Loan Types

Subsidized Direct Loan

This is a need-based program that the government pays the loan interest while the student is enrolled in school on at least a half-time basis. Loan “repayment” begins 6-months after a student graduates, withdraws from school, or drops below half-time enrollment (6 units undergraduate, graduate, credential or certificate). Interest rates for 2011-2012 is 3.4% and interest rate for 2012-2013 is 6.8% (see chart below)

Interest Rates:

• Begining with the 2012-2013 academic year, graduate students will only be eligible for the Unsubsidized Direct Loans (up to $20,000 per academic year). No graduate students will be eligible for the Subsidized Direct Loan after the 2011-2012 academic year.
• Subsidized Loans made to graduate students have a fixed rate of 6.8%.
• Unsubsidized Loans for undergraduate and graduate students have a fixed rate of 6.8%.
• Direct PLUS Loans have a fixed rate of 7.9%.
• Loans disbursed on or after July 1, 2012 and before July 1, 2014 will be ineligible for the interest subsidy during the 6-month grace period. Please visit Recent Changes to the Student Aid Programs for more details.

Loan Fees:

Borrowers of a Federal Direct Loan (Subsidized, Unsubsidized, Parent or Graduate PLUS) are subject to a loan origination fee which is deducted from the gross amount of the loan at the time of disbursement.

• For all Subsidized and Unsubsidized loans disbursed on or after July 1, 2010, the loan origination fee is 1%.
• The origination fee for Direct PLUS loans (made to parents and graduate/professional degree students) is 4%.

Visit www.direct.ed.gov for more information.

Unsubsidized Direct Loan

This is a non need-based loan for which all students qualify. In this program, interest starts accruing while the student is in school and continues to accrue until the loan has been repaid in-full. The interest rate is currently fixed at 6.8%. The interest may be capitalized to the principle amount borrowed or a student may choose to make payments on the interest while in school. As with the Subsidized Direct Loan, loan “repayment” begins after a student graduates, withdraws from school, or drops below half-time enrollment (6 units undergraduate, graduate, credential or certificate).

Additional Unsubsidized Direct Loan

This non need-based loan is restricted to independent students only. As with the Unsubsidized Direct Loan, loan interest starts accruing while the student is in school.  A dependent student can borrow under this program only if his/her parents have been denied eligibility down for the PLUS Loan Program by the lender.

Annual and Aggregate Borrowing Limits

All students are subject to annual and aggregate borrowing limits based on their grade level, degree program, and dependency status. Please select Loan Limits for a complete summary and description of borrowing limits.

Special Note:

• Students taking preparatory/pre-requisite course work for official admittance into a graduate/master's program may only receive the Subsidized and/or Unsubsidized loans for a period of 12-consecutive months (1-year) at the 5th -year undergraduate limits: $5,500 Subsidized and $7,000 Unsubsidized.
• Students enrolled in 1-year Certificate programs may receive loans at the 1st -year undergraduate limits.

Key Items for Students to Complete

Students who choose to borrow a Federal Direct Subsidized or Unsubsidized Loan must have an Entrance Loan Counseling session and Master Promissory Note (MPN) on file before he/she may be eligible to receive their loan disbursement.

• Master Promissory Note (MPN)

The MPN is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years). Students may complete Electronic MPN online . Completing the MPN online is simple and efficient; and, the CSULA Financial Aid Office receives weekly electronic notifications of student MPN completions. To complete and submit the MPN online you will need your PIN number issued by the U.S. Department of Education. If you do not have a PIN, visit www.pin.ed.gov to request a PIN.

Federal Parent PLUS Loan

This is a government-insured loan made by the U.S. Department of Education for parents of undergraduate dependent students. This program is non need-based and is for dependent students' parents to borrow on behalf of the student. The interest rate is currently fixed at 7.9%. This program requires a separate application process and is based partly on the parents' credit worthiness. Interest is paid by the parent and there is no grace period. Repayment starts within 60-days of the final disbursement of the funds for the given academic year. Parents who wish to begin repayment after the student graduates should contact the Direct Loan Servicing Center . However, parents should note the interest will continue to accrue until the loan has been repaid in-full.

• How To Apply

Parents and students should complete and submit the Parent PLUS Request Form. Information provided should be printed clearly and legibly. Incomplete request forms or forms with information that is un-readable will be returned. The Financial Aid Office may certify the PLUS loan for the requested amount or up to the student's annual Cost of Attendance (COA) less any other aid the student has been awarded (i.e. other grants, loan, or scholarships).

• Disbursement of the Parent PLUS Loan

Parents who complete and submit the Parent PLUS Request Form provide authorization for PLUS loan funds to pay any outstanding University charges on the student's account (i.e. registration, housing, etc.). Any PLUS funds “ in excess” of University charges will be mailed to the parent borrower by the Disbursement Office. Parents may then use the excess funds to assist the student with his/her other educational and living expenses.

Contact Information for the CSULA Disbursement Office and the Direct Loan Servicing Center

CSU Los Angeles Disbursement Office:
5151 State University Drive, Los Angeles CA 90032
Phone: (323) 343-3630

Direct Loan Servicing Center

Phone: (800) 848-0979

Direct Loan Servicing Online: www.dl.ed.gov

Federal Graduate PLUS Loan

This is a government-insured loan made by the U.S. Department of Education to students pursuing a graduate/master's degree. As with the Parent PLUS Loan, approval is based on credit worthiness and the interest rate is currently fixed at 8.5%. This program is non need-based and is intended to assist graduate students with meeting his/her educational related expenses not covered by other financial aid grants, loans or scholarships. Interest is paid by the student and there is no grace period. Repayment starts within 60-days of disbursement of the funds. Students who wish to defer repayment until after he/she graduates may contact the Direct Loan Servicing Center . However, students should note the interest will continue to accrue until the loan has been repaid in-full.

• How To Apply

Students should complete and submit the Federal Graduate PLUS Loan Request Form. Information provided should be printed clearly and legibly. Incomplete request forms or forms with information that is un-readable will be returned. The Financial Aid Office will certify the GRAD PLUS loan for students who have already fully accepted their Direct Subsidized and Unsubsidized loans up to the maximum annual limit of $20,500. The Financial Aid Office will certify the loan up to the requested amount or up to the student's annual Cost of Attendance (COA) less any other aid the student has been awarded (i.e. other grants, loan, or scholarships).

• Disbursement of the Graduate PLUS Loan

Students who complete and submit the Federal Graduate PLUS Loan Request Form provide authorization for the GRAD PLUS loan funds to pay any outstanding University charges on their account (i.e. registration, housing, etc.). Any GRAD PLUS funds “in excess” of University charges will be mailed to the student borrower by the Disbursement Office. Students may then use the excess funds to assist with his/her other educational and living expenses.