Loans
If you apply for federal financial aid through the Free Application for Federal Student Aid (FAFSA), you may be offered loans as part of your financial aid package. A loan is money you can borrow but must pay back.
We are committed to helping you make smart choices - borrowing a student loan is a BIG commitment and should be considered carefully.
Before you borrow, be sure to
- Apply for all grant and scholarship opportunities.
- Understand your tuition and fee charges and the full cost of your education, including housing, books, tools, and personal needs.
- Consider borrowing only when absolutely necessary. Avoid borrowing if possible. Responsible Borrowing.
- Protect your financial future. Borrow only what you need by reducing the amount of the loan offered.
- Stay in contact with your Loan Servicer (see below). Select a smart loan Repayment Plan. If you have trouble making your loan payments after graduation, contact your Loan Servicer for assistance.
Important points to remember
- Student loans can come from the federal government or private sources such as a bank or financial institution. Make sure you understand who is making the loan and the terms and conditions of the loan.
- Student loans are legal obligations. It is borrowed money that must be repaid, plus interest over time.
- Student loans cannot be canceled because you didn't get - or didn't like - the education you paid for with the loans, didn't get a job in your field of study, or are having financial difficulty.
Types of Loans
The U.S. Department of Education offers Subsidized and Unsubsidized Direct Loans. Borrowing from one or both of these programs depends on the student's need, based on the information provided on the FAFSA. Federal Direct Student Loans do not require a credit check and have reasonably low-interest rates.
- Federal Direct Student Loan
- Managing My Direct Loan
- Parent Loan for Undergraduate Students
- CEI Student Loan Code of Conduct
- Delinquency and Default
- FAQs
- Default Rates
Federal Direct Student Loan Program
The Federal Direct Student Loan Program (FDSLP): Is a low-interest loan to help you pay for educational expenses. Loans provide borrowed money that must be repaid plus interest. The interest rate is fixed and has been set by the Federal government. Loan eligibility is determined by your year of study, federal limits, financial need, and other types of aid awarded. Several types of student loans may or may not be need-based:
- Subsidized Loan (FDSL): the government pays the interest while you are in school. To be awarded this loan, you must be enrolled at least half-time (6 credits) in an eligible program and demonstrate financial need.
- Unsubsidized Loan (FDUL): interest will accrue while you are in school. To be awarded this loan, you must be enrolled at least half-time (6 credits) in an eligible program.
Additional Unsubsidized Loans may be available to students whose parents cannot qualify for a Parent Plus Loan or independent students requesting an additional loan.
- Parent Plus Loan (PLUS): parents of dependent undergraduates enrolled at least half-time (6 credits) may receive a Parent PLUS Loan for undergraduate students. Eligibility is not based on financial need; approval depends on the parent's credit history. The loans are made regardless of income level and are offered through the Direct Loan program. PLUS Loans through the Direct Loan program have a fixed interest rate set by the U.S. Government. Interest will accrue while the student is in school.
SAVE Plan
How much can I borrow?
The Financial Aid Office will determine your loan eligibility based on the Free Application for Federal Student Aid (FAFSA) each academic year. There are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits).
Depending on your year of study, your eligibility, and whether you are dependent or independent student, the federal government limits the amount you can borrow. Your amount may vary depending on financial need and other types of aid awarded.
| Year | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
|---|---|---|
| First-Year Undergraduate Annual Loan Limit | $5,500—No more than $3,500 of this amount may be in subsidized loans. | $9,500—No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit | $6,500—No more than $4,500 of this amount may be in subsidized loans. | $10,500—No more than $4,500 of this amount may be in subsidized loans. |
| Third-Year and Beyond Undergraduate Annual Loan Limit | $7,500—No more than $5,500 of this amount may be in subsidized loans. | $12,500—No more than $5,500 of this amount may be in subsidized loans. |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000—No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. |
What is a loan fee?
A Loan Origination Fee is deducted from the gross amount of the loan you accept. Any balance remaining will be disbursed to the student from CEI Business Office. You can see this fee on your Student Self-Service under the Student Finance Account Activity.
What steps must I take to receive my loan?
As a first-time loan borrower or a new student at College of Eastern Idaho receiving Federal Direct Loans, you must complete all loan requirements listed in Managing My Direct Loans
- A student interested in receiving student loans must visit the CEI website, and log on to Student Self-Service to view and accept their loan offer. You can reduce the amount offered here or you can contact the Financial Aid Office for assistance.
- A student must also be enrolled in 6 credits or more
- You must sign a Master Promissory Note
- You must complete Loan Entrance Counseling.
