Borrow Smart to Invest in Your Future

Student loans can be a valuable resource to help bridge the gap between your financial aid package and the total cost of attendance. When used responsibly, loans are an investment in your education and future earning potential.

At Cheyney University, we encourage students to exhaust all grant and scholarship options first, then consider loans as part of a balanced financial plan. All students must complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal student loans.

There are several types of loans available to help you cover educational costs, each with different terms, interest rates, and repayment requirements. The most common options include federal student loans and private loans offered through banks or other lenders.

Federal Loans

Loans are funds that you must repay. Federal loans are funded by the U.S. Department of Education and typically offer lower interest rates and flexible repayment options compared to private loans.

Federal Loan Programs offer a secure, government-regulated and reasonably affordable way to invest in yourself and your goal of a higher education. Even though some loans are based on financial need, there are programs available to all federally eligible students regardless of income.

Direct Loans

Federal Direct Student Loans (Subsidized and/or Unsubsidized) are federally supported, low-interest student loans with flexible repayment options. Subsidized loans are offered to students who are eligible on the basis of calculated financial eligibility, while unsubsidized loans are available even for those who do not qualify for need-based financial aid. Students must be enrolled for at least 6 credits (half time status) of enrollment to be eligible for a federal loans.

Direct Loans are the most common federal student loans and come in two types:

• Subsidized Loans – Based on financial need. The federal government pays the interest while you’re enrolled at least half-time, during the grace period, and during any deferment periods.

• Unsubsidized Loans – Not based on financial need. You’re responsible for all interest that accrues, even while you’re in school.

In order to receive loan funds, you must complete the following steps:

1. Complete the FAFSA
   Submit the Free Application for Federal Student Aid (FAFSA) each school year to determine your loan eligibility.

2. Review Your Award Offer
   After your FAFSA is processed, you’ll receive an Award Letter Notification. Cheyney will list the Federal Direct Loans you qualify for in your financial aid offer.

3. Accept or Decline Your Loans
   Log in to your CU Experience Portal to view your offer and accept or decline your loans.

4. Complete Entrance Counseling
   Visit Studentaid.gov to complete Entrance Counseling—a short session required the first time you borrow at Cheyney University.

5. Sign the Master Promissory Note (MPN)
   Complete your MPN for Undergraduates at Studentaid.gov. This is your legal agreement to repay your loans.

6. Maintain Half-Time Enrollment
   Loan funds are disbursed only if you’re enrolled at least half-time each semester.

Important to remember: Changing enrollment to less than full-time may cause changes in your financial aid offer. 

Also, your loan information will also be available through the National Student Loan Data System (NSLDS).  All loan information will be submitted to NSLDS and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. 

Please note that Cheyney University partners with Student Connections for default prevention services, and you may use them as a resource in managing your student loan debt as well.  

PLUS Loans

Federal Direct Parent Loan for Undergraduate Students (PLUS) is a federally funded loan available for parents to borrow on behalf of their dependent students to help finance their college education. The parent borrower must be the dependent student’s biological or adoptive parent. A stepparent is also eligible to borrow a PLUS Loan only if their income and assets were used on the student’s Free Application for Federal Student Aid in the academic year that loan is being requested.

Students must complete the FAFSA before a PLUS loan can be certified. Students must file the FAFSA as a dependent student. Parents must pass a credit check to be eligible for this loan. Generally, repayment begins within 60 days after the final loan disbursement is made to the borrower. If parents do not pass the credit check, the student can qualify for additional unsubsidized loan funds. Please see the Office of SFS for more information.
In order to receive loan funds, the parent must complete the following steps: 

• Complete the PLUS application online and a Master Promissory Note for Parents via the https://studentaid.gov/plus-app/parent/landing site. 
• Parents can access loan information through the National Student Loan Data System (NSLDS).  All loan information will be submitted to NSLDS and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system. 

Private Education Loans

Private Education Loans, also known as Alternative Loans, are credit-based loans that can help bridge the gap between the actual cost of your education and the amount of your other financial aid funds. Private loans are are credit-based loans that can be applied for through individual banks or lending institutions. Download more information about Private Education Loans here.

Being approved for a Private Loan depends largely upon the credit score of the borrower (and co-signer). With the continuation of tightened credit markets, the belief is that most students applying for Private Loans will need co-signers on the application in order to get approved. The interest rate, terms, and conditions vary among lenders and applicants must meet the lender’s credit requirements. While the rates and repayment terms on Private Loans typically aren’t as solid as those offered on the various federal student loans, potentially using Private Loans are often a wiser financial decision to “bridge the gap” than using credit cards or home equity lines of credit. However, it is ultimately the responsibility and choice of the borrower (and co-signer) to make the best personal financial decision.

How to Apply

Step 1: Visit: ELMSelect  to begin your search for a Private educational loan.

Step 2: Before getting to the private loan application, you will be required to read and answer questions related to borrowing a private loan.

Step 3: Complete the online application by reviewing the Loan Product Summaries and choosing your preferred Lender by clicking the “apply” button associated with your choice.

Step 4: After your application has been submitted to your lender, if you are approved, Cheyney University will receive notification and complete the school certification.

Step 5: Before the loan can be disbursed, you must complete the private loan disclosure process, which includes completing the private loan self-certification form and returning it to the lender. The entire private educational loan process, from application to disbursement, takes a minimum of 60 days.

Please note the following institutional information pertaining to private loan borrowing:

The following equation is used to determine alternative loan eligibility:

• Cost of Attendance (COA) minus all aid awarded equals maximum private loan eligibility.
• Example: A student might request $18,000, but the student might only have a COA of $13,000. The student would only be eligible for $13,000 (if no other aid was awarded).

Here are  some additional resources to help you make the best decision before you borrow.