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Loans

Beginning Summer Quarter 2010, Clark State will process Federal Stafford and Parent PLUS Loans through the Federal Direct Loan Program instead of the Federal Family Education Loan program (FFEL).

President Obama proposed that the Federal Direct Loan Program be mandatory for all schools, eliminating the FFEL Program. This legislation became law on March 30, 2010, and takes effect for the 2010-2011 academic year. In light of this legislation, the U.S. Department of Education has required all schools to participate in the Direct Loan Program.

The major difference between the FFEL and the Federal Direct Loan Program is the source of funding. Students and schools will receive loan disbursements directly from the U.S. government instead of a bank or credit union.

Always use federal loans first because they generally carry lower, fixed interest rates and often have more favorable terms than private loans. If you need to use a private loan, do your own investigating to receive the best rates and benefits.

Most loans to students are disbursed via Electronic Funds Transfer (EFT). Funds are applied directly to the student account to pay for any outstanding charges. Any excess loan funds are disbursed to the student (for Stafford loans) or the parent (for Plus loans). You may request to use direct deposit for any refund balance. See Payment Options for details.

Federal Stafford Loans

The Federal Stafford Loans are designed to assist a student in paying for educational expenses through a low interest loan program.

  • Current interest rate on these loans is 6.8% fixed for loans disbursed after July 1, 2006.
  • You have between 10 and 25 years to repay the loan, depending on the amount owed and the type of repayment plan. 
  • Repayment begins six months after the student ceases to be enrolled at least half-time.
  • Subsidized Stafford Loan: You must have financial need to receive this type of loan. The U.S. Department of Education will pay (subsidize) the interest that accrues on a subsidized loan during at least half time attendance and certain other periods.
  • Unsubsidized Stafford Loan: You do not need to have financial need to obtain an unsubsidized loan. Also, the interest is not paid for you, however you may request to have the interest capitalize.

A "dependent" student is eligible to request a maximum of $5,500 per year for the first year of undergraduate study (of which no more than $3,500 can be subsidized) and $6,500 for the second year (of which no more than $4,500 can be subsidized).

An "independent" student is eligible to request a maximum of $9,500 for the first year of undergraduate study (of which no more than $3,500 can be subsidized) and $10,500 for the second year (of which no more than $4,500 can be subsidized).

How to Apply
Students should complete the steps below to apply for either the Subsidized or Unsubsidized Federal Stafford Loan.


Federal Parent Loan for Undergraduate Students (PLUS)

Parents of eligible students may apply for a Plus Loan if the other aid they are receiving is not sufficient to cover their educational expenses.

  • Parents must be credit worthy to receive a Plus Loan and may require a co-signor.
  • Parents may borrow up to the cost of attendance minus any other financial aid.
  • Current interest rate on this loan is 8.5% fixed for loans disbursed after July 1, 2006.
  • The borrower (parent) is responsible to pay all the interest.

How to Apply
Parents can be pre-approved online prior to submitting a Plus Loan application to the Financial Aid Office.


Financial Aid Office
Rhodes Hall
937/328-6034
E-Mail Us

Greene Center
937/429-8819
E-Mail Us

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