Loans

Loans are often included in the financial assistance award package. Loans allow students to defer the cost of their education by borrowing now and paying later. Cumberland University is a borrower-based institution.

Federal Direct Stafford Loans allow students to borrow money for college tuition and expenses. Subsidized Stafford Loans are awarded to eligible students, and no interest accrues while the student is enrolled at least half time. Unsubsidized loans are given to students who do not meet the need-based criteria, and interest accrues while the student is in school.

The Federal Direct Parent Loan for Undergraduate Students (PLUS) a loan available to parents with dependent children in college. Eligibility is not based on need but a credit check is required. Parents may borrow the cost of attendance minus any other financial aid received. Payment on the interest and principal usually begins within 60 days after the disbursement of the loan.

Federal Perkins Loans formerly National Direct Student Loans, are low-interest (5%) loans available to undergraduate students who demonstrate financial need. Repayment and interest charges begin after the student drops below half-time status. All Perkins Loan recipients must participate in an exit interview if they do not plan to return to Cumberland University the following academic year. Pell Grant recipients receive priority in Perkins Loan awards.

Alternative Loans are available for students from a number of different lenders. These loans generally do not require the completion of the Free Application for Federal Student Aid (FAFSA). They may be based upon ability to repay and may carry a higher rate of interest than Federal Direct Stafford Loan Program.