Direct Subsidized Stafford Loan | Federal Loan Option
The federal government pays the loan interest while the student is enrolled at least half-time in a degree seeking program and during a six month grace period after the student leaves school. Qualification for a subsidized loan is determined by the FAFSA. Repayment interest on a subsidized loan for undergraduate and graduate student loans is a fixed interest rate.
Direct Unsubsidized Stafford Loan | Federal Loan Option
Students who do not qualify, in whole or in part, for a subsidized loan can still receive an unsubsidized loan. These loans have a fixed annual interest rate that accrues once the loan is paid to the students account. Students have the option to pay the interest while they are attending college.
Students usually receive a Direct Loan for an entire academic year (two semesters); with one half of the total loan amount being disbursed each semester. Funds are automatically credited to the student's account in the Cornerstone University Accounting and Finance Office.
In order to receive a Federal Direct Student Loan at Cornerstone University, you must be able to answer yes to the following statements:
- You have been admitted to Cornerstone University.
- You have applied for federal financial aid through the FAFSA form, it has been processed and Cornerstone University has received the results.
- Your financial aid application has been reviewed by Cornerstone University Student Financial Services Office and a financial aid award notification has been sent to you for the academic year for which you want the loan.
- You have completed the Direct Loan entrance counseling with Cornerstone University.
If you meet all of the conditions mentioned above, you are now ready to complete your Direct Master Promissory Note. You will be directed to an external website to complete this process.
Complete Entrance Counseling | Master Promissory Note
Perkins Loan Program | Federal Loan Option
A federal Perkins loan is a need based, low-interest, 5% fixed rate loan offered to a limited number of students who show exceptional financial need. Federal Perkins loans are made available through the university who acts as the lender. All Perkins loans are subsidized, meaning that the interest is paid by the federal government while the student is enrolled in a minimum of six credits in a degree seeking program. Repayment begins nine months after the student is no longer attending at least half time. Entrance counseling and a master promissory note will be required of all first-time borrowers.
PLUS Loan | Federal Loan Option for Graduate Students and Parents of Undergraduate Students
PLUS loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay education expenses. The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program. This is a federal loan. Eligibility for this loan is not based on financial need or family income; the applicant will undergo a credit check. The maximum loan amount is the total cost of attendance minus other financial aid the student may receive. Repayment may begin as early as 60 days after disbursement; deferment is possible. The PLUS Loan is a fixed rate loan with a 4% origination fee will be deducted from the amount of the loan. Example: School balance = $5,000 with 4% fee. Gross loan amount to request: $5,000/.96= $5,208. Even if you have had a PLUS loan in prior years, federal regulations require you to reapply through the Direct Loan process. You will be given the option to cover the balance of the bill or obtain the maximum allowed under cost of attendance. If a parent is denied a PLUS loan, the student may receive additional unsubsidized loan funds.
Apply for a Parent Plus Loan
Interest Rates Applied to Federal Loans
Although Direct Stafford loan and PLUS loan interest rates vary by year, rates remain fixed for the life of the loan and will not exceed the stated interest rate cap. Loan interest rates are summarized below.