Numerous types of loans for college students and parents are available. To be considered for the following loans, you must file a Free Application for Financial Student Aid (FAFSA) each year.
Federal Direct Stafford Loans
Stafford Loans are offered through the Federal government. There are two types of Stafford Loans offered: Subsidized and Unsubsidized.
Important Loan Processing Tips
Loans are disbursed half in each semester. You can reduce or cancel a disbursement of a loan at any time before the loan is received.
Contact the College to review loan options and processes early in the summer to avoid late disbursements.
- First-time borrowers must complete the Master Promissory Note online at studentaid.gov and loan entrance counseling at studentaid.gov. A paper MPN and rights and responsibilities may be requested through the financial aid office.
- Students will sign one promissory note that will be used for all of their Direct Loans at Central. By using the MPN, students will not need to sign and submit a separate promissory note for each new loan. The MPN covers both the Federal Direct Subsidized Loan and the Federal Direct Unsubsidized Loan. The amount of each loan the student is eligible for is included on his/her award letter
Who Do I Contact About Stafford loans?
Please email Donna Newendorp or call 641-628-5187.
Federal Direct Parent Loan for Undergraduate Students (PLUS)
Federal Direct Parent Loans are not awarded as part of a student’s financial aid award
Parents of all income levels are eligible, a credit check is completed by the Federal Direct Loan Servicer.
Parents need to complete the following steps:
- Step 1: All New and Previous parent borrowers will need to complete a PLUS loan application at studentaid.gov.
- Step 2: Complete the Parent Plus Master Promissory note online for New Borrowers at studentaid.gov. You only have to fill out the Master Promissory Note the first time you borrow a PLUS loan for your student.
Interest-Free Monthly Payment Plan (Optional)
A monthly, interest-free payment option is available. This plan provides the option to spread the payments to Central over a 10 month period. Download the monthly payment plan form or contact the student accounts office for details. The application is due June 14.
Entrance and Exit Loan Counseling
Entrance counseling information is provided to Federal Perkins Loan borrowers and William D. Ford Federal Direct Stafford Loan borrowers before any loan funds can be disbursed. Notification to complete the counseling is made through email with instructions on how to access the online, interactive counseling.
William D. Ford Federal Direct Stafford Loan borrowers are directed to complete entrance counseling online at studentaid.gov.
Exit counseling information is provided to Federal Perkins Loan borrowers and William D. Ford Federal Direct Stafford Loan borrowers shortly before the student ceases at least part-time enrollment at the Central College. Notification to complete the counseling is made through email with instructions on how to access the online, interactive counseling.
William D. Ford Federal Direct Stafford Loan borrowers are directed to complete exit counseling online at studentaid.gov.
When a borrower ceases enrollment without the institution’s prior knowledge or fails to complete the counseling as required, exit counseling information will be mailed to the borrower’s last known address.