Federal Direct Loan Programs
Colorado Chinese Medicine University (CCMU) is certified by the U.S. Department of Education to participate in federal Title IV student aid programs, including Direct Loans and Graduate PLUS Loans. These loan programs provide financial support for eligible students pursuing graduate-level education.
Overview of Direct Loans and PLUS Loans
Direct Loans are federal student loans available to eligible students who complete the Free Application for Federal Student Aid (FAFSA) and meet enrollment and academic progress requirements. Interest on unsubsidized Direct Loans accrues from the disbursement date, and repayment typically begins following a six (6)-month grace period after graduation or withdrawal.
Graduate PLUS Loans (also called Grad PLUS) are federal loans available to graduate students. These loans are not based on financial need but do require a credit check. Graduate PLUS Loans carry a fixed interest rate and federal guarantee.
What You Should Know About Taking Out Student Loans
There are a couple of requirements that you must meet to be eligible for student loans.
- You must stay at a satisfactory level. At CCMU satisfactory is considered at or above 2.0 or C-.
- You must be enrolled at least half-time in the program; six (6) credit hours a week minimum.
Direct Loan Program
Six (6) month grace period after leaving school. Interest accrues on unsubsidized Direct Loans from the disbursement date. Repayment begins after your grace period upon graduating from CCMU. Repayment is required regardless of the educational outcome and subsequent employability.
Graduate PLUS Loan or GradPLUS Loan
A fixed interest rate student loan guaranteed by the U.S. Government. The Grad PLUS loan is not need based but is a credit based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee.
Master Promissory Note
In order to take out a student loan, you must sign a Master Promissory Note. By signing this form you promise to pay back your student loans in accordance with the terms of that note. The note is a binding legal document that states that you must repay your student loan in full.
Drop Policy
If you drop below six (6) classroom hours a week or drop completely from the program before you have completed 61% of the trimester, the money that you have taken out in loans will be returned and you will be responsible for paying all tuition and fees directly back to CCMU for the trimester.
Default
Typically, payments are considered in default after 270 days without payment. Lenders are entitled to all legal means necessary for debt recovery. This can include wage withholding (garnishing wages), withholding tax refunds, and even confiscation of collateral if any is attached to the loan. Defaulting on a government loan can eliminate future federal financial aid and will negatively affect credit rating.
Preventing Default
Notify the holder of your loan immediately if you find you are unable to make payments. Your lender wants to help you avoid default and will work with you to solve problems. The program has alternatives to offer borrowers that prevent defaults.
Keep Your Loan Records
It is very important that you keep all of your loan records, make sure to file away all of your loan related paperwork and save it throughout the duration of your loan and repayment period. You are responsible for keeping copies of all your records.
Exit Counseling
Exit counseling is designed to provide borrowers with information regarding the repayment of student loans including descriptions of the various repayment plans and the borrowers’ rights and responsibilities. Exit counseling can be completed in-person with the Financial Aid Administrator or online at www.studentaid.gov.
For more comprehensive information please contact the Financial Aid Administrator.
