Loans
Loans are funds that must be repaid. Most loans are awarded based on financial need and are federally funded. The "Borrower" for all federal programs must meet the general eligibility requirements in addition to specific program requirements. There are three loan programs available:
As a borrower, it is your responsibility to know how much you have borrowed, who is your lender, and how much you will be required to repay when you leave school. The following links will help you calculate future payments, collect your borrowing history at all educational institutions and track current loan processing status:
Federal Perkins Loan
This is a low interest loan offered to students who demonstrate exceptional need. The interest rate is only 5%. CSULB is the lender for this loan, and the federal government pays the interest while students are in school and during the first 9 months (the "grace period") after dropping below half-time or leaving school. Repayment begins at the end of the nine-month grace period. First-time borrowers will receive by mail a promissory note and information about an entrance interview after their award letter is returned to the Office of Financial Aid.
More information is available from the Perkins Loan Department in the Bursar's Office.
Federal Family Educational Loan Program
CSULB participates in the FFELP, which includes the Subsidized Stafford Loan, the Unsubsidized Stafford Loan, the Parent PLUS loan, and the Graduate PLUS Loan for Graduate and Doctorate Students. FFELP loans are federally sponsored, providing long-term, low interest loans through participating banks and credit unions.
Although you may borrow from any bank or credit union that participates in the FFELP program, CSULB recommends that you borrow from one of the lenders listed below. In selecting lenders for our lender list, we employ a blind analysis to our request for information (RFI) process. Lenders are evaluated on the following criteria: borrower benefits, customer service, loan servicing, debt counseling and default rate, technical processing protocols, alternative loan programs, reliability and accuracy. As a result of this process, we are confident in recommending these lenders to our parents and students.
The benefits listed are for the STAFFORD LOAN program. This information was provided by the lenders and is accurate as of June 2008. If you are borrowing a PLUS loan, please refer to the lender's website for PLUS loan benefits.
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Citibank - (800) 967-2400
0% Default fee; 0.25% interest rate reduction for automatic payments and electronic statements; 0.50% immediate interest rate reduction at repayment; zero payments last 6 months with minimum aggregate balance of $4,500.
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ALL Student Loan Corp - (888) 271-9721
0.25% interest rate reduction for automatic payments.
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Wells Fargo Bank - (800) 658-3567
0% Federal Default Fee.
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Bank of America - (800) 344-8382
0% default fee; 0.25% interest rate reduction with a Bank of America Deposited Account (checking or savings), first payment must be on-time to qualify for this benefit.
AMS (Academic Management Services) - (800) 637-3060
0% Federal Default Fee; 0.25% interest rate reduction for automatic payments; life of loan servicing from Sallie Mae; combined billing; manage your account on-line 24/7.
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Sallie Mae Ed Trust - (888) 272-5543
0% Federal Default Fee; 0.25% interest rate reduction for automatic payments; life of loan servicing from Sallie Mae; combined billing; manage your account on-line 24/7.
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Access Group - (800) 282-1550
0% Federal Default Fee; 0.25% interest rate reduction for automatic payments.
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Nellie Mae - (800) 643-9308
0% Federal Default Fee; 0.25% interest rate reduction for automatic payments; life of loan servicing from Sallie Mae; combined billing; manage your account on-line 24/7.
If you choose to borrow from a lender not listed above, be sure to check with that lender regarding any special applications or procedures for borrowing.
To apply for a FFELP loan, complete the Free Application for Federal Student Aid (FAFSA) and submit any documentation requested by the CSULB Office of Financial Aid. When the student's financial aid file is complete, an award letter will be mailed noting the student's eligibility. A Loan Request Form (LRF) will be included with this award letter and should be completed and returned to the Office of Financial Aid in Brotman Hall, Room 101. After CSULB processes the LRF, you will be notified on how to sign your Master Promissory Note (MPN). Student borrowers must sign the MPN and return it to their lender in order to receive loan funds. Continuing borrowers do not need to complete another MPN as long as the same lender is used.
Subsidized Stafford Loans
This loan is "subsidized" because the federal government pays the interest while the student is in school and in the grace period, the first 6 months after dropping below half-time or leaving school. Eligibility for the Subsidized Stafford Loan is based on financial need. Repayment begins 6 months after leaving school or dropping below half-time enrollment. The interest rate for undergraduate Stafford loans is fixed at 6.0% for loans disbursed on or after July 1, 2008.
