Federal Direct Stafford Loans
Federal Direct Stafford Loans are available to aid applicants who file a FAFSA and are enrolled at least half-time in college. These loans are federally funded with the federal government paying an interest subsidy, if you show financial need, and without an interest subsidy, if you do not show need. If eligible for the interest subsidy, the government will pay the interest on the loan until six months after you graduate, withdraw from college, or enroll less than half-time. If eligible for an unsubsidized loan, you are responsible for the interest while in college or no longer enrolled at least half-time as well. A loan fee of 1.057 percent, will be deducted from each disbursement. No payment toward the principal is required while enrolled at least half-time. Federal Direct Stafford Loans have a fixed interest rate of 2.75 percent under current regulations. Repayment of the principal plus simple interest begins six months after you leave school at a minimum rate of $50 a month. The Federal Direct Stafford Loan is suggested only as an additional source of funds. You are not obligated to apply for a Federal Direct Stafford Loan if it is not needed.
Federal Direct Plus Loans (PLUS)
Federal Direct Parent Loans (PLUS) are available to parents who have a dependent child enrolled in college. These loans are guaranteed by the federal government. Individual eligibility is determined by subtracting any financial aid available for the year from the cost of education. Financial need is not a prerequisite. The loans are made payable to the parent and Central in multiple disbursements. A loan fee of 4.228 percent, will be deducted from each disbursement. Repayment begins immediately upon disbursement with a minimum payment of $50 a month; however, a deferment option is available through a request with the direct loan servicing center. Federal Direct PLUS Loans have a fixed interest rate of 5.3 percent under current regulations. The borrower may take at least five years to repay Federal Direct PLUS Loans and there are a variety of repayment options available. Federal Direct PLUS Loans should be sought as supplemental funds after all other federal sources of assistance have been investigated.
Central College Loans
Loan funds are available to help full-time students who are making satisfactory progress toward their degrees. Amounts of such loans depend on the availability of a student’s personal funds and funds from other sources. To obtain a loan, the student should submit a completed application form to the controller’s office accompanied with a letter from the parent indicating why the loan is needed, how repayment of the loan will be made, and any special circumstances meriting consideration in granting the loan. Application forms are available from the controller’s office. Loan applications will be evaluated by the loan committee and will be considered on a first come, first served basis. Other criteria will be the student’s cumulative grade point average, total financial aid and campus activities.
The Vance Loan Fund is designed to help parents of students finance the cost of attending Central. The college expects that all other available forms of financial aid be pursued prior to applying for a Vance Loan. This loan program is available after the student has completed one semester at Central College’s Pella campus and is designed to help in unusual economic situations. Loan amounts are not to exceed the cost of attending Central College less other forms of financial aid. The maximum amount is $6000 per year. While the student is attending Central College a reduced payment schedule will be in effect. Application forms are available in the loan office located in the controller’s office.
Henry Strong Student Loans
The Henry Strong Educational Foundation was created from the estate of Henry Strong to help deserving students obtain college educations. Upperclass students who have completed at least one semester at Central College and are 25 years of age or younger with a co-signer may receive consideration for this loan.