FAQ on Loans (Types, Fees, Limits, Repayment)

If, at a later date, you change your mind regarding an ‘Accepted’ or ‘Declined’ loan, you CANNOT change it online. You will have to email loans@cedarville.edu with the following information:

• Your full name
• Your 7-digit ID number
• Loan Type (Subsidized, Unsubsidized, or PLUS) .
• Term (Fall/Spring; Fall only; Spring only; Summer)
• Status Change:
  • ‘Accepted’ to ‘Estimated’ or
  • ‘Declined’ to ‘Estimated’

The Financial Aid office will then review your request as appropriate, making sure the requested changes are within federal compliance. If compliant, the FAO will reset the loan(s) to ‘Estimated’, allowing the student to log back into their account online and record their decision.

When you the student initially ‘Accept’ any loan on your eAward, you have the opportunity to decrease the amount before clicking ‘Accept’. You are not permitted to increase the amount offered due to federal regulations.

After previously ‘Accepting’ any loan, you must email loans@cedarville.edu to request a change in the loan amount. Please provide the following:

• Your full name
• Your 7-digit ID number
• Loan Type (Subsidized, Unsubsidized, or PLUS)
• NOTE: If changing a Parent PLUS Loan after disbursement, the borrowing parent must send the email.
• Amount change: From __________ to __________
• Please remember to take into account the loan fees

Note: The borrower has 14 days at the beginning of a semester or before the Cashiers Office sends out credit refunds to reduce the loan amount. After 14 days, the borrower must work with their loan servicer to return funds.

To identify who your federal loan servicer is, please review the email account linked with your FSA ID, sign into studentaid.gov using your (the borrower's) own FSA ID, or call the Federal Student Aid Information Center at 1-800-433-3243.

Once a student or parent completes and submits a loan document(s), please allow 7-10 business days for the Financial Aid Office to process your document(s).

With the receipt of a valid FAFSA, there are essentially three types of federal direct loans which may be offered to an eligible student. The student's specific situation will determine which loan(s) they are offered as part of their financial aid package. Following is a brief description of each loan type:

Subsidized: The federal government pays the interest for the student as long as the student is enrolled at least half-time in their degree program.

• A student must demonstrate financial need to be eligible for a subsidized loan (Cost of Attendance - FAFSA SAI - Other Student Aid).
• A subsidized loan is only available to undergraduate students.
• No penalty is incurred for early repayment.

Unsubsidized: The student is responsible for the interest charges on this loan.

• Interest charges begin when loan funds are disbursed to the student's account, and continue to be charged until the loan is fully paid.
• NOTE: While enrolled at least half-time in their degree program, the student may either: a) pay the interest as they go; or b) allow the interest to accrue and when the loan goes into repayment, the accrued interest is capitalized and added to the loan principal amount.
• No penalty is incurred for early repayment.

PLUS: This federal loan is available only to a parent of a dependent undergraduate student (as determined by the FAFSA) or to a graduate student.

• The borrower must not have an adverse credit history.
• If the borrower has an adverse credit history, he/she may still receive a PLUS loan by obtaining an endorser.
• A Parent PLUS loan cannot be transferred to the student. The parent borrower is responsible for repaying the loan.
• A Graduate PLUS loan is obtained by the student; therefore, the student is responsible for repaying the loan.

See studentaid.gov for additional information on federal student loan programs. For specific information see the following loan types:

• Subsidized or Unsubsidized student loans
• PLUS loans

Federal direct student loans (subsidized or unsubsidized) have annual loan limits based on a student's grade level in college.

Undergraduate: Dependent

• Freshman (1 - 30.99 cr hrs): $5,500 (up to $3,500 may be subsidized)
• Sophomore (31 - 60.99 cr hrs): $6,500 (up to $4,500 may be subsidized)
• Junior (61 - 90.99 cr hrs): $7,500 (up to $5,500 may be subsidized)
• Senior (91+ cr hrs): $7,500 (up to $5,500 may be subsidized)
• Continuing Senior (91+ cr hrs): $7,500 (up to $5,500 may be subsidized)

Undergraduate: Independent

• Freshman (1 - 30.99 cr hrs): $9,500 (up to $3,500 may be subsidized)
• Sophomore (31 - 60.99 cr hrs): $10,500 (up to $4,500 may be subsidized)
• Junior (61 - 90.99 cr hrs): $12,500 (up to $5,500 may be subsidized)
• Senior (91+ cr hrs): $12,500 (up to $5,500 may be subsidized)
• Continuing Senior (91+ cr hrs): $12,500 (up to $5,500 may be subsidized)

If an undergraduate student increases grade levels between semesters (per the credit hours listed above), the student may be eligible for additional student loan funds. For example, at the start of fall semester, a student could have 59 completed credit hours as a Sophomore. At the end of fall semester, the student could have 71 completed credit hours, moving up to Junior level. Note that a change from Junior level to Senior level does not apply as the loan amounts are the same.

