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 as of May 1 each year.

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 interest rate for Direct Subsidized and Unsubsidized Loans borrowed between July 1, 2024 and June 30, 2025 is 6.533%. The origination fee of 1.057% is in effect for loans first disbursed on or after October 1, 2024 and before October 1, 2025. 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

Direct Subsidized Loans: Direct Subsidized Loans are available to undergraduate students with financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you’re in school at least half-time, for the first six months after you leave school, and during a period of deferment.

Direct Unsubsidized Loans: Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.

PLUS interest rate and fee

PARENT PLUS LOANS: INTEREST RATES and ORIGINATION FEES

Starting July 1, 2024 to June 30, 2025 the interest rate will be 9.083%. 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, 2024 and before October 1, 2025. 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.

Cornish College of the Arts Code of Conduct for Education Loans

CCA will certify private educational loans for CCA students from any lender selected by the student, except where the lender asks us to perform in a manner inconsistent with law.

1. The lender requires certification by the school or notifies the school of each approved loan prior to disbursement so that Financial Aid can appropriately account for the loan in a student financial aid package.

2. The lender offers competitive and reasonable interest rates, fees, repayment terms, and/or borrower benefits and the amount borrowed does not exceed borrower's unmet cost.

3. The lender participates in Education Loan Management (ELM) and agrees to approve loans prior to posting the loan for certification on ELM.

4. The lender disburses funds by check or EFT to Cornish College, rather than directly to the student except in special cases where the lender notifies CCA specifically that the loan has been/is being disbursed to the student. Exceptions are considered only when the lender agrees to and complies with item 1 above.

5. A lender may be dropped from the Private loan lender list if the above conditions are not maintained, unethical or deceptive practices occur, or origination, processing, or servicing concerns arise that cannot be resolved satisfactorily between the lender and Financial Aid.

6. New lenders may be added to the lender list when the new lender has submitted an RFP that has been reviewed and approved by Financial Aid. New lender product(s) can only be added to the lender list when approved by Financial Aid.

7. Cornish College retains the right to adjust the lender list at any time and to select lenders that Financial Aid believes to provide a reasonable, competitive product from a company that operates in a legal, ethical and cooperative manner.

Cornish College of the Arts has adopted this Student Loan Code of Conduct to serve as the formal guiding principles in insuring the integrity of the student aid process and ethical conduct of employees in regard to student loan practices.

The Student Loan Code of Conduct applies to all employees who work in the Office of Financial Aid and all other Cornish College employees, including agents of the university, who have responsibilities related to educational loans or other forms of student financial aid. The Student Loan Code of Conduct has been established to meet the requirements contained in the 2008 Higher Education Opportunity Act. Items in this Code of Conduct provide additional standards of conduct for employees with responsibility for student financial aid and do not replace any existing or future requirements imposed by the State of Washington or Cornish College of the Arts related to codes of conduct, conflict of interest policies, ethics training, or other such requirements.

The Student Loan Code of Conduct also confirms that Cornish College does not have preferred lender arrangements of any kind or a preferred lender list.

Revenue Sharing—Cornish College and its employees will not enter into any type of revenue-sharing arrangement with any lender, guarantor, or servicer.
Gifts—Employees of the Office of Financial Aid are prohibited from soliciting or accepting any gift from a lender, guarantor, or servicer of education loans. Gifts include any gratuity, favor, discount, entertainment, hospitality, loan, or other item. This includes a gift of services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has incurred. Gifts to family members of a CCA employee are considered to be a gift to the employee if the gift is given with the knowledge and consent of the employee and there is reason to believe the gift was given because of the official position of that employee.
Contracting Arrangements—Employees of the Office of Financial Aid shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including opportunity to purchase stock) as compensation for any consulting arrangement or other contract to provide services to a lender or on behalf of a lender relating to education loans.
Preferred Lender Status—Cornish College participates in the William D. Ford Federal Direct Loan Program, which provides student and parent loans through the U.S. Department of Education. Lenders in the private student loan industry will not be given a preferred status. CCA does not have any preferred lender arrangements that give any lender an advantage in securing business from our students. CCA does not provide students a preferred lender list from which to select a lender for a private student loan. All loans are processed without regard to lender or mode of transmission (i.e., electronic or paper). CCA will neither recommend a private loan lender nor accept material benefits including revenue or profit sharing to the institution, an officer, or an employee of the institution or an agent.
Private Loan Certification—Cornish College will not assign a borrower’s private student loan to a particular lender; all decisions will be made by the borrower in his or her independent review of borrower benefits and lender services. CCA will not refuse to certify or delay certification of any loan based on the borrower’s selection of a particular lender or guaranty agency.
Opportunity Pool Loan—Cornish College will not request or accept from any lender any offer of funds to be used for private education loans (as defined in section 140 of the Truth in Lending Act), including funds for an opportunity pool loan to students in exchange for CCA providing concessions or promises regarding providing the lender with (i) a specified number of federal loans made, insured or guaranteed; (ii) a specified federal loan volume; or (iii) a preferred lender arrangement for such loans.
Staffing Assistance—CCA will not request or accept from any lender, guarantor, or servicer of student loans any assistance with call center staffing or financial aid office staffing.
Advisory Board Compensation—Employees of the Office of Financial Aid who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors are prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.