Federal Education Loans

Federal Perkins Loan

The Federal Perkins loan is a low interest rate loan (5%), offered to students who demonstrate exceptional financial need.  There are no fees charged for this loan, and the federal government pays the interest while you are enrolled at least half-time.  There is a nine-month grace period which begins once you graduate, withdraw from school, or your enrollment drops to below half-time status. 

Repayment begins at the end of the grace period. First-time borrowers will receive by mail a promissory note and information about an entrance interview after their award letter is returned to the Office of Financial Aid.  Perkins loan offers will be made as funding permits.

Basic Eligibility Requirements for Perkins Loans

1. Must apply for financial aid using the Free Application for Federal Student Aid (FAFSA).
2. Must be a U.S. Citizen or eligible non-citizen.
3. Must be enrolled (or plan to be enrolled) at least half-time.
4. Cannot be in default on a student loan or owe a repayment on any grant funds.
5. You must be achieving Satisfactory Academic Progress.
6. Must submit all documents requested by CSULB’s Office of Financial Aid.

Even if all the above basic requirements are met, final eligibility for the Perkins loan is determined by the Office of Financial Aid. More information is available from the Perkins Loan Department in the Bursar's Office.

Federal Direct Loan Program

CSULB participates in the Direct Loan program, which offers Stafford Loans for students as well as supplemental PLUS loans for graduate students or parents of dependent undergraduate students.  Direct loans offer a variety of deferment and repayment options, and are financed directly by the U.S. Department of Education so there’s no need to choose a lender.  Please refer to the Annual Loan Limit Chart for the maximum amount students may borrow in Federal Stafford Loans per academic year. 

Direct Stafford Loans

A Federal Direct Stafford loan is a low-interest loan available to college students who are enrolled at least half-time, enrolled in a degree granting program, and meet other basic requirements.  These loans do not require credit approval; eligibility is determined by filing the FAFSA application.  Payment of principal is deferred while students are enrolled in school at least half-time.  After you graduate, withdraw, or drop to less than half-time enrollment, you will have a six-month grace period – during which time no payment on principal will be due.  Repayment on the principal amount begins at the conclusion of the grace period. 

Subsidized Stafford Loans

A subsidized loan is awarded on the basis of financial need.  The U.S. government pays (or subsidizes) the interest on this loan while you are enrolled at least half-time, and until the end of the six-month grace period.

Interest Rates

Undergraduate Students Only

All Other Students

The Subsidized Loan for all other (non-Undergraduate level) students has a fixed interest rate of 6.8% for the life of the loan.

Loan Origination Fee

There is a 1.5% Origination fee on the Subsidized Stafford Loan; Direct Loans provides an immediate 1.0% rebate on this origination fee – resulting in a net fee of 0.5%, which will be deducted from the gross amount of the loan borrowed (if you borrow $3,500, you will actually receive $3,482.50 – or $17.50 less).  Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent.  If you fail to make the first 12 monthly payments on-time, however, a charge for the rebate amount (i.e., $17.50) will be added to the outstanding balance of the loan.

Unsubsidized Stafford Loans

An unsubsidized loan is awarded regardless of need.  You are charged interest on the amount disbursed from the date of disbursement and you may either make – or defer – interest payments while you are in school and during the six-month grace period.  If you defer your interest payments, the accumulated interest will be capitalized, or added, to the principal of your loan when you enter repayment.  All future interest charges are then based on the new, higher principal amount.

Interest Rate

All Unsubsidized Direct Stafford Loans have a fixed interest rate of 6.8% for the life of the loan, regardless of whether the student is an Undergraduate or Graduate student.

Loan Origination Fee

There is a 1.5% Origination fee on the Subsidized Stafford Loan; Direct Loans provides an immediate 1.0% rebate on this origination fee – resulting in a net fee of 0.5%, which will be deducted from the gross amount of the loan borrowed (if you borrow $3,500, you will actually receive $3,482.50 – or $17.50 less).  Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent.  If you fail to make the first 12 monthly payments on-time, however, a charge for the rebate amount (i.e., $17.50) will be added to the outstanding balance of the loan.

