Loan Entrance Counseling
New Students & First-Time Borrowers
If you are a new student or first-time borrower at Bethune-Cookman University, you must complete an Entrance Interview. Failure to complete this requirement will delay the process of your Federal Stafford loan and your financial enrollment into B-CU.
All Students – PLUS and Private Loan Requirements
PLUS Loans are credit-based Parent Loans, and families are awarded these loans to help cover the cost of attendance at Bethune-Cookman University. Private Loans are also credit based, and are resources available to parents and students for educational purposes. Families needing these Loans to meet the cost of attendance are required to complete the following steps to determine whether their family meets the requirements to be approved for the PLUS or Private Loan.
What is Entrance Counseling?
If you are a First-Time Borrower you will also need to complete an ENTRANCE INTERVIEW. Before a first-time FFEL Loan or Direct Loan borrower takes out a loan, the school must ensure that the student has been counseled on repayment and debt management. A review of the information below is required for Entrance Counseling and must be completed before funds can be disbursed:
- An explanation of the use of an MPN
- The importance of the repayment obligation
- A description of the consequences of default
- Discuss debt management strategies
- Review Forbearance, deferment, and cancellation options
- Providing sample repayment schedules
- Familiarization with a borrower’s rights and responsibilities as well as other terms and conditions
- Undergraduate Students - Loan Entrance Counseling
- Graduate Students - Loan Entrance Counseling
Importance of Repayment
Repaying Your Student Loan
Unlike the grants and scholarships that you may have received as part of your award package, a Federal Stafford Loan and Private Loans comes with fees, accrues (or collects) interest, and must be repaid.
In fact, you must repay your loan even if you have failed to complete your degree, are unhappy with your education, or can't find immediate employment after graduation.
If you are late with just one payment - or simply miss a payment - you will be considered delinquent and you may incur late fees. If you stop making Stafford Loan payments altogether, you will be considered in default after 270 days have passed with no payment.
Consequences of Default
Default is serious and may come with these consequences:
• Your credit rating will be negatively affected for years.
• The entire unpaid amount of your loan (including interest) will become immediately due and payable.
• Your wages may be garnished.
• Your federal and state income tax refunds can be withheld.
• You will get calls from bill collectors and you may be subject to litigation
• You will be ineligible to receive any other federal aid in the future.
The Master Promissory Note
The Master Promissory Note is the borrowers promise to pay the lender all loan amounts disbursed under the terms of the application and Master Promissory Note plus interest and other charges and fees that may become due as provided in this MPN.
NOTICE REGARDING NEW LOAN LIMITS: Effective July 1, 2008 (award period 2008-09), there is an additional $2,000 in Unsubsidized loans an undergraduate (independent and dependent) student may borrow annually. In addition, the aggregate amount of Unsubsidized Stafford Loan eligibility for a dependent student has increased from $23,000 to $31,000 and for independent students; the Unsubsidized Stafford Loan eligibility aggregate amount has increased from $ 46,000 to $57,000. This information is provided as a result of the federal increase in additional Unsubsidized Stafford Loan eligibility. Under the Stafford Loan programs, a dependent undergraduate student may borrow up to.
If you have any questions regarding the information shown above, your Financial Aid Office will answer any questions you may have in this regard. You may contact the Financial Aid Office at 800.553.9369.