Loans can help you achieve your educational goals.
Borrowing loans to cover your educational costs can help you achieve your educational goals. Remember to only borrow what is needed! These loans must be repaid and any additional loans will increase your monthly payment.
Clark State processes Federal Stafford and Parent PLUS Loans through the Federal Direct Loan Program.
You should always use federal loans first because they generally carry lower, fixed interest rates and often have more favorable terms than private loans. There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. Learn more about time restrictions on these types of student loans. If you need to use a private loan, do your own investigating to receive the best rates and benefits. Visit FASTChoice for a quick overview of private loans.
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 Direct Loans
The Federal Direct 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 5.05% for loans first disbursed on or after July 1, 2018 and July 1, 2019.
- You have between 10 and 25 years to repay the loan, depending on the amount owed and the type of repayment plan.
- You will have a six-month grace period before you are required to begin repayment.
- Subsidized Direct 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 Direct 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.
Federal Direct Loans are limited to $5,500. Independent students may qualify for more. Also, any student in an eligible Associate Degree or Certificate program who has completed at least 30 credit hours may apply for a grade level 2 loan (an additional $1000). Loans will be awarded based on remaining financial need and all other eligibility requirements. It is important to only borrow what is needed for your educational costs. Remember, these loans must be repaid and any additional loans will increase your monthly payment.
Students requesting additional loan funds must complete, in its entirety, the Request for Additional Loan Funds form. All loans must be accepted on the student Financial Aid Self-Service portal.
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.
- Complete the Free Application for Federal Student Aid (FAFSA).
- Complete Federal Direct Loan Entrance Counseling. Students must have Federal Student Aid ID available at fsaid.ed.gov. Select Clark State Community College as a school to receive your entrance counseling results. An Exit Counseling session is also required prior to leaving Clark State either through graduation, withdrawal or transferring.
- Complete a Master Promissory Note (MPN). Students must have Federal Student Aid ID available at fsaid.ed.gov to electronically sign a MPN.
Students borrowing a Federal Stafford Loan, including subsidized and/or unsubsidized, are subject to the following loan limits:
- Annual Maximum Loan Limit: The total amount of Federal Direct Loans that may be borrowed during the academic year (fall, spring and/or summer).
The combined total (Federal Direct Subsidized and/or Unsubsidized Loans) cannot exceed your Cost of Attendance minus other financial aid or the maximum academic year amount allowable by law, whichever is less.
- Aggregate Maximum Loan Limit: Restricts the amount of Federal Direct Loans that may be borrowed over a student’s college career.
The maximum annual amount you can borrow in Federal Subsidized and/or Unsubsidized Loan(s) is determined by your class level and dependency status.
First-time Undergraduate Borrowers on or after July 1, 2013 may receive subsidized Stafford loans only up to 150% of the published length of your program. For example, students who are enrolled in program designed to take two years may receive subsidized Direct loans for a period of three years (150 percent of 2 years = three years).
For more information on undergraduate loan limits, please visit the Federal Student Aid website.
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 7.6% for loans first disbursed on or after July 1, 2018 and July 1, 2019.
- 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.
Private Student Loans
Clark State Community College partners with several lenders to offer loans to students who do not qualify for federal loan programs or who need additional financial assistance to meet educational expenses.
These are student loans offered by a lender or servicer. They are not guaranteed by the federal government. Private loans are meant to help students cover education costs not met by other forms of financial aid. It is recommended that students take full advantage of all federal loans available to them before considering a supplemental private loan. Below is a website with additional information on the private loans offered at Clark State. This website is not operated by Clark State Community College.
Visit the Federal Student Aid website for additional aid resources.