Loans

Loans

Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education at a four-year college or university, community college, or trade, career, or technical school. Eligible students borrow directly from the U.S. Department of Education (the Department) at Coppin State University.

  • Student must be degree seeking.
  • Student must be attending at least half-time (Undergraduate = 6 credits; Graduate = 5 credits)
  • Amount and type of the award depends on the student's academic grade level and financial aid received respectfully.

Master Promissory Note

The Master Promissory Note (MPN) is the approved promissory note for Direct Subsidized, Unsubsidized, Perkins Loans, and PLUS loans for parent borrowers for all schools. The MPN is a legal document requiring a student/borrower to repay the funds borrowed under the Direct Loan Program. You can borrow additional Direct Loans on a single MPN for up to 10 years.

If required, you can complete this process online at studentloans.gov.

Entrance Counseling

All first time Direct Loan borrowers must complete entrance counseling before their loans can be disbursed. If required, you can complete this process online at studentloans.gov.

Types of Direct Loans

Federal Direct Subsidized Loan (Need Based) 
Federal Government pays the interest on these loans while you are attending school at least halftime, during grace periods, and deferments. Student must demonstrate financial need to receive this type of loan. (First time Coppin borrowers must attend an entrance interview session. Students graduating, withdrawing or falling below half time status must attend an exit interview session. Student must sign a promissory note.) Repayment begins six months after student ceases to attend at least half time.

Federal Direct Unsubsidized Loan (Non-need Based)
Federal Government does not pay interest on these loans while you are attending school, during grace periods and deferments. Student does not have to show financial need. Loan amount cannot exceed the cost of attendance. (First time borrowers must attend an entrance interview session. Students graduating, withdrawing, or failing below half-time status must attend an exit interview session. Student must sign a promissory note.) Repayment begins 30 days after receipt of the loan unless you receive a deferment. If you receive a deferment, the interest will be capitalized (added to the principal amount of your loan and additional interest will be based upon the higher amount).

  • Federal Perkins Loan
  • Low interest Rate: (5%).
  • Repayment begins nine months (grace period) after a student ceases to be enrolled on at least a half time bases.
  • Students must show financial need to receive this loan.
  • Student must be degree seeking.
  • Must attend at least half-time.
  • No interest accumulates until the end of the grace period.
  • A maximum ten-year repayment period is allowed.
  • Minimum monthly payment is $40 per month.
  • Maximum award of $1500 per year.
  • Minimum monthly payment is $50 per month.

Federal Direct Parent Loan for Undergraduate Students (PLUS)
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child's education expenses as long as certain eligibility requirements are met.

To be eligible for a Direct PLUS Loan for Parents:

  • The parent borrower must be the student's biological or adoptive parent. In some cases, the student's stepparent may be eligible.
  • The student must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan Programsm. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional degree student, or a ward of the court.
  • The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the parent may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so. The parent may also still receive a loan if he or she can demonstrate extenuating circumstances.
  • The student and parent must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the federal student aid programs.

How does a parent get a loan?
For a Direct PLUS Loan, the parent must complete a Direct PLUS Loan Application and Master Promissory Note (MPN). The MPN is a legal document in which the borrower promises to repay the loan and any accrued interest and fees to the Department. It also explains the terms and conditions of the loan. In most cases, one MPN can be used for loans that a parent receives over multiple academic years although a separate Loan Request must be filed for each school year. If the parent previously signed an MPN to receive an FFEL PLUS loan, he or she will need to sign a new MPN for a Direct PLUS Loan. You can complete this process online at studentloans.gov.

** Complete PLUS Request Process and Sign Master Promissory Note (MPN)