Loans

Loans

Loans are available to both undergraduate and graduate students and must be repaid. Students must be enrolled at least half time (six credits each semester) and cannot borrow more than their cost of attendance minus other financial aid received.

Federal Direct Loan. Students can take out a low-interest Direct Loan through a program sponsored by the federal government. The Free Application for Federal Student Aid (FAFSA) determines a student's eligibility. If you file a FAFSA and include the Capitol Technology University code, 001436, Capitol's Financial Aid Office will inform you of the Direct Loan amount for which you qualify.

There are subsidized Direct Loans for students with financial need and unsubsidized Direct Loans for students regardless of financial need.

  • Subsidized Direct Loans - the interest on the loan is paid by the federal government while students are enrolled in school at least half-time and during grace and deferment periods. Interest rates on the loans, which can differ according to the year the loans begin, are below commercial loan rates.
  • Unsubsidized Direct Loans - students are responsible for the interest that accrues on the loan during in-school and grace periods. Interest may be paid as it accrues or it can be added to the loan principal.

All first-time borrowers of both subsidized and unsubsidized loans must participate in a loan entrance counseling session at least once. Capitol Technology University students must fulfill this requirement online. To review frequently asked questions concerning Federal Direct Loans, click here.

Parent and Grad PLUS Loans. The PLUS program, also sponsored by the federal government, is available to parents of dependent undergraduate students and graduate students who have borrowed their maximum annual or aggregate loan amount to help pay for their children's education regardless of financial need. Students must be enrolled at least half-time (6 credits).

  • The loan is based on credit history. Parents/Grad students must have good credit history.
  • A FAFSA must be completed.
  • Parents and Grad students may borrow up to the cost of the education minus any other aid their children receive. Parent/Grad student must complete the PLUS Master Promissory Note and credit check found online at http://www.studentloans.gov. The credit check must be done each academic year the loan is borrowed.
  • Parents and Grad students with adverse credit history may be required to complete an online Entrance Counseling Session before the loan can be disbursed.
  • Interest accrues upon disbursement. Interest can be paid as accrued or added to the principal of the loan.
  • Repayment begins immediately after the final disbursement for the academic year.
  • The interest rate for the PLUS is variable, with a maximum rate of 9 percent. The rate is adjusted every July 1, based on the 52-week Treasury Bill on June 1, plus 3.1 percent.

Alternative Educational Loan Programs. These loans are available if additional funds are needed over and above what you receive under the federal, state, and institutional financial aid programs. Over the past few years, some of our students have borrowed educational loans from their credit unions and banks, Discover, PNC, Sallie Mae and Wells Fargo, to mention a few. Note: Capitol Technology University does not have a Preferred Lender List nor does it endorse the lenders previously used by some of our students.

Loan Code of Conduct