All staff members of the Office of Financial Aid at California State University, Long Beach adhere to The California State University Student Lending – Code of Conduct, which restricts activity that may lead to conflicts of interest in the area of student lending.
Federal Education Loans
Education loans are a form of financial aid that must be repaid with interest. They are also the most prevalent type of financial assistance. Many students, and their parents, will turn to some form of loan aid as a way of closing the gap between educational expenses and available resources. You can make better choices if you have a comprehensive understanding of educational loan options.
By filing the Free Application for Federal Student Aid (FAFSA), loans may be included as part of your financial aid award. Most students and their families are eligible for some form of federal educational loan assistance. We highly recommend that you file a FAFSA, regardless of income. To be eligible to receive funding from the federal loan programs, you must meet the general eligibility requirements for the Federal Financial Aid programs
CSU Long Beach participates in two types of federal student loan programs: the Federal Direct Loan program, and the Federal Perkins Loan program.
Federal Perkins Loan Program
A Federal Perkins Loan is a low-interest (5%) fixed-rate loan offered to students who demonstrate exceptional financial need. Students must be enrolled at least half-time at Census to be eligible for disbursement of funds.
All Perkins loans disbursed at CSU Long Beach are managed by CSULB Student Financial Services and Educational Computer Systems, Inc (ECSI). Students awarded a Perkins Loan must complete and submit a Perkins Master Promissory Note; ECSI will notify via email those students awarded a Perkins Loan with instructions on how to complete the required steps.
Interest Rates and Processing Fees
The interest rate for the Federal Perkins Loan is fixed at 5%. While enrolled at least half-time, students are not charged any interest on the Perkins loan (the government pays the interest on your behalf). There is no origination or processing fee associated with the Federal Perkins loan.
Grace Period
When a Perkins recipient graduates, leaves school, or drops below half-time enrollment, he/she has a nine-month grace period before repayment begins on the loan. Exit Counseling is required when leaving CSU Long Beach.
For further information on the Federal Perkins Loan, refer to the CSULB Bursar’s Office website, as well as Federal Student Aid’s Perkins Loan information page.
Federal Direct Stafford Loan Program
A Federal Direct Stafford Loan is a low-interest loan available to college students who are enrolled at least half-time in an eligible program. The Stafford Loan does not require credit approval; eligibility is determined by filing the FAFSA. The loan(s) you receive will either be Subsidized, Unsubsidized, or a combination of both.
Subsidized Stafford Loan: A Subsidized loan is awarded on the basis of financial need. The federal government “subsidizes” this loan by paying the interest on the loan while you are enrolled at least half-time. Repayment on the principal amount of the loan begins six months after you are no longer enrolled at least half-time; however, you are responsible for the interest on the loan during this six-month grace period. Please note that effective July 2012, Graduate Students (Master’s, Doctoral) are not eligible for the Subsidized Stafford loan due to legislation passed by the U.S. Congress.
The interest subsidy previously provided during the six-month grace period on direct subsidized loans (when the student is no longer enrolled at least half time), has been temporarily eliminated by Congress. This applies to undergraduate, credential and second bachelor's students. The change is effective for new direct subsidized Stafford loans first disbursed on or after July 1, 2012, through July 1, 2014.
- Unsubsidized Stafford Loan: An Unsubsidized loan is awarded regardless of income or financial need. Interest is charged on the amount disbursed from the time the funds are disbursed until the loan has been paid in full. You may choose to either make or defer the interest payments while you are in school. If you defer your interest payments, the accumulated interest will be capitalized (added) to the principal amount of your loan when you enter repayment. All future interest charges are then based on the new, higher principal amount.
Interest Rates and Origination Fee
Interest rates for Federal Direct Stafford Loans are fixed for the life of the loan.
As of July 1, 2013, the interest rates for new loans for the 2013 - 2014 aid year are:
| Loan Type | Interest Rate |
|---|---|
| Subsidized Stafford Loan | 6.8% |
| Unsubsidized Safford Loan | 6.8% |
Effective March 1, 2013 - Direct Loans charges a 1.051% loan origination fee on the Federal Direct Stafford Loan, which is deducted at the time of disbursement.
