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Loans

Thinking about taking out a student loan? Here's what you need to know before you borrow.

A student loan is money borrowed to help pay for educational expenses. It must be repaid with interest. While loans can cover today’s costs, they create a long-term financial obligation—often for up to 10 years or more. It is important to understand your rights and responsibilities before borrowing.

CSI participates in the Federal Direct Loan Program, where funds come directly from the U.S. Department of Education. For the most current interest rates, repayment plans, and loan information, visit the U.S. Department of Education’s Federal Student Aid website.

Types of Federal Direct Loans

Subsidized Loans: The government covers your interest while you're enrolled at least half-time, during your grace period, and during approved deferments. Interest starts once you begin repayment.

Unsubsidized Loans: Interest is not covered: it builds while you're in school. You can let it accumulate (it gets added to your balance) or pay it along the way to keep costs down.

PLUS Loans: Parents or stepparents can borrow to help cover a dependent student's costs, up to the full cost of attendance minus any other aid received. A credit check is required.

Important Information About Federal Direct Loans

  • Grace Period: Six months after you graduate, leave school, or drop below half-time enrollment. No payments are required during this time.  This period is designed to give you time to find employment and organize your finances before your first bill is due.
  • Disbursement: All loans are paid in two equal installments (typically fall and spring). Starting Fall 2026, loans will be prorated based on enrollment in required courses.
  • First-Time Borrowers: Must complete Entrance Counseling before funds are released. First-year, first-time borrowers have their first disbursement held for 30 days from the start of the semester.
  • One-Semester Borrowers: Loans are still disbursed in two equal installments, with the second at the midpoint of the semester.
  • Satisfactory Academic Progress: You must maintain satisfactory academic progress to continue receiving Federal Student Aid. It is your responsibility to know and follow CSI’s policy.
  • Right to Cancel: You may cancel all or part of a loan disbursement within 14 days of the disbursement notice.
  • Manage Your Loans: Use the Federal Student Aid website to manage your loans.

Before You Borrow: Required Setup Steps

  1. Apply for Federal Financial Aid Complete the FAFSA at studentaid.gov. Once processed, you will receive an award notification email from CSI Financial Aid.
  2. Entrance Counseling (required for first-time Direct Loan borrowers at CSI) Complete your entrance counseling session online. After the tutorial and quiz, complete these four steps:
    1. Enter your personal information.
    2. Read and accept your Borrower’s Rights and Responsibilities (print or save this page for your records).
    3. Select schools to notify—be sure to include College of Southern Idaho.
    4. Receive confirmation.

    Do not exit until you see the confirmation message. Your loan cannot be released without this.

  3. Complete a Master Promissory Note (MPN) online. The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
  4. Accept or Decline Your Aid Offer Log into MyCSI Self-Service to accept, decline, or reduce the loan amount offered. Only borrow what you need.

How to Apply for Subsidized or Unsubsidized Loans

  • Review your options and use the Loan Simulator on studentaid.gov (under Manage Loans) to explore repayment strategies.
  • Complete the Loan Request Form (also available from Enrollment Services).
  • Submit the form to Enrollment Services:

Loan requests are typically processed within two weeks.

Visit the Federal Student Aid website for the latest rates and fees.

How to Apply for a Parent PLUS Loan

Parents/stepparents may borrow to help cover a dependent student’s costs.

  1. The student must complete the FAFSA and accept all federal student loans offered.
  2. The parent must complete the federal forms: Parent PLUS Loan Application, Master Promissory Note (MPN), and PLUS Counseling online at studentaid.gov (three separate steps under Parent Borrower).
  3. The parent must print out, complete, and sign the Parent PLUS Loan Packet and send it to CSI Enrollment Services.

How to Apply for Alternative (Private) Loans

Private loans are offered by banks, credit unions, and other lenders. CSI is very affordable, so most students do not need private loans.

Important Notes on Private Loans

  • They are not subsidized or need-based.
  • Credit approval is usually required; rates are market-based.
  • Repayment and forgiveness options are more limited than federal loans.
  • A co-signer (often a parent) may be required.

CSI Policy: Students must accept all federal aid (including Direct Loans) offered before applying for private loans. Private loans can only be requested up to the remaining cost of attendance.

Steps to Apply for a Private Loan

  1. Complete the FASFA and accept all federal aid offered.
  2. Apply directly with the private lender of your choice.
  3. If approved, notify CSI Enrollment Services in writing so the loan can be certified. Certification is for degree-seeking students enrolled at least half-time in eligible credits. 

Loan Default – Important Warnings

Student loans are legal obligations that must be repaid, even if:

  • You did not like the education received.
  • You did not get a job in your field.
  • You experience financial difficulty.

Default occurs when you fail to repay as agreed. Consequences include:

  • Loan turned over to a collection agency.
  • You pay collection costs, court costs, and attorney fees.
  • Possible lawsuit for the full amount.
  • Wage garnishment (up to 15% of take-home pay).
  • Federal and state tax refunds intercepted.
  • Damaged credit record, making it hard to get future loans, credit cards, housing, or even jobs.
  • Loss of eligibility for future federal financial aid, deferments, subsidized interest benefits, and most federal benefit programs.
  • Possible inability to renew professional licenses.

Cohort Default Rate

A cohort default rate measures the percentage of a school's students who default on their federal loans within three years of entering repayment. A lower rate is better because it indicates that students are successfully managing their loan obligations after leaving school.

CSI's current cohort default rate is 0.0%, which also happens to be the current national average, reflecting the pause on federal student loan payments during the pandemic.

Exit Counseling

Exit counseling is a brief online session that walks you through your loan repayment options, final balance, and next steps before you leave school, so you're not caught off guard when your first bill arrives.

Exit counseling is required by federal law if you graduate, withdraw, or drop below half-time enrollment (fewer than 6 credits). It must be completed before your grace period begins and covers your repayment options, loan balances, and servicer contact information. Complete it online at studentaid.gov using your FSA ID. Students who do not complete exit counseling may lose access to certain repayment and deferment options.

Finding Your Loan Servicer and Loan Information

Not sure who manages your loans or how much you owe? See your complete federal student aid history, loan balances, and servicer contact information through the National Student Loan Data System (NSLDS) at: Manage Loans or visit Who’s My Student Loan Servicer?

Remember: Borrow only what you need, understand your repayment options, and stay informed. For questions, contact Enrollment Services at enrollment@csi.edu or visit Eagle Central.