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 will change for the 2007/2008 academic year:
$3,500 for freshmen students
$4,500 for sophomores
$5,500 for juniors and seniors
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 Business Office.
There are two types of Stafford Loans:
Subsidized
The federal government pays the loan interest while the student is enrolled at least half-time, and during a six month grace period after the student leaves school.
Effective July 1, 2006, the interest rate for Stafford Loans will be a fixed rate of 6.8%.
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.
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)
"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 begins 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.
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. 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.
**Cornerstone University has pre-existing agreements with several lenders. Through our agreement, student will receive special negotiated rates and benefits. By choosing another lender, you are agreeing to pay your balance in full, up-front to Cornerstone University. Once the funds are received, Cornerstone University will reimburse the student their funds.
