Loans

Undergraduate Federal Student Loans

Federal Direct Loan

Visit the Department of Education – Federal Student Aid for information about the rights and responsibilities of students and institutions under Title IV HEA loan programs.

William D. Ford Federal Direct Loan

The Federal Direct Loan Program (formerly the Federal Stafford Loan) offers low-interest funds to students. It includes two types: subsidized and unsubsidized. Both accumulate interest while enrolled. For subsidized loans, the government covers interest until you're no longer half-time enrolled. Unsubsidized loans require you to manage accrued interest. You can either make payments while enrolled or choose deferment, where interest is added to the principal upon repayment.

Interest Rates and Loan Limits

Interest rates vary based on loan type and the loan's first disbursement date. Also, there are federal limits on annual borrowing amount.

Undergraduate Loan Limits

View Current and Previous Years' Interest Rates

See Federal Loan Limits

Loan Repayments

Repayment begins six months after graduation or dropping below half-time enrollment. A loan origination fee, currently at 1.057 percent, is deducted before disbursement. This means the amount listed on your award letter is the gross total, and you'll receive 98.943 percent.

Graduate Federal Student Loans

The Federal Unsubsidized Direct Loan Program

The Federal Unsubsidized Direct Loan Program, formerly the Stafford Loan Program, offers students federal government-funded loans of up to $20,500 per academic year.

• No payments are required while enrolled at least half-time (minimum of four credits per semester) and during a six-month grace period.
• Interest accrues and becomes your responsibility.
• You may pay the interest while in school or defer it, which will be added to the principal when repayment starts.
• Note: Unless declined, Cambridge College will electronically process your Federal Unsubsidized Direct Loan for the amount indicated on your award notification. Please return the notification with your instructions if you wish to make changes.

Master Promissory Notes

• A Master Promissory Note (MPN) is a legally binding document in which you commit to repaying your loan(s), including any accumulated interest and fees, to the U.S. Department of Education.
• You can now complete a single master promissory note (MPN), which is valid for as long as you attend Cambridge College. Instructions on how to e-sign your MPN will be sent to you after we process your loan.

First-Time Borrowers

Federal Unsubsidized Direct Loan applicants borrowing for the first time must complete loan counseling to learn about rights and responsibilities. Students may access counseling at the studentaid.gov. Once finished, all loan funds will be awarded.

• Direct PLUS Loans for graduate and professional degree students and for parents of dependent undergraduate students.
• Direct Consolidation Loans to combine federal education loan debts into a single loan.

Alternative Loan Programs

You may be eligible for alternative loans. Explore tailored private loans and compare competitive rates.

Apply for Alternative Loans

Loan Forgiveness Programs

You may qualify for a loan forgiveness program designed to help borrowers eliminate some or all of their student loan debt.

Apply for Teacher Loan Forgiveness Program – FFEL and Direct Loan Programs

Apply for Public Service Loan Forgiveness

Financial Aid Post Dates

• Financial aid awards are posted to student accounts on the Monday following the Add/Drop Course deadline.
• Cambridge College has a 14-business-day window from the posting date to process refunds for eligible excess funds.
• Federal funding is typically posted to student accounts on Mondays.
• Loan agency funding may take 10-14 business days from disbursement before reaching the college. 

More About Subsidized and Unsubsidized Direct Loans

• You'll be offered a Subsidized Direct Loan if you meet sufficient financial need.
• If your need is met elsewhere, or if you don't demonstrate financial need, you'll be offered an Unsubsidized Direct Loan only.
• All students, regardless of need or grade level, are eligible for an additional $2,000 Unsubsidized Direct Loan, which is likely included in your award.
• Note: It's important to carefully consider accepting the Unsubsidized Direct Loan, as it carries higher overall borrowing costs due to the absence of a subsidy.