Managing Your Student Loans
While every student wants scholarships and grants, not everyone can cover the entire
cost of college through these options. Loans can make your education possible and
affordable. When exploring loan options, you should consider federal student loans
before any private loans. Federal student loans usually have lower interest rates, flexible repayment plans,
no prepayment penalties, and no credit checks (except for PLUS Loans).
Since a loan is money you borrow and must pay back with interest, you need to understand
the terms and conditions of your loan(s) before you borrow. In many cases you may
be able to borrow less than what has been offered to you in loan funding. As a matter
of fact, The Office of Financial Aid at Charter Oak State College encourages you to
borrow only what you need!
Please visit StudentAid.gov to get the facts you will need to make important decisions about planning and paying
for college. Here you will also find information about federal student loans before you borrow. Once you decide to borrow, you can get important information to
assist you with managing your student loan repayment.
New students to COSC are required to complete entrance loan counseling. Entrance loan
counseling is a mandatory information session that explains your responsibilities
and rights as a student borrower.
Completing your Entrance Loan Counseling Session
All students who graduate, withdraw, or drop below-half time must complete exit loan
counseling. Exit counseling ensures that you understand your rights and responsibilities
as a borrower. You will receive information about repayment choices, postponing repayment
(deferment and forbearance), and other valuable data regarding the details of your
Completing your Exit Loan Counseling Session
Completing your Federal Direct Loan Master Promissory Note (MPN)
The Master Promissory Note (MPN) is a legal document in which you promise to repay
your loan(s) and any accrued interest and fees to the U.S. Department of Education.
It also explains the terms and conditions of your loan(s); for instance, it will include
information on how interest is calculated and what deferment and cancellation provisions
are available to you. You must sign your MPN (and entrance loan counseling if required)
before loan funds can be disbursed.
Complete your MPN.