FAQs

1. What is the CCH FAFSA school code?

The CCH FAFSA school code is 014697. In order for CCH to receive a student’s FAFSA information submitted on www.fafsa.ed.gov, our school code must be added. to your FASFA.

2. Why is CCH switching to the Federal Direct Loan Program and what does this mean for me?

CCH is committed to providing all eligible students with the most stable financial aid funding available. Due to new Federal Legislation, the application process for Federal Student Loans has changed. Effective July 1, 2010, changes in federal legislation have eliminated the Federal Family Education Loan Program (FFELP). Thus, all students and parents will no longer be borrowing Federal Student Loans from banks (this legislation is only pertaining to Federal Loans, Private Educational Loans still come from banks). Per the changes in legislation, effective July 1, 2010, all Federal Student Loans (both the Subsidized Stafford Loan and the Unsubsidized Stafford Loan) and the Federal Parent PLUS Loan (Parent Loan for Undergraduate Students) will be administered under the William D. Ford Federal Direct Loan program and the U.S. Department of Education (DOE) will be lending the money directly to students and parents through the student’s school. The legislation also changed the names of the loans. The Federal Stafford Loans (Subsidized and Unsubsidized) are now called Direct Subsidized Loans and Direct Unsubsidized Loans. The Federal PLUS Loans are now Direct PLUS loans.

With funding provided by the DOE, the Federal Direct Loan program offers a stable funding source shielded from changes in the national economy. Federal Direct Loans will also provide students and parents a single point of contact for the management of loans. Your loans will never be sold to new lenders or servicers. For those borrowing Federal Direct Parent PLUS loans, interest rates will be slightly lower and credit assessments may be more lenient than those for previous loan programs.

3. How do Federal Direct Loans differ from the Federal Family Education Loan (FFEL) Program?

The primary difference between loan programs is the source of funding. All Federal Direct Loans are funded by the U.S. Department of Education, via the U.S. Treasury. Interest rates, fees and repayment options will be the same for all borrowers. In contrast, the FFEL program derived funds from various banks and private lending institutions, creating multiple points of contact and, at times, varying interest rates, fees and repayment options.

4. What are the benefits of the Federal Direct Loan Program?

The Federal Direct Loan Program offers:

• Stable funding. Because the program is backed by the U.S. Treasury, it is shielded from the volatility of the credit markets or from banks potentially withdrawing their participation.
• A lower interest rate for PLUS loans. Through Direct Lending, the interest rate drops from 8.5 to 7.9 percent. 
• An Upfront Origination Fee Rebate that encourages responsible borrowing and repayment. Upon repayment, you must make your first 12 monthly payments on time for the rebate to become permanent. 
• A simpler, streamlined process in which you are no longer required to select a lender or servicer. 
• No loan sales. Your loan(s) will never be sold. 
• A Public Service Loan Forgiveness program for students working full-time in low-income government and not-for-profit public service jobs.

5. Will there be any change to interest rates and fees under the Federal Direct Loan Program?

• Interest rates for Federal Direct Subsidized and Unsubsidized Stafford Loans will remain the same as those for FFEL Stafford loans. 
• The interest rate for Federal Direct Parent PLUS and Graduate PLUS Loans will drop from 8.5 to 7.9 percent. 

Please refer to the table below for a comparison of fees.

6. I am a continuing CCH student or the parent of a continuing CCH student. Will I be able to continue borrowing from the same FFEL lender I borrowed from last year?

No. If you wish to borrow a Federal Stafford or a Federal Parent PLUS loan at CCH you will be required to borrow through the Federal Direct Loan Program.

7. Where can I get more information about the Federal Direct Loan Program?

For more information about the Federal Direct Loan program, please visit www.studentloans.gov.

Applying for a Federal Direct Stafford Loan

1. How do I apply for a Federal Direct Stafford Loan?

The process is essentially the same as it was for FFEL loans. To apply for a Federal Direct Stafford Loan, you must apply for need-based financial aid by filing a Free Application for Federal Student Aid (FAFSA). Once your eligibility has been determined, the Financial Aid Office will send you an Estimated Financial Aid Award. If it indicates you are eligible for a Federal Direct Stafford Loan, you will need to meet with your Financial Aid Advisor to complete some additional steps to ensure proper receipt of your funds.

2. Will I need to complete a Federal Direct Stafford Loan Master Promissory Note (MPN)?

All borrowers must sign a Federal Direct Stafford MPN, even if they have signed an FFEL Stafford MPN previously. If you previously borrowed a Federal Direct Stafford Loan at another school, and your existing Federal Direct Stafford Loan MPN is not more than 10 years old, you will not be required to complete a new MPN.

3. When can I sign my Federal Direct Stafford Loan MPN? How will I be able to sign it?

New students will receive an electronic Estimated Financial Aid Award with information on their financial aid eligibility and instructions on completing the MPN online. Continuing CCH students will only need to sign the MPN once and are not required to sign a new one each academic year.

