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Student Loans

Reminders to ensure you receive your loan

  • Students must complete the FAFSA 
  • Students will need to be in good standing with Financial Aid 
  • Students must be enrolled in at least 6 eligible credit hours. 
  • Students must complete a Undergraduate Master Promissory Note (MPN).
  • All First-Time Loan Borrowers must complete PPSC's Direct Loan Entrance Counseling via studentaid.gov.
    • Please note PPSC holds first-time loan borrowers loan funds for 30 days from the start of their semester. 
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Receiving Federal Loan Funds

To receive a student loan you must file a FAFSA for the appropriate aid year, accept your loan offer on your financial aid award on the student portal, complete Loan Entrance Counseling at Home | Federal Student Aid if you are a first time student loan borrower, and finally complete a Master Promissory Note (MPN) at Home | Federal Student Aid using your FSA ID to log in. You must be enrolled and attending at least half-time (6 credit hours) to receive a loan disbursement.   Loan Entrance Counseling is an online course that informs you of your loan options and repayment requirements.

Please contact Dianne Chan at Dianne.Chan@pikespeak.edu or 719-502-2299 if you have any questions about completing the online loan counseling session. 

Current interest rates on loans disbursed between July 1, 2021 – June 30, 2022 are:

  • Direct Subsidized Loans (undergraduate students) – 5.50% fixed
  • Direct Unsubsidized Loans (undergraduate students) – 5.50% fixed
  • Direct PLUS Loans  (parents) – 8.05% fixed 

Please Note: interest rates generally increase or decrease every July 1.

Student loans can have a much lower interest rate than private loans and sometimes the interest is deferred while students are in school. Keep in mind that any money you borrow needs to be repaid. PPSC is a participant in the Federal Direct Loan Program in which students borrow Stafford Loan funds directly from the U.S. Department of Education rather than from a lender.


Types of Loans

  • Must have demonstrated financial need based on EFC

  • Must be enrolled in at least 6 credit hours

  • Meets Financial Aid eligibility requirements

  • Does not accrue interest while student is enrolled in at least 6 credit hours

  • Requires repayment after graduating, ceasing enrollment, or drops below half-time enrollment

  • Must complete the Master Promissory Note (MPN) and Entrance Loan Counseling through studentaid.gov to receive.

  • Does not require demonstrated financial need

  • Must be enrolled in at least 6 credit hours to receive

  • Meets Financial Aid eligibility requirements 

  • Accrues interest immediately after disbursement

  • Requires repayment after graduating, ceasing enrollment, or drops below half-time enrollment

  • Must complete Master Promissory Note (MPN) and Entrance Loan Counseling through the studentaid.gov to receive.

  • PPSC only offers the base loan amount $3,500 in subsidized/unsubsidized to adjust the amount please complete a loan request form 

  • Enrolled in at least 6 credit hours

  • Meets Financial Aid eligibility requirements

  • Parents must complete the PLUS Master Promissory Note and submit the PLUS Loan Request Form

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Loan Limits


Dependent students can request an additional $2,000 unsubsidized loan per year. 

Independent students can request an additional $6,000 unsubsidized loan per year.


Dependent students can request an additional $2,000 unsubsidized loan per year. 

Independent students can request an additional $6,000 unsubsidized loan per year.


Dependent students can request an additional $2,000 unsubsidized loan per year. 

Independent students can request an additional $7,000 unsubsidized loan per year.

$57,500 for an Independent Student 

$31,000 for a Dependent Student

No more than $23,000 may be in subsidized loans 

As a loan recipient, you can expect a few things to happen after graduation, dropping below half-time enrollment, leaving PPSC, or transferring to a new institution:

  • You will be required to complete Loan Exit Counseling to learn about repayment and deferment information regarding loans you've borrowed
  • You may receive communication from your servicer indicating a change of enrollment and expectations of payment
  • You may receive a 6-month grace period of non-payment before your servicer requires monthly repayment of any loans you've borrowed

You will want to work out payment options with your servicer, but below is a sample loan repayment plan to give you an idea of what to expect:

