Loans Overview

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A loan is financial aid that must be repaid with interest. Loans are offered based on financial need assessment as determined by the Free Application for Federal Student Aid (FAFSA). Any student may obtain a federal direct loan; however, the type of loan will be determined by the student's need assessment. Cedarville University participates in the following loan programs:

» Common Questions on Loan Fees

Federal Direct Stafford loans are fixed-rate, low interest loans available to undergraduate students attending Cedarville at least half-time. These loans are the most common source of college loan funding.

  • Direct Stafford Loans have annual loan limits based on a student's class status:
    Freshmen $5,500 (up to $3,500 may be subsidized)
    Sophomores $6,500 (up to $4,500 may be subsidized)
    Juniors $7,500 (up to $5,500 may be subsidized)
    Seniors $7,500 (up to $5,500 may be subsidized) 
  • Stafford Loan Interest Rate Table

Federal Direct Subsidized Stafford Loan: The federal government pays the interest on this loan while the student is enrolled at least half-time. The student must have financial need to qualify for this type of loan.  There is no penalty for early repayment of this loan.

Federal Direct Unsubsidized Stafford Loan: The student will be charged interest on this loan from the time the loan is disbursed until it is paid in full. The student may pay the interest while enrolled in school. Any unpaid interest will be capitalized (added to the loan principal amount) at the time repayment begins. There is no penalty for early repayment of this loan.

1 Complete the FAFSA

Complete the Free Application for Federal Student Aid (FAFSA): www.fafsa.gov

  • A student cannot receive a Direct Stafford Loan unless they complete the FAFSA process.

2 eAward Notification

Accept the Direct Stafford Loan(s) at MyFinancialAid.

  • Most students have the option of obtaining at least two Direct Stafford Loans; in some cases a student could have as many as three or even four different Direct Stafford Loans.
  • Carefully review the Direct Stafford Loans which you are eligible to receive and accept or reject each Direct Stafford Loan on at MyFinancialAid.

Note: Decisions on whether to 'Accept' or 'Reject' a loan(s) is not a one-time, final decision. Perhaps the initial decision is that a particular loan is not needed as part of the payment plan, so it is 'Rejected' on the eAward. However, later in the academic year the student realizes that they do need that loan. The student can go back to their eAward and change the decision from 'Reject' to 'Accept' and the loan will disburse to their student account (as long as Entrance Counseling and Student Master Promissory Note are also completed).

3 Entrance Counseling

All first-time borrowers must complete Entrance Counseling to obtain a Direct Stafford Loan.

  • Students who completed Entrance Counseling for a Direct Stafford Loan in a prior year do not need to redo Entrance Counseling. This is a one-time requirement.
  • Transfer students who received Direct Stafford Loan funds at another college should notify the financial aid office. Transfer students do not need to redo Entrance Counseling as long as Cedarville can confirm their prior Entrance Counseling at COD's website.

4 Master Promissory Note

All first-time borrowers must complete a student Master Promissory Note to obtain a Direct Stafford Loan.

  • Students who completed a Master Promissory Note and received Federal Direct Stafford Loan funds in a prior year do not need to complete another Master Promissory Note. 
  • Transfer students who received Direct Stafford Loan funds at another college should notify the financial aid office. Transfer students with a valid MPN do not need to complete another MPN to process their student loans at Cedarville. 

The Direct Parent PLUS loan is an option available to parents of dependent students to help pay their child's education expenses. The annual limit on a Parent PLUS Loan is equal to the student's cost of attendance minus any other financial aid the student receives. For example, if the cost of attendance is $28,000 and the student receives $18,000 in other financial aid, the student's parent can request up to $10,000. The interest rate on Parent PLUS loans is currently fixed at 6.41%.

Note: The SAME parent must complete steps 2-4 below (PLUS Request, MPN, Authorization) when applying for a Parent PLUS loan.

Note: Steps 1, 2 and 4 must be completed every year. Step 3 is a one time process.

A Parent PLUS Loan cannot be obtained unless the student completes the Free Application for Federal Student Aid (FAFSA). In addition to the FAFSA, all of the following steps must be completed before PLUS loan funds will disburse to the student's account.

1 eAward Notification

The student needs to 'Accept' the Parent PLUS Loan on their eAward at MyFinancialAid.

2 PLUS Request Process

Beginning May 1st each academic year, the parent obtaining the PLUS loan must complete the PLUS Request Process via the Department of Education’s website. This application triggers a credit check; once this application is submitted the parent will immediately receive a 'Credit Decision' indicating either an 'Accepted' or 'Declined' decision.

Note: This credit decision is good for 90 days; therefore, it is important that steps 3 and 4 below are completed about the same time. This will allow the financial aid office to originate the PLUS loan before the credit decision expires.

3 Master Promissory Note

If the parent receives an 'Accepted' credit decision when completing step 2, they must then complete the Master Promissory Note, which is also located on the Department of Education’s website.

Note: A Parent PLUS Master Promissory Note is student specific and normally will be good for 10 years once successfully completed for each individual child/student.

4 Parent Authorization Form

Completed online at Cedarville's webpage, the parent must also complete the Parent Authorization Form to specify the details (the loan amount and term) of their Parent PLUS loan.

