Information on Education Loans

When borrowed responsibly, student loans can be great resources in making the investment to pursue your goals. Use this form of financial aid wisely by knowing the types of loans and by practicing responsible borrowing strategies to counter the student debt crisis.

Loan Types

When using loans to make this investment, there are either subsidized or unsubsidized loans. The difference is based on when the interest on the loan begins to collect.

  • Subsidized loans do not accrue interest while you are enrolled in school. The interest begins to accrue after you graduate or if you withdraw. Because of the delayed interest, subsidized loans should be your first option.
  • Unsubsidized loans begin to accrue interest right away. You'll need to begin repaying the loan six months after you graduate or if you withdraw.

The interest rate is 5.05% for undergraduate students and 6.6% for graduate students for loans disbursed on or after July 1, 2018.

Responsible Borrowing

You've likely heard that countless students are overwhelmed with student debt. Some students borrow the maximum amount and then leave college as soon as the check comes. Other students borrow more than is needed for tuition and books; they're living off loan checks. And a number of students have loans that are aggregated, delinquent or in default.

At Cornerstone University, we're here to give you the information you need to make wise choices with how you pay for school so that you can thrive during your time here and after you graduate. You don't need to be overwhelmed by student debt. Counter the student loan debt crisis by practicing self-control and following these responsible borrowing strategies:

  • Borrow only what you need to.
  • Control your student loan debt by knowing all grant and loan information accessed at the NSLDS website. This national database shows every student loan and grant under your name and its status. It also provides you an opportunity to ensure you have no outstanding debt you are unaware of or that your loans are not in default.

For Undergraduate Students

To make the best decision about how much to borrow, it's important to know the annual limits. The aggregate loan limit is $57,500. No more than $23,000 may be in subsidized loans. The following are the 2018 annual loan limits:

  • 0-24 Credits: $3,500 limit for subsidized loans | $6,000 limit for unsubsidized loans
  • 25-57 Credits: $4,500 limit for subsidized loans | $6,000 limit for unsubsidized loans
  • 58+ Credits: $5,500 limit for subsidized loans | $7,000 limit for unsubsidized loans

Note: These loan limits and aggregate amounts are for independent students. These limits are different for dependent students.

For Graduate Students

If you're considering loans for your graduate degree, it's important to know what limits may be on your loans in order to make the best decisions. The annual loan limit for graduate programs is $20,500.

The aggregate limit, or the total cumulative amount you can borrow over the course of your education, is $138,500. This limit includes what you've accumulated from your undergraduate work. No more than $23,500 of this limit may be in subsidized loans.

Note: These loan limits and aggregate amounts are for independent students. These limits are different for dependent students.

Pell Grant

The Pell Grant for 2018-19 can be up to $6,095 for eligible undergraduate students, based on their FAFSA EFC (Expected Family Contribution) score. The Pell award amount could be reduced if you drop any classes, and can only be disbursed after students have established substantial attendance in school. Completing the FAFSA application each year is needed to determine Pell Grant eligibility.