Financial Aid ~ Student Loan ProgramsFederal Loans are a type of financial aid that must be repaid, generally after the student graduates or drops below 1/2 time enrollment. Unsubsidized and parent loans accrue interest from the time funds are disbursed to the student. Loan limits, interest rates, and repayment terms are subject to change on a yearly basis. In 2009-2010, CSUMB is expected to transition into the William D. Ford Federal Direct Loan Program. Federal Direct Lending Loan ProgramVia the Federal Direct Lending program, the Department of Education acts as a lender, providing funds for Stafford loans and PLUS loans in the same amounts as the Stafford and PLUS loans offered through the Federal Family Education Loan Program. (In the FFEL Program banks and other private lenders provide these loans.) The Financial Aid Office determines your eligibility for loans. Federal Direct Loans are available to students whose cost of attendance has not been fully met through other aid. Payments may be deferred during the time of enrollement. A student must be enrolled in at least six credits of undergraduate or four credits of master's degree coursework to be eligible and to retain deferred status. Loan funds cannot be released if you have dropped below half-time status, have not made satisfactory progress, or have any university holds. Student Basics on Direct Lending Types of Direct Loans:The Subsidized Loan is available only to students with financial need. During the time recipients are in school (enrolled half time or more), the federal government will pay the interest. Repayment of interest and principle begins six months after the student is no longer enrolled at least half time. The Unsubsidized Loan has the same terms and interest rate as the Subsidized Loan, but the federal government does not pay the interest while students are in school. Consequently, interest is billed onto the loan beginning the 1st day of disbursement. Payments may be deferred, but the interest accrued while you are in school is added to the amount borrowed.
In addition to the loan amounts above, if you qualify as independent, you may also borrow an Additional Unsubsidized Loan. Please note: Additional Unsubsidized Loan limits applicable to undergraduate students have increased by $2,000 for loans disbursed after July 1, 2008. Eligibility is limited by the amount of your cost of attendance and is determined by subtracting any financial aid resources received from your costs of education. If an undergraduate student graduating in December, you are also limited to prorated amounts based on the number of credits for which you are enrolled. The annual loan limits for the Additional Unsubsidized Stafford Loan after July 1, 2009 are:
The aggregate limits for dependent undergraduates is: $31,000 (no more than $23,000 of which can be subsidized). The aggregate limits for independent undergraduates, second bachelor's and teaching credential programs is $57,500 (no more than $23,000 of which can be subsidized). The aggregate limits for graduate degree seeking student (including amounts borrowed for undergraduate study) is $138,500 (no more than $65,500 of which can be subsidized). Dependent students are not eligible for additional unsubsidized loans unless their parent/guardian applies for and are denied the PLUS loan (see below). Disbursement of Loan FundsIf your award includes a loan that you wish to accept, you can go onto the edfund.org website to accept your loan. The federal government also requires that entrance loan counseling be provided before you receive your first Loan disbursement. If you are a first time borrower, you must complete the entrance loan counseling on the edfund.org website. Loan amounts will not be disbursed until the loan counseling session requirement has been completed. Exit loan counseling is also required for all Direct Loan borrowers. You must contact the Financial Aid Office within 30 days from the date that you graduate, withdraw, or drop below half-time status. All loans are issued in two installments, even if you are attending for only one semester. For academic-year loans, the second disbursement will be released at the beginning of the spring semester. For one-semester loans, it will arrive in the middle of the term. All funds are transferred from the lender to CSUMB. Once funds have been received at CSUMB, they must be disbursed within 30 days. If there is a hold on your student record that prevents CSUMB from releasing the loan, CSUMB will send you a letter. You must respond before the date designated in that letter, or the funds will be returned to the lender. If applicable, Direct Loan funds may be used to pay any outstanding charges owed to the university including registration fees, tuition, housing and miscellaneous charges. Assumption Program of Loans for EducationThe APLE program helps students who become teachers to repay their federal Stafford Loans if they teach in California's public schools in designated areas. You should apply as soon as you have achieved junior status but no later than the year before completing your credential program. Applications are available in late March of each year. Parent Loan for Undergraduate StudentsPLUS Loans are available to parents of dependent students. The interest rate is fixed at 8.5 percent. Repayment begins 60 days of the date the loan is fully disbursed. The minimum monthly payment is $50 and the repayment period is 10 years, except that borrowers with balances over $30,000 can receive a repayment period of up to 25 years. PLUS amounts are determined by subtracting all financial aid awarded from the student budget. All parent borrowers must undergo a credit check and can be denied the loan if an adverse credit history is found. However, most resolved credit issues are disregarded. If approved, all PLUS funds are sent to CSUMB in two installments and are made payable to the student. Loan funds cannot be released if the student has dropped below half-time status, has not made satisfactory academic progress, or has any university holds. PLUS funds may be used to pay any outstanding charges owed to the university including registration fees, tuition, housing and miscellaneous charges. To apply for a Stafford or PLUS loan, click on "Students & Parents" at edfund.org and then go to the loan portal.Alternative LoansPrivate loans are funded by banks and other private lending institutions. For some, these loans serve to bridge the gap between the cost of their education and the amount the government allows students/parents to borrow through federal loan programs (Subsidized Direct Loans, Unsubsidized Direct Loan and Parent/Grad PLUS). Terms and conditions are generally not as favorable as those for federal loans however we understand that private educational loans are an essential source of financial assistance for many of our students
|