Frequently Asked Questions

The Covenant Scholars Foundation is a not-for-profit student loan program designed to help students responsibly cover education costs after federal and institutional aid has been used.

Unlike most private lenders, CSF does not exist to make a profit. It exists to keep education affordable—generation after generation.

Most private loans are priced to maximize returns for lenders and investors. 

The Covenant Scholars Fund is different:

1. Rates are based on the historically low default rates of your university.
   
2. There is no institutional, shareholder or investor profit motive so interest rates and fees are lower and terms are more flexible.
   
3. Repayment directly supports future students.

You’re part of a community—not just a borrower account.

Like other institutional loan programs, CSF:

1. Has clear eligibility rules
2. Requires repayment after school
3. Discloses full terms up front 

What’s different is our emphasis on trust and responsibility.

CSF is built on the idea that students keep their word—and that doing so benefits others. 

For you, this means:

1. Lower interest rates and fees
2. More flexible terms
3. Alignment with your goals
4. A partner in your success, not a just a transaction

Rates depend on the term and repayment structure you choose. 

Borrowers have flexibility to choose repayment over 10 or 15 years; graduate borrowers also have a 20-year option.  

Similarly, payments can begin immediately or borrowers can choose interest-only or deferred repayment for a period of time. 

CSF loan rates are below typical private loan rates and those offered by GradPLUS and ParentPLUS loan programs. 

Note: The GradPLUS loan is only available to students who have take out a PLUS loan prior to July 1, 2026. 

Illustrative Example 

GRAD PLUS LOAN

(Disbursed after July 1, 2026)

• Loan Amount: $42,000
• Interest Rate: 9.07%
• True Cost (APR):  10.06%
• Origination Fee: 4.228%
• Monthly Payment: $533
• Total of All Payments: $63,960

COVENANT SCHOLARS FOUNDATION LOAN

(Example at 5.95% interest rate)

• Loan Amount: $42,000
• Interest Rate: 5.95%
• True Cost (APR): 5.95%
• Origination Fee: $0
• Monthly Payment: $465
• Total of All Payments: $55,800

Estimated Savings

$68/month

Total Repayment Savings

$8,160

Summary: 

For a $42,000 loan repaid over 10 years, the Covenant Scholars Foundation Loan reduces the monthly payment from $533 to $465 and lowers total repayment costs by approximately $8,160 compared to a Graduate PLUS Loan.

You get to choose. 

You can begin with modest payments to minimize your long-term obligations; you can make interest only payments for a period of time; or, you can defer repayment until after you leave school upon graduation, withdrawal, or if you drop below minimum enrollment thresholds.

Exact timing will be shown clearly in your loan documents.

The Covenant Scholars Foundation is structured to minimize or eliminate unnecessary fees common in private lending. 

The Foundation does not charge any loan origination fees. Late fees may be applicable once repayment obligations begin.

Any applicable fees are well below fees charged by federal government lenders and are disclosed clearly before you accept a loan. 

Importantly, any fees charged go directly toward maintaining the foundation, not to provide “excess profits” to private organizations or investors. 

Loans are serviced by Aspire Servicing Center, along with their parent company, have more than 40 years of experience in the student loan industry.  

Aspire Servicing Center:

1. Accepts and processes your loan application
2. Allows you to select the loan structure that best suits your borrowing needs
3. Approves or disapproves your loan pursuant to CSF guidelines
4. Provides online account access
5. Accepts multiple payment methods
6. Offers borrower support throughout repayment

CSF expects borrowers to communicate early and honestly.  

While repayment is essential to the Fund’s mission, the program is designed to work with students—not punish them—for circumstances beyond their control. 

Support options are explained by the servicer if difficulties arise.

Because this is a revolving, not-for-profit loan fund.

Your repayment:

1. Helps keep rates low
2. Strengthens the Foundation
3. Makes education more affordable for future students 

When you repay, you’re not just paying back a loan—you’re paying it forward.  

That’s the covenant.

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It only takes a few minutes to apply.  Once we verify you qualify and have all your information (and that of any co-signer), we’ll ask your school to confirm you have been accepted for the next academic term and/or you are currently enrolled.

You always will know exactly who your lender will be before making any final decision.  

Your lender will be identified the application process as either the Covenant Scholars Foundation or our lending partner, Oakworth Capital Bank, n.a..  Your loan terms will be the same regardless.