There are many different types of student loans available to students, including loan programs for parents of college students. Most loans are available through the federal government and a student must submit a FAFSA (Free Application for Federal Student Aid) form to determine eligibilty.

For more information about loans, please contact:

Office of Financial Planning phone | 606.539.4220  |  1.800.343.1609, ext. 4220

Federal Perkins Loan
The Federal Perkins Loan is a low interest loan for students with exceptional financial need. Funding is limited to the amount the school is allocated. If you are awarded a Perkins Loan you will complete the necessary paperwork in person at Cumberlands during the first week of school each semester
Direct Stafford Loan
There are tow types of Direct Stafford Loan, subsidized and unsubsidized. 
Eligibility for each type depends on financial need. If you are awarded a Direct Stafford Loan, you must complete entrance counseling and a Master Promissory Note (MPN) at
Direct PLUS Loans for Parents

A Direct PLUS Loan is a federal loan for parents of college students. Parents must complete the Parent PLUS application process and credit check at to determine if they are eligible. The credit check is only valid for 90 days.

Alternative Loans are offered by private lending institutions and are not guaranteed by the federal government. These funds are available to credit and non-credit students who may not be eligible for federal financial aid or who may need to bridge the gap between the actual cost of education and their federal financial aid. The lender will interpret credit history and other determining factors to see if the student is eligible. Please see the Private Alternative Loan TILA below with more important information regarding private alternative loans.
Private Loan TILA Disclosure

Truth in Lending Disclosure

In borrowing student loans for college, it is important to be aware of the following:
You should always exhaust all federal student loan borrowing before considering borrowing private student loans because the federal student loans typically have better terms, i.e.: fixed interest rate, more flexible repayment terms, etc. However, if you find you are in need of additional loan funds after borrowing all of the federal loans available to you, below is some important information.

Private loans differ from lender to lender. It’s important to ask questions when seeking a private student loan, so you can compare loans and choose the one that best fits your needs.

Research before you borrow

  • Will I need a cosigner?
  • What is the interest rate?
  • Will I need to make payments while I’m in school?
  • Is there a minimum or maximum amount I can borrow?
  • When does the lender capitalize accrued interest? (add any unpaid interest to the principal loan balance, increasing amount of money you pay back).
  • Does the lender offer electronic payments?
  • Does the lender offer interest rate reductions or other incentives to borrowers?
  • Is the interest based on Prime Rate or LIBOR (London Interbank Offered Rate)?
Both are interest rates on which lenders may base your loan. You can compare these interest rate methods by going to the money rate tables published in the Wall Street Journal.

Choosing a Cosigner

Since private student loans are credit based, you will probably need a cosigner to qualify. A cosigner is a person who agrees to assume responsibility for repaying your private student loan if you fail to repay.

Budgeting for Repayment

  • You should plan ahead when taking out student loans so you know how much to budget for repayment.
  • Add up the total you will owe on your student loans. Your lender will send you a disclosure statement for each loan that you borrow before the loan is disbursed. Review your disclosure statement for each loan.
  • Estimate what your monthly payments will total. Lenders usually have a sample repayment schedule on their website. It will be helpful to review that schedule when planning your monthly budget.

Borrower Rights

As a student loan borrower, you have the right to:
  • cancel your loan.
  • obtain a copy of your Promissory Note; this is a legal agreement to repay your loan under the terms stated.
  • a notification of loan sale or transfer, your lender must notify you if your loan is sold or transferred to another organization. In the notification, you should have the new organizations name, address to where payments should be sent, and the telephone numbers for the new organization and a telephone number of the original lender from whom you borrowed.
  • a repayment schedule, you should receive this information before your first loan payment is due.

Borrower Responsibilities

As a borrower, you are responsible for:
  • repaying the loan as agreed, even if you do not complete your education, are unable to find employment or are dissatisfied with the education you received.
  • repaying the loan even if a bill is not sent; failure to receive a bill does not relieve you of the obligation to repay your loans on schedule. 
You must notify your lender or servicer if:
  • you change your name, address and/or phone number.
  • you drop below half time enrollment
  • you transfer to a different school.
  • you are unable to meet the agreed upon payment terms. Your bank may be able to work with you by setting up a forbearance which is a period of time when you are allowed to postpone or temporarily reduce the amount of the loan payment due to financial hardship.

New Lender Requirements for Lending Private Student Loans:

After credit approval for a private student loan, the lender will send you the following:
  • Application for Solicitation Disclosure: This will provide information about the range of rates, fees and other terms that apply.
  • Approval Disclosure: This notice contains the terms specific to your approved loan. The borrower has 30 calendar days to accept this offer. Upon loan acceptance, the borrower would be provided a promissory note from the lender to complete, sign and return to the lender.
  • Private Education Loan Applicant Self Certification Form: Applicant completes this self certification form and submits it to the lender.
  • Final Disclosure: Presented to the borrower after the loan is accepted and all required documentation is on file with the lender. This disclosure is made 3 business days before the loan is disbursed. The loan will not be disbursed until the 3 business days have elapsed. The borrower may cancel the loan within this 3 day period.
  • University of the Cumberlands does not have a “Preferred Lender List” of private loan lenders that we recommend to students. Students are asked to research and select a lender independently of UC. The Financial Planning Office will support every effort made by a student to secure a private student loan, as needed.
The Higher Education Opportunity Act (HEOA)
Enacted August 14, 2008
Public Law 110-35
NYIT Financial Aid Website
Dear Colleague Letter GEN-10-01

Office of Financial Aid

Toll Free:  1.800.343.1609
Local:  606.539.4220

Office Hours
Monday - Friday
8 am - 5pm