Financial Assistance - Loans

Student Loans at Cameron University

• What Kinds of Stafford Loans are Available?
• Who can get a Stafford Loan?
• How do I apply for a FFEL Stafford Loan
• How much can I borrow?
• What is the interest rate on these loans?
• Is there a charge for these loans?
• When do I pay back these loans?
• Is it possible to postpone repayment of my loan?
• How do I know when my check is in and how do I pick it up?
• How long can your office keep a loan check before having to send it back to the lender?

FFEL Stafford Loans are either subsidized or unsubsidized.

A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government "Subsidizes" the interest during these periods.

An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized - that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. If you choose to pay the interest as it accumulates, you will repay less in the long run.

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If you are a degree seeking student, enrolled at least half-time and meet other general eligibility requirements, you may be eligible for a student loan. You must fill out a FAFSA application as well as a loan application.

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First, complete the Free Application for Federal Student Aid (FAFSA). After your FAFSA is processed, Cameron will review the results and determine your loan eligibility.

Second, if you are enrolled at least half-time, you can fill out and turn in the loan application at the front desk of the Financial Assistance Office. The application will be completed by a Financial Assistance counselor and the information transmitted to the lender of your choice. The lender will submit it to the Guarantee Agency who will check for any prior defaulted student loans and then transfer either an approval or disapproval to your lender. The lender will then prepare a Notice of Guarantee. This will be mailed to you.

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If you are a dependent undergraduate student you can borrow up to:

• $3,500* if you have completed 0-30 academic hours
• $4,500* if you have completed 31-59 academic hours
• $5,500* if you have completed over 60 hours
• $8,500* if you are enrolled in the graduate program

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If you have a loan that was first disbursed on or after July 1, 1994, the interest rate could change each year of repayment depending on changes to the federal treasury bill interest rate, but it will never exceed 8.25 percent. The interest rate is adjusted each year on July 1. You will be notified of interest rate changes throughout the life of your loan.

If you have subsidized loans, you will not be charged interest while you are enrolled in school at least half-time, during a grace period, or during authorized periods of deferment. Interest will begin to accrue when you enter repayment.

If you have unsubsidized loans, you will be charged interest from the day the loan is disbursed until it is repaid in full, including in-school, grace and deferment periods. You may choose to pay the interest during these periods, or it can be capitalized.

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You will pay fees of up to 4 percent on the loan. These fees are deducted proportionately from each disbursement of your loan. A portion of these fees goes to the government to help reduce the cost of the loans. Also if you don't make your loan payments when they are scheduled, you may be charged collection costs and late fees.

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After you graduate, leave school, or drop below half-time enrollment, you will have six months before you begin repayment. This is called a "grace period."

During the grace period on a subsidized loan, you don't have to pay any principal, and no interest will be charges. During the grace period on an unsubsidized loan, you don't have to pay any principal, but interest will be charged. You can either pay the interest or allow it to be capitalized.

After you leave school or drop below half-time enrollment, you will receive information about repayment and will be notified of the date repayment begins. However, you are responsible for beginning repayment on time, even if you don't receive this information.

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Yes. Under certain circumstances, you can receive a deferment or forbearance on your loan. A deferment allows you to temporarily post-pone payments on your loan. If you have a subsidized loan, you will not be charged interest during the deferment. If your loan is unsubsidized, you will be responsible for the interest on the loan during the deferment. If you don't pay the interest as it accrues, it will be capitalized. You need to contact your lender or the agency that holds your loan to find out about deferments conditions.

If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you may receive forbearnace for a limited and specified period. During forbearance, your payments are postponed or reduced. Whether your loans are subsidized or unsubsidized, you will be charged interest. If you don't pay the interest as it accrues, it will be capitalized.

Deferments and forbearances are not automatic. If you have a Stafford Loan you must contact the lender or agency that holds the loan. For both programs, you have to provide documentation to support your request. You must continue making scheduled payments until you receive notification that the deferment or forbearance has been granted.

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Once you receive your Notice Of Guarantee from your lender, it will state an estimated disbursement date. This is the day that your lender anticipates cutting your check in their office. You must allow time for the check to come through the mail and be cleared through our office and the business office. This is normally five working days. 

You must complete a New Borrower's Seminar if you are a first-time borrower here at Cameron University. You can fulfill this requirement on the web by going to online entrance counseling. For additional information, please contact our office.

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By federal law we can only keep loan checks 30 days from the date on the loan checks.  After 30 days the checks are returned to your lender and you must complete a new loan application if you wish to have the loan for that semester.  Please check for disbursal dates in your semester catalog to see on which day to pick up your loan check/s at the beginning of each semester.  You are also welcome to contact our office or check your MYCU to see if the check has been received.

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