Loans

Federal Direct Loans

Federal Direct Loans (subsidized and unsubsidized) are low-interest loans from the U.S. Department of Education that are administered by Claremont McKenna College. It is the U.S. Department of Education's major form of self-help aid and is available through the William D. Ford Federal Direct Loan Program.

Direct Loans Origination Fees and Interest Rates

Type Origination Fee 2022-23 Interest Rate Minimum Repayment
Federal Direct Subsidized Loan*** 1.057% 4.99%* $50**
Federal Direct Unsubsidized Loan- Undergraduate 1.057% 4.99%*
 
$50**
Federal Direct Unsubsidized Loan- Graduate 1.057% 6.54%* $50**

 

*For subsidized loans, interest accrual begins six months after graduation/withdrawal from school. For unsubsidized loans, interest accrual begins while in school, upon the origination of the loan.

**Monthly payment may be more depending on total amount borrowed. For more information regarding repayment, utilize the Direct Loan Repayment Estimatoropen_in_new.

*** For all new borrowers who receive a federal direct subsidized loan on or after July 1, 2013, a 150% limitation is in effect. This means a student who is eligible for a subsidized loan will reach their subsidized limit at 150% of a program’s length of study. Once a student has reached their 150% limitation, their interest subsidy loan limit will end on all outstanding loans that were disbursed after July 1, 2013, and interest will begin to accrue. Students are therefore encouraged to complete their undergraduate degree in a timely manner.

Step 1: Complete the FAFSAopen_in_new each academic year. Our school code is 001170. You will need your U.S. Department of Education FSA ID. Login using your Social Security Number, first two letters of your last name, date of birth and your FSA IDopen_in_new. Upon completion, you may wish to print a copy of the rights and responsibilities page for your records.

Step 2: For first-time borrowers only - Complete the Federal Direct Loan Entrance Counseling Sessionopen_in_new. You will need your FSA ID to complete the counseling session.

Step 3: For first-time borrowers only - Complete the Electronic Master Promissory Noteopen_in_new. You will need your FSA ID to sign the promissory note electronically.

Step 4: Complete the Federal Direct Student Loan Request Form each academic year and submit it to the Office of Financial Aid- form available via Net Partneropen_in_new. Email us if you do not see the form listed.

PLEASE NOTE: To be eligible, you must be enrolled at least half-time and meet other general federal student aid eligibility requirements.

The federal government requires that students participate in an Exit Counseling Sessionopen_in_new prior to graduating or withdrawing from college (even if you plan to transfer to another school). To complete this session, students will need the following: Social Security Number; first two initials of your last name; date of birth; and FSA ID.

The counseling session helps you understand your rights and responsibilities as a student loan borrower and provides useful tips and information to help you manage your loans.

Receiving your Federal Direct Loan Funds

When CMC is notified by the Federal Direct Loan Processor that they have a valid Master Promissory Note on file for you and that you have completed the Entrance Counseling Session, your loan will automatically be credited to your student account, as long as all other federal student aid eligibility requirements have been met.

Requesting a Reduction or Cancellation of Your Loan

You have the right to reduce or cancel your loan within 14 days after it credits your student account. This can be done by notifying the Office of Financial Aid by email from your CMC email account.

Federal Direct Loan Limits

The federal government sets loan limits on the amount of money a student can borrow. CMC does not package students with unsubsidized loans, however, a student may request to include unsubsidized loans as a revision to their financial aid award. The annual limit applies to the amount a student can borrow in one academic year, while the aggregate limit applies to the maximum amount a student can borrow in a lifetime. Independent and dependent students whose parents are unable to borrow a Direct PLUS loan are eligible for an additional Federal Direct Unsubsidized Loan. See below.

 

Dependent Students - Annual Loan Limits

School Year Maximum Subsidized
(for students who are eligible for a subsidized loan)
Maximum Unsubsidized
(for students who are eligible for a subsidized loan)
Maximum Unsubsidized
(for students who are NOT eligible for a subsidized loan)
First-Year $3,500 $2,000 $5,500
Second-Year $4,500 $2,000 $6,500
Third-Year and Beyond $5,500 $2,000 $7,500

 

Independent Students & Dependent Students whose parents are ineligible for a PLUS Loan  - Annual Loan Limits

