Federal and Private Loans Information

First-Time Borrowers

FIRST - TIME BORROWERS

Complete your Entrance Counseling and sign the Master Promissory Note to receive your federal loans! Please be prepared to offer at least two references with full names, unique addresses, and phone numbers. Entrance Counseling online is interactive, but we are not sent any of the answers - it looks like a test but don't worry, it's definitely not! Feel free to take notes. You'll want to know this information when you complete school and it's time to repay loans. Please note that new students are also required to attend the live session during Orientation.

If you are returning to school and would like to place existing loans in education deferment, please contact your loan servicer. Stafford loans for first-time students will automatically be placed on in-school deferment.

IMPORTANT: In-school deferment is available for PLUS loans, but not automatic. Please contact your loan servicer to request the paperwork - they will email you shortly after you finish your MPN.

To request a Parent PLUS loan, please visit studentaid.gov.

Parent PLUS Loan applications open April 1, 2023.

Current Student Borrowers

CURRENT STUDENT BORROWERS

You only need to complete an MPN and Entrance Counseling if you are returning from a leave of absence. If you are a contributor whose PLUS was denied last year but then approved with a cosigner, we will need you to turn in a new MPN. You will need to complete another Acceptance of Loans to accept, decline, or decrease a Stafford loan, and request a new PLUS loan for the upcoming year.

Stafford interest rates, fees, and limits

STAFFORD LOANS: INTEREST RATES, ORIGINATION FEES and LOAN LIMITS

Interest rates and loan fees are determined by the U.S. Congress. The interest rate for Direct Subsidized and Unsubsidized Loans borrowed between July 1, 2021 and June 30, 2022 is 3.73% and the interest rate for Direct Subsidized and Unsubsidized Loans borrowed between July 1, 2022 and June 30, 2023 is 4.99%. The interest rate for Direct Subsidized and Unsubsidized Loans borrowed between July 1, 2023 and June 30, 2024 is 5.50% The origination fee of 1.057% is in effect for loans first disbursed on or after October 1, 2020 and before October 1, 2021 and on or after October 1, 2021 and before October 1, 2022. The loan fee is automatically deducted proportionately from each disbursement by your lender, the Department of Education. The interest rate cap is 8.25%.

As of July 1, 2013, there is a lifetime limit on Subsidized Stafford Loans. New Borrowers, or borrowers with no outstanding Stafford loan balance, may receive Subsidized Stafford Loans for 150% of their program length (at Cornish, that means 6 years). As of July 1, 2021, the SULA limit no longer applies to loans disbursed after July 1, 2021. After this point, interest will begin to accrue. Students are encouraged to complete their declared program on a timely basis. Students transferring in and out of Cornish should pay close attention to this.

Click to see Loan Limits.

0-29 credits: 1st year Freshman

30-59: 2nd year Sophomore

60-89: 3rd year Junior

90+: 4th year Senior

PLUS interest rate and fee

PARENT PLUS LOANS: INTEREST RATES and ORIGINATION FEES

Starting July 1, 2023 to June 30, 2024 the interest rate will be 8.05%. The interest rate is variable annually on July 1.

The origination fee of 4.228 % is in effect for loans first disbursed on or after October 1, 2022 and before October 1, 2023. The loan fee is automatically deducted proportionately from each disbursement by your lender the Department of Education. The interest rate is capped at 10.5%.

If you were denied a PLUS loan

PARENT PLUS LOAN DENIAL

A credit check will be performed during the application process. If you have an adverse credit history, you might have been denied. You may still be able to get a PLUS loan if you do one or both of the following:

Obtain an endorser who does not have an adverse credit history. If you are a parent contributor borrower, the endorser cannot be the child on whose behalf you are borrowing.
Document to the satisfaction of US Department of Education, the extenuating circumstances that relate to your adverse credit history.

Once you have completed option 1 or 2 above, click on Parent Borrowers at PLUS Credit Counseling to complete mandatory credit counseling.

Private loan

PRIVATE LOANS

If you do not have alternative funding options, you could consider a Private Loan. Private loans are non-federal loans issued by a private lender such as a bank or credit union. They require a credit check, and normally require the student borrower to have a cosigner.

ALWAYS exercise caution when selecting private lenders, and read the fine print. We are unable to recommend private lenders, but if you have questions about terminology or terms, please feel free to ask us.

You may access a list of lenders selected by Cornish students in the last three years at ELMSelect.

Click on Program Type in the left margin and select Undergraduate.