Loans are borrowed money that must be paid back to the lender over a period of time, usually after the student leaves school. Federally-sponsored and privately-sponsored loans are available for college students.
William D. Ford Federal Direct Stafford Subsidized and Unsubsidized Loans
Stafford Loans are low-interest federal student loans available to college students to supplement personal and family resources, scholarships, grants, and work-study. Nearly all students are eligible to receive Stafford Loans regardless of credit. Stafford loans may be subsidized by the U.S. Government or unsubsidized depending on the student's financial need.
A subsidized loan's interest is paid by the U.S government as long as the student is enrolled at a post-secondary institution at least half-time. Students are responsible for all interest accrued on unsubsidized loans.
All student borrowers, whether a first-time borrower or previous borrower, are required to complete loan entrance counseling and a Master Promissory Note (MPN) at www.studentloans.gov. Click here for details. Entrance Counseling must be completed for each institution that you attend by including the School Code. The Cincinnati State School Code is 010345. This needs to only be completed once. The Master Promissory Note only needs to be completed once and is good for ten years as long as y ou have a loan disbursement within one year after its completion.
In addition, Cincinnati State requires that you complete the Direct Loan Acceptance electronic form EACH YEAR if you wish to accept loans. If you plan on changing any portion of your package, please complete the Award Change electronic form. These can all be found under MyServices.
Stafford loan maximums per semester
|First Year Students||$1166||$666|
|Second Year Students||$1500||$666|
|First Year Students||$1166||$2000|
|Second Year Students||$1500||$2000|
* and dependent students whose parent was denied a PLUS loan
**students whose need is less than zero will have the subsidized portion added to their unsubsidized loan
Aggregate undergraduate Stafford loan maximum
|Subsidized + unsubsidized||$31,000|
|Subsidized + unsubsidized||$57,500|
**Even if funds have been borrowed at a graduate level, loan maximums may not exceed these amounts to borow as an undergraduate.
How to Apply for Federal Direct Student Loans:
- Complete and submit the FAFSA at www.fafsa.ed.gov.
- First time borrowers at Cincinnati State and transfer students must complete Loan Entrance Counseling at www.studentloans.gov. Student will be required to use his/her Personal Identification Number (PIN) from the U.S. Department of Education to complete this process.
- First-time borrowers (or it has been over ten years since completing or have not had a disbursement within one year of completing) must complete a Master Promissory Note (MPN) at www.studentloans.gov. Student will need a Federal Student Aid ID (FSA ID) from the U.S. Department of Education to complete this process.
- First time borrowers must wait at least 30 days from the time their first class starts to receive their first disbursement and maintain all eligibility critieria at the time of disbursement.
Federal Direct Subsidized Loans
In order to qualify, student must:
- Have unmet financial need as determined by the FAFSA
- Be enrolled at least half-time (6 credit hours)
- Meet all other eligibility criteria for receiving Federal Student Aid
Interest rates and repayment:
- Loans first disbursed on or after July 1, 2015 and before July 1, 2016 have an origination fee of 1.068% and have an interest rate of 4.29%
- Loans first disbursed on or after July 1, 2016 and before July 1, 2017 have an origination fee of 1.069% and have an interest rate of 3.76%.
- The federal government pays the interest on subsidized loans while students are enrolled at least half time, during a deferment period, and during the grace period (six months after the student ceases to be enrolled at least half time or graduates).
- Repayment begins when student graduates or ceases to be enrolled at least half time for a period of at least six months.
- The Standard Repayment Period is ten years. However, there are other repayment options. For more information on all repayment options, visit www.studentloans.gov.
Limit On Direct Subsidized Loan Eligibility For Undergraduates Borrowing For The First Time On Or After July 1, 2013
Subsidized loans can be borrowed for up to 150% of the published length of the program of study. For a 2-year associate degree program, the maximum period of subsidized loan eligibility is 3 years. Read for more information on the 150% Federal Direct Subsidized Loan Limit.
Under Federal PLUS Loans
If a family is ineligible to borrow a PLUS loan:
Dependent students whose parents have applied for and have been denied a PLUS loan are eligible for Unsubsidized Loans up to $6,000 annually.
All federal loans must be repaid. Repayment begins six months after a student's enrollment drops below six credit hours, including students attending part-time, graduating and withdrawing.
Important Note: Aid received at another institution may affect the amount of aid a student is eligible for at Cincinnati State and it is the responsibility of the sudent to only accept aid for which he or she is eligible with regard to annual limits. Students should contact the Financial Aid office with any questions concerning aid amounts and eligibility.
William D. Ford Federal Direct Stafford Parental Loans for Undergraduate Students (PLUS) Loans
PLUS loans enable parents (of dependent students) with good credit histories to borrow funds to help pay for their child’s educational costs. The student for whom a PLUS loan is borrowed must be attending school on at least a half-time basis.
To apply, parents should complete a prescreening for eligibility and an application at www.studentloans.gov. Parents need to use their federal PIN number to log in and apply.
Nurse Education Assistance Loan Program (NEALP)
The NEALP provides financial assistance to students enrolled in approved nurse education programs in Ohio schools and to encourage students to remain in Ohio as they enter the nursing profession. NEALP loans are limited to $3,000 per year for a maximum of three years or $12,000 total loan balance. After graduation from an approved nurse education program, a borrower may be eligible for debt cancellation at a rate of 20% per year for a maximum of 80% over four years if the borrower is employed in the clinical practice of nursing in the State of Ohio. To be eligible for a Nurse Education Assistance Loan, an applicant must: be enrolled in an approved Ohio pre-licensure or post licensure LPN or RN nurse education program; not owe a refund or be in default on any education loan; and maintain good academic standing. Students preparing for the following nursing professions are also eligible to receive Nurse Education Assistance Loans: Certified Nurse Practitioner, Certified Registered Nurse Anesthetist and Certified Nurse Midwife. Visit the OBR website at www.regents.ohio.gov for more information and to apply.
What is NSLDS?
Federal regulations require that information regarding your loan, including loan types and amounts, be submitted to the National Student Loan Data System (NSLDS). This loan information will be accessible by federal loan agencies, lenders, and institutions determined to be authorized users of the data system. You can access your NSLDS information with your Department of Education issued PIN.
Cincinnati State partners with several lenders to offer loans to students who do not qualify for federal loan programs or who need additional financial assistance to meet educational expenses. It is Cincinnati State's policy that you must be at least half time status, meeting SAP, and all other eligibility requirements to be eligibile for an alternative loan.
These are student loans offered by private companies. They are not guaranteed by the Federal Government. Private loans are meant to help students cover education costs not met by other forms of financial aid. It is recommended that students take full advantage of all government loans available to them before considering a supplemental private loan. Below are listed some websites with additional information. These websites are not operated by Cincinnati State Technical and Community College.
Sallie Mae's Smart Option Loan - https://www.salliemae.com/student-loans/smart-option-student-loan/
Wells Fargo Loan - http://www.wellsfargo.com/student/
Questions? Need more information?
If you have questions about any of these loans, or need any other information, please contact the Office of Financial Aid at (513) 569-1530 or email us.