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Loans

How Loans Work


Loans are given to students with the understanding that they will be repaid at some future date in accordance with the specific terms of the loan.

Loans may be subsidized or unsubsidized.

Subsidized
Subsidized loans are need-based. The federal government pays interest on the loan until repayment begins. In order to receive such a loan, a student must have unmet financial need, as determined by the Office of University Financial Aid. 

Unsubsidized
Unsubsidized loans are non-need based and accrue interest while you are in school. Interest accrues after the loan disburses and is the student’s responsibility. Students have the option of paying on the interest while they are in school, but this is not required.

Review loan terms and conditions here

Loan Application and Acceptance

To accept the loan amount offered in your award letter, log in to My Financial Aid using your CWRU Network ID and password. You must accept your loans and complete any additional necessary steps in order for loans to disburse to your student account.

Loans offered by Case Western Reserve University (including Federal Direct Loans, Federal Perkins Loans, Federal Health Professions Student Loans, Federal Nursing Loans and CWRU Loans) are not credited to a student’s bill until the student signs the promissory note for the loan and completes entrance counseling.

For detailed instructions on applying for loans as a new borrower, please click here.

Your total loan amount will be disbursed among your academic year semesters of enrollment. Loan funds will first be applied to the outstanding tuition balance. Once that obligation has been met, any excess loan amount will be mailed to your permanent address as a check or direct deposited.

To accept a loan on a student's financial aid award or to receive additional loan funding, please follow these instructions. The Office of University Financial Aid highly recommends exhausting all federal loan options before applying for an alternative loan.

Types of Loans


 

Federal Direct Loans are the primary form of low-interest, long-term loans used to assist students with college expenses. They may be either subsidized or unsubsidized.


 

Federal PLUS Loans are unsubsidized loans for the parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Federal PLUS Loans are credit-based.


 

A CWRU Loan is a subsidized loan to a student to assist with educational expenses. In order to receive a university loan, a student must first apply for need-based financial aid and have eligibility, which is determined by the Office of University Financial Aid.

Repayment is made over a five-year period after graduation or when the student ceases enrollment on at least a half-time basis. CWRU loans range from $200 to $5,000 per year. CWRU loans are typically only awarded to students in need who have been denied funding from other sources. The loans are fixed at a 5% interest rate as of July 1, 2017.


 

A wide variety of private educational loans can be found using FASTChoice, an online private loan counseling and selection tool.

Listed lenders are selected by an annual RFI that looks at areas such as customer service, financial stability and loan terms. Many programs are designed for specific types of borrowers, and they comprise various loan terms and underwriting guidelines. Private loans are unsubsidized and can be denied due to adverse credit.


 

A wide variety of private educational loans can be found using FASTChoice, an online private loan counseling and selection tool.

Listed lenders are selected by an annual RFI that looks at areas such as customer service, financial stability and loan terms. Many programs are designed for specific types of borrowers, and they comprise various loan terms and underwriting guidelines. Private loans are unsubsidized and can be denied due to adverse credit.


 

Many U.S. institutions will required that an international student apply for private educational loans with a U.S. citizen or U.S. permanent resident as a co-signer. A wide variety of private educational loans can be found using FASTChoice, an online private loan counseling and selection tool.

 

There are a few companies, such as MPOWER Financing that will provide loans to international students without a U.S. citizen or U.S. permanent resident as a cosigner.


If you have followed the instructions and your loan(s) do not disburse the first week of classes, contact the Office of University Financial Aid.

Loan Counseling

Students borrowing for the first time through the Federal Direct Loan Program must participate in an online loan counseling session prior to the first loan disbursement. Loan counseling can be found by going directly to studentloans.gov. This counseling is required in order for the federal loans to disburse.

In addition, exit counseling must be completed prior to withdrawal, transfer or graduation. All students who have borrowed through the Federal Direct Loan Program, Health Professionals Loan Program, Federal Nursing Loan Program, Federal Perkins Loan Program or University Loan Program will receive an email to their CWRU account with a link to complete exit counseling.

Loan Repayment

When the student is issued a loan, the student will be given a Truth-in-Lending Statement that will detail the interest rate and finance charge for the loan. Because a student loan may represent a student’s first experience with credit, it is essential that the student understand completely the terms and conditions of the loan. The establishment and maintenance of a good credit rating is essential for the student’s future economic and financial well-being. For additional information, please refer to the .

The student should view a loan both as a vehicle that will enable him or her to finance a portion of his or her educational expenses today and as an investment in the future. The student should not only look at the sum necessary to meet current expenses but should also carefully weigh his or her ability to repay the loan after graduation.

While a student is attending school, some repayments can be postponed. This is called a deferment and is typically an automatic process for Federal Direct Loans and Federal PLUS Loans for Graduate Students. Federal PLUS Loans for Parents will typically require an opt-in for deferment at the time of application. In these deferment instances, repayment on the loans would generally start 6 months after the student graduates or drops below half-time status. You will be sent information from the loan servicer during this time regarding the payments to be made.