Direct Loans

Direct Loans

Colorado School of Traditional Chinese Medicine (CSTCM) is certified by the U.S. Department of Education to participate in the Title IV Student Aid Programs including Direct Loans, Grad PLUS, and alternative student loans. To be eligible for federal student aid at CSTCM, students must submit a Free Application for Federal Student Aid (FAFSA), be enrolled at least half-time (six credit hours a week minimum) and comply with all CSTCM academic procedures and guidelines. Financial aid recipients are required to meet Satisfactory Academic Progress (SAP) as outlined in the Student Handbook.

What You Should Know About Taking Out Student Loans

There are a couple of requirements that you must meet to be eligible for student loans.

  1. You must stay at a satisfactory level. At CSTCM satisfactory is considered at or above 2.0 or C-.
  2. You must be enrolled at least half-time in the program; six (6) credit hours a week minimum.

Direct Loan Program

Six (6) month grace period after leaving school. Interest accrues on unsubsidized Direct Loans from the disbursement date. Repayment begins after your grace period upon graduating from CSTCM. Repayment is required regardless of the educational outcome and subsequent employability.

Graduate PLUS Loan or GradPLUS Loan

A fixed interest rate student loan guaranteed by the U.S. Government. The Grad PLUS loan is not need based but is a credit based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee.

Master Promissory Note

In order to take out a student loan, you must sign a Master Promissory Note. By signing this form you promise to pay back your student loans in accordance with the terms of that note. The note is a binding legal document that states that you must repay your student loan in full.

Drop Policy

If you drop below six (6) classroom hours a week or drop completely from the program before you have completed 61% of the trimester, the money that you have taken out in loans will be returned and you will be responsible for paying all tuition and fees directly back to CSTCM for the trimester.


Typically, payments are considered in default after 270 days without payment. Lenders are entitled to all legal means necessary for debt recovery. This can include wage withholding (garnishing wages), withholding tax refunds, and even confiscation of collateral if any is attached to the loan. Defaulting on a government loan can eliminate future federal financial aid and will negatively affect credit rating.

Preventing Default

Notify the holder of your loan immediately if you find you are unable to make payments. Your lender wants to help you avoid default and will work with you to solve problems. The program has alternatives to offer borrowers that prevent defaults.

Keep Your Loan Records

It is very important that you keep all of your loan records, make sure to file away all of your loan related paperwork and save it throughout the duration of your loan and repayment period. You are responsible for keeping copies of all your records.

Exit Counseling

Exit counseling is designed to provide borrowers with information regarding the repayment of student loans including descriptions of the various repayment plans and the borrowers’ rights and responsibilities. Exit counseling can be completed in-person with the Financial Aid Administrator or online at

For more comprehensive information please contact the Financial Aid Administrator.

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