Financial Aid
Loan Application Process
General Requirements/Regulations
- Eligibility: You must be a U.S. citizen or eligible non citizen.
- Your FAFSA results for the applicable financial aid year, 2008-09
or 2009-10, must be on file in the CTS Office of Financial Aid. Our
financial aid year begins in September and ends the following summer.
- Your CTS Financial Aid application must be submitted.
- You must be enrolled in a program at least half time in order to qualify for a Federal Stafford loan.
- You must maintain satisfactory academic progress for continued eligibility.
The Loan Application Process
Part 1- Complete, sign and return the Stafford Loan Award page enclosed
with your award letter which was sent to you. Remember to indicate the
amount you want to borrow and the lender of your choice on this page. Please do not attempt to apply through a lender website; doing so will delay the process.
- If you have been selected for verification, complete the Verification Worksheet: 2008-2009 or 2009-2010. Note: Your Student Aid Report will notify you if you have been selected. If you were not selected for verification (no notification given to you), then proceed to Part 2.
- If you have been selected for verification, you must also provide a
copy of your IRS form 1040, 1040A or 1040EZ for the previous tax year:
Tax Year 2007 for a 2008-09 loan, or Tax Year 2008 for a 2009-10 loan.
If your tax forms were prepared by a professional tax preparer, the
hand-written signature of the person (or the preparer's stamp or other
official validation) who prepared your 1040 is required. It is not
necessary to submit schedules, etc.
- Return the required items to the Office of Financial Aid. Your loan
can be processed only after you submit the required documents.
Part 2- If you are a first-time borrower at Concordia Theological Seminary, you must complete Entrance Counseling.
Keep a copy for your records. The Office of Financial Aid will receive
the results electronically. You need not submit a paper copy.
- If you are a first-time borrower at Concordia Theological Seminary,
or if you wish to change lenders, you must complete a Master Promissory
Note [MPN]. Keep a copy of it for your records. The Office of Financial
Aid does not need a copy. For instructions, see below: Choosing a Lender and Completing a Master Promissory Note.
Part 3- The Office of Financial Aid certifies your loan eligibility and transmits this information to the lender.
- The lender transmits your funds electronically to Concordia Theological Seminary.
- The seminary disburses the funds into your account.
- Funds left over after your bill is paid can be withdrawn and used for living expenses.
How Much to Borrow
The maximum that graduate students can borrow from the Federal
Stafford loan program is $20,500 per year - $8,500 subsidized and
$12,000 unsubsidized. In some cases, additional amounts can be borrowed
using a Graduate PLUS loan or an Alternative loan (based on
demonstrated need). In order to minimize the need to increase or
decrease your loan during the year, please use the Seminary Cost
Estimator and plan your needs as accurately as possible. Remember that
the amount you indicate on your Stafford Loan Award page represents the
amount you want to borrow for the entire financial aid year. The actual
disbursement of this amount will be added to your student account in
payments that are divided equally among the quarters that you are
attending school (at least half time status)--usually in thirds (Fall,
Winter and Spring). Please contact the Office of Financial Aid if you
plan to attend summer sessions and would like to receive a loan payment
for summer.
Understanding Your Loan Choices
Federal Stafford Subsidized Loan - The Federal
government pays the interest on your loan as long as you are enrolled
at least half time (six hours) in a term, or when you qualify for an
authorized deferment. Repayment is deferred during your vicarage or
deaconess internship year because it is a required part of your
program. Interest rate: 6.8%
Federal Stafford Unsubsidized Loan - You are
responsible for paying the interest while you are in school. Normally,
it is added to your principal balance through a process called
capitalization. Repayment is deferred during your vicarage or deaconess
internship year because it is a required part of your program.
Unsubsidized loans can replace EFC, so you are eligible for them even
if you have no demonstrated need. Interest rate: 6.8%
Graduate PLUS Loan - Your credit must be approved
by your lender. While these loans are available even after you have
reached the limit of your subsidized and unsubsidized borrowing, they
are still based on demonstrated need. Interest rate: 8.5%
Alternative Loans - These loans are also based on
demonstrated need. Since they are not guaranteed by the Federal
government, you may need a co-signer. The interest rate will vary,
depending on credit history.
The Loan Period
You may borrow for the academic year (Fall/Winter/Spring), for the
Summer term or for any combination of terms in which you attend classes
at least half time.
