General Requirements/Regulations

• Eligibility: You must be a U.S. citizen or eligible non citizen.
• Your FAFSA results for the applicable financial aid year, 2007-08 or 2008-09, 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

• 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: 2007-08 or 2008-09. 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 2006 for a 2007-08 loan, or Tax Year 2007 for a 2008-09 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.

• 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.

• 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. These loans are available through one of our preferred lenders, Citibank.

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

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, regardless of how small the loan is.

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.