Student Loans

There are lots of ways to pay for college. If you’re unable to cover the cost of your education with savings, grants, or employment income, you may decide to take out a student loan. Student loans are funds borrowed from the federal government or private banks you can use to help pay your full cost of attendance, which includes tuition and fees, room and board, books and supplies, as well as transportation to and from school. Loans must be repaid, with interest, but not until after you have left school.

Types of loans

There are two basic loan categories:

• Need-based loans
• Non-need-based loans

Need-based loans

Need-based loans allow you to borrow money directly from the federal government based on your family’s financial situation. In other words, families with lower incomes and fewer assets can borrow more than families with higher incomes and more assets. CGCC offers the Federal Direct Subsidized need-based loan, which has a fixed interest rate and does not accrue interest while you’re in school, unlike other student loans.

Non-need-based loans

With a non-need-based loan, the amount you can borrow is not based on your family’s financial situation. These loans do accrue interest while you’re in school. CGCC offers two federal non-need-based loans: the Federal Direct Unsubsidized Loan and the Federal Direct PLUS (Parent) loan. Non-need-based loans also can be secured through alternative sources, such as private banks and credit unions. If you’re looking at loans through alternative sources, we encourage you to carefully compare interest rates, loan costs, and other factors.

What is a Cohort Default Rate (CDR)?

When a school has 30 or more borrowers who begin repaying their loans in a fiscal year, their cohort default rate is determined by the percentage of borrowers who defaulted or fulfill other specified conditions on certain types of federal loans, such as William D. Ford Federal Direct Loans and Federal Family Education Loans (FFELs) before the end of the second fiscal year following their repayment start date. 

Average Rate Calculation: The denominator for the average cohort default rate is the number of borrowers who entered repayment in the current cohort fiscal year and the two preceding cohort fiscal years. The numerator for the average cohort default rate is the number of borrowers who entered repayment in the current cohort fiscal year or either of the two preceding cohort fiscal years and who defaulted or met the other specified condition in the cohort default period for the cohort fiscal year in which they entered repayment. 

To learn more, visit Studentaid.gov's Understating Delinquency and Default page. 

CGC’s Cohort Default Rates for the last three calculated Cohort years:

We can help

Not sure what type of loan is right for you? Schedule an appointment with one of our financial aid specialists today.