Student Loans


Loans are a form of financial aid that many students use to help meet the Cost of Attendance that is not covered by scholarships, grants or other personal resources. When thinking about loans, keep in mind that, unlike grants and scholarships, loans accrue interest and must be repaid even if the student does not complete the program and/or does not find employment in his area of study. It is important for students to understand the different loan programs available so they can make informed decisions about how much loan money they should borrow, if any, and which loan programs are best suited for their needs. When a student or parent enters into an agreement with COTC regarding a Federal Direct Loan, all loan data will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system. Additional student loan information published by the U.S. Department of Education is available at

To receive a student loan, students must complete the FAFSA, verification, Entrance Counseling, a Master Promissory Note, and an Annual Student Loan Acknowledgment. The loan must be requested and originated by the last scheduled day of class for the semester and the student must have maintained at least half time enrollment throughout the semester. Once the student has been awarded an estimated loan, he must “Accept” the loan through COTCconnect in order for the Office of Financial Aid to originate the loan. Entrance Counseling, and the Master Promissory Note are completed at  If Entrance Counseling, and the MPN are not completed before the loan is originated, the student will need to self-identify to have loans disbursed for prior semesters.


Federal Direct Loans

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.


Federal Direct Parent Loan for Undergraduate Students (PLUS)

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.


Nurse Education Assistance Loan Program (NEALP)

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.


Private Education Loans

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.


Student Loan Counseling

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.


Loan Cancellation

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.