- First-time borrowers who are first-time CEI students will have to wait 30 days from the beginning of the semester before their loan funds will be disbursed.
- Loans must be disbursed in two disbursements (Fall-Spring). If attending only one semester, loans will be disbursed in two disbursements within that semester. The first disbursement will be at the beginning of the semester and the second at mid-terms.
Managing My Direct Loan
Loan Requirements
As a first-time borrower or a new student at CEI receiving Federal Direct loans, you are required to complete Entrance Counseling and a Master Promissory Note (MPN). By completing these requirements, a student indicates that they understand and accept the obligations, rights, and responsibilities of borrowing.
To activate your student loan, complete the following:
- Accept Loan(s) on Self-Service
- Entrance Counseling, for Undergraduate Students
- Master Promissory Note (MPN), for Undergraduate Students
- A student must complete a CEI admission application, be accepted into a degree-seeking program and be enrolled in at least six credits within their program to be eligible for a student loan with CEI.
What is Entrance Counseling?
This requirement only applies to first-time borrowers at CEI. Entrance Counseling ensures that you understand your responsibility and obligation when borrowing student loans. The U.S. Department of Education requires you to participate in Loan Entrance Counseling before your loan funds can be disbursed. During entrance counseling, you will receive facts about loans, how interest works, your options for repayment, and how to avoid delinquency and default. When complete, a record will be sent to the school(s) you select, and you can receive your loan. Entrance counseling must be completed in one sitting. If you have previously borrowed a loan at CEI, you do not need to complete the Entrance Counseling for ten years.
To complete the Entrance Counseling, you will need
- Approximately 30 minutes for completion
- Your FSA ID
- Address
- Phone number
- Employer address
- Names of the schools you wish to notify of your counseling completion
- Reference information for two people you have known for at least three years (including their name, address, phone number and relationship to you)
We have included a link to the PDF version of the Direct Loan Entrance Counseling Guide, which includes comprehensive information on the terms and conditions of the loan and the borrower's responsibilities. For questions, please contact the Financial Aid Office. (Last Updated: September 2021)
What is a Master Promissory Note (MPN)?
This requirement only applies to first-time borrowers. The MPN is a legal document you must sign, agreeing to pay back your loans and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). You may receive more than one loan under an MPN for up to 10 years.
- To complete the Master Promissory Note (MPN), you will need:
- Approximately 30 minutes for completion
- Your FSA ID
- Address
- Phone number
- Employer address
- Names of the schools you wish to notify
- Reference information for two people you have known for at least three years (including their name, address, phone number and relationship to you)
What is Annual Loan Acknowledgement?
Complete Annual Student Loan Acknowledgement (ASLA) each year you accept a federal student loan. You can complete the ALSA requirement at Federal Student Aid using your FSA ID and password to log in. First-time borrowers acknowledge that you understand your responsibility to repay your student loan(s). If you have previously borrowed student loan(s), you are acknowledging that you understand how much you owe and how much more you are eligible to borrow. Other student aid information is provided, including the interest rates and repayment options to make managing your student loans easier.
How do I manage my direct loan?
Whether you're still in school or have already graduated, it's important to start planning how to repay your loan. To ensure your payments are manageable, you can learn about selecting the repayment plan that fits your needs, contacting your loan servicer, making payments, and addressing any questions you may have.
- Go to: https://studentaid.gov/manage-loans/repayment
- Loan repayment begins after the one-time six-month grace period.
- Interest begins accruing at the beginning of the grace period on Subsidized loans.
- Find your Loan Servicer. Keep your contact and personal information with your loan servicer updated.
What is Exit Counseling?
Exit Counseling provides important information you need to prepare to repay your federal student loans. If you have received a subsidized or unsubsidized loan, you must complete exit counseling each time you: graduate, leave school, or drop below half-time enrollment (six credits).
Exit Counseling will ask you for information that will be included as part of your loan records. You must provide the names, addresses, email addresses, and phone numbers of your next of kin, two personal references who live in the U.S., and your future employer (if known).
To complete the exit counseling, you will need approximately 30 minutes for completion, your FSA ID, and the Names of the Schools you wish to notify of your counseling completion.
Exit Loan Counseling Completion:
- Go to https://studentaid.gov/
- Under “MANAGE LOANS” from the top ribbon, select “Complete EXIT Counseling”
- Click on the blue “Log in To Start” button.
- Enter your FSA ID username or verified email address and password.
- Complete Exit Counseling.
What is a Loan Servicer, and how do I find mine?
