Loan Program Facts
How the Loans Are Disbursed (Paid Out)
Generally, your loan will cover a full academic year and CMC will make at least two disbursements to you, for example, at the beginning of each semester (CMC always disburses single term (ie: semester) loans in two disbursements, the first depends upon borrower history (two weeks or 30 days into the semester), and the second at the mid-point of the term).
In most cases, CMC will disburse your loan money by crediting it to your school account to pay (tuition and fees, room and board, and other authorized charges). If the loan disbursement amount exceeds your school charges, CMC will pay you the remaining balance of the disbursement directly by check or other means.
Except for Direct PLUS Loan borrowers, if you haven’t previously received a Direct Loan at Colorado Mountain College, you must complete CMC specific ENTRANCE COUNSELING before we can make the first disbursement of your loan. This helps you to understand your responsibilities regarding your loan. Complete this counseling online at StudentLoans.gov.
NOTE: It does not matter if you completed entrance counseling previously for another school. Entrance counseling must be completed again using the CMC school code, 00450600.
The Master Promissory Note
To take out a Direct Loan for the first time, you must complete a MASTER PROMISSORY NOTE (MPN). Complete the MPN on the StudentLoans.gov website. CMC offers the option of completing the MPN electronically. The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).
To complete an MPN online, you will be required to use your Department of Education-issued PIN. If you do not have a PIN, you may request one from the official PIN site. A parent borrower must also request a PIN number from the PIN site to use when completing a PLUS MPN.
In most cases, once you’ve submitted the MPN and it’s been accepted, you won’t have to fill out a new MPN for future loans you receive. You can borrow additional Direct Loans on a single MPN for up to 10 years. You should, however, ensure that you maintain this document in a safe location.
You’ll receive a disclosure statement from the Department that gives you specific information about any loan that CMC plans to disburse under your MPN, including the loan amount, fees, and the expected disbursement dates and amounts.
|Program Facts||Direct Subsidized||Direct Unsubsidized||PLUS|
|Who can borrow?||Dependent and independent undergraduate, graduate and professional students.||Dependent and independent undergraduate, graduate and professional students.||Credit-eligible parents of dependent undergraduate students.|
|Eligibility||Students attending school on at least a half-time basis. Students must demonstrate need by filing a Free Application for Federal Student Aid (FAFSA).||Students attending school on at least a half-time basis. Students do not need to demonstrate need; however, all students must first be considered for a subsidized loan.||Dependent students attending school on at least a half-time basis. Completion of the FAFSA.|
|Loan Limits? (based on annual limits)||Year / Amount 1 / $3,500
2 / $4,500
3+4 / $5,500
Grad-Prof / $8,500
|Year / Dependent / Independent 1 / $5,500 / $9,500
2 / $6,500 / $10,500
3 +4/ $7,500 / $12,500
Grad-Prof / $8,500 / $20,500(The amounts in this group will be reduced by any amounts received under the subsidized Direct program)
|A parent may borrow up to the cost of education, less financial aid received.|
|How do I calculate the amount I borrow?||Cost of Education
– Est. Financial Aid
– Est. Family Contribution
= Subsidized Direct Loan
|Cost of Education
– Est. Financial Aid (including subsidized Direct)
= Unsubsidized Stafford Loan
|Cost of Education
– Est. Financial Aid
= Federal PLUS Loan
|How is the interest paid while in school?||Interest is paid by the Federal Government while the eligible student remains in school at least half-time.||Interest is the student’s responsibility while in school, from the first disbursement date to the start of repayment.||Interest is paid as part of the monthly repayment schedule.|
|What is the interest rate?||Fixed 3.86%
|Fixed 6.41% (after 7/1/13)|
|When does repayment begin?||Six months after the student leaves school or drops below half-time status, whichever comes first.||Six months after the student leaves school or drops below half-time status, whichever comes first.||Within 60 days after the final loan disbursement.|
|Are there any fees?||Up to 1.072% of the total loan deducted proportionately from each disbursement.||Up to 1.072% of the total loan, deducted proportionately from each disbursement.||Up to 4.288% of the total loan, deducted proportionately from each disbursement.|
For more detailed information, see the CMC Financial Aid Guide.
Caution: Some information may change as the US Department of Education continues to issue new regulations in 2014-2015. Stay in contact with the Office of Financial Aid.