Share this
  • Student Education Loans

    Student education loans are a form of financial assistance provided to students pursuing an education. All of the steps required for student grants are also required to determine your eligibility for student loans. Because of this, if you become ineligible for all federal student aid, this will include student loans.

    Your eligibility for grants affects your loan amount. Therefore, grant eligibility is typically determined before loans are awarded. Loan processing typically takes longer than awarding of student grants. If you apply for student loans early, you have the option of canceling all or a portion of your loan amount before the money is disbursed to you. If you wait for your grant eligibility to be determined, you may put yourself in a situation where you would need to make payment on your classes while your student loans are being processed.

  • The William D. Ford Federal Direct Loan (Direct Loan) Program allows students to borrow money to help pay their educational costs while they are in school. As long as the student is attending at least six credit hours and does not cease to attend for a period greater than six months, the student does not have to begin repaying the principle balance or the interest. Although, they may make payments if they so choose. In order to be eligible for this program students must:

    • be registered and attending at least six credit hours in the term(s) for which they wish to borrow;
    • complete all steps necessary to determine eligibility for student grants, including-but not limited to-completing the FAFSA and, if selected for verification, the verification process;
    • complete the Edison State Direct Loan Application Process;
    • meet the requirements of the Edison State Satisfactory Academic Progress Policy; and
    • not be in default on any student loans or have received an overpayment of any educational grants or loans.

    Subsidized Student Loans
    The interest on subsidized loans is paid by the federal government as long as the student is attending at least six credit hours and attends for a period greater than six months. Once repayment begins, interest will begin to accrue that the student will have to pay back. Eligibility for these loans is based, in part, on financial need.

    Unsubsidized Student Loans
    Unsubsidized student loans accrue interest beginning on the day the loan is disbursed. However, the student does not have to begin repaying this interest and/or the principle balance until he or she drops below six credit hours or ceases to attend for a period greater than six months. Additionally, eligibility for these loans is not based on financial need. Even those students whose EFC is too high for them to receive grants may be eligible for unsubsidized loans. 

    IMPORTANT  To take out a Direct Loan, you must complete a  Master Promissory Note (MPN), as well as Entrance Counseling (if it is your first student loan) and Exit Counseling upon departing. You can complete these steps online by clicking below.

    Federal Direct Loans

    The Federal Direct PLUS Loan for Parents is a form of aid supported by the Department of Education to help parents pay educational expenses for dependent, undergraduate students. Funds for this loan come directly from the federal government. They usually have low interest rates and offer attractive repayment terms, benefits and options.

    IMPORTANT  To take out a Federal Direct PLUS Loan for Parents, you must complete a Master Promissory Note (MPN) as well as Entrance Counseling, Financial Awareness Counseling and Exit Counseling upon departing. You can complete these steps online by clicking below.

    Direct PLUS Loan

    Alternative Education Loans are available from private lenders. The terms and conditions of these loans are set by the individual lender. Deferment of payments until after graduation is not offered by all lenders and interest rates may not be fixed.

    IMPORTANT  You may qualify for federal or state aid in place of or in addition to an alternative loan. We recommend you speak with a Financial Aid counselor to discuss your options as receiving an alternative loan may affect your eligibility for free or low-cost federal, state or institutional aid.

    The Nurse Education Assistance Loan Program (NEALP) provides financial assistance to Ohio students enrolled for at least half-time study (or accepted for enrollment) in an approved Ohio nurse education program. Click below for more information.

    NAELP Information

    The Schell Loan is an interest-free loan, specific to Edison State students. This loan was funded by the Charles E. Schell Foundation. Charles E. Schell, upon establishment of the Foundation, specified the following qualifications for this loan:

    • born in and citizen of the United States of America;
    • between the ages of 18 and 25;
    • of parents who were born in and citizens of the United States of America;
    • loyal to the United States of America and its institutions;
    • honest, upright, intelligent and of practical appearance;
    • maintaining a minimum of a 2.0 GPA on a 4.0 scale

    Contact a Resource Specialist at 937.778.8600 for more information.

  • Student loans processed after the cut off for the regularly scheduled disbursements will be disbursed on a bi-weekly basis. Student loan borrowers should refer to their disclosure statement for the anticipated disbursement dates.

    Additional Resources
    Frequently Asked Questions
    Federal Student Aid Gateway
    Contact a Federal Student Loan Servicer
    Loan Repayment Simulator 
    U.S. Department of Education Loan Default Information
    National Student Loan Data System (NSLDS)
    Federal Student Aid ID (FSAID)

    Institutional Code of Conduct for Education Loans 
    As a participant in the federal Title IV education loan program, Edison State Community College is required to have a Code of Conduct that, among other things, prohibits conflicts of interest, bans revenue-sharing and gifts and specifies acceptable services. For more information about these restrictions, click here.

    Cohort Default Rate (CDR)

    Did you know?

    • One out of 10 Americans has defaulted on a student loan at one time or another
    • Over a million student loans enter default each year
    • 7.8% of all student loan debt is in default
    • $124.4 billion in student debt is in defaulted student loans
    • 11% of new graduates default in the first 12 months of repayment

    A Cohort Default Rate (CDR) is the percentage of a school’s borrowers who enter repayment on certain Federal Family Education Loans (FFEL) or William D. Ford Federal Direct Loan (DL) Program loans during a particular federal fiscal year (FY), October 1 to September 30 and default or meet other specified conditions prior to the end of the second following fiscal year.

    Repayment begins six months after a student withdraws, is no longer enrolled for at least 6 credit hours or graduates.  

    Default occurs when a student is in the repayment period but fails to make their payments for 270 days or more.  

    The Department of Education releases the official 3-year Cohort Default Rate once per year. The data from the most recent years for Edison State Community College is listed below.

    2019–2020 (FY20) 0.0%  
    2018–2019 (FY19) 2.4%  
    2017–2018 (FY18) 8.7%  
    2016–2017 (FY17) 14.4%  
    2015–2016 (FY16) 16.2%  
    2014–2015 (FY15) 18.6%  
    2013–2014 (FY14) 18.2%  
    2012–2013 (FY13) 20%  

    Edison State Community College currently outsources its default prevention activity to Student Connections, 6405 Castleway Court, Suite 100, Indianapolis, Indiana 46250. Student Connections contacts ESCC students before their loans enter repayment and thereafter as the need occurs. They also offer counseling and online resources to increase loan borrower awareness and repayment options. Students who need assistance can reach out to Student Connections at 866.311.9450 or