Loans

For many students and families, educational loans are a necessary part of the process of paying for college. Loans are a type of financial assistance that enable students and parents to borrow funds from the federal government, state government, or private lenders. It is important for students and parents to be well informed of the terms and conditions of loans prior to borrowing. Financial Aid and Scholarships offers and certifies loans for students, as well as federal Direct PLUS loans for parents of undergraduates. All of these loan programs offer low interest rates, deferment and forbearance options. Students must maintain half time enrollment requirements to remain eligible for a loan disbursement. 

Federal Loans

Federal Direct loans are the most widely-used loans for college students and are available to both graduate and undergraduate students. There are two types of federal Direct loans and eligibility for both is determined using your financial aid application.

Direct PLUS loans can help pay for education expenses not covered by other financial aid. This program requires a separate application and final eligibility is based on credit.

Parent PLUS Loan

The Direct Parent PLUS Loan is a loan option for parents with dependent students to help pay for their educational costs. Parents can borrow up to the cost of attendance minus any other financial aid the student is receiving. Interest begins accruing after the first disbursement. Parents are not required to start making payments on this loan until sixty (60) days after the loan is fully disbursed. Parents may also defer payment if the student is enrolled at least half-time, or during the six (6) month period after the student has graduated or ceases to be enrolled at least half-time. More information about PLUS Loans is available at studentaid.gov

Graduate PLUS Loan

The Direct PLUS Loan is a loan option for Graduate/Professional students to help pay for their educational costs. Students can borrow up to the cost of attendance minus any other financial aid that the student is receiving. Interest begins accruing upon first disbursements. Students are not required to start making payments on this loan until sixty (60) days after the loan is fully disbursed. Students may also defer payment if the student is enrolled at least half-time, or during the six (6) month period after graduation, or after the student drops below half-time enrollment. More information about PLUS Loans is available at studentaid.gov

How to Apply

Parents and students should complete and submit a Parent PLUS Loan Request Form or Graduate PLUS Loan Request Form available under the Forms section of the Financial Aid and Scholarships website.  All information provided should be printed clearly and legibly. Incomplete Forms and/or forms with information that is un-readable will not be processed. The Financial Aid and Scholarships Office reserves the right to certify the Parent 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. grants, loans, scholarships). 
 

PLUS Loan Disbursement

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.) Parent PLUS funds “ in excess” of University charges will be mailed to the parent borrower.  Parents may then use the excess funds to assist the student with his/her other educational and living expenses.

Graduate 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.

It is important for student borrowers to know loan balance amounts and repayment options both before and after graduation. We encourage students to work with their loan servicers and the U.S. Department of Education to stay informed about their loans. Students should make regular monthly payments on loans in order to maintain a good credit rating. Complete loan repayment information is available at Repay Your Loans.

Repayment calculators

Once a student drops below half-time enrollment, leaves school or graduates, their federal student loans go into repayment.  Loans are automatically placed in a standard repayment plan, but students can contact their loan servicer to choose a different repayment plan that works for them. Available repayment plans are listed below. Use the Federal Loan Simulator Tool to see which repayment plan is best for you.

Repayment Plans

  • Standard Plan
  • Graduated Plan
  • Extended Plan
  • Income-Based Plan
  • Income-Contingent Plan
  • Pay as your Earn Plan

Forgiveness and cancellation programs can allow borrowers to reduce or eliminate their student loan debts. Below are descriptions of several forgivenesss programs, each with different eligibility requirements.


The Biden Administration’s Student Debt Relief Plan

On August 24, 2022, President Biden announced that the U.S. Department of Education will forgive $10,000 in federal student loan debt for existing borrowers with incomes below $125K (or $250K for married couples) who received loans by 6/30/22, and $20,000 to those who also received Pell Grant assistance as an undergraduate. Program details are available at One-time Federal Student Loan Debt Relief

Teacher Loan Forgiveness

  • Borrowers of Direct and FFEL Subsidized/Unsubsidized Loans (Stafford Loans) may be eligible for loan forgiveness based on teaching service. Eligibility requirements for Teacher Loan Forgiveness are available at the Department of Education website. 
  • If you think you will qualify for the Teacher Loan Forgiveness, you can apply for the Teacher Loan Forgiveness Forbearance (a temporary cessation of payments while performing your required service). Download the Teacher Loan Forgiveness Forbearance  form or the Teacher Loan Forgiveness  form.
  • You may also be able to obtain Teacher Loan Forgiveness forms through your loan servicer.

Public Service Loan Forgiveness

The PSLF Program was established by Congress in 2007 to allow eligible borrowers to qualify for forgiveness of the remaining balance of their William D. Ford Federal Direct Loan after they have served full-time at a public service organization for at least 10 years, while making 120 qualifying payments.

More program information is available on the Department of Education's Federal Student Aid website.

State Funded Loans

The California Dream Loan is a subsidized loan program specifically developed to assist the California Dream Act students, also known as an AB-540 student. This loan is borrowed money that must be repaid with interest. The loan is deferrable and does not accrue any interest while a student is enrolled at least half-time (6 Units).

Private Loans

Once you have exhausted your eligibility for Federal, State, and University financial aid and loans, you may need to consider applying for a private educational loan — this is called an alternative loan. Many banks, credit unions, and other financial institutions offer private (non-federal) student loans. These loans are NOT federal student loans. They are offered by private lenders, and are used to supplement other types of financial aid. The interest rates and repayment terms on these loans may vary.