A Loan Servicer is a company that the Department of Education will assign to handle the billing and other services on your federal student loan at no cost to you. Your loan servicer will work with you on repayment options (such as income-driven repayment plans and loan consolidation) and assist you with other tasks related to your federal student loans.
Keep your contact information up to date so your loan servicer can help you stay on track with repaying your loans. If your circumstances change at any time during your repayment period, your loan servicer will be able to help.
To determine your Loan Servicer, log in using your FSA ID username or verified email address and password. You can click on Manage Loans or your Account Dashboard. Your Loan servicer will be listed.
When do I start paying back my student loans?
You’ll have six months after you graduate, leave school, or drop below half-time enrollment (six credits) before you must begin making payments on your student loans. This is known as the Grace Period. You can use this time to get financially settled, determine your expected income and expenses, and select a repayment plan.
Help is available so that you know exactly how and when to repay your loans.
- Loan repayment begins when you graduate, withdraw from classes, or drop below six credits. If any of those things happen, CEI Financial Aid Office will send you the necessary information so you can complete the required “Exit Counseling” (see information below). This counseling will provide information about repayment plans, when your payments will begin, who you will repay (your Loan Servicer), and other important details. To find your Loan Servicer, log into Studentaid.gov.
- The financial aid office has Advisors available to help you with any part of the loan process. Please contact our office if you have questions or need help filling out forms.
What happens if I don’t pay my loans?
Once you enter loan repayment, you must make your payments on time to avoid delinquency and default.
Delinquency - The first day after you miss a student loan payment, your loan becomes past due, or delinquent. Your loan account remains delinquent until you repay the past due amount or make other arrangements.
Default - means you did not make your payments on your student loan as scheduled according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan. For most federal student loans, you will default if you have not made a payment in more than 270 days. If you default on a federal student loan, you lose eligibility to receive federal student aid and you may experience serious legal consequences. https://studentaid.gov/manage-loans/default
How to Stay Out of Default - Don’t miss a payment! If you don’t pay the full amount due on time or if you start missing payments, your loan may be considered delinquent and late fees can be charged to you. If you are making late or partial payments, contact your loan servicer immediately for help. You may be able to change your repayment plan to one that allows for a longer repayment period or to one that is based on your income. Also, ask your loan servicer about your options for deferment, or forbearance or loan consolidation. NEVER ignore delinquency or default notices from your loan servicer.
Getting Out of Default - If you failed to make your payments on your federal student loan and now are in default, don’t let the consequences of default affect your financial future. Find out how to get out of default by contacting your loan servicer. https://studentaid.gov/manage-loans/repayment/servicers#your-servicer
Financial aid may be reinstated once the student makes satisfactory repayment arrangements with the holder of the loan. Proof of such arrangements must be submitted to the Financial Aid Office.
One way to get out of default is to repay the defaulted loan in full, that's not always a practical option for most borrowers. Two other ways to get out of default are loan rehabilitation and loan consolidation. However, loan rehabilitation provides certain benefits that are not available through loan consolidation. Take a look at the chart on studentaid.gov to compare the benefits of loan rehabilitation versus the benefits of loan consolidation. https://studentaid.gov/manage-loans/default/get-out. Contact your loan servicer to discuss the best option for you to get out of default.
Parent Loan for Undergraduate Students
A Parent Loan for Undergraduate Students (PLUS) is a direct federal loan that parents apply for on behalf of their dependent undergraduate student. It enables parents in good standing with federal student aid and with good credit history to assist their children who are enrolled at least half-time (6 credits per semester) at a post-secondary school.
PLUS Loan eligibility is not based on financial need; approval depends on the parent's credit history and standing with federal student aid. The loans are made regardless of income level and are offered through the Direct Loan program.
PLUS Loans through the Direct Loan program have a fixed interest rate. The U.S. Government sets this rate. The parent may borrow up to the student's annual cost of attendance minus any financial assistance the student has been or will be awarded during the period of enrollment.
How do parents apply for Parent Plus Loan?
- Student completes the Free Application for Federal Student Aid (FAFSA)
- Parent completes the Direct PLUS Loan Application
- A credit check will be conducted on all Direct PLUS loan applicants
- Parents must complete the Direct PLUS Loan Master Promissory Note (Direct PLUS MPN)
When does repayment on Parent PLUS Loan begin?
Repayment of Parent PLUS Loans begins when the loan is fully disbursed. The first payment is due within 60 days of that date.
What are my options if the Parent PLUS Loan is denied?
