Cumberland University


Loans are often included in the award package. Loans allow students to defer the cost of their education by borrowing now and paying later. Cumberland University is a borrower-based institution.

  • Federal Perkins Loans, formerly National Direct Student Loans, are low-interest (5%) loans available to undergraduate students who demonstrate financial need. Repayment and interest charges begin after the student drops below half-time status. All Perkins Loan recipients must participate in an exit interview if they do not plan to return to Cumberland University the following academic year. Pell Grant recipients receive priority in Perkins Loan awards.
  • The Federal Direct Subsidized Stafford Loan Program allows undergraduate and graduate students to borrow money to help pay for college expenses. These low-interest rate loans are usually insured by the guarantee agency in the student's resident state and reinsured by the Federal Government. Repayment does not begin, nor does interest accrue, until six months after the student ceases to be enrolled as at least a half-time student. As of October 1986, the Federal Stafford Loan program became a need-based program.
  • The Federal Direct Unsubsidized Stafford Loan allows students who do not qualify for Federal interest subsidies under the Federal Stafford Loan Program to borrow money for college expenses. The combination of subsidized and unsubsidized Federal loans for a borrower may not exceed the annual and aggregate limits for loans under the Federal Stafford Loan Program.
  • The Federal Direct PLUS Loan Program offers parents of dependent students another option in financing their students' education. Repayment begins immediately.
  • Alternative Loans are available for students from a number of different lenders who participate with the University. These loans generally do not require the completion of the Federal Application for Federal Student Aid (FAFSA), may be based upon ability to repay and may carry a slightly higher rate of interest than Federal Subsidized or Unsubsidized Stafford Loans.