If the undergraduate student desires, he/she can email loans@cedarville.edu, alerting us to your grade level change. Please include your full name, Cedarville ID number and request for additional student loan funds based upon the grade level change. Our office will then review your request and process according to federal guidance.

Graduate / Professional

• Masters Programs: Students may borrow up to $20,500 per year
• Doctor of Pharmacy Program, Years P1-P3: Students may borrow up to $33,000 per year
• Doctor of Pharmacy Program, Year P4: Students may borrow up to $37,167 (P4 year includes summer, fall, spring)

More information on Federal Direct Student Loans. For specific information see the following loan types:

• Subsidized or Unsubsidized student loans

Federal direct student loans (subsidized or unsubsidized) have Aggregate Loan Limits based on the student's academic level.

Undergraduate

• Dependent students: $31,000 (up to $23,000 may be subsidized)
• Independent students (or dependent students whose parent(s) is unable to obtain a PLUS loan): $57,500 (up to $23,000 may be subsidized)

Graduate or Professional

• Masters Programs: $138,500
• PharmD Program: $224,000

Note: These limits include all federal loans received as an undergraduate and graduate student combined.

More information on Federal Direct Student Loans. For specific information see the following loan types:

• Subsidized or Unsubsidized student loans

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

More information on Federal Direct Loan Fees.

If you decide to obtain loan funds through the Federal Direct Loan Program as part of your college payment plan, you will be charged a loan fee each time loan funds are disbursed to your student account. Like any loan, the loan fee is charged by the federal government to defray the cost of managing and lending.

Loan fees are established each year by the US Department of Education.

View current Loan Fees and Interest Rates.

The federal government automatically deducts these fees from the loan amount at the point of each loan disbursement.

Please take these past year examples into account when determining how much you would like to borrow to cover expenses for the school year (see current loan fees).

The following examples for each loan type use the Loan Fee Percentages for first disbursement dates 'On or after Oct. 1, 2018 through Sept. 30, 2019.'

1. Subsidized or Unsubsidized Student Loan Example: Annual loan for $3,500 split over two terms ($1,750 per term).
   

   $1,750	Loan principal amount for the term (amount to be repaid)
   - 18	1.062% loan origination fee (no rounding; truncate cents)
   $1,732	Actual term disbursement credited to the student’s account

   
   Student loans have annual loan limits; however, if you want you can reduce the annual amount borrowed from the standard amount offered on your financial aid account.
   
   
2. PLUS Loan Example: Annual loan for $10,000 split over two terms ($5,000 per term).

   $5,000	Loan principal amount for the term (amount to be repaid)
   - 212	4.248% loan origination fee (no rounding; truncate cents)
   $4,788	Actual term disbursement credited to the student’s account

   
   Calculating your PLUS Loan: You can reduce the amount you borrow from the amount offered on your Cedarville Parent PLUS authorization or Grad PLUS authorization.

The payment plan options already take into account the anticipated fees related to the loan(s) you have accepted as part of your payment plan.

Direct Student Loans: Before entering repayment a borrower has a six-month grace period from the time that borrower graduates, leaves school, or drops below half-time enrollment. A borrower will only receive one full grace period.

Direct Parent PLUS Loans: When the parent borrower completes the PLUS Application, there is a question regarding deferment of the loan.

• If the parent answers YES to this question, another question is added asking if you want to defer for six months. If the parent answers yes to both questions, the loan will not enter repayment until six months after the student graduates or is no longer enrolled at least half-time.
• If the parent answers NO to the first deferment question, the loan will enter repayment as soon as the annual loan amount is fully disbursed.
• If the parent misses the question or did not mean to answer NO, the parent borrower may request a deferment from their loan servicer.

Direct Graduate PLUS Loans: Before entering repayment a borrower has a six-month grace period from the time that borrower graduates, leaves school, or drops below half-time enrollment. A borrower will only receive one full grace period.

More information on Federal Direct Student Loan Repayment.

Whenever a borrower has a loan disburse, the loan servicer sends an email. The borrower can also sign into studentaid.gov using their own FSA ID; the loan servicer will be listed on the right-hand side of the page.