Federal Direct Stafford Loans

Federal Direct Stafford Loans are available to aid applicants who file a FAFSA and are enrolled at least half-time in college. These loans are federally funded with the federal government paying an interest subsidy, if you show financial need, and without an interest subsidy, if you do not show need. If eligible for the interest subsidy, the government will pay the interest on the loan until six months after you graduate, withdraw from college, or enroll less than half-time. If eligible for an unsubsidized loan, you are responsible for the interest while in college or no longer enrolled at least half-time as well. A loan fee of 1.057 percent will be deducted from each disbursement. No payment toward the principal is required while enrolled at least half-time. Federal Direct Stafford Loans have a fixed interest rate of 4.99 percent under current regulations. Repayment of the principal plus simple interest begins six months after you leave school at a minimum rate of $50 a month. The Federal Direct Stafford Loan is suggested only as an additional source of funds. You are not obligated to apply for a Federal Direct Stafford Loan if it is not needed.

Federal Direct Plus Loans (PLUS)

Federal Direct Parent Loans (PLUS) are available to parents who have a dependent child enrolled in college. These loans are guaranteed by the federal government. Individual eligibility is determined by subtracting any financial aid available for the year from the cost of education. Financial need is not a prerequisite. The loans are made payable to the parent and Central in multiple disbursements. A loan fee of 7.54 percent will be deducted from each disbursement. Repayment begins immediately upon disbursement with a minimum payment of $50 a month; however, a deferment option is available through a request with the direct loan servicing center.  Federal Direct PLUS Loans have a fixed interest rate of 6.28 percent under current regulations. The borrower may take at least five years to repay


Federal Direct PLUS Loans and there are a variety of repayment options available. Federal Direct PLUS Loans should be sought as supplemental funds after all other federal sources of assistance have been investigated.

Central College Institutional Loans

Contact the Financial Office regarding loan availability.