Financial Aid - US Department of Education
Types of financial aid available
Federal programs
There are several federal programs available for US citizens or eligible non-citizens who are enrolled at least half-time in a degree program, making satisfactory academic progress, and not in default or owing a return repayment on a grant or loan.
What types of federal loans can you access?
The following programs are available to eligible CDU students:
Federal Subsidized Stafford Loan - This loan is based on financial need as determined by the Department of Education. The loan is “subsidized” because the government pays the interest while you are in university at least half time. It also pays the interest during any authorized period of deferment and for the six-month grace period after you leave university or drop below half-time enrolment. The interest rate is currently variable, and capped at 8.25%.
Federal Unsubsidized Stafford Loan - This loan is not based on financial need. Because it is “unsubsidized,” you are responsible for paying the interest from the time the money is disbursed. The interest may be paid as it comes due, or it may be postponed and allowed to accumulate while you are in university, during any authorized period of deferment, and for the six-month grace period after you leave university or drop below half-time enrolment. If payments are postponed, the interest accrues and is capitalized (added to your principal loan balance). If you choose this billing option, you won’t make any payments while you are in university. However, this option adds to the amount you will have to repay on your loan when you leave university. It may also increase the amount of your monthly payment. The interest rate is variable and capped at 8.25%.
Students who are borrowing through the Federal Stafford Loan (subsidized and/or unsubsidized) for the must complete a Federal Master Promissory Note (.pdf) annually in order to receive their Federal Stafford Loan funds.
Section 12 of the MPN asks if you wish to pay interest while you are in university, please consider this carefully as the unsubsidized portion of your loan will continue to accrue interest for the life of your loan.
Federal PLUS (Parent Loan for Undergraduate Students) - This loan is not based on financial need. Parents are eligible for this loan if their child is a dependent undergraduate student as defined by the US Department of Education, if they meet certain credit guidelines and if the loan is certified by the university. Payments are due within 60 days after the loan is fully disbursed, although deferment of payment may be available through select lenders. Parents may use this loan to pay the entire Cost of Attendance – minus any other financial aid received for their dependent student. The interest rate is currently variable and capped at 9%. Interest rates are based on the 91-day T-bill and are set annually on July 1. An origination fee of 3%, mandated by the US Department of Education, is deducted from the total loan amount and repayment begins 60 days after receipt of the full disbursement. A credit check will be completed before approval of the loan has been made.
Parents who are borrowing on behalf of their dependant students through the Federal Stafford Loan PLUS program are also required to complete a Federal Master Promissory note and Application form (.pdf).
Rules and regulations differ slightly when you are enrolled in a university outside the US. The MPN you sign whilst valid for 10 years in the US will need to be completed annually with each new application for aid.
Pell Grants and Perkins loans are not able to be used outside the US; repayment of these loans however may be deferred whilst you are in-school in a foreign country.
