A student loan is money for educational expenses that must be paid back with interest. Student loans can help you meet today's education expenses, but they will also bind you to a future of financial commitment that can typically last as long as 10 years. That's why it's important to fully understand your rights and responsibilities as a borrower before you take out a loan.
CSI offers student and parent loans from the Federal Direct Loan Program (loan funds come directly from the U.S. Department of Education).
Please review the most current Direct Loan interest rates, payment plans, and other information at the U.S. Department of Education's Direct Loan website. Current loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans can be found here: https://studentaid.ed.gov/types/loans/interest-rates#are-there-any-other-fees-for-federal-student-aid
Types of Federal Stafford Loans
Other Important Information
Direct Loan Application Instructions
STEP 1 - Apply for Federal Financial Aid and receive your award notification by e-mail
Complete the Federal Financial Aid Application online at www.fafsa.ed.gov. Once your Federal financial aid application has been processed and you have received your award notification e-mail from the College of Southern Idaho Financial Aid Office, you may complete the following steps in order to finish applying for your student loan.
Students borrowing William D. Ford Direct Stafford Loans for the first time must complete an online entrance counseling session. Students who have completed an entrance counseling session at CSI previously do not need to repeat an entrance counseling session (Skip to step 3).
Read and follow the instructions for completing the tutorial and quiz. You will be guided through the counseling session. Be sure to read everything carefully, as you will be required to complete a quiz at the end of the session. You will not be able to complete the session without answering every question.
IMPORTANT! - There are 4 additional steps required after completing the entrance counseling tutorial and quiz. You will be prompted and guided through the steps as follows:
DO NOT EXIT THE COUNSELING SESSION UNTIL THESE STEPS HAVE BEEN COMPLETED AND YOU HAVE RECIEVED A CONFIRMATION MESSAGE.
"Borrowers Rights and Responsibilities" page and retain it for your records.
Your loan funds cannot be delivered to you without completing an entrance counseling session.
Click here to complete your entrance counseling session now! Entrance counseling www.studentloans.gov
You can complete your Student MPN online! Click here to begin the student MPN online https://studentloans.gov/myDirectLoan/index.action
STEP 4 - Review your NetPartner Account
If you indicated on your FAFSA application that you were interested in a student loan, your award notification, issued once your file is complete and awarded, will include a student loan offer. On your NetPartner account you can accept, decline, or reduce the amount of student loan you have been offered.
Remember, only borrow what you need!
Subsidized vs. Unsubsidized
Repayment for both the Subsidized and/or Unsubsidized Student Loans does not begin until 6 months from the time you drop below 6 credits. The current interest rate for loans first disbursed on or after July 1, 2014 is 4.66%. The difference between these two loans is that Unsubsidized Loans accrue interest while you're in school and the Subsidized does not.
Since the Unsubsidized Loan accrues interest from the time it is disbursed, this type of loan generates an added burden for our students in terms of repayment, and adds a higher risk of defaulted loans for CSI. For these reasons, as well as the rising amount of national student loan debt, CSI is implementing a new award policy for all Unsubsidized Loans. Beginning in the Fall of 2015, students will no longer be offered unsubsidized loans in their initial award packages. This does not mean you are ineligible for the Unsubsidized Loan, but it does mean you will need to follow some additional steps to receive this award. Please review the steps below to qualify for an Unsubsidized Loan for the school year you plan on attending.
Requesting Unsubsidized Loans Checklist
Loan requests will be processed within two weeks of submission.
Private lenders, like banks, credit unions, and other financial institutions also offer education loan products - less than .05% of CSI students choose to borrow from private student loan programs. Private student loan borrowers must be credit-worthy and interest rates are usually market-based and competitive. Repayment and forgiveness options are more restrictive than federal loans.
Private loans are not subsidized or need-based. They also often require a parent to commit to repay the money if the student fails to. The interest rates of private loans vary.
Parent PLUS Loans are designed to help your parents or stepparents pay for your college costs. In order to be considered for a Parent PLUS Loan, you must first apply for Federal financial aid through FAFSA, www.fafsa.ed.gov, and accept all Federal student loans that are offered to you. If your parent's and/or stepparents determine that it is necessary to borrow additional funds to meet your educational expenses while attending the College of Southern Idaho, the following steps will need to be taken to apply for a Parent PLUS Loan-
Loans are legal obligations. Before you accept a student loan, consider the amount you’ll have to repay over the years. Please consider carefully your future ability and willingness to repay borrowed money that must be repaid with interest, just like car loans and mortgages. Loans CANNOT be canceled because:
If you don't pay back the loan as you agreed to do in your student loan promissory note, you may end up in default. A loan default can severely impact your credit status. If you default on any federal student loan, the federal government may take serious actions against you such as:
If you drop below six credits in any one semester or if you are graduating from the College of Southern Idaho, you will be required to complete an Exit Counseling session.
Follow these easy steps to complete your Exit Counseling.
The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. The information reported to the NSLDS database is accessible by schools, and other authorized NSLDS users.
Students can access a comprehensive view of their own Title IV loans and grant history including loan balances and servicer information at the following : www.nslds.ed.gov.
You can also locate loan servicer contact information at the following: https://studentaid.ed.gov/repay-loans/understand/servicers#my-servicer.