Stafford Loan Limits
Annual Loan Limits: The base loan amount offered may be a combination of subsidized and unsubsidized loans, but will not be more than the established grade level or the cost of education. Refer to the chart below to see the annual loan amount for each class level and dependency status.
| Borrower's Academic Level | Dependent Student | Independent Student |
|---|---|---|
| Freshman (0-29.9 units) | $5,500 If qualified, up to $3,500 may be in subsidized loans |
$9,500 If qualified, up to $3,500 may be in subsidized loans |
| Sophomore (30-59.9 units) | $6,500 If qualified, up to $4,500 may be in subsidized loans |
$10,500 If qualified, up to $4,500 may be in subsidized loans |
| Junior or Senior (60+units) | $7,500 If qualified, up to $5,500 may be in subsidized loans |
$12,500 If qualified, up to $5,500 may be in subsidized loans |
| 2nd Bachelor´s Degree | $7,500 If qualified, up to $5,500 may be in subsidized loans |
$12,500 If qualified, up to $5,500 may be in subsidized loans |
| Teaching Credential Students | $5,500 If qualified, up to $5,500 may be in subsidized loans |
$12,500 If qualified, up to $5,500 may be in subsidized loans |
| Graduate / Doctoral | Not Applicable | $20,500 Eligible for unsubsidized only |
- All students will be automatically packaged with the maximum amount allowed based upon grade level, cost of education, and other financial aid received. For periods of study shorter than an academic year, the amounts you can borrow will be less than those listed. In addition, loan amounts may be less if students receive other financial aid that is used to cover a portion of their cost of education.
- For dependent students whose parents are unable to obtain a Federal Parent PLUS Loan, the amount the student can borrow under the Stafford Loan program is the same as for an independent student.
- Graduating Senior Proration: If you are a graduating senior (Undergraduate) who is attending only one semester (you will graduate at the end of the Fall semester), federal law requires CSULB to prorate your loan based on the number of units for which you are enrolled. The proration is based on the annual loan limit listed above, multiplied by the number of units needed for graduation divided by 24.
Stafford Loan Lifetime /Aggregate Limits by Degree
| Class Level | Dependent Student | Independent Student |
|---|---|---|
| Undergraduate, Teaching Credential, 2nd Bachelor’s |
$31,000 If qualified, $23,000 may be in subsidized loans |
$57,500 If qualified, $23,000 of this may be in subsidized loans |
| Graduate (Masters/Doctoral) |
Not Applicable | $138,500 Includes amount borrowed as an undergraduate student If qualified, $63,500 of this may be in subsidized loans |
Federal Direct PLUS Loan Program
The Federal Direct PLUS Loan is a government-insured, credit-based loan made to either a graduate (masters/doctoral) student OR to the parent of a dependent undergraduate student. The PLUS Loan is not based on income or financial need; the amount requested can be up to the student’s cost of attendance – less any other financial aid (grants, scholarships, student loans). Approval is based on the credit-worthiness of the borrower.
To apply for a PLUS Loan, the student must complete a FAFSA, and a PLUS Loan Request Form must be submitted to CSULB’s Office of Financial Aid.
- Parent PLUS Loans:
-
The Federal Parent PLUS Loan is available to parents (including adoptive or stepparents) of dependent undergraduate students. In addition to passing a basic credit check, the parent borrower must meet the general eligibility requirements for federal student aid .
If the parent borrower is credit-denied, the dependent student may be eligible to borrow additional Unsubsidized Stafford loan funds OR the parent may choose to reapply with a credit-worthy co-signer.
Any amount borrowed in excess of university charges through the Parent PLUS Loan will be issued as a refund to the parent.
- Graduate PLUS Loans:
- The Federal Graduate PLUS Loan is only available to graduate students (master’s and doctoral students). The Graduate PLUS loan is meant to supplement the funding from the Stafford Loan program, and should only be requested if you have exhausted your Stafford Loan eligibility for the year – and still have remaining expenses/room in your Cost of Attendance budget.
Interest Rates and Origination Fee
The interest rate for the Federal Direct PLUS Loan is fixed at 7.9% for the life of the loan. Interest is charged on the amount disbursed from the time the funds are disbursed until the loan has been paid in full.
Effective March 1, 2013 - Direct Loans charges a 4.204% loan origination fee on the Federal Direct PLUS Loan which is deducted at the time of disbursement.
Repayment
Repayment of the Federal PLUS Loan begins 60 days after the loan is fully disbursed. Repayment of the principal amount may be deferred:
- Parent PLUS Loans:
-
The parent borrower may choose to defer payment of principal while the student is enrolled at least half-time. Interest will accrue and may be paid monthly. Additional deferment options may be available. For further details, refer to Federal Student Aid’s Direct Loan Basics for Parents, or PLUS Loan Information page.
- Graduate PLUS Loans:
-
There is no grace-period for the Graduate PLUS Loan; however, repayment of principal is deferred while the student borrower is enrolled at least half-time. Interest will accrue and may be paid monthly. For further details, refer to Federal Student Aid’s PLUS Loan information page.