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Sample Loan Repayment Schedule     
  With interest Capitalization (interest not paid while in school)  Without Interest Capitalization (interest paid while in school) 
Original Loan Balance  $10,000 $10,000
Capitalized Interest  $4,800 **$0.00
Current Loan Balance  $14,800 $10,000
Interest Rate 6.8%  6.8% 
Maximum Term  120 Months  120 Months 
Level Repayment  Schedule Installments     
119 Months  $170.32 $115.08
1 Month  $169.09 $114.24
Total Repayment Interest  $5,637.17 **$3,808.76
Total Repayment Amount  $20,437.17 $13,808.73
** **It is beneficial for borrowers to make their interest payments because the loan will disclose at a lower balance. In this comparison, the monthly installment is $55.24 less and the total repayment at the end of the life of the loan is a savings of $1828.41 in interest.    
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What If I don't make my loan payments?

If you do not make your loan payments, you can go into Loan Default after being delinquent for 270 days or more. Defaulting on your student loan can have a number of serious consequences including:

  • The national credit bureaus are notified and your credit rating can be affected.
  • The Internal Revenue Service can withhold your tax refund. 
  • Your wages can be garnished.
  • You will be ineligible to receive federal or state aid if you return to college.

     Be aware: Student loans are generally not dischargeable in bankruptcy!

Fresh Start Initiative

On April 6, 2022, the U.S. Department of Education (ED) announced an initiative—called “Fresh Start”—to help eligible borrowers in default.

Fresh Start will continue through one year after the COVID-19 payment pause ends.


You can regain student aid benefits:

  • Access to Federal Student Aid
  • Stopped Collections
  • Eligibility for Other Government Loans
  • Restored Ability to Rehabilitate Loans
  • Access to Student Loan Forgiveness Programs
  • Access to Short-term Relief (Forbearance and Deferment)
  • Access to Income-Driven Repayment (IDR) Plans

Eligible Loans:

  • Defaulted William D. Ford Federal Direct Loan (Direct Loan) Program loans
  • Defaulted Federal Family Education Loan (FFEL) Program loans
  • Defaulted Perkins Loans held by ED

If you’re not sure whether your loans qualify, you can call the Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hard of hearing 1-877-825-9923).


We are reviewing defaulted borrowers for Fresh Start Eligibility. This is a manual review and may take time to update the records of all eligible borrowers. Some borrowers will need to complete a Fresh Start Acknowledgement:

  • If a student needs to complete the Fresh Start Acknowledgement, our office will contact you via email.
  • If a parent needs to complete the Acknowledgement, the form will be emailed to the address on the parent plus application. 
  • Borrowers will need to print and sign the document. 
  • Typed signatures are not acceptable. 

Once the signed acknowledgement is received, the default hold will be removed and the student will be reviewed for aid awarding.

For more and updated information please visit Federal Student Aid.

Cohort Default Rate ( CDR)

A Cohort Default Rate (CDR) is the percentage of a school’s borrowers who enter repayment on student loans during a federal fiscal year (October 1 to September 30) and default prior to the end of the next two federal fiscal years (3-Year CDR). The United States Department of Education releases official cohort default rates once per year for schools participating in the Title IV student financial assistance programs.    

A college’s Cohort Default Rate (CDR) measures the percentage of their federal student loan borrowers who defaulted on their student loans within a specified period of time after entering repayment. Colleges with high CDR rates are subject to lose future eligibility for federal Title IV aid, to include Pell grants and federal Subsidized and Unsubsidized student loans.

*3YR Official CDR rate for FY2019 is the most recent rate provided by the Department of Education. These are borrowers who entered repayment of their student loans between Oct. 1, 2018 and Sept. 30, 2019 and subsequently defaulted prior to Sept. 30, 2021. Here at Pikes Peak State College, the official rate is 3.1%. This includes 2,489 borrowers in repayment during the 2019 fiscal year. Those students were tracked over a three-year period and 78 of them defaulted on their student loans. (With the pause of student loan repayments, there is a nationwide decrease in the 3-year CDR since borrowers are not required to make payment.) For reference, the national 3YR Official CDR rate fell to 2.3% from 7.3%.

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