Rushing students walking by the clock outside of the SSC

FAQ on Loans (Types, Fees, Limits, Repayment)

  1. Undergraduate Students
  2. Graduate Students
  3. Pharmacy Students
  4. Forms and Resources
  5. Self-Service Financial Aid (19-20 year)
  6. Contact Us

What if I want to change my loan decision?

If, at a later date, you change your mind regarding an ‘Accepted’ or ‘Rejected’ loan, you CANNOT change it in your Self-Service account. You will have to email finaid@cedarville.edu with the following information:

  • Your full name
  • Your 7-digit ID number
  • Loan Type (Subsidized, Unsubsidized, or PLUS)
    • NOTE: If changing a Parent PLUS Loan, BOTH the student and parent must send an email.
  • Term (Fall/Spring; Fall only; Spring only; Summer)
  • Status Change:
    • ‘Accepted’ to ‘Estimated’ or
    • ‘Rejected’ to ‘Estimated’

The Financial Aid office will then review your request as appropriate, making sure the requested changes are within federal compliance. If compliant, the FAO will reset the loan(s) to ‘Estimated’, allowing the student to log back into their Self-Service Financial Aid account and record their decision.

What if I want to change the loan amount request?

When you the student initially ‘Accept’ any loan on your eAward, you have the opportunity to decrease the amount before clicking ‘Accept’. (This does NOT apply to Parent PLUS or Federal Nursing Loans. Please see the messaging next to these loans on Self-Service for further instructions.) You are not permitted to increase the amount offered due to federal regulations.

After previously ‘Accepting’ any loan, you must email Financial Aid to request a change in the loan amount. Please provide the following:

  • Your full name
  • Your 7-digit ID number
  • Loan Type (Subsidized, Unsubsidized, or PLUS)
    • NOTE: If changing a Parent PLUS Loan after disbursement, BOTH the student and parent must send an email.
  • Amount change: From __________ to __________
    • Please remember to take into account the loan fees

Note: The borrower has 14 days at the beginning of a semester or before Cashier’s Office sends any credit refunds to the students to make changes to the loan amount once the loan funds have disbursed to the student account. After 14 days, the borrower must work with their loan servicer to return funds (i.e. reduce the principle amount of the loan).

Login at National Student Loan Data System – Student Access (NSLDS) to identify your loan servicer(s).

What loan documents do I (both student and/or parent) need to complete?

After the student has ‘Accepted’ the loan(s) on their Self-Service Financial Aid, please wait 24-48 business hours. The student may then log back in and view ‘Complete required documents’. Please follow the listed instructions carefully for the document(s) listed as ‘Incomplete’.

Please visit Cedarville’s Financial Aid page for more information.

Why are the documents I completed not showing as 'Received' on my Self-Service Financial Aid account?

Once a student or parent completes and submits a loan document(s), please allow 7-10 business days for the Financial Aid Office to process your document(s).

What is the difference between Subsidized, Unsubsidized and PLUS Loans?

With the receipt of a valid FAFSA, there are essentially three types of federal direct loans which may be offered to an eligible student. The student's specific situation will determine which loan(s) they are offered as part of their financial aid package. Following is a brief description of each loan type:

Subsidized: The federal government pays the interest for the student as long as the student is enrolled at least half-time in their degree program.

  • A student must demonstrate financial need to be eligible for a subsidized loan (Cost of Attendance - FAFSA EFC - Other Student Aid).
  • A subsidized loan is only available to undergraduate students.
  • No penalty is incurred for early repayment.

Unsubsidized: The student is responsible for the interest charges on this loan.

  • Interest charges begin when loan funds are disbursed to the student's account, and continue to be charged until the loan is fully paid.
  • NOTE: While enrolled at least half-time in their degree program, the student may either: a) pay the interest as they go; or b) allow the interest to accrue and when the loan goes into repayment, the accrued interest is capitalized and added to the loan principal amount.
  • No penalty is incurred for early repayment.

PLUS: This federal loan is available only to a parent of a dependent undergraduate student (as determined by the FAFSA) or to a graduate student.

  • The borrower must not have an adverse credit history.
  • If the borrower has an adverse credit history, he/she may still receive a PLUS loan by obtaining an endorser.
  • A Parent PLUS loan cannot be transferred to the student. The parent borrower is responsible for repaying the loan.
  • A Graduate PLUS loan is obtained by the student; therefore, the student is responsible for repaying the loan.

See studentaid.ed.gov/types/loans for additional information on federal student loan programs. For specific information see the following loan types:

What are the 'Annual Loan Limits' for student direct loans?

Federal direct student loans (subsidized or unsubsidized) have annual loan limits based on a student's grade level in college.

