Numerous types of loans for college students and parents are available. Central College is a direct lending school which means that all of your loan questions can be processed through us. To be considered for the following loans, you must file a Free Application for Financial Student Aid (FAFSA) each year.
Federal Carl D. Perkins Loan
- Eligibility is based on the results of your FAFSA.
- Loan is in the student’s name. Co-signer is not required.
- Interest rate is fixed at 5 percent.
- No origination fee.
- No interest accrues while you are enrolled in college at least half-time.
- Repayment begins nine months after you graduate or are no longer enrolled in college.
- Partial loan cancellation may be granted if you go into certain types of teaching, Peace Corps or ACTION, law enforcement, corrections officer or under certain circumstances involving military service. Questions, please email Melissa Dunlap or call 641-628-5277. More info.
William D. Ford Federal Direct Stafford Loan
- Central College is a direct lending school. This program allows students to borrow their Stafford loan through Central directly from the U.S. Department of Education.
- First-time borrowers must complete the Master Promissory Note (MPN) online at www.studentloans.gov and complete loan entrance counseling at www.studentloans.gov. A paper MPN and rights and responsibilities may be requested through the financial aid office.
- Students will sign one promissory note that will be used for all of their Direct Loans at Central. By using the MPN, students will not need to sign and submit a separate promissory note for each new loan. The MPN covers both the Federal Direct Subsidized Loan and the Federal Direct Unsubsidized Loan. The amount of each loan the student is eligible for is included on his/her award letter.
- Subsidized
- Based on need
- Federal government pays the interest for the borrower on this loan while he/she is enrolled at least half-time.
- Repayment of the principal and interest on the loan begins six months after the borrower graduates or drops below half-time.
- Unsubsidized
- Not based on need.
- Interest will be charged while you are enrolled. Interest and repayment of principal begins 6 months after you graduate or drop below half-time status.
- You have the option to pay the interest as billed quarterly throughout your schooling, or to allow the interest to be added to the principal at repayment.
- Loan is in the student’s name.
- Co-signer is not required.
- See table below for borrowing amounts.
- Subsidized loans current interest rate - 6.8%; origination fee of 2%.
- Unsubsidized loans current interest rate - 6.8%; origination fee of 2%.
- Parent Plus - 7.9%; origination fee of 4%
- For questions regarding the Stafford Loans, please contact Donna Newendorp at 641-628-5187.
Stafford Loan Borrowing Amounts
|
Dependent Undergraduate Student |
Independent Undergraduate Student |
| Freshman |
$5,500 – Max of $3,500 can be in Subsidized Stafford Loan |
$ 9,500 – Max of $3,500 can be in Subsidized Stafford Loan |
| Sophomore |
$6,500 – Max of $4,500 can be in Subsidized Stafford Loan |
$10,500 – Max of $4,500 can be in Subsidized Stafford Loan |
| Junior & Senior |
$7,500 – Max of $5,500 can be in Subsidized Stafford Loan |
$12,500 – Max of $5,500 can be in Subsidized Stafford Loan |
Federal Direct Parent Loan for Undergraduate Students (PLUS)
- Available to parents who have a dependent child enrolled in college.
- Parent must not have an adverse credit history.
- Must be a U.S. citizen, permanent resident or other eligible non-citizen.
- Unsecured loan, not based on family income.
- Master Promissory Note allows for added borrowing without signing a new note.
- Easy application and convenient in-school processing for quick disbursement.
- Loans range up to the total cost of education less other financial aid received.
- PLUS loans are federally insured, loan forgiveness is available in the event the parent borrower becomes totally and permanently disabled, or if either the parent or student dies.
- PLUS loans current interest rate - fixed 7.9%; origination fee of 4.0%
- Flexible repayment options are available.
- Interest paid on PLUS loans may be tax deductible.
- Standard repayment up to 10 years with extended repayments options.
- Payments begin 60 days after loan is fully disbursed for the loan period borrowed unless the borrower requests deferment while the student is in school..
- Able to consolidate with other PLUS loans to a low fixed rate.
- Investigate your eligibility for a PLUS loan and complete the required form.
- Fill out master promissory note at www.studentloans.gov.
- For questions regarding the PLUS loan, please contact Donna Newendorp at 641-628-5187.
Interest Free Payment Options
A monthly, interest free payment option is available.
