Federal Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s college education. With Direct Loans, the student and/or parent borrows funds directly from the federal government and has a single contact, the loan servicer, for everything related to repayment even if the borrower receives Direct Loans at different schools. There are several different options for repayment plans designed to meet the needs of almost any borrower.
The Federal Direct Parent Loan for Undergraduate Students (PLUS) Parents may borrow funds to cover educational costs for dependent students. Borrowers must be U.S. citizens or eligible non-citizens. Students must be enrolled at least half time and maintaining Satisfactory Academic Progress for financial aid eligibility. Parents can begin repayment when the loan is fully disbursed, with the first payment generally due within 60 days, or they can choose to begin repayment six months after the student is no longer enrolled at least half time or graduates.
The Nurse Education Assistance Loan Program (NEALP) is a state program for nursing students who, upon completion of their education, plan to practice nursing in the state of Ohio. Students must be admitted to the nursing program to be considered. The loan is based on financial need; therefore, the student must have a FAFSA on file prior to application. After graduation, the student may be eligible for up to 100% loan forgiveness at the rate of 20% per year.
Before you apply for a private loan, you must file a FAFSA to determine if you are eligible for federal aid [grants, Direct Student Loans, and PLUS (Parent Loan for Undergraduate Students)]. The terms and conditions of a Federal Direct Student Loan may be more favorable than the provisions of a private education loan. COTC does not endorse any private educational loan lender or lending program. Borrowers may choose ANY eligible, participating lender.
Students who borrow from the Federal Direct Loan Program are required to complete Entrance and Exit Counseling. These sessions are required by Federal Regulations and offer information relating to the terms and conditions of the loan programs and a student’s obligation when borrowing. The Office of Financial Aid is notified electronically when students have completed the required counseling.
The borrower has the right to cancel all or part of his federal loan disbursement for each semester and must submit a written request to the Office of Financial Aid within 14 days from the date he receives official notification that loan funds have credited to the student account, or before the first day of classes, whichever occurs last. Official notification will be sent from Fees & Deposits.