.

Parent Loan for Undergraduate Students

Parents of dependent students may borrow on behalf of their children. The student must first apply for aid by completing the FAFSA. Parents must also apply at www.studentloans.gov. The student must be enrolled at least half time and meeting standards of Satisfactory Academic Progress. Loan amounts must not exceed the cost of education less other financial aid.

Repaying Student Loans

After a student graduates, leaves school or drops below half-time (six credit hours) enrollment, the student will have six months of grace period before repayment begins. Direct PLUS loans do not have a grace period and must begin repayment within 60 days after the loan is fully disbursed. There is a choice of repayment plans. Monthly payments will depend on the size of the debt and the length of the repayment period. The chart below includes examples of monthly payments for different loan amounts. For more information about repaying direct student loans, go to www.nslds.ed.gov.

Direct Loan Example One
Amount: $3,500
Interest Rate: 6.0%
Monthly Payment: $50
Total Interest in Repayment: $818.59
Total Paid: $4,318.59
Total Months: 87
Direct Loan Example Two
Amount: $5,500
Interest Rate: 6.8%
Monthly Payment: $51.79
Total Interest in Repayment: $1,714.80
Total Paid: $6,214.80
Total Months: 120
Direct Loan Example Three
Amount: $9,500
Interest Rate: 6.8%
Monthly Payment: $109.33
Total Interest in Repayment: $3,619.60
Total Paid: $13,119.60
Total Months: 120
PLUS Loan Example One
Amount: $5,000
Interest Rate: 7.9%
Monthly Payment: $60.40
Total Interest in Repayment: $2,248
Total Paid: $7,248
Total Months: 120
PLUS Loan Example Two
Amount: $11,000
Interest Rate: 7.9%
Monthly Payment: $132.88
Total Interest in Repayment: $4,945.60
Total Paid: $16,945.60
Total Months: 120