Regarding Federal Loan Options for Undergraduate Students
Federal student loans are an important resource to help students pay for college. These loans, offered by the federal government, typically offer lower interest rates and more flexible repayment options than private loans.
Unlike grants or work-study, a loan is money that must be repaid – you are legally obligated to repay your loans (even if you do not complete your program), so we encourage you to fully read and understand the terms and conditions of each loan type before accepting a loan.
The minimum requirements for consideration of any federal loan are a complete Free Application for Federal Student Aid (FAFSA), admission into a degree-seeking program, at least half-time enrollment and cannot be in default on a Federal educational loan or owe a repayment of Federal Title IV aid.
An important note regarding student loan funding:
At Colorado State University, we encourage you to make informed decisions when taking out a student loan, and to only borrow the amount of funds needed to successfully complete your education.
How Do I Apply?
- First complete and submit the Free Application for Federal Student Aid (FAFSA) – the federal government’s application to determine financial aid eligibility for most types of financial aid.
- Students who are not eligible for FAFSA due to not being a U.S. citizen or eligible non-citizen may be able to complete the CASFA application instead if they qualify for Colorado ASSET.
- Use federal tax return information to complete the FAFSA.
- List Colorado State University – Fort Collins on your application to submit your financial aid application to CSU. Our school code is 001350.
- Once your FAFSA has been reviewed and your financial aid has been awarded, you can accept your loan(s) on RAMweb.
- Watch the short video tutorial below to learn about the steps required to accept student loans on your student RAMweb account.
- Complete Entrance Counseling.
- A mandatory counseling session that helps you understand your responsibilities as a borrower. Complete your entrance counseling here.
- For first-time borrowers: You only need to complete this once – you will not need to complete this every year.
- Sign a Master Promissory Note (MPN).
- This is a legal document where you promise to repay your loan and agree to the terms. Complete your MPN here.
- For first-time borrowers: You only need to complete this once – you will not need to complete this every year.
Undergraduate Federal Loans Terms and Conditions
The amount of Federal Direct Loans you can borrow is limited based on your year in school, as well as your dependency status.
Colorado State University participates in the William D. Ford Direct Loan program (Direct Loans). Direct Loans are funded by the Department of Education to you, the student.
What is the difference between Subsidized and Unsubsidized Loans?
- Subsidized loans are need-based and available to undergraduate students. The U.S. Department of Education pays the interest while you are in school at least half-time (6+ credit hours).
- Unsubsidized loans are not need-based and are available to undergraduate and graduate students. Interest is accruing while you are in school.
What are the basics that I need to know about federal student loans?
- Repayment begins 6 months after you graduate, drop below half time, or withdraw.
- Direct Student Loans will be prorated for any undergraduate student who enrolls in only one semester and will graduate in the same academic year.
- The prorated loan amount is determined by dividing the number of credits a student is enrolled in by 24, multiplied by the annual loan limit.
What do I need to do to receive loan funding?
- Be admitted to a degree-seeking program.
- Apply for admissions to Colorado State University at admissions.colostate.edu.
- If you have been awarded a degree from Colorado State University, you must be admitted to a new degree-seeking program to continue receiving aid.
- Admission to a new degree program may change the type of aid you are eligible to receive.
- Apply for financial aid and complete all requirements.
- See the above drop-down titled “How Do I Apply” for directions on how to apply for financial aid.
- Once your financial aid application has been submitted, continue to check your student RAMweb account for any documentation or information that may be required to complete your financial aid packaging process.
- Enroll at least half-time each semester.
- For undergraduate students, 6 credits is half-time enrollment.
- Enrolling in fewer than 6 credit hours (0 to 5 credit hours) will mean that you are not eligible for federal student loan funding.
- Audit and test-out or placement credits do not count toward enrollment requirements.
- Enrollment in courses that do not apply to your program of study may not count toward your enrollment status for financial aid.
- Maintain Satisfactory Academic Progress
- Federal financial aid eligibility requires that all students maintain Satisfactory Academic Progress.
- Academically dismissed students are not eligible for financial aid. For more information, refer to the Academic Scholastic Standards Policy.
Origination Fees Associated with Undergraduate Student Loans
Date of First Disbursement
Origination Fee % for Direct Subsidized and Unsubsidized Loans
On or after 10/1/19 and before 10/1/2020
1.059%
On or after 10/1/2020 and before 10/1/2025
1.057%
Interest Rates for Undergraduate Student Loans
Date of First Disbursement
Subsidized/Unsubsidized
Between 7/1/2023 – 6/30/2024
5.50%
Between 7/1/2024 – 6/30/2025
6.53%
Amounts of Federal Loans Available to Undergraduate Students
Yearly Loan Limits for Undergraduate Students
Academic Year
Dependent Students
Independent Students
(and dependent undergraduate students whose parents are unable to obtain a PLUS Loan)
First-Year Students
$5,500
- No more than $3,500 may be in subsidized loans
$9,500
- No more than $3,500 may be in subsidized loans
Sophomore Students
$6,500
- No more than $4,500 may be in subsidized loans
$10,500
- No more than $4,500 may be in subsidized loans
Junior, Senior, and
Second Bachelor Students
$7,500
- No more than $5,500 may be in subsidized loans
$12,500
- No more than $5,500 may be in subsidized loans
Lifetime Loan Limits for Undergraduate Students
Undergraduate Subsidized and Unsubsidized Aggregate Loan Limits
Dependent Students
Independent Students
(and dependent undergraduate students whose parents are unable to obtain a PLUS Loan)
__
$31,000
- No more than $23,000 may be in subsidized loans
$57,500
- No more than $23,000 of this may be in subsidized loans
Loan Cancellation
You may cancel all or a portion of your loan by submitting a borrower loan cancellation form. The request must be submitted before the loan has paid to your student’s CSU account, or within 14 days from the date of disbursement.
Cancellation or reduction to your loan may result in a balance being owed to the University. Failure to pay a balance owed by the due date could result in late fees and/or prevent future enrollment.
If you would like to cancel or reduce a loan that hasn’t paid out yet, navigate to your financial aid awards page and click on the “request changes to your student loans” option. From there you can submit a cancellation request and specify the amount of loan you’d like to cancel.
If the loan has already paid out, you may cancel all or a portion of your loan by submitting a borrower loan cancellation form. The request must be submitted within 14 days from the date of disbursement.
Please follow the following link to submit the Borrower Loan Cancellation Form.