If the parent is denied or ineligible for Federal Student Aid Programs, the student can apply for an additional Federal Direct Unsubsidized Loan instead.
The following Direct Unsubsidized Loan limits may be added to the student borrower's combined Direct Subsidized and Unsubsidized loan limits:
- Up to $4,000 for a first or second-year undergraduate student
After a parent is denied, if the student wishes to pursue the additional Unsubsidized Direct Loan, the student can make the request by contacting the CEI Financial Aid Office.
College of Eastern Idaho Student Loan Code of Conduct
CEI participates in the William D. Ford Federal Direct Loan Program, which includes the Direct Subsidized, the Direct Unsubsidized Student Loans, and the Direct Parent PLUS Loans. In some cases, Private Student Loans are needed to supplement the cost of education. CEI recommends that students exhaust all other methods of financing their education before applying for Private loans. To comply with the 2008 Higher Education Opportunity Act (enacted August 14, 2008), CEI adopts the following Student Loan Code of Conduct to serve as the formal guiding principles in ensuring the integrity of the student aid process and ethical conduct of CEI employees in regard to student loan practices.
1. Revenue Sharing
The term “revenue-sharing arrangement” means an arrangement between an institution and a lender which- (i) a lender provides or issues a loan that is made, insured, or guaranteed to students under the Higher Education Act attending the institution or to the families of such students; and (ii) the institution recommends the lender or the loan products of the lender and in exchange, the lender pays a fee or provides other material benefits, including revenue or profit sharing, to the institution, an officer or employee of the institution. CEI and its employees will not enter into any type of revenue-sharing arrangement with any lender, guarantor, or servicer. CEI does not provide students with a preferred lender list from which to select a lender for a private student loan. All loans are processed without regard to the lender or mode of transmission (i.e., electronic or paper). CEI will neither recommend a private loan lender nor accept material benefits, including revenue or profit sharing to the institution, an officer, an employee of the institution, or an agent.
2. Gifts
Employees of the Office of Student Financial Aid are prohibited from soliciting or accepting any gift from a lender, guarantor, or servicer of education loans.
- Gifts include any gratuity, favor, discount, entertainment, hospitality, loan, or other items. This includes a gift of services, transportation, lodging, or meals, whether provided in kind, by the purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred.
- Gifts to a CEI employee's family members are considered a gift to the employee if the gift is given with the knowledge and consent of the employee and there is a reason to believe the gift was given because of the official position of that employee.
3. Contracting Arrangements
Employees of the Office of Student Financial Aid shall not accept from any lender or affiliate of any lender any fee, payment, or other financial benefit (including the opportunity to purchase stock) as compensation for any consulting arrangement or other contracts to provide services to a lender or on behalf of a lender relating to education loans.
4. Preferred Lender Status
CEI participates in the William D. Ford Federal Direct Loan Program, which provides student and parent loans through the U.S. Department of Education. Lenders in the private student loan industry will not be given a preferred status. CEI will not produce a preferred lender list that gives any lender an advantage in securing business from CEI students.
5. Private Loan Certification
CEI will not assign a borrower’s private student loan to a particular lender; the borrower will make all decisions in his/her independent review of borrower benefits and lender services. CEI will not certify a private loan based on the borrower’s selection of a particular lender or guaranty agency.
6. Opportunity Pool Loan
CEI will not request or accept from any lender any offer of funds to be used for private education loans (defined in section 140 of the Truth in Lending Act), including funds for an opportunity pool loan in exchange for CEI providing concessions or promises regarding providing the lender with a specified number of loans made, insured or guaranteed; a specified loan volume of such loans; or a preferred lender arrangement for such loans.
7. Staffing Assistance
CEI will not request or accept from any lender, guarantor, or servicer of student loans any assistance with call center staffing or financial aid office staffing.
8. Advisory Board Compensation
Employees of the Office of Student Financial Aid who serve on an advisory board, commission, or group established by a lender, guarantor, or group of lenders or guarantors, are prohibited from receiving anything of value from the lender, guarantor, or group of lenders or guarantors, except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board, commission, or group.
Delinquency and Default
Once you enter loan repayment, you must make your payments on time to avoid delinquency and default.
Delinquency-The first day after you miss a student loan payment, your loan becomes past due or delinquent. Your loan account remains delinquent until you repay the past-due amount or make other arrangements.
