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Direct Stafford Loan Information
Note: Before July 1, 2010, Stafford, PLUS, and Consolidation Loans were also made by private lenders under the Federal Family Education Loan (FFEL) Program. As a result of recent legislation, no further loans will be made under the FFEL Program beginning July 1, 2010. All new Stafford, PLUS, and Consolidation Loans will come directly from the U.S. Department of Education under the Direct Loan Program.
Cleveland State Community College participates in the Direct Stafford Loan program. Please see Aid Types for more information on subsidized and unsubsidized loans.
In order to receive a loan, you must complete a Free Application for Federal Student Aid ( FAFSA) and be enrolled at least half-time (six hours) in an approved degree or certificate program.
You must turn in to the Financial Aid Office any verification or other documents or information requested. Please be aware of deadline dates. Requirements are available on your Cougar Net account on the Financial Aid tab, Financial Aid Requirements Message, “Click here if you have a red flag next to any of your financial aid requirements.”
The Financial Aid Office will determine your eligibility for a loan. Once the Financial Aid Office has processed your loan, the award will appear on your Cougar Net account on the Financial Aid tab under “Have I been awarded?” You may accept the full amount of the loan or enter a lesser amount you wish to accept; or you may decline the loan. Please see the Net Price Calculator for estimated total price of attendance to assist you in your decision. The annual and aggregate loan limits are below:
Year Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans) Independent Undergraduate Student (and dependent students whose parents are unable to obtain PLUS Loans) Graduate and Professional Degree StudentFirst Year $5,500—No more than $3,500 of this amount may be in subsidized loans. $9,500—No more than $3,500 of this amount may be in subsidized loans. $20,500—No more than $8,500 of this amount may be in subsidized loans.
Second Year $6,500—No more than $4,500 of this amount may be in subsidized loans. $10,500—No more than $4,500 of this amount may be in subsidized loans.
Third and Beyond (each year) $7,500—No more than $5,500 of this amount may be in subsidized loans. $12,500—No more than $5,500 of this amount may be in subsidized loans.
Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits) $31,000—No more than $23,000 of this amount may be in subsidized loans. $57,500—No more than $23,000 of this amount may be in subsidized loans. $138,500—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study.
Note: These annual loan limit amounts are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. You may have one type of loan or a combination of both. Because you can't borrow more than your cost of attendance minus any other financial aid you'll get, you may receive less than the annual maximum amounts. Also, the annual loan limits assume that your program of study is at least a full academic year. The maximum annual and total loan limits include any Stafford Loans you may have received under the FFEL Program and any amounts you received at another school.
On your Cougar Net account, you will see the new requirement to complete Entrance Counseling if you have not done so previously.
Once we have processed the Entrance Counseling, you will also see a requirement to complete the Master Promissory Note ( MPN). When you receive a Direct Stafford Loan for the first time, you must complete a MPN. The MPN is a legal document in which you promise to repay your loan and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan. In most cases, one MPN can be used for loans that you receive over several years of study. If you previously signed an MPN to receive a FFEL Program loan, you will need to sign a new MPN for a Direct Loan.
Loans are disbursed in two installments. For instance, if you have a fall/spring loan, you will receive half of the loan in the fall and half in the spring; for a spring only loan, you will receive half at the beginning of the semester and half at the midpoint of the semester. A loan fee is deducted by the federal government from the gross amount borrowed. Please see Consumer Information regarding credit balance checks.
Once you have graduated, transferred, withdrawn, or dropped below half-time enrollment at Cleveland State Community College, you must complete Exit Counseling.
The six-month period following graduation, withdrawal, or dropping below half-time enrollment is the grace period. You will receive information from your servicer on repayment, including your first payment due date. You are responsible for making payment, even if the information from the servicer does not reach you.
It is important to stay in contact with your loan servicer. Keep them informed of any change in name, address, phone number, school enrollment or graduation, etc. Make your payments on time. If offered by your servicer, sign up for electronic debit to receive an interest rate deduction. Your servicer can provide valuable information on repayment options, including standard repayment, extended repayment, graduated repayment, income-based repayment or income-contingent repayment.
Your servicer can also give you information on loan consolidation. Consolidation allows borrowers to consolidate several different loans with different interest rates into one loan. You should weigh the pros and cons of consolidation carefully.
You may also qualify for payment relief, such as, deferment, forbearance, Public Service Loan Forgiveness, or cancellation. Student loan borrowers should be mindful that loans are an obligation that must be repaid. Always budget your loan payment into your monthly expenses. Take advantage of online loan calculators to help you estimate your monthly payments. Should you have difficulty repaying your loan, contact your servicer immediately. See if you qualify for payment relief. It is important to continue to make your loan payments until payment relief has been approved. If you do not make your loan payments on time, you risk going into loan default.
The consequences of default are serious. If you default, it means you failed to make payments on your student loan according to the terms of your Master Promissory Note (MPN), the binding legal document you signed at the time you took out your loan. In other words, you failed to make your loan payments as scheduled. Your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government all can take action to recover the money you owe. Here are some consequences of default:
- National credit bureaus can be notified of your default, which will harm your credit rating, making it hard to buy a car or a house.
- You will be ineligible for additional federal student aid if you decide to return to school.
- Loan payments can be deducted from your paycheck.
- State and federal income tax refunds can be withheld and applied toward the amount you owe.
- You will have to pay late fees and collection costs on top of what you already owe.
- You can be sued.
The U.S. Department of Education Federal Student Aid website provides guidance to borrowers whose student loan(s) is in default. If you default, you should contact your servicer immediately. Options to get out of default include loan repayment in full, loan consolidation, loan rehabilitation, or loan cancellation/loan discharge.
- The U.S. Department of Education's National Student Loan Data System ( NSLDS) provides information on your federal loans including your servicer, loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans.
- For more information on student loans and managing debt, check out the publication, Your Federal Student Loans.
- The U.S. Department of Education offers comprehensive guidance on repaying student loans and interest rates.
- Contact the Office of the Ombudsman for assistance with federal student loan disputes at 1-877-557-2575.
- The Cleveland State ACCESS Center offers Career Counseling and Job Search Services.
Should you have any questions regarding loan repayment or debt management, contact the Financial Aid Office.
