Loans

Loans

Loans are available to help you with your financial needs. CMU will help guide you through the various types of loans, eligibility, and payback options.

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Student Loans

Based upon the completion of the Free Application for Federal Student Aid (FAFSA), students may qualify for a Federal Direct Loan. The Federal government offers both Subsidized and Unsubsidized Federal Direct Loans. These are loans created to help pay for education. The Office of Financial Assistance will determine the loan type(s) each student is eligible to receive, based upon FAFSA information. It is the student's responsibility to keep track of all federal student loans borrowed. The Federal Student Aid website is the U.S. Department of Education's central database for student aid, and the site where students can view their federal aid history.

All undergraduate students must be enrolled at least half-time (6 hours) to be eligible to receive federal student loans.

Repayment of all student loans is the student and/or parent borrower's responsibility. All of the terms of the loans options are below. Estimated repayment schedules can be reviewed by visiting the Federal Student Aid website .

International students are not eligible for state or federal loans.

Apply for a Student Loan

All students must complete the following items in addition to their FAFSA to get a student loan. Borrowers must sign-in with an FSA ID to complete items two and three.

  1. Students must accept or decline their Financial Aid. Students will receive an email notification when their Financial Aid is ready for them to formally accept or decline. Students will log into their myCMU account and access their aid which is found under Student Tab > Financial Aid > Accept/Decline Aid. Students can accept, reject, or reduce the amount of loans listed
  2. Loan Entrance Counseling
  3. Master Promissory Note
Students Who Previously Declined Federal Student Loans

Please contact the Office of Financial Assistance to inquire about receiving federal student loans.  Make sure you have completed steps 2 and 3 above.

Subsidized Federal Direct Loan

  • Loans Disbursed after July 1, 2024 interest rate will be 6.53%. 
  • Loans disbursed after July 1, 2022, but before July 1, 2023, the interest accrues at a fixed 4.99%
  • Loan origination fee of 1.057% will be taken out by Federal Direct Loans before funds are disbursed to the school. 
  • The Federal government pays the interest on the Subsidized Loan while the student is continuously enrolled at least half-time.
  • Need based loan. Need is determined by subtracting the Effective Family Contribution and any other expected financial aid from the cost of attendance for the student. The result is the student's need.
  • Maximum eligibility is 150% of the published length of the student's academic program.
  • This loan allows for a six-month grace period after a student graduates, withdraws, or ceases at least half-time enrollment before repayment is required.

Unsubsidized Federal Direct Loan

  • Loans Disbursed after July 1, 2024 interest rate will be 6.53%. 
  • Loans disbursed after July 1, 2022, but before July 1, 2023, the interest accrues at a fixed 4.99% for undergraduate and 6.54% for graduate.
  • Loan origination fee of 1.057% will be taken out by Federal Direct Loans before funds are disbursed to the school.
  • Student is responsible for paying all the interest after the loan is disbursed. Students have the option to pay the interest as it accrues or defer it as long as they are enrolled at least half-time.
  • Not a need based loan.
  • This loan allows for a six-month grace period after a student graduates, withdraws, or ceases at least half-time enrollment before repayment is required.

Graduate Student Only

Graduate students must fill out a Graduate Student Loan Data Sheet linked below to receive a federal student loan. Loans disbursed after July 1, 2024 interest rate will be 8.08% for unsubsidized loans. 

Graduate PLUS Loans

Graduate students may also apply for Direct PLUS loans. The process is the same as that listed above for parents, only the graduate student would apply in his/her name.  To be eligible, the graduate student must be enrolled at least half time in an eligible program leading to a degree, not have an adverse credit history, and meet all the general eligibility requirements for federal student aid. The loans disbursed after July 1, 2024 interest rate will be 9.08%. 

Alternative Loans

Sometimes federal student and parent loans are not enough to cover all educational expenses. For this reason, students and parents may consider applying for a private, alternative loan that may be used as a supplemental resource for paying college costs. Alternative Loans are unlike Direct or PLUS loans, for they require a separate application, a credit check, and may require a co-signor. Please note that if parent loan funds are requested in amounts creating a credit balance with CMU, funds will be refunded to the student.

