Federal Direct Loans are funded and owned by the Federal Government. Loan repayments are made to the government branch called the Department of Education. To qualify for Direct Loans a student must be admitted, in good academic standing, and enrolled at least half time in a program leading to a degree or certificate. If student drops below half time during a term or semester, the remainder of the loan will be canceled. Student Loans are financial obligations that must be repaid. Federal Student Loans are required by law to provide a range of flexible repayment options, including but not limited to, income-based repayment and income contingent repayment plans, and loan forgiveness benefits which other student loans are not required to do.
While some loans are based on financial need, there are loan programs available to all eligible students regardless of income. We recommend using the Loan Repayment Calculator on the Federal Student Aid website as a guide to calculate monthly payments once you enter repayment.
Effective 2012-2013, graduate students are not eligible for SUBSIDIZED Federal Direct Loans due to a recent change in federal legislation. Students enrolled only in a Teacher Credential Program will still be eligible for the Subsidized Stafford loan, as they are not considered to be "Graduate students" for financial aid purposes.
- View/Accept your Direct Loan on your Dashboard.
If you are a first time borrower and you decide to accept your Direct Loan, you must complete an in-person Loan Entrance Counseling & a Master Promissory Note prior to your first Direct Loan disbursement. Your loan will not be disbursed until these requirements have been completed. Continuing students who previously completed Loan Entrance Counseling & a Master Promissory Note do NOT need to complete Loan Entrance Counseling again.
Complete a Direct Loan Mater Promissory Note (MPN) at studentloans.gov.
Complete a Loan Entrance Counseling Workshop (in-person)
Please note: Students enrolled in online classes or in specialized programs can complete this requirement studentloans.gov.
There are four federal loans in the program:
- Federal Direct Subsidized Loan
- Federal Direct Unsubsidized Loan
- Parent PLUS Loan
- Grad PLUS Loan
The annual interest rate for federal student loans is set by the federal government. For more information on interest rates please visit studentloans.gov. Payments on the loan may be deferred during the time you are enrolled at least half-time. To maintain deferred status, you must enroll each semester in at least 6 credits of undergraduate/Teaching Credential or 4 credits of eligible master's degree coursework. At CSUMB, GRAD 699 courses do not qualify for in-school deferment. Loan funds cannot be released if you drop below half-time status, do not meet the satisfactory academic progress policy, or have any university holds.
Subsidized Federal Direct Loan: is available only to undergraduate students with financial need. During the time recipients are in school (enrolled half time or more), the federal government will pay the interest. The repayment period begins 6 months after the student is no longer enrolled at least 1/2 time, but the interest that accrues during those six months will be payable by the student rather than be subsidized by the federal government.
Unsubsidized Federal Direct Loan: is available to students who did not qualify for Subsidized funds. The federal government does not pay the interest while students are in school. Consequently, interest is charged on the loan from the date the loan is disbursed. Payments may be deferred, but the interest accrued while you are in school is added to the amount borrowed.
The federal government has set the following annual Subsidized and Unsubsidized Loan limits for Dependent Students. Dependent students are ineligible for the additional unsubsidized loans unless their parents are ineligible for the PLUS loan.
|YEAR IN SCHOOL||BASE AMOUNT||UNSUBSIDIZED||ADDT'L UNSUBSIDIZED|
|Freshman (0-29 UNITS Earned)||$3500||$2000||$4000|
|Sophomore (30-59 UNITS Earned)||$4500||$2000||$4000|
|Junior/Senior (60 + UNITS Earned)||$5500||$2000||$5000|
The federal government has set the following annual Subsidized and Unsubsidized Loan limits for Independent students:
|YEAR IN SCHOOL||BASE AMOUNT||ADDT'L UNSUBSIDIZED|
|Freshman (0-29 UNITS Earned)||$3500||$6000|
|Sophomore (30-59 UNITS Earned)||$4500||$6000|
|Junior/Senior (60+ UNITS Earned)||$5500||$7000|
The Federal Direct Loan Aggregate limit for Dependent undergraduates is: $31,000 (no more than $23,000 of which can be subsidized). The Federal Direct Loan aggregate limit for Undergraduate Independent students is: $57,500 (no more than $23,000 of which can be subsidized). The Federal Direct Loan aggregate limit for Graduate and Professional students: is $138,500 (including amounts borrowed for undergraduate study). No more than $65,500 can be subsidized.
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 Direct Loan 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. If you think you may be under this restriction, please come to the Financial Aid Office for further clarification.
Parent PLUS Loan is available to parents of dependent students. Interest rates for the Parent Plus Loans are fixed and repayment begins 60 days from the date the loan is fully disbursed. Parents have the option to request continued deferment as long as student is enrolled at least half-time. For more information on interest rates and deferment please visit studentloans.gov.
Parent PLUS Loan amounts are determined by subtracting the amount of financial aid awarded vs. Cost of Attendance. Parent borrowers must undergo a credit check with the Department of Education. If a credit denial is determined, the PLUS loan will be canceled. Students with a Parent Plus credit denial are eligible for additional Unsubsidized loans. If approved, all PLUS funds are sent to CSUMB in two installments and are applied to the student account. Excess funds are issued to the borrowing parent or student and mailed to the address entered on the Parent PLUS Application. Loan funds cannot be released if the student has dropped below half-time status, does not meet satisfactory academic progress policy, or has any university holds.
Please note: A PLUS Master Promissory Note (MPN) must be completed by the borrowing parent before we can disburse Parent Plus Loan. To complete a Master Promissory Note visit: studentloans.gov.
Parents and students interested in borrowing a parent PLUS loan must complete the PLUS loan application available under Financial Aid Forms.
