Student
loan requirements and regulations can be quite complex; all
students are encouraged to work closely with the CMU Office of
Scholarships and Financial Aid. The financial aid office has
publications that provide detailed information on loan
programs, and financial aid advisors are available to answer
questions and offer information and advice concerning student
loans. Financial aid advisors are available on a walk-in basis
in the Student Service Court in the Bovee University Center,
or by appointment in Warriner Hall 202.
William
D. Ford Federal Direct Loan Program (Subsidized Loans)
Unsubsidized Student
Loans
Loan Counseling
Entrance
Interviews
Exit
Interviews
William
D. Ford Federal Direct Loan Program (Subsidized Loans)
Subsidized loans are made to students by the federal
government and applied directly to the student's accounts.
These loans are based on need, and eligibility is determined
by the OSFA. All applicants must file a FAFSA. Loan
applications are not required. CMU will initiate processing
unless the student declines the suggested Federal Direct Loan on
the award statement.
The aggregate maximum for undergraduate study is $23,000.
Graduate students making satisfactory academic progress who
carry at least five (5) semester hours may borrow up to $8,500
per year, or up to their financial need, whichever is less.
The aggregate maximum for undergraduate and graduate study
combined is $65,500. Application is usually made for one semester or an academic
year (9 months), with summer school requiring a separate
award.
Borrowers beginning July 1, 1998, may borrow at an annual
variable interest rate based on the 91-day Treasury bills plus
2.3 percent capped at 8.25 percent. There is a 3 percent
origination fee deducted from the loan amount.
Six months after ceasing to be at least a half-time student,
the borrower must begin repayment. Several repayment options are
available; contact the federal servicer. Payment of principal
may be deferred under certain conditions. Students should
refer to their promissory notes for details.
(Top of page)
Unsubsidized
Student Loans
Provisions are the same as the Federal Direct Subsidized
Loans, except that the loan is not based on need. The program
is open to students who do not qualify for the Federal Direct
Subsidized Loans or who do not qualify for the full amount.
The student is responsible for the interest that accrues while
he/she is in school. Independent students may borrow up to the
Federal Direct Subsidized Loan limits as well as an additional
Federal Direct Unsubsidized Loan up to $10,000 per year for
graduate students. The interest rate is the same as the Direct
Subsidized Loan. There is an origination fee of 3 percent.
(Top of page)
Loan
Counseling
Entrance Interviews:
Students who have applied for a Federal Direct Student Loan as
a first-time borrower are required by federal
regulations to attend an entrance interview before their loan
funds may be applied to their accounts. Important information
on loans, debt management, repayment options and consequences
of default will be presented. Information regarding this
mandatory session is enclosed with the student's award
package.
Exit Interviews:
Students who receive a Federal Direct Loan are required by
federal regulations to attend a loan interview before
graduating or withdrawing from the university. Important
information regarding deferment and payment schedules will be
discussed. Students must contact the OSFA, located in Warriner
Hall, to arrange for an interview before leaving the
university. During exit counseling CMU is required to obtain
the following information from the borrower:
- expected permanent address;
- name and address of the borrower's expected employer;
- address of the borrower's next of kin;
- any corrections to CMU's records concerning name, address,
social security number, references, and driver's license
number.
For Federal Direct loans, CMU is required to provide the above
information to the federal servicer within 60 days of the exit
counseling session.
(Top of page)
Disclaimer
