Eligibility

• US citizen or eligible non-citizen. 
• FAFSA results for the applicable financial aid year on file in the Financial Aid Office. Our financial aid year begins in September and ends the following summer. 
• CTSFW financial aid application submitted. 
• Enrolled in an eligible program at least half-time in order to qualify for a Federal Student Loan:

For continued eligibility, you must maintain Satisfactory Academic Progress (SAP). In order to maintain SAP, you must: 

1. Maintain the required cumulative grade point average for your program (see CTSFW Academic Catalog).
2. Complete at least 67% of all attempted credit hours each quarter. 
3. Complete the enrolled program in no more than 150% of the normal length of the program, measured in terms of attempted credit hours divided by the number of required credit hours for program completion. 

Part 1 – Application and Verification

• Complete, sign, and return the Direct Loan Award offer sent to you with your award letter. Indicate the amount you want to borrow. Do not attempt to apply through a private lender website; all Direct Loans must originate through the Financial Aid Office.
• The Department of Education customizes the verification process to individual students. If you are selected for verification, we will let you know what additional verification information you need to provide to the Financial Aid Office.

The Department of Education is more likely to select your FAFSA for verification if you do not use the IRS Direct Data Exchange or if you file your FAFSA using estimated figures. Click here for more information.

Part 2 – Entrance Counseling and Master Promissory Note

• First-time borrowers at CTSFW must complete entrance counseling at StudentAid.gov. You must sign in with your FSA ID and password. The Financial Aid Office will receive the results electronically. 
• You must also sign a Master Promissory Note (MPN) at StudentAid.gov. You must sign in with your FSA ID and password. The Financial Aid Office will receive the results electronically. 

You do not need to sign an MPN if you have previously signed one with the US Department of Education and received a Direct Loan disbursement within the past ten years, even as a student of another school. Keep a copy of your MPN for your records. 

Part 3 – Loan Disbursement

• The Financial Aid Office will certify your loan eligibility and transmit your loan information to the US Department of Education. Your loan money will be disbursed electronically to your CTFSW student account at the beginning of each quarter. Remember that a 1.057%* origination fee is deducted from each disbursement of an Unsubsidized Loan, and a 4.228%* origination fee is deducted from each Graduate PLUS Loan disbursement. 
• You may withdraw funds left over after your bill is paid and use them for living expenses each quarter. We highly recommend that you sign a Credit Balance Form and return it to the Financial Aid Office so that your excess funds will remain in your student account until you withdraw them. Otherwise, excess Federal Student Loan funds will be sent to you automatically by check each quarter. 

*Rates are effective until October 1, 2025. 

It is best to borrow only what you need in order to minimize the amount you will have to pay back after you graduate. Some experts have suggested that you borrow no more than what you expect your starting salary to be when you graduate. If you borrow twice the amount of your expected income, you could be at risk of defaulting on your student loans. However, some repayment plans offer loan forgiveness after a set period for those who qualify. For more information on loan repayment, see the “Repaying Your Loan” section.

The annual maximum loan amount that graduate students can borrow through the Direct Loan Program is $20,500 per year. Additional loans can be borrowed through the Federal Direct Graduate PLUS Loan Program (see below). 

Graduate students are no longer eligible for Subsidized Loans and can only receive Unsubsidized Loans. With an Unsubsidized Loan, the interest accrues while you are in school from the first day of the loan disbursement, although you may defer interest payments until you graduate from school. Normally, the interest is added to your principal balance through a process called capitalization. Repayment is deferred during your vicarage or deaconess internship year because it is a required part of your program. Unsubsidized Loans can replace your Student Aid Index (SAI), so you are eligible for a loan even if you have no demonstrated need. The interest rate for Unsubsidized Loans is 7.94%.**

You can increase or decrease the amount of your loan as the year progresses. Remember that the amount you indicate on your Direct Loan Award sheet represents the amount you want to borrow for the entire financial aid year. The actual disbursement of this amount will be credited to your student account and divided equally among the quarters that you are attending school (at least half-time status)—usually in thirds (fall, winter, and spring quarters). Please indicate on your Direct Loan Award sheet if you plan to attend summer sessions and would like to receive a loan payment for the summer quarter.

