Carson-Newman University processes Federal Stafford, Federal PLUS, Grad PLUS loans through the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education. Carson-Newman also participates in the Federal Perkins Loan Program.
William D. Ford Federal Direct Stafford & Grad PLUS Loans
Current Borrowers of the William D. Ford Direct Student Loan Program (Stafford/GradPLUS) at Carson-Newman will need to make sure that they continue to accept loans through your C-N Connect account for the current award year. Completing the entrance counseling and master promissory note (MPN) will not be required again as long as you remain enrolled and your MPN is still valid. Should you wish to request a lower amount of Direct Stafford Loan, please contact us.
Graduate Borrowers: Beginning July 1, 2012 graduate students will no longer be eligible for subsidies in the William D. Ford Direct Loan Program due to federal regulatory changes removing subsidies for graduate students.
New Borrowers of the William D. Ford Direct Student Loan Program (Stafford/GradPLUS) at Carson-Newman must complete the following through the StudentLoans.gov website after being awarded this type of loan(s):
- Complete an Entrance Counseling Session to review your rights and responsibilities under the federal loan programs. If you completed this for another college, you must complete this counseling session again. You will need your FAFSA PIN number and your Driver's License. Plan at least 30 minutes for completion of the process.
- You will then have to complete a Master Promissory Note for the Direct Loan program before the Department of Education will electronically disburse your funds to Carson-Newman College.
Note: If you will borrow from BOTH the Stafford and Grad PLUS programs, you will need to complete a separate MPN for each loan program.
Student Loan Consolidation- Under provisions of the Ensuring Continued Access to Student Loans Act ("ECASLA") , lenders have the option to "PUT" (sell) loans to the U.S. Department of Education (DOE). Lenders must notify borrowers if their loans have been sold to the Department of Education.
- Currently enrolled students with Federal Stafford, GradPLUS or PLUS loans should pay particular attention to the option to consolidate all of their prior federal loans into a Federal Direct Consolidation Loan between July 1, 2010 and June 30, 2011.
- A Consolidation Loan allows you to combine all the federal student loans you received to finance your college education into a single loan. Borrowers will be able to consolidate all of their prior Stafford, Grad PLUS or PLUS Loans through the Federal Direct Consolidation Program.
William D. Ford Direct Parent Loan for Undergraduate Students (PLUS)
Parent Borrowers through the Parent Loan for Undergraduate Students (PLUS) should apply for the PLUS loan from July 1st through August 20th preceeding the fall semester for timely disbursement of funds to the student's account. Parents should also list the loan period as August- May dates (if student will be enrolled for the academic year; applying for one term, such as fall only, is not recommended as adverse credit could occur within six months or less, affecting the ability to borrow for the spring term.) Carson-Newman does not pre-award PLUS proceeds until we have confirmation that you have been approved. We will automatically receive the results of your credit decision and will process accordingly. Please respond to any additional paperwork requested, so not to delay processing. If you are denied a Parent PLUS loan, your student will be reivewed for additional Federal Direct Unsubsidized Stafford Loan eligibility. Parents will apply for the PLUS loan through the StudentLoans.gov website.
Federal Perkins Loan
New & Current Borrowers of the Federal Perkins Loan will need to complete an updated reference form and entrance counseling. This information will be available in the Office of Financial Assistance from August 15-September 13. Please be sure to stop by our office located in the Butler Hall Welcome Center so that your loan may be disbursed as scheduled September 14th for the fall semester
As always, if you need assistance, or have additional questions, please contact the Office of Financial Assistance.