In an effort to help students start the search for an alternative loan lender and make informed decisions, CMU seeks out loan products that are in the best interest of our students. CMU annually reviews loan products from various lenders to ensure the benefits that the lenders offer continue to adhere to our criteria. Many factors are used to evaluate each loan product and lender. The factors include, but are not limited to, low interest rates, no origination fees, loan principal reductions, borrower type, and customer service.
You are not required to select a lender from the link below. You are free to choose any lender and loan product you feel best suits your needs. To view a list of lenders we selected for comparison click on this link.

https://choice.fastproducts.org/FastChoice/home/245300

Please note that if parent loan funds are requested in amounts creating a credit balance with CMU, funds will be refunded to the student.

Central Methodist University adheres to a strict code of conduct as it relates to educational student loans. The provisions of this policy can be found at Code of Conduct.  

For more information on Student Loans, including annual and aggregate limits, please see the FAQ's.

Parent Federal Direct PLUS Loan Information

If you're an undergraduate student enrolled at least half-time and dependent on your parents, your parents may qualify for a Parent PLUS Loan. The PLUS loan is available without regard to financial need; however, the parents must be U.S. Citizens. The PLUS loan is a non-need based program based on credit-worthiness. A current FAFSA must be on file in order to request a Parent PLUS Loan. The PLUS Request Application Process must be completed for each academic year for which a parent wishes to acquire a PLUS Loan. The parents are responsible for repaying the loan and unless otherwise requested, repayment begins 60 days after the loan is fully disbursed.

For loans disbured after July 1, 2024, the interest rate is 9.08%. For loans first disbursed after July 1, 2022, but prior to July 1, 2023, the interest rate 7.54%. In addition to interest, there is an origination fee (or loan fee) of 4.228% that is taken out of the principal amount of each PLUS loan by Federal Direct Loans before funds are disbursed to the school.

  1. Complete PLUS Request Process
  2. Sign a Parent Master Promissory Note
  3. PLUS Loan Data Sheet (2024/2025)

Parents may borrow a Parent Loan for Undergraduate Students (PLUS) up to the full Cost of Attendance (or Budget) minus any financial assistance the student is receiving. If the student has an excess of funds (more aid than the total direct cost), the balance will be given to the student as a refund. The student can use this refund as a means to pay for books, transportation or other personal spending.

Please Note: If a parent is denied a Parent PLUS Loan due to credit reasons, the student may be eligible to receive additional unsubsidized Direct Loan funds. (The PLUS Request Application Process must be completed for each academic year)

Direct Loan Exit Counseling

Exit Counseling is an online educational course for borrowers of Federal Direct Loan and/or Federal Grad PLUS loan funding. The counseling is required for all borrowers who are no longer attending, or are currently registered for less than six credits at Central Methodist University. Exit Counseling needs to be completed even if you are planning to continue your education at another institution. Failure to do so, can result in penalties, including a hold on documents including diplomas. Great Lakes offers repayment and other videos that borrowers can access 24/7 to review your repayment responsibility and payment options to consider.

If you are graduating, you should complete the Exit Counseling within thirty (30) days prior to your graduation date. If you are no longer attending or have dropped below half-time attendance, you should complete the Exit Counseling within thirty (30) days from the last date of at least half-time attendance.

How do I complete Exit Counseling? 

Log into the  Federal Student Aid Website  using your FSA ID and complete Exit Counseling.

What will the Exit Counseling cover?

Exit Counseling will explain your rights and responsibilities as a federal loan borrower. It also provides information and terms to help you make the right choices about repayment. During the counseling you will review your total federal student loan debt. As you complete the Exit Counseling, pay special attention to:

  • Loan consolidation
  • Loan deferment
  • Payment options (standard repayment, extended repayment, graduated repayment, and income contingent repayment)
  • Loan forbearance

How long will the Exit Counseling take?

Exit Counseling will take 20-30 minutes to complete. You will need your FSA ID, and the session will also ask you to select your school: Central Methodist University (00245300).

Do I need to let CMU know when I have completed the Exit Counseling?

You DO NOT need to notify us once you have completed the Exit Counseling. Financial Aid will receive electronic confirmation once you complete your Exit Counseling.

Do I need to complete the Direct Loan Exit Counseling if I have already completed the Perkins Exit Counseling?

Direct Loan Exit Counseling is separate from the Perkins Exit Counseling. You will also need to complete the Direct Loan Exit Counseling.

Do I need to complete Exit Counseling if I am going on to another school or enrolling in a new degree program?

Yes, you should complete Exit Counseling even if you are planning to continue your education. The Exit Counseling will assist you in knowing your rights and regulations about your current loan(s) grace period and repayment period.