Federal Loans
Federal Direct Subsidized and Unsubsidized Loans (Student Loans)
The type and amount of loans you will be offered will be determined by your financial eligibility as calculated by the federal processor, your Dependency Status, and your grade level. Most students receiving loans must be enrolled in at least 6 units to be eligible. Classified and conditionally classified graduate students meet the enrollment requirement with 4 units. For more information on these loans visit the Direct Loans web site.
- Subsidized Loans
- These are awarded based on calculated financial need. The federal government pays the interest while you are enrolled at least half-time. For many subsidized Direct Loans, the federal government also pays the interest during the 6-month grace period after you graduate, leave school or drop below half-time enrollment. However, for subsidized Direct Loans first disbursed between July 1, 2012 and June 30, 2014, interest will not be subsidized during the grace period.
- Unsubsidized Loans
- Unsubsidized loans are for eligible students, regardless of income and assets. You are responsible for paying the interest, but you can have it deferred while you are in college and during the grace period. If you do, the interest will be capitalized, which means that it is added to the principal amount you borrowed. Future interest will be calculated based on the higher loan amount. Therefore, it is to your advantage to pay the interest as you go along, so you will pay less in the long run. You will receive quarterly statements and can choose to pay the amount due or have it deferred.
Interest Rate and Origination Fees
For the 2012-13 academic year the interest rate is fixed at 3.4% for new subsidized loans and 6.8% for new unsubsidized loans. There is also a 1% origination fee.
Repayment of Loans
Regardless of your loan type, subsidized or unsubsidized, you do not need to begin repaying your loans until 6 months after you have graduated or your enrollment has dropped below half-time. This 6-month period of time is called your grace period. After your first disbursement is made, your loan will be assigned to a servicer. Your servicer's contact information will always be available to you through the National Student Loan Data System web site, NSLDS - Student Access.
After you've found your servicer's name in NSLDS, next visit the Federal Student Aid Loan Servicers web page to find your servicer's web site.
Through your servicer's web site you can create an account for online access, find forms, and view repayment information.
Loan Limits
Loans are subject to annual limits set by the federal Department of Education.
Seniors graduating in the Fall semester are subject to proration of their Direct Loan amount, based on the number of their registered units. This is a federal requirement.
| Loan Type Maximum Amounts | ||
|---|---|---|
| Grade Level | Dependent | Independent |
| Freshman | $5,500 (maximum $3,500 subsidized) |
$9,500 (maximum $3,500 subsidized) |
| Sophomore | $6,500 (maximum $4,500 subsidized) |
$10,500 (maximum $4,500 subsidized) |
| Junior/Senior, 2nd Bachelor | $7,500 (maximum $5,500 subsidized) |
$12,500 (maximum $5,500 subsidized) |
| Credential, Unclassified Grad (taking pre-requisites) | $5,500 |
$12,500 (maximum $5,500 subsidized) |
| Graduate Students | N/A | $20,500 (unsubsidized only) |
Federal Lifetime Loan Aggregates
- Total maximum amount of Direct Loans allowed for undergraduates is $57,500, of which no more than $23,000 may be in subsidized funds.
- Total maximum amount of Direct Loans allowed for master’s degree students is $138,500, of which no more than $65,500 may be in subsidized funds.
Direct Parent Loan for Undergraduate Students (PLUS)
PLUS Loans are for parents and step-parents of dependent students. Borrowers must meet credit history and debt burden requirements. As of July 1, 2006 the interest rate is fixed at 7.9%. PLUS Loans are always unsubsidized, and interest begins accruing after the loan is fully disbursed. The processing fee is 4%. Repayment begins 60 days after the loan is fully disbursed. After your first disbursement is made, your loan will be assigned to a servicer. Your servicer's contact information will always be available to you through the National Student Loan Data System web site, NSLDS - Student Access. Delayed Repayment Option: If requested, repayment can be delayed until 6 months after your student drops below half-time or graduates. You must request this by contacting your loan servicer. Parents or step-parents who would like to apply for a PLUS Loan must fill out a PLUS Loan Application each academic year. Refund of excess financial aid checks consisting of PLUS funds will be made payable to the parent borrower and mailed to the parent's home address.
Federal Perkins Loans (Student Loan)
Federal Perkins Loans are low-interest loans for undergraduate and graduate students with exceptional financial need. They are awarded by colleges, and colleges are also the lender. Interest does not accrue while you are enrolled at least half-time. You must begin repaying your loan 9 months after you graduate or are enrolled less than half-time. The interest rate at repayment is fixed at 5% and there are no loan processing fees.
The Perkins Loan requires a separate promissory note completed through MySSU and/or other forms that will be mailed to you by the Financial Services Office.
Master’s Students Eligible for PLUS
The Direct Grad PLUS Loan is available to students who are admitted to a master’s program and are attending at least half-time (4 units). The interest rate on the Grad PLUS Loan is 7.9%. The processing fee is 4%. After borrowing the aggregate annual unsubsidized loans available to you, the Grad PLUS Loan can be used to borrow beyond the annual aggregate federal loan limits. A credit check is required to determine if the borrower has an adverse credit history. Please contact the Financial Aid Office for more information.
Alternative Loans
For information on alternative loans, please visit the Alternative Loans page of our web site.