Loan Delivery Dates
| Term | Financial Aid Year 2008-09 | Financial Aid Year 2009-10 |
|---|
| Fall Quarter | September 8, 2008 | September 8, 2009 |
| Winter Quarter | December 1, 2008 | November 30, 2009 |
| Spring Quarter | March 9, 2009 | March 15, 2010 |
| Summer Quarter | June 1, 2009 | May 31, 2010 |
Choosing a Lender and Completing a Master Promissory Note for Stafford Loans
If you are a first-time borrower, we suggest that you choose one of
our preferred lenders for the smoothest and most efficient processing
of your loan. If you have used another lender for your previous student
loans, it may be advantageous to continue with that lender. We will be
happy to accommodate your preference. If you choose a lender that is
not set up to disburse your loan through the Electronic Loan Management
(ELM) network, your loan will be processed on paper and will require
about two weeks instead of the normal two days.
By clicking on this link, choosing a lender,
you will be directed to the FASTChoice website that will allow you to
compare the various lenders on our preferred list. You will also be
presented with more information about the borrowing process. You can
select the "Compare" option that allows you to see side by side the
borrower benefits of up to three lenders at a time. When you are ready
to select a lender, click on "Apply Now" to complete a Master
Promissory Note (MPN). You will need your FAFSA PIN to use as an
electronic signature. If you do not have a PIN, you can print and mail
a signature page to complete your MPN.
Choosing a Lender and Completing a Master Promissory Note for Grad PLUS Loans
If you have reached the limit of your Stafford Subsidized and
Unsubsidized loan eligibility, you may be able to borrow additional
funds through the Grad PLUS program depending upon your unmet need. We
suggest that you begin by visiting the Financial Aid Office to discuss
your need and how to proceed. Click here, choosing a lender,
to go to the FASTChoice website to compare the benefits offered by the
various lenders on our preferred list. Be sure to click on the "Grad
PLUS" tab to view the correct benefits. You will also need a new Master
Promissory Note (MPN). Your Grad PLUS loan cannot be processed with the
same MPN you received for your Stafford loans. At the FASTChoice
website (see link above) click on "Apply Now" to complete a Grad PLUS
MPN. Be sure that the display setting is tabbed for "Grad PLUS" rather
than "Stafford."
Borrower's Rights and Responsibilities
Please click here
to view the general terms and conditions of the Stafford loan program.
For a full list of borrower's rights and responsibilities, please see
your MPN.
Exit Counseling
Before you graduate, leave school (withdrawal or leave of absence),
or drop below half time status, you are required by regulations from
the Department of Education to complete Exit Counseling in order to
review your student loan responsibilities when you are no longer a full
time student. Normally, you would complete your exit counseling during
your last quarter of being a full time student here at the seminary (or
after you complete a delayed vicarage or deaconess internship). We have
made this convenient for you through FASTFacts Exit Counseling on the
web. Just click here
to complete your Exit Counseling online. You must log in with a
password or create a new user account. Your user account allows us to
know when you have completed your Exit Counseling exam. This is a
secure website. After completion you will get a written confirmation
with the same confirmation going to us. If you wish to receive a
listing of your student loans from the National Student Loan Data
Service or a copy of the Student's Guide to Repayment published by the
Department of Education, please contact the Office of Financial Aid. If
you have any questions, please contact our office and we will try to
assist you.
Repaying Your Loan
You will be required to begin loan repayment within six months after
you graduate, leave the seminary, or drop below halftime enrollment.
The usual repayment period is 10 years. Under a 10-year, "level
repayment" plan, for example, the monthly payment on a $10,000 loan,
with an interest rate of 6.8%, would be $115.08. The minimum monthly
repayment amount is $50, no matter how small the amount of the loan.
Many lenders offer flexible repayment options that allow student
borrowers to increase their payments gradually over time or tie the
size of their monthly payment to their income. You can learn more about
these options by contacting your lender. Your lender can also give you
information about student loan consolidation. This program also
generally allows you to extend the repayment period beyond 10 years.
If you experience economic hardship or other circumstances that
limit your ability to repay your loan, you may qualify for a deferment
or forbearance. A deferment allows eligible borrowers to postpone
payments for certain reasons for as long as they are enrolled on at
least a halftime basis in a post-secondary school, graduate fellowship,
or rehabilitation training program. Deferments of up to three years
also are available if borrowers are unemployed.
Borrowers who do not qualify for a government approved deferment can
request forbearance from their lender. Forbearance can delay or reduce
monthly payments. Usually, however, borrowers must still pay the
interest on their loans during the forbearance period.
Note: If you fail to repay your loan, you will be considered in
default. If this occurs, your credit rating will be damaged and you may
not be able to borrow in the future to pay for a car, a home or even to
continue your education. Your wages may be garnisheed and your federal
and state income tax refunds may be withheld; your loan may be sent to
a collection agency, and you will be liable for collection fees. Please
contact your lender if you begin to have trouble repaying your student
loans.