Undergraduate: Dependent

  • Freshman (1 - 30.99 cr hrs): $5,500 (up to $3,500 may be subsidized)
  • Sophomore (31 - 60.99 cr hrs): $6,500 (up to $4,500 may be subsidized)
  • Junior (61 - 90.99 cr hrs): $7,500 (up to $5,500 may be subsidized)
  • Senior (91+ cr hrs): $7,500 (up to $5,500 may be subsidized)
  • Continuing Senior (91+ cr hrs): $7,500 (up to $5,500 may be subsidized)

Undergraduate: Independent

  • Freshman (1 - 30.99 cr hrs): $9,500 (up to $3,500 may be subsidized)
  • Sophomore (31 - 60.99 cr hrs): $10,500 (up to $4,500 may be subsidized)
  • Junior (61 - 90.99 cr hrs): $12,500 (up to $5,500 may be subsidized)
  • Senior (91+ cr hrs): $12,500 (up to $5,500 may be subsidized)
  • Continuing Senior (91+ cr hrs): $12,500 (up to $5,500 may be subsidized)

Graduate / Professional

  • Masters Programs: Students may borrow up to $20,500 per year
  • Doctor of Pharmacy Program, Years P1-P3: Students may borrow up to $33,000 per year
  • Doctor of Pharmacy Program, Year P4: Students may borrow up to $37,167 (P4 year includes summer, fall, spring)

More information on Federal Direct Student Loans. For specific information see the following loan types:

What are the 'Aggregate Loan Limits' for student direct loans?

Federal direct student loans (subsidized or unsubsidized) have Aggregate Loan Limits based on the student's academic level.

Undergraduate

  • Dependent students: $31,000 (up to $23,000 may be subsidized)
  • Independent students (or dependent students whose parent(s) is unable to obtain a PLUS loan): $57,500 (up to $23,000 may be subsidized)

Graduate or Professional

  • Masters Programs: $138,500
  • PharmD Program: $224,000

Note: These limits include all federal loans received as an undergraduate and graduate student combined.

More information on Federal Direct Student Loans. For specific information see the following loan types:

What is a loan fee?

Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

More information on Federal Direct Loan Fees.

Why is this loan fee being charged to me?

If you decide to obtain loan funds through the Federal Direct Loan Program as part of your college payment plan, you will be charged a loan fee each time loan funds are disbursed to your student account. Like any loan, the loan fee is charged by the federal government to defray the cost of managing and lending.

How much are the loan fees?

Loan fees are established each year by the US Department of Education.

View current Loan Fees and Interest Rates.

How does a borrower pay these loan fees?

The federal government automatically deducts these fees from the loan amount at the point of each loan disbursement.

Please take these past year examples into account when determining how much you would like to borrow to cover expenses for the school year (see current loan fees).

The following examples for each loan type use the Loan Fee Percentages for first disbursement dates 'On or after Oct. 1, 2018 through Sept. 30, 2019.'

  1. Subsidized or Unsubsidized Student Loan Example: Annual loan for $3,500 split over two terms ($1,750 per term).
    $1,750 Loan principal amount for the term (amount to be repaid)
    - 18 1.062% loan origination fee (no rounding; truncate cents)
    $1,732 Actual term disbursement credited to the student’s account

    Student loans have annual loan limits; however, if you want you can reduce the annual amount borrowed from the standard amount offered on your financial aid eAward.

  2. PLUS Loan Example: Annual loan for $10,000 split over two terms ($5,000 per term).
    $5,000 Loan principal amount for the term (amount to be repaid)
    - 212 4.248% loan origination fee (no rounding; truncate cents)
    $4,788 Actual term disbursement credited to the student’s account

    Calculating your PLUS Loan: You can reduce the amount you borrow from the amount offered on your Cedarville Parent PLUS authorization or Grad PLUS authorization.

If I am enrolled in a monthly payment plan, how will these fees affect my monthly payments?

The payment plan options already take into account the anticipated fees related to the loan(s) you have accepted as part of your payment plan.

When do I have to begin repaying my loan?

Direct Student Loans: Before entering repayment a borrower has a six-month grace period from the time that borrower graduates, leaves school, or drops below half-time enrollment. A borrower will only receive one full grace period.

Direct Parent PLUS Loans: When the parent borrower completes the PLUS Application, there is a question regarding deferment of the loan.

  • If the parent answers YES to this question, another question is added asking if you want to defer for six months. If the parent answers yes to both questions, the loan will not enter repayment until six months after the student graduates or is no longer enrolled at least half-time.
  • If the parent answers NO to the first deferment question, the loan will enter repayment as soon as the annual loan amount is fully disbursed.
  • If the parent misses the question or did not mean to answer NO, the parent borrower may request a deferment from their loan servicer.

Direct Graduate PLUS Loans: Before entering repayment a borrower has a six-month grace period from the time that borrower graduates, leaves school, or drops below half-time enrollment. A borrower will only receive one full grace period.

More information on Federal Direct Student Loan Repayment.

Provided by Cedarville University – Financial Aid Office (updated 2019-07-01)