For your convenience, your MPN can be signed electronically at www.studentloans.gov. You will need the Personal Identification Number (PIN) issued to you by the Department of Education when you completed your FAFSA. If you have forgotten your PIN, you will be able to retrieve it through www.pin.ed.gov.

4. When will my funds be awarded?

All students are required to meet with their Financial Aid Advisor at the start of each academic year to sign their Estimated Financial Aid Award. With your signature, you authorize your advisor to award all of your funds.

5. How soon will funds be disbursed after I sign the MPN? How will I receive these funds?

If you are registered for classes and have met all other eligibility requirements, funds should be credited to your account after the add/drop period is over. You can monitor your CCH billing account on the portal at https://cchonline.columbiacollege.edu/ to verify when your loan funds are credited.

Applying for Federal Direct PLUS Loan

1. How do I apply for a Federal Direct PLUS Loan?

Parents of dependent undergraduates may apply for up to the full Cost of Attendance, less any other financial aid received, as determined by the Financial Aid Office. Plus loan borrowers may apply for Federal Direct Parent PLUS Loans with or without applying for need-based financial aid.

2. Will I need credit approval?

Yes, but you no longer need to select and contact a lender. Under the Direct Loan Program, the criteria for evaluating your credit history may be more lenient than under the previous FFEL program.

3. Will I need to complete a Federal Direct PLUS Loan Master Promissory Note (MPN)?

All borrowers must sign a Federal Direct PLUS MPN, even if they have signed an FFEL PLUS MPN previously. You will be able to sign your MPN after your loan has received credit approval. If you previously borrowed a Federal Direct PLUS Loan at another school, your existing Federal Direct PLUS Loan MPN is not more than 10 years old, and you were approved without an endorser, you will not be required to complete a new MPN.

4. When can I sign my Federal Direct PLUS Loan MPN? How will I be able to sign it?

Parents of dependent undergraduates who are new to the college or those who are taking out a Plus loan for the first time will need to sign the Plus MPN after the student receives their Estimated Financial Aid Award. Parents of undergraduates who are continuing students will only need to sign the MPN once and are not required to sign a new one each academic year. Although, a new credit decision for the parent applying for a Plus loan is required each time the parent takes out a new PLUS loan.

For your convenience, your MPN can be signed electronically at www.studentloans.gov. You will need the Personal Identification Number (PIN) issued to you by the Department of Education when you completed your FAFSA. If you have forgotten your PIN, or if you are a parent who did not file a FAFSA, you will be able to retrieve or obtain a PIN through www.pin.ed.gov.

5. How soon will funds be disbursed after I sign the MPN? How will I receive these funds?

If you are registered for classes and have met all other eligibility requirements, funds should be credited to your account after the add/drop period is over. You can monitor your CCH billing account on the portal at https://cchonline.columbiacollege.edu/ to verify when your loan funds are credited.

Entrance Loan Counseling

1. If I have already completed entrance loan counseling at CCH under the FFEL program, will I be required to complete it again for the Direct Loan Program?

Yes. CCH requires that all students complete a new entrance loan counseling under the Direct Loan Program.

2. If this is my first loan at CCH, will I be required to complete entrance loan counseling?

Yes. If you are a first-time borrower at CCH, you will need to complete entrance loan counseling. You will receive instructions on completing the entrance loan counseling with your estimated financial aid award.

Your Previous Loans

1. What happens to the loans I borrowed previously through other lenders? Will I have to repay multiple lenders/servicers?

Any previous federal loans you have borrowed will continue to be maintained by the lender(s) with whom you signed your Master Promissory Note, or by the current holder of the loan if it was sold by your lender. For a detailed record of your federal loans, visit the National Student Loan Database at www.nslds.ed.gov.

PLEASE NOTE: As a result of the national credit crisis, some of your previous federal loans may have been sold to the Department of Education Loan Purchase Program under the Ensuring Continued Access to Student Loans Act (ECASLA). ECASLA does not, however, permit lenders to sell all your outstanding loans to the federal government. Only those loans from 2008-09 and 2009-10 may be sold, so you may have multiple servicers for any previous loans.

The Department of Education has pledged to service all Federal Direct Loans and loans acquired under the Loan Purchase Program via a single Direct Loan Servicer.

After you graduate or cease to be enrolled at least half-time, you will have the option to consolidate all existing federal loans through the Federal Direct Loan Consolidation Program. Consolidation will allow all your federal loans to be maintained by one servicer. Be aware, however, that non-federal (private) loans may not be included in a Federal Consolidation Loan. For more information, please visit loanconsolidation.ed.gov.

2. Will the Stafford Loans I borrowed in previous years still be deferred now that CCH is changing its loan process?

Yes. Your loans from previous years will continue to be deferred as long as you are enrolled at least half-time in an approved course of study. CCH reports enrollment information electronically through the National Student Clearinghouse and will continue to do so.

It is your responsibility to notify your previous lender, the Direct Loan Servicer and the CCH Registrar’s Office of any changes to your anticipated graduation date, name or address.