The Graduate PLUS Loan is an option available to graduate students to help pay their education expenses. The annual limit on a Graduate PLUS Loan is equal to the cost of attendance minus any other financial aid the student receives. For example, if the cost of attendance is $28,000 and the student receives $18,000 in other financial aid, the student can request up to $10,000. The interest rate on Graduate PLUS loans is currently fixed at 6.41%.

Note: The student must complete steps 2-4 below (PLUS Request, MPN, Authorization) when applying for a Graduate PLUS loan.

Note: Steps 1, 2 and 4 must be completed every year. Step 3 is a one time process.

A Graduate PLUS Loan cannot be obtained unless the student completes the Free Application for Federal Student Aid (FAFSA). In addition to the FAFSA, all of the following steps must be completed before PLUS loan funds will disburse to the student's account.

1 eAward Notification

The student needs to 'Accept' the Graduate PLUS Loan on their eAward at MyFinancialAid.

2 PLUS Request Process

Beginning May 1st each academic year, the student must complete the Graduate PLUS Request Process via the Department of Education’s website. This application triggers a credit check; once this application is submitted the student will immediately receive a 'Credit Decision' indicating either an 'Accepted' or 'Declined' decision.

Note: This credit decision is good for 90 days; therefore, it is important that steps 3 and 4 below are completed about the same time. This will allow the financial aid office to originate the Graduate PLUS loan before the credit decision expires.

3 Master Promissory Note

If the student receives an 'Accepted' credit decision when completing step 2, they must then complete the Master Promissory Note, which is also located on the Department of Education’s website.

Note: A Graduate PLUS Master Promissory Note will be good for 10 years once successfully completed for each individual student.

4 Graduate PLUS Authorization Form

Completed online at Cedarville's webpage, the student must also complete the Graduate PLUS Authorization Form to specify the details (the loan amount and term) of their Graduate PLUS loan.

Alternative loans are credit-based private loans (not part of the federal government loan program) that are obtained through a lending institution. The amount a student may borrow through an alternative loan is up to the full cost of attendance minus other aid. Cedarville University will process alternative loans from any lender you choose.

1 Select Lender

Select a lender and complete their online application.

2 Lender will Contact School

After your online application is processed, the lender will contact Cedarville for certification.

3 Loan Funds Disbursed

Loan funds will be disbursed upon loan approval.

The Federal Perkins loan is awarded to students who demonstrate the highest financial need; traditionally to Pell Grant recipients. The Perkins Loan, similar to the Subsidized Stafford Loan, is subsidized meaning it is interest free while the student is enrolled at least half-time. Interest does not start to accrue until after the grace period (9 months). The standard Perkins Loan amount is $3,000 per year and the interest rate is currently fixed at 5%.

1 Complete the FAFSA

Complete the Free Application for Federal Student Aid (FAFSA): www.fafsa.gov

2 eAward Notification

Accept your Perkins Loan at MyFinancialAid.

  • Once you accept your Perkins Loan, the status will be updated to "Pending" until you complete Step 3 below.

3 Complete Paperwork

Students who have accepted a Perkins Loan will receive an email from SignMyLoan directing them to their website to complete a Master Promissory Note, Entrance Counseling and Loan Disclosure Documents. Access to the SignMyLoan website will be available beginning in July for the upcoming academic year.

The Federal Nursing Loan is awarded to nursing majors who are in their sophomore, junior, or senior year and who demonstrate financial need. The Nursing Loan is similar to the Perkins and the Subsidized Stafford Loan in that the loan is interest-free while the student is enrolled at least half-time. Interest does not start to accrue until after the grace period (9 months). The standard Nursing Loan amount is $3,300 for sophomores and $5,200 for juniors and seniors (freshmen students are not eligible for this loan). The interest rate is currently fixed at 5%.

1 Complete the FAFSA

Complete the Free Application for Federal Student Aid (FAFSA): www.fafsa.gov

2 eAward Notification

Accept your Nursing Loan at MyFinancialAid.

  • Once you accept your Nursing Loan, the status will be updated to "Pending" until you complete Step 3 below.

3 Complete Paperwork

Students who have accepted a Nursing Loan will receive an email from SignMyLoan directing them to their website to complete a Master Promissory Note, Entrance Counseling and Loan Disclosure Documents. Access to the SignMyLoan website will be available beginning in July for the upcoming academic year.

The Charles E. Schell Foundation, Fifth Third Bank Trustee loan is for junior and senior students with demonstrated financial need who are:

  • citizens who are residents of Ohio, Kentucky, or West Virginia
  • between the ages of 18 thru 25
  • loyal to the United States and its institutions including the Army, Navy, Air Force, and Marines
  • honest, upright, intelligent, and of practical appearance
  • maintain a minimum university Cum GPA of 2.0 or higher

An exit interview will be required for recipients of this loan.

1 Complete the FAFSA

Complete the Free Application for Federal Student Aid (FAFSA): www.fafsa.gov

2 Online Application

Fill out the online application.

3 eAward Notification

Accept your loan at MyFinancialAid.

4 Complete Paperwork

Sign promissory note annually in the Financial Aid Office when you arrive on campus in August.