Financial Aid: Loans and Loan Counseling

Loans

Federal Subsidized/Unsubsidized Stafford Loans: eligibility is determined by the FAFSA. Subsidized loans are need-based and the federal government pays the interest while the student is in school and during certain other periods. Unsubsidized loans are not need-based and the student is responsible for the interest that starts accruing at the time of disbursement. The interest rate for loans disbursed on or after July 1, 2006, is 6.8%. For dependent students, borrowing limits are $3,500 for first-year students and $4,500 for second-year students.

Federal PLUS Loan: a low-interest loan for parents. A parent may borrow up to the full cost of attendance less other financial aid awarded to the student. The lender will perform a credit check. The interest rate for loans disbursed on or after July 1, 2006, is 8.5%.

Private Alternative Loans: Loans designed to assist students in covering educational expenses which exceed other available financial assistance. Private loans should be borrowed only after all other resources have been exhausted.

Loan Entrance and Exit Counseling

All first-time federal student loan borrowers at Cottey must receive loan entrance counseling before the first loan disbursement is made. And, all student loan borrowers must receive loan exit counseling before leaving school. Both of these counseling sessions can be done online at http://mapping-your-future.org.