Loan programs provide aid that must be repaid.
CSUMB participates in two federal loan programs—the Federal Perkins and the Federal Family Education Loan Program (FFELP)—and offers its own unique loan program—the Presidential Access Loan.
The Federal Perkins Loan is a low interest, long-term loan made through the CSUMB Financial Aid Office. The current interest rate is five percent. The average Perkins Loan award is $1,500 per year.
FFELP makes federal government loans available through participating banks and financial institutions. There are three federal loans in the program: the Subsidized Stafford Loan, the Unsubsidized Stafford Loan, and the Parent Loan for Undergraduate Students (PLUS). The Financial Aid Office determines which loans are available to you.
The Federal Stafford Loan is available to students whose cost of attendance has not been fully met through other aid. The interest rate is variable, with a cap of 8.25 percent. The rate is subject to change every July 1. Payments on the loan may be deferred during the time you are enrolled in school at least half time. To retain deferred status, you must enroll each semester in at least six credits of undergraduate or four credits of master’s degree coursework. Loan funds cannot be released if you have dropped below half-time status, have not made satisfactory progress, or have any university holds. The minimum monthly payment is $50 with a maximum repayment period of ten years.
The Subsidized Stafford 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. You begin payment of interest and principle six months after you are no longer enrolled at least half time.
The Unsubsidized Stafford Loan has the same terms and interest rate as the Subsidized Stafford Loan, but the federal government does not pay the interest while students are in school. Consequently, interest is charged on the loan from the date you receive the loan. 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 limits for Subsidized and Unsubsidized Stafford Loans:
These are the legal loan limits; however, you may receive less, depending on your costs of education and other aid. If an undergraduate student graduating in December, you will not be eligible for the amounts stated above. Loans must be prorated based on the number of credits taken during the fall semester.
There are also aggregate limits to the Stafford loan program. The maximum you can borrow while in college is $23,000 for undergraduate, second bachelor’s, and teaching credential programs, and $65,000 for master’s degrees (including amounts borrowed for undergraduate study).
In addition to the loan amounts above, if you qualify as independent, you may also borrow an Additional Unsubsidized Stafford Loan. Eligibility is limited by the amount of your costs of education 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 are:
The aggregate limits for the Additional Unsubsidized Stafford are $23,000 for undergraduate, second bachelor's, and teaching credential programs, and $73,000 for master’s degree programs (including amounts borrowed for undergraduate study).
Dependent students are not eligible for additional unsubsidized loans unless their parents apply for and are denied the PLUS loan (see below).
Disbursement of Loan Funds
If your award includes a loan that you wish to accept, you must complete the loan acceptance section on the award letter. The federal government also requires that entrance loan counseling be provided before you receive your first Stafford Loan check. If you have never attended a loan counseling session at CSUMB, you will be required to attend. A schedule of available dates is included with each Award Letter. Loan checks will be returned to the lender if you fail to attend loan counseling.
Exit loan counseling is also required for all Stafford 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. For freshmen in their first term of college enrollment, the first loan check cannot be released until the 30th day of the semester.
All funds are transferred from the lender to CSUMB. Once funds have been received at CSUMB, they must be negotiated 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.
Stafford loan funds must be used to pay any outstanding charges owed to the university including registration fees, tuition, housing, and miscellaneous charges.
Assumption Program of Loans for Education
The 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.
The PLUS is available to parents of dependent students. The interest rate is variable and will change every July 1. The maximum interest rate on PLUS is nine percent.
Repayment begins within 60 days of the first disbursement. The minimum monthly payment is $50 and payments can be extended up to 10 years depending on the amount borrowed.
PLUS amounts are determined by subtracting all financial aid awarded from your costs of education. All parent borrowers must undergo a credit check and can be denied the loan if an adverse credit history is found. If approved, all PLUS funds are sent to CSUMB in two installments and are payable to you as the student. Funds cannot be released if you have dropped below half-time status, have not made satisfactory progress, or have any university holds. PLUS funds must be used to pay any outstanding charges owed to the university including registration fees, tuition, housing, and miscellaneous charges.
To apply for a PLUS, contact the Financial Aid Office to obtain a PLUS Request form and a PLUS master promisor note, and then contact a participating lender to initiate the application and credit-check processes. You can request additional information about federal loan repayment, including sample repayment schedules, from the Financial Aid Office.
The Presidential Access Loan (PAL) assists students who have no other means to obtain a computer, which is an important component of their academic program. If selected, you receive a computer, the value of which must be repaid; however for each fulltime semester of attendance at CSUMB, one-eighth of the loan amount will be canceled. If you leave CSUMB before completing eight fulltime-equivalent semesters, you must pay the balance of the loan or return the computer to CSUMB. Priority will be given to students who confirm their enrollment. Due to limited funding, not all qualified students receive this loan, so you should file your FAFSA as soon after January 1 as possible.