Federal Loans
Stafford Loans (click to begin Entrance Counseling and Master Promissory Note)
Stafford loan eligibility is based on financial need as determined by the needs analysis process.
Maximun loan amounts for the 2009/2010 academic year are as follows:
$3,500 for freshmen students plus an additional $2000 in unsubsidized loan.
$4,500 for sophomores plus an additional $2000 in unsubsidized loan.
$5,500 for juniors and seniors plus an additional $2000 in unsubsidized loan.
Loan limits are based on the student's class year standing at Cornerstone University. The maximum total limit for undergraduate study is $23,000. Students usually apply for a Federal Stafford loan for an academic year (two semesters).
One half of the total loan amount will be disbursed each semester. Funds are automatically credited to the student's account in the Cornerstone University Accounting & Finance Office.
There are two types of Stafford Loans: The types for which you qualify is based on
Subsidized
The federal government pays the loan interest while the student is enrolled at least half-time (minimum of 6 credits) in a degree seeking program and during a six month grace period after the student leaves school.
Effective July 1, 2009, the interest rate for subsidized Stafford Loans will be a fixed rate of 5.6% for undergraduate students. Graduate student rate is 6.8%. Interest accrual begins six months after the student is no longer enrolled for at least 6 credits.
The minimum monthly payment is $50, with up to ten years to repay the loan. Deferments, loan consolidation, and refinancing options are available.
Unsubsidized
This is a federal loan for students who do not qualify, in whole or in part, for a subsidized Federal Stafford Loan. Stafford loan eligibility is based on financial need as determined by the needs analysis process.
Unsubsidized Stafford Loans have a fixed rate of 6.8% and interest accrues while the student is in school.
Stafford Loan*(subsidized and unsubsidized) processing is done using the Master Promissory Note (MPN). The MPN is a legal document signed by a student and the lender**.
PLUS (Parent) Loan* (click to begin application for PLUS loan or see pre-screen option below)
"PLUS" stands for Parent Loan for Undergraduate Students. This is a federal loan for parents of undergraduate dependent students. Eligibility for this loan is not based on financial need or family income. Parents applying for a PLUS Loan undergo a credit check by their lending institution. The maximum loan amount is the total cost of attendance minus other financial aid the student may receive. Effective July 1, 2006, the PLUS Loan rate will become a fixed rate of 8.5%. Repayment may begin within 60 days of disbursement. PLUS Loans are not listed on your Cornerstone University award letter. If you are interested in more information or would like to apply for a PLUS loan, visit the Plus loan website. Fees and deferment-forbearance options vary with lenders.
Click here for a Parent Plus Loan pre-screen through Citibank. If you qualify, you will need to complete the full application process through the lender of your choice.
Perkins Loans*
A Federal Perkins Loan is a low-interest, fixed rate (5%) loan offered to a limited number of students who show exceptional financial need. Federal Perkins Loans are made through the University who acts as the lender. All interest on a Perkins Loan is paid by the federal government while the student is in school attending at least half-time (minimum of 6 credits). Payments on this loan begin nine months after the student graduates, leaves school, or fails to enroll as a half-time student. A student has ten years to repay this loan.
*Entrance counseling and a master promissory note will be required of all first-time loan borrowers.