Unsubsidized Stafford Loans
This loan is "unsubsidized" because the student is responsible for all interest due on the loan, which begins accruing as soon as the loan is disbursed. Interest payments may be deferred, but if you defer the interest payments, any interest accrued will be "capitalized" or added to the principal amount of the loan. Eligibility for the Unsubsidized Stafford Loan is not based on family income and/or financial need. Repayment begins 6 months after leaving school or dropping below half-time enrollment. The interest rate is fixed at 6.8%.
Additional Unsubsidized Stafford Loans
Additional Unsubsidized Stafford Loans are available to independent students who have not borrowed the combined maximum for both the Subsidized and Unsubsidized Stafford Loans. Repayment requirements and interest rates are the same as the Subsidized and Unsubsidized Stafford Loans, and like the Unsubsidized Stafford Loan, interest begins accruing as soon as the loan is disbursed, but the interest payments can be deferred. The interest rate is fixed at 6.8%
Stafford Loan Annual Limits*
Dependent Students
| Borrower's Academic Level | Total of Subsidized and Unsubsidized |
|---|---|
| Freshman (0-30 units) | $3,500 |
| Sophomore (31-60 units) | $4,500 |
| Junior or Senior (61+units) | $5,500 |
| 2nd Bachelorīs Degree | $5,500 |
| Teaching Credential Students | $5,500 |
Independent Students
| Borrower's Academic Level | Total of subsidized and unsubsidized | Total of Additional Unsubsidized | Total of All Subsidized & Unsubsidized |
|---|---|---|---|
| Freshman (0-30 units) |
$3,500 | $4,000 | $7,500 |
| Sophomore (31-60 units) |
$4,500 | $4,000 | $8,500 |
| Junior or Senior (61+units) | $5,500 | $5,000 | $10,500 |
| 2nd Bachelor's Degree | $5,500 | $5,000 | $10,500 |
| Teaching Credential Students | $5,500 | $7,000 | $12,500 |
| Graduate / Professional | $8,500 | $12,000 | $20,500 |
* Restriction for graduating seniors with one-semester loan: We are required by federal law to prorate (determine partial loan eligibility) when an undergraduate student plans to graduate at the end of the one term for which they are receiving a Stafford loan. For example, a senior who will be graduating at the end of fall term will be subjected to proration of his/her annual loan amount because he/she will not attend the whole academic year. The proration is based on the annual loan limit ($5500) multiplied by the number of units needed for graduation divided by 30. If you think you may be under this restriction, please come into our office for further clarification.
Parent (PLUS)
This loan is available to the parents of dependent undergraduate students. Parents must have a good credit history to participate in this program and may borrow up to the total cost of attendance, minus any other financial aid awarded, for each dependent student's education. Interest starts accruing as soon as the loan is disbursed, and repayment begins 60 days after the loan is fully disbursed. The interest rate is fixed at 8.5% for loans disbursed after July 1, 2006.
Parents should review the average student expenses for a breakdown of the estimated costs of attending CSULB.
For more information or to receive an application for this loan call the Office of Financial Aid at (562) 985-8403 or visit the office in Brotman Hall, Room 101.
Graduate PLUS Loan for Graduate and Doctorate Students
This loan is available to Master’s and Doctoral students who may need additional assistance. Students may borrow up to the total cost of attendance, minus any other financial aid awarded. The student must have reached their annual Stafford loan limits (subsidized and unsubsidized) before this program can be considered. In order to participate in this loan program, the student must be enrolled at least half-time in a degree-seeking program and demonstrate creditworthiness. Repayment of principal and interest begin 60 days after the loan is fully disbursed; however, repayment can be deferred as long as the student is enrolled at least half-time. The interest rate is fixed at 8.5%.
Alternative Loans: Financing Options
For students who are not eligible or do not qualify for the above federal loans or who are looking for additional financing options, there are a variety of lenders that offer non-federal loans.
The following chart lists some of the programs and to whom they are available. For more information just click on a lender's name to visit that lender's web site.
| Lender | Loan Name | Students | Parents | Undergrads | Grads | International Students |
|---|---|---|---|---|---|---|
| Citibank | CitiAssist | X | X | X | ||
| Sallie Mae | Signature | X | X | X | X | |
| Campus Door | The Campus Door | X | X | X | ||
| Wells Fargo | Collegiate | X | X | X |