Loans
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, correction’s officer or under certain circumstances involving military service. More info. Questions, please email Travis Albers or call 641-628-5290.
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 dlenote.ed.gov and complete loan entrance counseling at www.dl.ed.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.
- Dependent students may borrow up to a maximum combined Subsidized and Unsubsidized Stafford Loan of $3,500 for the freshman year, $4,500 for the sophomore year and up to $5,500 for each the junior and senior years.
- Independent students may borrow up to a maximum combined Subsidized and Unsubsidized Stafford Loan of $7,500 freshman year, $8,500 sophomore year and up to $10,500 for each the junior and senior years.
- Note: The loan amounts listed above cannot exceed the student’s cost of attendance minus other financial aid received.
- Low origination fee of 0.5 percent.
- Subsidized loans borrowed after July 2008, fixed 6 percent.
- Unsubsidized loans borrowed after July 2006 and subsidized loans borrowed between July 2006 and July 2008, fixed 6.8 percent.
- Loans borrowed prior to July 2006, variable rate with cap of 8.25 percent, set annually.
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. Contact the financial aid office to discuss the application process.
- Loans range up to the total cost of education less other financial aid received.
- PLUS loans have a low, fixed interest rate of 7.9 percent with a low origination fee of 2.5 percent.
- PLUS loans are federally insured, loan forgiveness is available in the event the parent borrower becomes totally and permanently disable, or if either the parent or student dies.
- Flexible repayment options are available.
- Forbearance options are available, please contact the Direct Loan Servicing Center at www.dlssonline.com.
- Interest paid on PLUS loans may be tax deductible.
- Loans borrowed on or after July 1, 2006, fixed 7.9 percent interest rate
- Loans borrowed prior to July 2006, variable interest rate with a 9 percent cap; set annually.
- Low origination fee of 2.5 percent.
- Standard repayment up to 10 years with extended repayments options.
- Payments begin 60 days after loan is fully disbursed for the loan period borrowed.
- Able to consolidate with other PLUS loans to a low fixed rate.
Interest Free Payment Options
A monthly payment option is available.
Private Loans
Private loans are not federally insured loans, but rather are offered by a variety of private lenders. You should exhaust all financial aid options before accepting a private loan.
- Private education loans are a supplement to the federal loan programs and are subject to credit analysis. These loan programs do not require filing the FAFSA.
- Your grace period and interest rate vary by lender.
- Interest usually accrues from the time you receive the loan funds until paid in full.
- Deferment and forbearance options are usually limited and vary by lender.
- SimpleTuition is a recommended resource to help you determine which private loan option is the best choice for you.
Note: Private loans are available to help families fill the gap to help pay for college. They should not be your primary funding source. Exhaust all of your other options, including Central’s no interest payment plan, savings, summer work, work study and outside scholarships before you borrow any type of private loan.
For specific questions regarding loans, contact the Financial Aid Office at 641-628-5619.