School Year Maximum Subsidized
(for students who are eligible for a subsidized loan)
Maximum Unsubsidized
(for students who are eligible for a subsidized loan)
Maximum Unsubsidized
(for students who are NOT eligible for a subsidized loan)
First-Year $3,500 $6,000 $9,500
Second-Year $4,500 $6,000 $10,500
Third-Year and Beyond $5,500 $7,000 $12,500
Graduate and Professional Not applicable - $20,500

 

Aggregate (Life-Time) Loan Limits

School Year Subsidized Unsubsidized Total
Dependent $23,000 $8,000 $31,000
Dependent Students and PLUS denial $23,000 $34,500 $57,500
Independent $23,000 $34,500 $57,500
Graduate and Professional Students $65,600 (includes all federal loans received for undergraduate study) Difference from total loans and subsidized loans $138,500 (includes all federal loans received for undergraduate study)

 

For additional federal Direct Loan disclosure information, please view this plain language disclosure form.

Federal Direct PLUS

PARENTS, PLEASE NOTE: If you plan to borrow a Direct PLUS loan, we ask that you begin the federal loan application for Federal Direct PLUS on or after August 1st before the student begins the academic year.

PLUS Interest Rate and Fees

For current information on Direct PLUS interest rates and fees, please review the PLUS web page open_in_new. Interest begins accruing after the first disbursement and repayment of both the principal and interest begins within 60 days after the final disbursement of the loan.

Federal Direct PLUS is available to parents of undergraduate students if they are credit-worthy applicants. A parent of an undergraduate student may borrow up to the total estimated cost of attendance, less financial aid resources received by the student. Because the funding for Federal Direct PLUS comes straight from the U.S. Department of Education, students and parents do not have to find a lender to borrow through this program.

The Federal Direct PLUS program offers parents an excellent low-interest loan alternative for helping with the cost of their student's education. Parent PLUS loan borrowers must pass a credit check conducted by the Direct Loan Servicing Center. If a parent application is denied as a result of the credit check, the student may be eligible for an additional Direct unsubsidized Loan. First- and second-year students may borrow an additional $4,000; third- and fourth-year students may borrow an additional $5,000. Parents and their dependent child must be U.S. citizens or eligible non-citizens and not in default on any federal education loans or owe an overpayment on a federal education grant. You can find more information about these requirements in Funding Education Beyond High School: The Guide to Federal Student Aid. open_in_new

  1. Complete the Free Application for Federal Student Aid (FAFSA)open_in_new if you have not already done so. Our federal school code is 001170. You will need your U.S. Department of Education FSA ID to sign in. Please request an FSA ID open_in_new if you do not have one.

  2. Complete the Federal Direct Parent PLUS application open_in_new.You will need your U.S. Department of Education FSA ID to complete the application.

  3. Complete both sides of the Federal Direct PLUS Loan Request Form. When complete, submit it to the Office of Financial Aid- form available via Net Partner open_in_new. Email us if you do not see the form listed.

  4. Make sure to sign in and follow all instructions carefully to complete this process. You will need your U.S. Department of Education FSA ID to sign your Master Promissory Note electronically open_in_new.

  5. Once you have completed everything, CMC will be notified. Then, you will receive a disclosure statement that gives you specific information about the total loan amount, loan fees and the expected loan disbursement dates. You can contact the Direct Loan Servicing Center open_in_new.

There are several steps that you need to complete in order to receive your Federal Direct Graduate PLUS Loan. Please follow the steps listed below carefully to begin the process.

  1. Complete the Free Application for Federal Student Aid (FAFSA)open_in_new if you have not already done so. Our federal school code is 001170.

  2. Complete the Federal Direct Parent PLUS application open_in_new. You will need your U.S. Department of Education FSA ID to complete the application. The counseling session will explain various aspects of student loans and your rights and responsibilities. It concludes with a 15-question quiz. You must answer all questions correctly in order to successfully complete the session. Login and submit the results using your Social Security Number, first 2 letters of your last name, date of birth and your FSA ID. You may wish to print a copy of the Rights and Responsibilities page for your records.

  3. Complete both sides of the Federal Direct PLUS Loan Request Form. When complete, submit it to the Office of Financial Aid - form available via Net Partner open_in_new. Email us if you do not see the form listed.

  4. Make sure to sign in and follow all instructions carefully to complete this process. You will need your U.S. Department of Education FSA ID to sign your Master Promissory Note electronically open_in_new. Please request an FSA ID open_in_new if you do not have one.

