Loans

what are parent loans

What are loans?

Loans are a form of financial aid that must be repaid by the borrower. There are two types of Federal Loans: Direct Subsidized and/or Unsubsidized Loans, taken out by the student, and Direct PLUS Loans, taken out by the parent. 

Who is eligible?

In general, to receive a Federal Direct Loan, a student must:

  • be accepted to Christopher Newport University as a classified, degree-seeking student.
  • be enrolled at CNU on at least a half-time basis, meaning 6 credit hours.
  • make Satisfactory Academic Progress.
  • be a US citizen, permanent resident of the United States or its trust territories, or an eligible non-citizen.
  • not be in default on any student loan, or owe a refund on financial aid received while attending any institution.
  • have a valid Social Security Number.
  • be registered with the Selective Service if required.

How do I apply?

To receive a direct loan, students must follow these procedures:

  • Complete the Free Application for Federal Student Aid (FAFSA)    Students are encouraged to meet our Priority Consideration Date of March 1.
  • Upon receipt of your Financial Aid Award Letter, accept your loan awards by checking accept in the appropriate column, signing and returning your Award Letter to the financial aid office.
  • Complete the Entrance Counseling and Master Promissory Note (MPN) on line if you are a first time borrower at CNU. The MPN will provide you with the details of your loan, and is a legal, binding document.

To receive a parent loan, students and their parents must follow these procedures:

  • Complete the Free Application for Federal Student Aid (FAFSA)  Students are encouraged to meet our Priority Consideration Date of March 1.
  • Complete a Parent PLUS loan application, credit check and Master Promissory Note(MPN) online at studentloans.gov Parents must demonstrate credit-worthiness to receive a PLUS loan.  If a parent is denied a PLUS loan due to adverse credit, students may borrow additional funds.  Families in this situation should contact our office.

Federal Direct Subsidized Loans are available to students who, in addition to the criteria listed in Loan Process, demonstrate financial need. Under the Subsidized Stafford Loan program, interest is not charged on the loan:

Source: cnu.edu

Category: Credit

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