Loans

Financial Aid

Administration Building, Room 212

2200 Bonforte Blvd.

Pueblo, CO  81001-4901

Voice:  719-549-2753

Fax:  719-549-2088

Email:  financialaid@colostate-pueblo.edu

 

The U.S. Department of Education administers and oversees several loan programs designed to offer low-interest funding to students and their parents who need to borrow money to cover the costs of education - including Federal Direct subsidized and unsubsidized loans, Federal Direct PLUS loans, and Perkins loansThese federal loans have fixed interest rates, consumer protections, and flexible repayment options not available with any other loan program. 

Important Definitions

The following definitions may help you in understanding common terms associated with borrowing and student loans - 

  • Capitalization:  Adding interest that has accrued onto the principal balance. Subsequent interest then begins to accrue on the new principal. Capitalization occurs primarily with unsubsidized loans where the borrower has the option to pay on the interest while in school or have the interest capitalized when the loan goes into repayment.
  • Consolidation: Combining one’s loans by the process of selling and transferring all loans to one holder.
  • Default:  Status assigned to a loan when monthly payments are more that 270 days overdue. This status will significantly affect credit status and will make students ineligible for future Title IV funding.
  • Deferment:  Period of time (under specific conditions) to postpone repayment of student loans without cost or penalty.
  • Disbursement:  The release of loan funds to the school.
  • Entrance Counseling:  A requirement that must be completed prior to receive the first disbursement of a federal education loan.  Your rights, responsibilities, loan terms, and loan conditions will be reviewed.  This can be completed online.
  • Guarantee Agency:  A state or private non-profit agency that administers a student loan insurance program.
  • Guarantee Fee:  A fee charged for guaranteed student loans that is actually default insurance and is deducted from the loan amount.  This fee will not exceed 1%.
  • Forbearance:  Period of time when loan payments can temporarily cease due to hardship, but interest will continue to accrue. Most forbearances are granted at the discretion of the lender or service agency.
  • Grace Period:  Six to nine-month period from the date of graduation, withdrawal, or a drop below half-time status to the beginning of the repayment period.
  • Master Promissory Note:  A note that is good for 10 years at CSU –Pueblo from the time the note is signed. The amount of loan you borrow each year will be indicated on your award letter and each loan will require certification by our office.
  • Ombudsman Office:  An office created by the Department of Education to assist student loan borrowers to resolve loan disputes and problems. The Ombudsman Office may be contacted by:
  • Origination Fee:  This fee may be charged to borrowers by the lender. The lender is required to pay this fee to the federal government to help reduce the costs of the program. The percentage is determined by federal law.
  • Rehabilitation:  The process of bringing a loan out of default and removing the default notification from the credit report.
  • Repayment Options:  Loans are typically required to be repaid within 10 years; however, you may contact your loan servicer to inquire about other repayment options.
  • Servicer:  The entity designated to track and collects a loan on behalf of the lender.

Other (non-federal Title IV) Loan Programs

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