Loans

A variety of loans are available to assist in paying for college. The first step in applying for loans is to apply for financial aid by completing the Free Application for Federal Student Aid (www.fafsa.ed.gov) and the CSB/SJU Financial Aid Application (available online at www.csbsju.edu/financialaid.) After applying, the Financial Aid Office will send an award letter which will indicate the loan options available to you.

The terms of the loans listed below are as of July 1, 2009. These are subject to change based on federal or state legistive action or private lender decisions. The financial aid section of the web page (www.csbsju.edu/financialaid) contains the most recent interest rates and loan terms.

Federal Student Loan Programs

Federal Perkins Loan
  • Based on financial need and awarded to students demonstrating greatest need
  • 5% fixed interest rate
  • Interest-free while enrolled at least half-time
  • Repayment begins nine months after student is no longer enrolled at least half-time 
Subsidized Stafford Loans
  • Based on financial need
  • 5.6% fixed interest rate
  • Interest-free while enrolled at least half-time
  • Repayment begins six months after student is no longer enrolled at least half-time
  • 1.5% origination fee; however, a 1% interest rate rebate reduces this fee to 0.5%. Once repayment begins, you must make 12 on-time monthly payments to retain this benefit.

Unsubsidized Stafford Loans

  • 6.8% fixed interest rate
  • Interest accrues while student is enrolled. (Student is encouraged but not required to pay interest while in school.)
  • Repayment begins six months after student is no longer enrolled at least half-time
  • 1.5% origination fee; however, a 1% interest rebate reduces this fee to 0.5%. Once repayment begins, you must make 12 on-time montly payments to retain this benefit.

Additional Loan Options

Federal PLUS Loan (Parent Loan for Undergraduate Students)

  • Parent is borrower
  • Loan approval based on credit review
  • 7.9% fixed interest rate
  • 4% fee; however, a 1.5% interest rebate reduces this fee to 2.5%. Once repayment begins, you must make 12 on-time monthly payments to retain this benefit.
  • Parent may borrow up to the cost of attendance less all other aid
  • Repayment begins 60 days after loan is fully disbursed. Borrower may request deferment of repayment while student is enrolled at least half-time.

SELF Loan (Student Educational Loan Fund)

  • Variable interest rate adjusted quarterly
  • Credit-worthy cosigner required
  • $7,500 annual maximum
  • Quarterly interest payments required while enrolled
  • Principal repayment begins a year after student is no longer enrolled at least half-time

DEAL Loan (Dakota Education Alternative Loan)

  • Borrower chooses between a fixed or variable interest rate
  • Fees of 2% are deducted from the amount borrowed
  • Credit-worthy cosigner required
  • Interest accrues while student is enrolled. (Students are encouraged but not required to pay interest while in school.)
  • Student may borrow up to the cost of attendance less all other aid
  • Repayment begins six months after student is no longer enrolled at least half-time

Private Loan Options (Wells Fargo, U.S. Bank, Sallie Mae)

  • Credit-worthy cosigner required
  • Variable interest rate determined by cosigner's credit rating
  • Depending on lender, and the cosigner's credit, fees may be deducted.