Graduate Bulletin - Central Michigan University

46 Central Michigan University
Continuing at CMU after aid is denied
Students denied financial aid generally may continue attending
Central Michigan University using private aid sources such as alternative
student loans (http://www.cmich.edu/x29381.xml#ALTL),
or by funding their education themselves. Please note that on
the alternative loan list, some loans listed are NOT available to
students on Financial Aid Suspension.
Student Loans
Student loan requirements and regulations can be quite complex;
all students are encouraged to work closely with the CMU
Office of Scholarships and Financial Aid. The financial aid office
has publications that provide detailed information on loan programs,
and financial aid advisors are available to answer questions and
offer information and advice concerning student loans. Financial
aid advisors are available on a walk-in basis in the Student Service
Court in the Bovee UC or by appointment in Warriner 202.
The total amount of all loans borrowed may not exceed the
student’s estimated cost of attendance minus the financial aid
awarded for the period of enrollment.
William D. Ford Federal Direct Loan Program
(Subsidized Loans)
Subsidized loans are made to students by the federal government
and applied directly to the student's accounts. These loans
are based on need, and eligibility is determined by the OSFA. All
applicants must file a FAFSA. Loan applications are not required.
CMU will initiate processing unless the student declines the suggested
Federal Direct Loan on the award statement.
The aggregate maximum for undergraduate study is $31,000
for a dependent student and $57,500 for an independent student.
Graduate students making satisfactory progress who carry at
least five (5) semester hours may borrow up to $8,500 per year
in a subsidized Federal Direct Loan and up to $12,000 in an
unsubsidized Federal Direct Loan. The aggregate maximum for
undergraduate and graduate study combined is $138,500. No
more than $65,500 of this aggregate amount may be in the form
of subsidized loans. Application is usually made for one semester
or an academic year (9 months), with summer school requiring
a separate award.
The interest rate for a graduate Federal Direct subsidized loan
is fixed at 6.8%. Student borrowers are assessed a 1.0% origination
fee prior to loan disbursement.
Six months after ceasing to be at least a half-time student,
the borrower must begin repayment. Several repayment options
are available; contact the federal servicer. Payment of principal
may be deferred under certain conditions. Students should refer
to their promissory notes for details.
Unsubsidized Student Loans
Provisions are the same as the Federal Direct Subsidized Loans,
except that the loan is not based on need. The program is open
to students who do not qualify for the Federal Direct Subsidized
Loans or who do not qualify for the full amount. The student is
responsible for the interest that accrues while he/she is in school.
Graduate students may borrow up to $12,000 per academic year
in an unsubsidized loan. The interest rate is fixed at 6.8%
Loan Counseling
Entrance Interviews: Students who have applied for a Federal
Direct Student Loan as a first-time borrower are required by federal
regulations to complete an entrance interview before their loan
funds may be applied to their accounts. Important information on
loans, debt management, repayment options and consequences
of default will be presented. Information regarding this mandatory
session is enclosed with the student’s award package.
Exit Interviews: Students who receive a Federal Direct Loan
are required by federal regulations to complete a loan interview
before graduating or withdrawing from the university. Important
information regarding deferment and payment schedules will be
discussed. Students are contacted electronically to complete
on-line exit counseling. Exit counseling materials will be mailed
to students who fail to complete on-line exit counseling within 30
days of notification. During exit counseling CMU is required to
obtain the following information from the borrower:
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expected permanent address
name and address of the borrower’s expected employer
address of the borrower’s next of kin
any corrections to CMU’s records concerning name, address, social
security number, references, and driver’s license number
For Federal Direct loans, CMU is required to provide the
above information to the federal servicer within 60 days of the
exit counseling completion.
Federal Graduate PLUS Loan
This program is for students in graduate level programs only.
Students must file the FAFSA, be enrolled at least half-time, and
receive all subsidized and unsubsidized loan eligibility before a
PLUS loan can be disbursed. This loan is a non-need loan for
students with good credit histories. Applicants may borrow up to
the cost of attendance minus the financial assistance. Students
will receive an automatic deferment while enrolled at least halftime.
The Graduate PLUS is not a subsidized loan; consequently
interest will accrue. The interest rate is 7.9%. Students may
complete a Graduate PLUS Loan Application available online at:
http://financialaid.cmich.edu.
Student Employment Opportunities
Internships and Co-op Opportunities
CMU encourages internship and co-op experiences for graduate
students. By definition, an internship is a requirement of a student's
program of study, while a co-op experience enhances but is not
required for the program. Both require that the student perform
services related to the student's area of study. The service is generally
provided to an agency or business outside of CMU's control,
and pay levels generally reflect the graduate student's advanced
standing. For information on internship or co-op opportunities,
students should contact their academic department.
CMU Student Employment Programs
During the academic year, there is no limit on the number of
hours per week that a student may work (international students
may work only 20 per week during the academic year). However,
students are here primarily to complete their degree program and
often work to help cover the associated expenses. The need for
some students to be employed for a greater number of hours
should not compromise their progress toward the fulfillment of
their degree requirements. During periods of non-enrollment
(summer, spring break, semester break), students may work up
to forty hours a week.
Work Study. CMU participates in the Federal College Work
Study (FWS) Program. This program requires that the student be
enrolled in at least 5 credits in a graduate program of study.
Eligibility is based on financial need. Therefore, to qualify for
work study, students must demonstrate financial need by completing
the FAFSA form and if requested, by submitting verification
materials (e.g., income tax returns) to the Office of Scholarships
and Financial Aid. Contact the financial aid office for more specific
information.