Default- If you did not make your payments on your student loan as scheduled according to the terms of your promissory note, the binding legal document you signed at the time you took out your loan. You will default on most federal student loans if you have not made a payment in more than 270 days. If you default on a federal student loan, you lose eligibility to receive federal student aid and may experience serious legal consequences. https://studentaid.gov/manage-loans/default
How to Stay Out of Default- Don’t miss a payment! If you don’t pay the full amount due on time or if you start missing payments, your loan may be considered delinquent and late fees can be charged to you. If you are making late or partial payments, contact your loan servicer immediately for help. You may be able to change your repayment plan to one that allows for a longer repayment period or to one that is based on your income. Also, ask your loan servicer about your options for deferment, forbearance, or loan consolidation. Never ignore delinquency or default notices from your loan servicer.
Getting Out of Default- If you failed to make your payments on your federal student loan and now are in default, don’t let the consequences of default affect your financial future. Find out how to get out of default by contacting your loan servicer. https://studentaid.gov/manage-loans/repayment/servicers#your-servicer
Financial aid may be reinstated once the student makes satisfactory repayment arrangements with the holder of the loan. Proof of such arrangements must be submitted to the Financial Aid Office.
One way to get out of default is to repay the defaulted loan in full, but that's not always a practical option for most borrowers. Loan rehabilitation and consolidation are two other ways to get out of default. However, loan rehabilitation provides certain benefits unavailable through loan consolidation. Look at the chart on studentaid.gov to compare the benefits of loan rehabilitation versus the benefits of loan consolidation. https://studentaid.gov/manage- loans/default/get-out . Contact your loan servicer to discuss the best option to get out of default.
FAQs
How Much Can I Borrow?
The Financial Aid Office will determine your loan eligibility based on the Free Application for Federal Student Aid (FAFSA) each academic year. There are limits on the amount of subsidized and unsubsidized loans you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for undergraduate and graduate study (aggregate loan limits).
Depending on your study year, eligibility, and whether you are a dependent or independent student, the federal government limits the amount you can borrow. Your amount may vary depending on financial need and other types of aid awarded.
| Year | Dependent Students (except students whose parents cannot obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents cannot obtain PLUS Loans) |
| First-Year Undergraduate Annual Loan Limit | $5,500—No more than $3,500 of this amount may be in subsidized loans. | $9,500—No more than $3,500 of this amount may be in subsidized loans. |
| Second-Year Undergraduate Annual Loan Limit | $6,500—No more than $4,500 of this amount may be in subsidized loans. | $10,500—No more than $4,500 of this amount may be in subsidized loans. |
| Third-Year and Beyond Undergraduate Annual Loan Limit | $7,500—No more than $5,500 of this amount may be in subsidized loans. | $12,500—No more than $5,500 of this amount may be in subsidized loans. |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000—No more than $23,000 of this amount may be in subsidized loans. | $57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. |
What is a loan fee?
A Loan Origination Fee is deducted from the gross amount of the loan you accept. Any balance remaining will be disbursed to the student from CEI Business Office. You can see this fee on your Student Self-Service under the Student Finance Account Activity.
What steps must I take to receive my loan?
As a first-time loan borrower or a new student at College of Eastern Idaho receiving Federal Direct Loans, you must complete all Loan Requirements (see Loan section)
- A student interested in receiving student loans must visit the CEI website, and log on to Student Self-Service to view and accept their loan offer. You can reduce the amount offered here or contact the Financial Aid Office for assistance.
- A student must be enrolled in 6 credits, or more
- You must sign a Master Promissory Note
- You must complete Loan Entrance Counseling.
- First-time borrowers who are first-time CEI students will have to wait 30 days from the beginning of the semester before their loan funds will be disbursed.
- Loans must be disbursed in two disbursements (Fall-Spring). If attending only one semester, loans will be disbursed in two disbursements within that semester. The first disbursement will be at the beginning of the semester and the second at mid-terms.
CEI's Default Rates
OPE ID: 011133
SCHOOL: COLLEGE OF EASTERN IDAHO
TYPE: Associate's Degree
CONTROL: Public
PROGRAMS: Both (FFEL/FDL)
| Cohort Fiscal Year | Official Default Rate | Number of Borrowers in Default | Number of Borrowers in Repayment | Enrollment Figures | Percentage Calculation |
|---|---|---|---|---|---|
| 2021 | 0 | 0 | 320 | 2,627 | 12.18% |
| 2020 | 0 | 0 | 279 | 2,402 | 11.62% |
| 2019 | 3.3 | 10 | 300 | 2,038 | 14.75% |
NOTE: A cohort default rate is the percentage of a school's borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year, October 1 to September 30, and default or meet other specified conditions prior to the end of the next fiscal year.