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Loans
Loans
When applying for financial aid, you may be offered a loan (or loans) as part of your financial aid offer. A loan is money you borrow and must pay back with interest. Loans can come from the federal government, private sources, or other organizations.
Remember: You can borrow less than you are offered and you should borrow only what you need.
Federal Direct Loans
CSM participates in the William D. Ford Federal Direct Loan Program offered by the U.S. Department of Education. To be eligible for Federal Direct Loans, you must be enrolled at least half-time (six credits) in the semester in which the loan will be disbursed.
Federal law requires first-time borrowers of Federal Direct Loans to complete loan entrance counseling and a Master Promissory Note before loan funds can be disbursed. Exit counseling is required when you graduate, leave school, or drop below half-time enrollment.
Types of Federal Loans
There are two types of Federal Direct Loans:
- Eligible applicants demonstrating sufficient financial need will receive a Subsidized Direct Loan, where the federal government pays the interest on the loan while the borrower is in school.
- Eligible applicants without financial need will receive an Unsubsidized Direct Loan, where the borrower either pays the interest on a regular basis or agrees to let the lender "capitalize" the interest (that is add the interest to the loan balance).
Loan funds are sent to the college for delivery to the student. Repayment begins after you graduate or otherwise cease to be at least a half-time student.
Federal PLUS (Parent Loans for Undergraduate Students) loans allow parents of dependent students to borrow directly from the U.S. Department of Education. Parents can borrow up to the full cost of attendance per academic year per dependent child in college. Generally, parents must begin repayment within 60 days of the disbursement of the loan. PLUS loans are not based on financial need; however, borrower credit-worthiness is a factor.
You can obtain the CSM Parent PLUS Loan Request Form here.
Learn More
- Complete the FAFSA (Free Application for Federal Student Aid) form every year you wish to request loans.
- Provide any documents requested by the Financial Assistance Department (FAD).
- Make sure you are enrolled at least half-time (six credits) in the semester in which the loan will be received.
- Make sure you are meeting Satisfactory Academic Progress (SAP) guidelines.
- First time borrowers must go to the Direct Loans website, sign in using your Federal Student PIN, and complete the following sections: 1.) Entrance Counseling and 2.) Master Promissory Note.
Entrance & Exit Interviews
Students who borrow under the Federal Direct Loan Program (DL) are required to complete loan entrance counseling before receiving loan proceeds from their first loan and loan exit counseling before graduating or otherwise leaving school. Only complete one of the following counseling sessions, as appropriate, if you have been instructed by the CSM Financial Assistance Department to do so.
New Federal Direct Loan Recipients
If you recently applied for and have been approved by the CSM Financial Assistance Department for your first Federal Direct Loan, click here to complete the Loan Entrance Counseling and click here to complete your Master Promissory Note.
Federal Loan Exit Counseling
Exit Counseling is required when you graduate, leave school, or drop below half-time enrollment. Exit counseling provides important information you need to prepare to repay your federal student loan(s). Click here to complete Student Loan Exit Counseling.
Interest rates for the program are fixed and may change from year to year. The interest rates for Direct and PLUS loans are set by Congress.
Interest Rates by Disbursement Dates
| Loan Type | First Disbursed between July 1, 2024 and June 30, 2025 |
| Direct Subsidized Loans | Fixed at 6.53% |
| Direct Unsubsidized Loans | Fixed at 6.53% |
| Direct PLUS Loans | Fixed at 9.08% |
Loan fees for the program are fixed and may change from year to year. The loan fees for Direct and PLUS loans are set by Congress.
Loan Fees by Disbursement Dates
| Loan Type | First Disbursed between October 1, 2020 and September 30, 2025 |
| Direct Subsidized Loans | Fixed at 1.057% |
| Direct Unsubsidized Loans | Fixed at 1.057% |
| Direct PLUS Loans | Fixed at 4.228% |
In certain situations, you can have your federal student loans forgiven, canceled, or discharged. To learn if you are eligible, click here.
Private Loans
There are many avenues open to families to assist them in paying for education. If you use loans to pay for your education, consider using the Federal Direct Loan Program first. The loan has a relatively low interest rate and some loans of this type do not have to be repaid until after you graduate from college.
We encourage you to file the Free Application for Federal Student Aid (FAFSA) so the Financial Assistance Department may determine your eligibility for the Federal Direct Loan program.
| Federal Student Loans | Private Student Loans |
| Repayment does not begin until you graduate, leave school, or change your enrollment to less than half time. | Many private student loans may require payments while you are still in school. |
| The interest rate is fixed. View current interest rates on federal student loans. | Private student loans can have fixed or variable interest rates, some greater than 18%. |
| Students with financial need will likely qualify for a subsidized loan where the government pays the interest while you are in school at least half-time. | Private student loans are not subsidized. The federal government will not pay the interest while you are in school. |
| Interest may be tax deductible. | Interest may not be tax deductible. |
| You may be eligible to have some portion of your loans forgiven if you work in public service. Learn more about the loan forgiveness programs. | It is unlikely that your lender will offer a loan forgiveness program. |
For a full list of differences between federal and private student loans, click here.