Federal Graduate Loan Program (PLUS) is available for Graduate Students. Interest rates for the GRAD PLUS are fixed and repayment begins 60 days from the date the loan is fully disbursed. Students have the option to request continued deferment as long as the student is enrolled at least half-time. For more information on interest rates and deferment please visit [studentloans.gov](Interest rates for the Parent Plus Loans are fixed and repayment begins 60 days from the date the loan is fully disbursed. Parents have the option to request continued deferment as long as student is enrolled at least half-time. For more information on interest rates and deferment please visit ).
GRAD PLUS amounts are determined by subtracting the amount of financial aid awarded vs. Cost of Attendance. Student borrowers must undergo a credit check with the Department of Education. If a credit denial is determined, the GRAD PLUS Loan will be canceled. If approved, all GRAD PLUS funds are sent to CSUMB in two installments and are applied to the student account. GRAD PLUS Loan funds cannot be released if the student has dropped below half-time status, does not meet satisfactory academic progress policy, or has any university holds.
Please note: A GRAD PLUS Master Promissory Note (MPN) must be completed by the student before we can disburse a GRAD PLUS Loan. To complete a Master Promissory Note visit [studentloans.gov](Please note: A Master Promissory Note (MPN) must be completed by the borrowing parent before we can disburse Parent Plus Loan. To complete a Master Promissory Note visit:).
Students interested in borrowing a Grad PLUS loan must complete the Grad PLUS loan application available under Financial Aid Forms webpage
The Federal Perkins Loan is fixed five percent (5%) interest rate loan for students with exceptional financial need. CSUMB acts as the lender for this loan and repayment is made to CSUMB. Each university determines the maximum Federal Perkins Loan that can be offered based on its level of funding. CSUMB offers Federal Perkins Loans to post-baccaulerate students per available funding and university policies. For assistance with payment issues such as; deferments, collections, and defaults contact the CSUMB Financial Aid Office at 831-582-5100.
Private education loans are credit-based consumer loans used to cover education costs. These types of loans tend to cost more than loans offered by the federal government but are less expensive than credit card debt. Federal Direct Loans (subsidized, unsubsidized, plus) offer fixed interest rates that are lower than the variable rates offered by most private education loans. Federal Stafford loans also offer better repayment and forgiveness options. For these reasons, we recommend that you consider exhausting your eligibility for Federal Direct Loans before resorting to private student loans.
A private education loan may be right for you if scholarships, grants and federal student loans do not cover your total education-related costs or you do not want to muddle credit cards, home equity, savings and investments with your tuition costs. It may also be an option if you are not applying for traditional financial aid but still need money to cover your education-related costs.
It is your responsibility to research private education loan resources, select a lender and apply for a private education loan via the selected lender's process. Once you select your lender and your application is processed, your lender will send the Financial Aid Office a request for certification of your enrollment and cost of attendance. You must be enrolled for the loan period listed on the request in order for the Financial Aid Office to certify your private education loans. It may take the Financial Aid Office up to two weeks to certify private education loans after the request is received. You should plan on paying for courses by the assigned due date if your private education loans haven't been posted to your CSUMB Account.
If you have already filed your FAFSA and you have been awarded financial aid, the Financial Aid Office will complete the certification request and determine the amount for which you are eligible. The amount we certify may not match what you requested because your Financial Aid Awards cannot exceed the cost of attendance. If you filed your FAFSA but haven't completed your financial aid file, the Financial Aid Office will not complete the certification request until you have submitted the required documents to the Financial Aid Office, unless otherwise noted.
It is not a requirement to apply for financial aid before applying for private education loans but, we encourage you to do so by completing the FAFSA. Students are required to complete a Private Education Loan Applicant Self-Certification Form prior to receiving an alternative loan. Self-Certification Form can be found on the Financial Aid Website.
APLE: The Assumption Program of Loans for Education (APLE) is a competitive teacher incentive program designed to encourage outstanding students and district interns to become teachers in
- subject areas where a critical teacher shortage has been identified; or
- designated schools that meet criteria established by the Superintendent of Public Instruction.
Designated schools include those that:
- serve a large population of students from low-income families;
- are located in rural areas;
- have a high percentage of teachers holding emergency permits; and
- rank in the lowest 20 percentile of the Academic Performance Index.
Additionally, the APLE for Credentialed Teachers is designed to encourage currently credentialed teachers to seek and teach in K-12 teaching positions in California’s public schools. Credentialed teachers must be employed at a K-12 California public school that is ranked in the lowest 20 percent on the Academic Performance Index.
To participate in the program, students, district interns and credentialed teachers must submit an application through the appropriate channels and the application must be accepted by the California Student Aid Commission.
For more information regarding APLE and how to apply to one of the three loan assumption programs the Commission offers within the APLE, please contact the CSUMB Financial Aid Office at 831-582-5100. All application materials must be submitted to the Financial Aid Office for processing.
Federal Teacher Loan Forgiveness Program offers cancellation of up to $5,000.00 of Stafford/Direct loans for five years of teaching in a low-income school and up to $17,500.00 if you teach math, science or special education in high school or special education in elementary school that serve low-income families and meet other qualifications may be eligible for forgiveness of up to a combined total of $17,500 in principal and interest on their FFEL and/or Direct Loan program loans. (Note: As of August 14, 2008, an otherwise eligible borrower may qualify for forgiveness if the borrower has provided qualifying teaching services at one or more locations that are operated by an educational service agency.) For more information visit the Department of Education Federal Student Aid Website
As a borrower, it is the student's 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 collect your federal loan borrowing history at all educational institutions and calculate future payments: