Student Loan Information

Student Loans

Pursuing a college education is a great investment in your future. The time, money and effort you spend on your education will provide you with opportunities for expanded career choices and greater earning potential. Although financing your education may seem overwhelming at times, many types of financial aid are available.

Federal Student Loans

Due to a change in federal law, all Federal Stafford, PLUS and Grad PLUS loans issued on or after July 1, 2010, will be through the William D. Ford Federal Direct Loan Program (Direct Loan). This change will impact only new loans.

Direct Loan funds will be disbursed directly to your school from the federal government rather than through Community State Bank or another Federal Family Education Loan Program (FFELP) servicer or lender.

Two types of Federal Stafford Loans are available: subsidized and unsubsidized. Subsidized Federal Stafford Loans are based on financial need. The federal government will pay the accrued interest on your loan during the time you are a student and up to six months after you graduate, withdraw from school or drop to less than half-time enrollment. Unsubsidized Federal Stafford Loans are not based on financial need. You will be responsible for paying the interest that accrues while you are attending college. You will, however, have the option to either pay the interest while you are in school or to defer your interest payments and add it to the principal amount of your loan.

When you defer interest payments, interest will accrue and will be added to your loan; therefore, deferring payments for an extended period of time may substantially increase your loan balance. You should make payments that at least cover your accrued interest to avoid increases in your loan balance.

To learn more about Federal Stafford Loans, please visit the Federal Student Aid website at http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp.

Parents can take out a Federal PLUS Loan to borrow funds on behalf of dependent, undergraduate students who are enrolled at least half time. Parents can learn about the Federal PLUS Loan at http://studentaid.ed.gov/PORTALSWebApp/students/english/parentloans.jsp.

The Federal Grad PLUS Loan is designed for graduate and professional degree students. Students may visit http://studentaid.ed.gov/PORTALSWebApp/students/english/PlusLoansGradProfstudents.jsp to learn about Federal Grad PLUS Loans.

Please contact your school’s financial aid office if you have any questions.

Private Student Loans

Private student loans can help bridge the gap between any government and institutional student aid you receive and the amount needed to attend your school of choice. Applying for a supplemental private student loan should be considered only after you have exhausted all other sources of federal, state and/or institutional financial aid. Additional information is available at www.studentloan.org/FillTheGap.

Additional College Planning Assistance

If you are looking for information on planning for, applying to, paying for and succeeding in college, Community State Bank recommends the Iowa College Access Network® (ICAN). ICAN offers free services, including assistance with completing the Free Application for Federal Student Aid (FAFSA), to students and their families. Visit www.ICANsucceed.org or call (877) 272-4692 for more information about ICAN.