- Federal Stafford Unsubsidized Loans are
available to students who meet the criteria listed in Loan
Process. Unlike the Subsidized Stafford Loan,
interest on the Unsubsidized Stafford Loan begins from the date the
loan is disbursed until it is paid in full.
- Federal PLUS Loans are available to the
parents of dependent undergraduate students who cannot meet
all of their financial obligations with other financial aid.
PLUS loans are limited to the cost of attendance less any
financial aid received by the student. Repayment on a PLUS
loan begins 60 days after the second disbursement. To
apply for a PLUS loan, refer to the Loan
Process.
Interest on Federal Stafford loans is fixed at 6.8%. Interest on Federal PLUS loans is fixed at 8.5%
Loan
Amounts
The amount
students may borrow is limited not only by their cost of education,
but also by their grade level and dependency status. Please
note in the following chart, "Independent" refers to those students
who, based upon the Free
Application for Federal Student Aid, were not required to
supply parent information.
|
Dependent Students |
Independent Students |
| Freshman |
$3,500* |
$7,500* |
| Sophomore |
$4,500* |
$8,500* |
| Junior |
$5,500 |
$10,500 |
| Senior |
$5,500 |
$10,500 |
| Graduate |
N/A |
$20,500* |
*Effective July 1, 2007
The Department
of Education also limits the total debt you may have outstanding.
The maximum amount of combined loans a student may have is:
- $23,000 as a dependent undergraduate student.
- $46,000 as an independent undergraduate student, only $23,000
of which may be subsidized.
- $138,500 as a graduate or professional student, only $65,500
of which may be subsidized. This includes debt incurred as
an undergraduate.
Loan
Process
In general,
to receive a Federal Stafford Loan, a student must:
- be accepted to Christopher Newport University as a classified,
degree-seeking student.
- be enrolled at CNU on at least a half-time basis.
- make Satisfactory Academic Progress.
- be a US citizen, permanent resident of the United States
or its trust territories, or an eligible noncitizen.
- not be in default on any student loan, or owe a refund on
financial aid received while attending any institution.
- have a valid Social Security Number.
- be registered with the Selective Service if required.
To receive
a student loan, students must follow these procedures:
- File the Free
Application for Federal Student Aid (FAFSA). Students
are encouraged to meet our Priority Consideration Date
of March 1.
- Return the Award Letter to the Financial Aid Office. Once
Financial Aid has received your Student Aid Report (SAR) and
processed your application, we will send you, if eligible,
an Award Letter that details the financial aid offered to
you.
- Complete the Master Promissory Note (MPN). If you choose
one of our Recommended Lenders, you will
receive the MPN in the mail. Complete this form and return
it as indicated, keeping a copy for your records. At CNU,
this form is completed only once, as long as a student uses
the same lender each year.
To receive a parent
loan, students and their parents must follow these procedures:
- File the Free Application for Federal Student Aid (FAFSA).
Students are encouraged to meet our Priority Consideration Date
of March 1.
- Return a completed PLUS Request Form to the Financial Aid
Office. This form is sent with all award letters mailed
to dependent freshmen and to continuing dependent students
whose parents have held PLUS loans in prior years. The
form is also available online.
To request that this form be mailed to you, please contact
the Financial Aid Office. You MUST complete this form
in order for this office to complete the PLUS process.
Other forms, including on-line applications offered by lenders,
cannot be accepted.
- Complete the Master Promissory Note (MPN). If you
choose one of our Recommended Lenders,
you will receive the MPN in the mail. Complete this
form and return it as indicated, keeping a copy for your records.
At CNU, this form is completed only once, as long as the parent
chooses the same lender each year.
Most
of our lenders participate in Electronic Funds Transfer (EFT).
With EFT, CNU receives your loan funds electronically, and applies
those funds to your tuition, fees, and room and board.
Some
students are due refunds after their loan funds have been applied
to their student account. Refunds may either be mailed to the
student in the form of a check, or they may be directly
deposited to a student's checking account. CNU encourages
you to complete the necessary paperwork to participate in the
Direct Deposit program.
Recommended
Lenders
CNU will process your loan through the lender of your choice. If you are interested in the recommendations of our office, you may wish to know that over 90% of the Stafford loans processed at CNU are processed through one of the lenders listed below. We encourage you to learn more about these lenders and any benefits they may offer by visiting their websites. Be sure to get any offer of benefits in writing, and discuss with the lender if those benefits will still apply if your loan is sold to a third-party servicing agency.
Please
note: All lenders listed above are guaranteed
by Educational
Credit Management Corporation (ECMC).
There are a variety
of lenders available to help you with your student or parent
loan. You may choose any lender that participates in the FFELP program, regardless of if they are on this list or not. If you wish to use a lender not on this list, please contact the Office of Financial Aid at (757) 594-7170 so that we may expedite your loan.
Counseling
Requirements
The Department
of Education requires that all first-time freshmen receive loan
counseling before receiving their student loans. In addition,
the Department also requires that students receive loan counseling
before exiting the University.
Christopher
Newport University takes Loan Counseling very seriously. We
expect all freshmen who are receiving loans to attend a counseling
session. Also, before graduating, students must attend Loan
Counseling.
During
Loan Counseling, you'll receive the following information:
- rights and responsibilities
as a student loan borrower
- average monthly repayment amounts
- the importance of creating a budget
- repayment options
- information on deferments
- the consequences of default
The Financial
Aid Office encourages responsible borrowing. Always contact
us with questions concerning your student loans.
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