The graduate student borrower has the right to reduce or cancel their loan within 14 days after it credits their student account. This may be done by notifying the Financial Aid Office in writing. You can contact the Direct Loan Servicing Center at (800) 848-0979 or read these  FAQs for Graduate PLUS open_in_new.

Claremont McKenna College Loans

Claremont McKenna College Loans are funds from specific CMC donors and are used when necessary to supplement financial aid awards and also for students who do not qualify for other educational loan programs.

IMPORTANT: You must be pre-approved by the Office of Financial Aid to borrow a college loan.
The Claremont loans consist of the Permanently Restricted Loan, Berger Loan, and Drown Loan. These loans are available through endowments awarded to the school.

CMC Permanently Restricted Loan
Origination fee
: 0%
Interest accrual: Not applicable.
Interest rate: 0%
Repayment begins: Six months after graduation/withdrawal from school.
Minimum monthly repayment: Varies.

CMC Berger 0% Interest Loan
Origination fee
: 0%
Interest accrual: Not applicable.
Interest rate: 0%
Repayment begins: Six months after graduation/withdrawal from school.
Minimum monthly repayment: Varies.

CMC Drown 5% Interest Loan
Origination fee
: 0%
Interest accrual: Six months after graduation/withdrawal from school.
Interest rate: 5%
Repayment begins: Six months after graduation/withdrawal from school.
Minimum monthly repayment: Varies.

Once you have been pre-approved for the college loan, there are important steps that must be completed. These steps vary depending on if you are a first-time borrower or are renewing a loan.

Loan Type

CMC/Emmett Permanently Restricted loan

Berger Loan Drown Loan
First-Time Borrowers

1. Permanently Restricted MPN

2. Request Form*

3. Applicant Self-Certification Form

4. Personal Information Form

1. Berger Loan MPN

2. Request Form*

3. Applicant Self-Certification Form

4. Personal Information Form

1. Drown Loan MPN

2. Request Form*

3. Applicant Self-Certification Form

4. Personal Information Form

Continuing Borrowers

1. Request Form*

2. Applicant Self-Certification Form

1. Request Form*

2. Applicant Self-Certification Form

1. Request Form*

2. Applicant Self-Certification Form

*Found on Net Partner open_in_new. Additional instructions found below.

  1. Complete a Request Form. There are separate request forms for the Permanently Restricted Loan, the Berger Loan, and the Drown Loan. These forms are available on Net Partneropen_in_new as an electronic form.
  2. FIRST-TIME BORROWERS: Complete your applicable Master Promissory Note. *Note: The MPN loan form must be mailed in or dropped off to the Office of Financial Aid.

CMC Office of Financial Aid
888 Columbia Ave.
Claremont, CA 91711

3. Complete your Applicant Self-Certification Form. This form can be returned to the Office of Financial Aid via email or mail. If you have never completed a Personal Information Form, you must do so when you submit your request form. The Personal Information Form is available on Net Partneropen_in_new as an electronic form.

4. FIRST-TIME BORROWERS: If you have never completed a Personal Information Form, you must do so when you submit your request form. The Personal Information Form is available on Net Partneropen_in_new as an electronic form.

Alternative Student Loans Programs

Alternative Student Loan Programs are loans from lenders to help families meet their contribution. Interest rates and fees vary, but are very competitive.

Only look for alternative private student loans after you have exhausted all potential scholarships, federal grants, work-study funds, and federal loan programs (Federal Direct Subsidized/Unsubsidized, Federal Direct PLUS). The links below are intended to provide students and their parents with the tools they need to make the best decision in evaluating alternative loan options.

CMC utilizes a system called ELMSelect as a student financial aid lender comparison resource. This resource gives borrowers the opportunity to view different loan types and preferred lenders, and to also evaluate, compare and select a lender that best fits their loan needs. ELMSelect also provides an additional comprehensive neutral list of lenders to provide an even greater choice of options.

According to the Truth-in-Lending Act requirements, alternative, private education lenders are required to provide prospective borrowers with private loan disclosures before they take out a private loan. These private loan disclosures will disclose to the prospective borrower’s basic information about loan terms and possible costs.

If you are approved for an alternative loan, you must submit the Alternative Loan Form and Applicant Self-Certification Form to finaid@cmc.edu

 

Additional Resources

Search for private student loans using Simple Tuitionopen_in_new student loan comparison tools.