Stafford Family Federal Education Loans (FFEL)

About FFEL

Federal Stafford loans are low-interest loans made to students attending school on at least a half-time basis.  Banks and private agencies make loans under the Federal Stafford Loan program.  Students are not required to make payments while in school on a subsidized loan; students are required to make payments on the interest that accrues while in school on an unsubsidized loan.  An option to have the interest capitalized on an unsubsidized loan is available.

Aggregate Loan Limits (effective July 1, 2008)

This is the maximum amount that a student may borrow if seeking an associate or bachelor’s degree (amount increases when pursuing a masters or professional degree).

Aggregate Limit for Undergraduate Dependent Students:  $31,500

Aggregate Limit for Undergraduate Independent Students:  $57,500

However, Cincinnati State reserves the right to ensure that borrowers are not borrowing more than they need.  As part of our default management policy, some students who have borrowed a certain amount will need to file an appeal to explain why more funds are needed to complete your degree program.  Please provide an academic evaluation with your appeal.

1.     Students without assessed transfer credit hours who have borrowed in excess of $15,000 and

2.     Students with assessed transfer credit hours that have borrowed in excess of $25,000

Annual Loan Limits (Effective July 1, 2008)

Annual Stafford Loan maximums are defined by federal regulations:

Dependent Student

Grade Level    Base Amount  Additional Unsubsidized Loan

1                    3500                          2000

2                    4500                        2000

Independent Student

 Grade Level   Base Amount  Additional Unsubsidized Loan

1                    3500              6000

2                    4500                  6000

SPECIAL NOTE TO CO-OP STUDENTS:  you must be registered for a minimum of six (6) credit hours, including a CO-OP term, to receive a disbursement of your federal student loan.

PLEASE NOTE:  Eligible maximum loan amounts vary depending upon financial need, enrollment status and number of academic terms enrolled.  The annual maximum loan amounts are adjusted appropriately for less than full-time, full-year enrollment.  The Office of Financial Aid is authorized, by the United States Department of Education, to refuse to certify your loan application or can certify a loan for an amount less than you would otherwise be eligible for, for reasons such as your excessive withdrawal from classes, pattern of reducing enrollment after the receipt of loan proceeds, non-attendance in classes, lack of satisfactory academic progress or any other justifiable reason communicated to you.  This decision is final and cannot be appealed to the U.S. Department of Education. 

Disclosure Statement:

Once a student’s loan has been approved and certified, he/she will receive a disclosure statement from his/her lender.  The disclosure includes information about the loan, specifically the disbursement dates of the loan.  This appears to be confusing to students, so we decided to explain what this date means.  The disbursement date on your disclosure statement is the date the money leaves the bank and is sent to the school.  Once the school receives the money, they are obligated by the federal government to recheck each recipient’s eligibility.  The government gives schools several days to do this.  Once eligibility is confirmed, the funds are then disbursed to the student's account.  Once the funds hit the account, the Business Office, by law, has 14 days to cut the checks.