Loans

Federal Stafford Loan. Students can take out a low-interest Stafford Loan through a program sponsored by the federal government. The Free Application for Federal Student Aid determines a student's eligibility. If you file a FAFSA and include the Capitol College code, 001436, Capitol's Financial Aid Office will inform you of the Stafford Loan amount for which you qualify.

There are subsidized Stafford Loans for students with financial need and unsubsidized Stafford Loans for students regardless of financial need.

• Subsidized Stafford Loans - the interest on the loan is paid by the federal government while students are enrolled in school at least half-time and during grace and deferment periods. Interest rates on the loans, which can differ according to the year the loans begin, are below commercial loan rates.
• Unsubsidized Stafford Loans - students are responsible for the interest that accrues on the loan during in-school and grace periods. Interest may be paid as it accrues or it can be added to the loan principal.

All first-time borrowers of both subsidized and unsubsidized loans must participate in a loan entrance counseling session at least once. Capitol College students must fulfill this requirement online. To review frequently asked questions concerning Federal Stafford Loans, click here.

Federal Perkins Loan. The Federal Perkins Loan program offers low-interest loans to undergraduate and graduate students with exceptional financial need. To apply, you must complete the FAFSA, from which your eligibility will be determined. Awards range from $500 to $4,000 per academic year for undergraduate students, and $500 to $5,000 for graduates.

Like all loans, the Perkins loan must be repaid. Repayment usually begins nine months after graduation. Students do not pay interest on this loan until repayment begins. For disbursement, you must complete a promissory note; no fees are deducted from the fall or spring semester disbursements.

Parent Loans for Undergraduate Students (PLUS). The PLUS program, also sponsored by the federal government, is available to parents of dependent undergraduate students to help pay for their children's education regardless of financial need. Students must have at least half-time status.

• The loan is based on credit history. Parents must have good credit history.
• Some parents may be required to file a FAFSA.
• Parents may borrow up to the cost of the education minus any other aid their children receive. Applications must be submitted to the college for processing.
• Interest accrues upon disbursement. Interest can be paid as accrued or added to the principal of the loan.
• Repayment begins immediately after the final disbursement for the academic year.
• The interest rate for the PLUS is variable, with a maximum rate of 9 percent. The rate is adjusted every July 1, based on the 52-week Treasury Bill on June 1, plus 3.1 percent.

Alternative Loan Programs. These loans are available if additional funds are needed over and above what you receive under the federal, state, and institutional financial aid programs.

Loan Code of Conduct