To apply for a Direct Stafford Loan:

• Complete the Free Application for Federal Student Aid (FAFSA)
• Submit any documentation requested by the CSULB Office of Financial Aid.
• When the student's financial aid file is complete, an award package will be generated, and can be accessed on MyCSULB.
• Accept the loan offer on MyCSULB (you may accept a lesser amount than what is offered).
• Complete the Master Promissory Note (MPN) for Direct Stafford Loans.
• Complete the Online Entrance Counseling.
• Sign up for eRefund, so that CSULB can issue your refund via Direct Deposit (if applicable).

Federal Direct PLUS Loan Program

The Direct PLUS Loan is a government-insured loan made to either graduate / doctoral students or to parents of dependent undergraduate students.  The PLUS loan is a non-need based loan, and eligibility is based on the credit history of the borrower.  The maximum amount borrowed cannot exceed the student’s cost of education minus any other financial assistance (including scholarships, work-study awards, and the Federal Stafford Loan).  PLUS Loans do not have an interest subsidy – interest begins accruing on the amount disbursed, from the date of disbursement.

Interest Rate:

The Direct PLUS Loan has a fixed interest rate of 7.9% for the life of the loan.

Loan Fee:

There is a 4% Origination fee on the PLUS Loan; Direct Loans provides an immediate 1.5% rebate on this origination fee – resulting in a net fee of 2.5%, which will be deducted from the gross amount of the loan borrowed (if you borrow $10,000, you will actually receive $9,750 – or $250 less).  Once you enter repayment, if you make your first 12 monthly payments on time, the rebate becomes permanent.  If you fail to make the first 12 monthly payments on-time, however, a charge for the rebate amount (i.e., $250) will be added to the outstanding balance of the loan.

Parent (PLUS) for Parents of Dependent Undergraduate Students

Parents of dependent undergraduate students can take out a Parent PLUS Loan to supplement their student’s aid package.  Parents may choose to defer payments on a PLUS Loan until six months after the date the student ceases to be enrolled at least half-time and to pay the accruing interest monthly or quarterly, or to defer interest payments and allow interest to be capitalized quarterly.  A parent also has the option to choose not to defer payment, and can begin repaying both principal and interest while the student is in school.

• For more information on the Parent PLUS Loan refer to Parent PLUS Loan Basics, from Direct Loans. 
• To receive, or initiate, a Parent PLUS Loan application, call CSULB’s Office of Financial Aid at (562) 985-8403 or visit the office in Brotman Hall, Room 101.

Graduate PLUS Loan for Graduate and Doctorate Students

This program is only for those students in graduate or doctorate level programs, and is meant to supplement the funding from the Stafford Loan program.  You must be enrolled at least half-time in a degree-granting program and taking courses that lead to your degree.  Students will receive an automatic deferment on the principal amount of the loan while enrolled at least half-time.  You are charged interest from the time the loan is disbursed and may either make or defer interest payments while you are in school and during periods of deferment.  If you defer your interest payments, the accumulated interest will be capitalized, or added, to the principal of your loan when you enter repayment.  All future interest charges are then based on the new, higher principal amount.

Unlike the Stafford Loan, there is no grace period for the Graduate PLUS Loan; you will enter repayment immediately after you graduate, withdraw, or drop to less than half-time enrollment.

• For more information on the Graduate PLUS Loan, refer to the Graduate PLUS Loan Basics, from Direct Loans.
  
• Prior to applying for a Grad PLUS Loan, you must complete the FAFSA and apply for your maximum eligibility through the Direct Stafford Loan program ($20,500 per academic year).
  
• To receive, or initiate, a Grad PLUS Loan application, call CSULB’s Office of Financial Aid at (562) 985-8403 or visit us in Brotman Hall, Room 101.

Stafford Loan Annual Limits ^†