**Rates are effective until June 30, 2026. 

In some cases, additional amounts can be borrowed through the Federal Direct Graduate PLUS Loan program. Your credit must first be approved by the US Department of Education. Graduate PLUS Loans are available even after you have reached your unsubsidized borrowing limit, but you must either satisfy demonstrated need relative to your Cost of Attendance or replace your SAI. Contact the CTSFW Financial Aid Office if you believe that you will need a Graduate PLUS Loan. Graduate PLUS Loans require a new Master Promissory Note in addition to the one submitted for Unsubsidized Loans. New entrance counseling is required, as well. Go to StudentAid.gov to complete a Graduate PLUS application. Interest rate is 8.94%.***

***Rates are effective until June 30, 2026. 

You may borrow for the academic year (fall/winter/spring), for the summer quarter, or for any combination of terms in which you attend classes at least half-time. 

Loan Delivery Dates for 10-Week Classes

Loan Delivery Dates for Graduate Intensive Classes (PhD, STM)

The Financial Aid Office sends a notice at least two weeks before the next loan period payment is made. Please respond to that notice if you want to change the scheduled loan disbursement amount. The Financial Aid Office will cancel any unwanted loan funds prior to the day of disbursement if the student notifies the Financial Aid Office in writing or by email. Once a loan disbursement has been made to the student’s account, the Financial Aid Office is not obligated to return the funds to the lender, and the student must make other arrangements to return unwanted loan funds through his or her loan servicer(s). Students can often return funds to their loan servicer(s) by ACH debit from their checking or savings account. Contact your loan servicer to find out the best method to return unused funds. Loan funds returned before 120 days after disbursement will not have any fees or interest charged. Contact information for loan servicers is found on the FSA website. Please contact the Financial Aid Office if you have questions.

Your MPN includes a list of your rights and responsibilities as a borrower.

Before you graduate, leave school (by withdrawal or leave of absence), or drop below half-time status, the US Department of Education requires you to complete exit counseling in order to review your student loan responsibilities when you are no longer a full-time student. You must do this through the FSA website. You will need your FSA ID and password to log in. Normally, you should complete your exit counseling during your last quarter of being a full-time student at the Seminary (or after you complete a delayed vicarage or deaconess internship). After completion, you will get an electronic confirmation, which will also be sent automatically to the Financial Aid Office. 

Knowing how much you have borrowed in Federal Student Loans is critical in managing your financial future. To obtain this information, we recommend that you visit the  FSA website. FSA provides a central database for student aid and allows you to access information valuable in managing your Federal Student Loans, such as the amount of debt you have and the loan servicers to whom your payments are due. You will need your Federal Student Aid password to access this website. Managing your debt is your responsibility, and the FSA website is a helpful tool in addressing your debt.

You will be required to begin loan repayment within six months after you graduate, leave the Seminary, or drop below half-time enrollment. Vicarage and deaconess internship should not cause your loans to go into repayment, since you are still considered a student. Please contact your loan servicer if you receive payment notification during your vicarage or deaconess internship year. 

There are several repayment plans available: Standard, Graduated, Extended, Income-Based Repayment (IBR), Pay As You Earn, and Income-Contingent Repayment (ICR). The repayment period can vary in length of time from ten to twenty-five years, depending on the plan you choose. Please go to the Federal Student Aid website to review your options. For information on whether or not you qualify for loan forgiveness in the Income-Based Repayment (IBR) or the Public Service Loan Forgiveness (PSLF) plans, please visit the appropriate page: IBR or PSLF.

Remember that extending your repayment plan or decreasing your monthly payment amounts usually increases the interest you pay over time. Go to Repayment Plans and Calculators for more information about the various repayment plans and to calculate your estimated repayment amount under each of the different plans. To learn about student loan consolidation, please click here.

If you experience economic hardship or other circumstances that limit your ability to repay your loan, you may qualify for a deferment or forbearance. A deferment allows eligible borrowers to postpone payments for certain reasons as long as they are enrolled on at least a half-time basis in a post-secondary school, graduate fellowship, or rehabilitation training program. Deferments of up to three years are also available if borrowers are unemployed. Remember, your interest continues to accrue while you are in deferment. 

Borrowers who do not qualify for a government-approved deferment can request forbearance from their loan servicers. Forbearance can delay or reduce monthly payments. Usually, however, borrowers must still pay the interest on their loans during the forbearance period. 

Note: If you fail to repay your loan, you will be considered in default. If this occurs, your credit rating will be damaged, and you may not be able to borrow in the future to pay for a car, a home, or even to continue your education. Your wages may be garnished, and your federal and state income tax refunds may be withheld; your loan may be sent to a collection agency, and you will be liable for collection fees. Please contact your loan servicer if you begin to have trouble repaying your student loans.