Types of Aid

Loans

Alternate/Private Loans

From time to time, students find themselves in need of additional loan funds in order to meet their cost of attendance. In addition to the Federal Stafford Loan program(s), our Financial Aid Office makes available loan information for various credit-based loans offered by lenders to students attending California State University San Bernardino. Students with remaining unmet need who meet the lenders’ eligibility requirements may be eligible to borrow additional loan funds.

Terms and conditions vary between loan products and may vary when borrowing with a cosigner. Students and cosigners are encouraged to research each loan program individually, taking into consideration all terms to the loan, before making a decision to borrow. Some items to consider when selecting a lender are:

• Minimum and maximum loan amounts available.
• How will your credit rating affect your loan?
• Is a co-signer required? Can the co-signer be released at a later date?
• What is the current interest rate?
• What fees, interest reductions or incentives are offered?
• When do payments begin?
• What are the minimum and maximum terms and payment amounts?
• Is there a penalty for paying off the loan early?
• How the lender services the loan and the borrower?

Whether you are about to begin college or will graduate soon, you should understand your rights and responsibilities as a student loan borrower. An educational loan is a serious financial and legal obligation that must be managed responsibly and repaid.

Note: Borrow only what you need to cover your educational expenses, because the decisions you make today will affect your finances in the future.

Most frequently asked questions:

How does a student apply for a Private loan?

Private Loans are a financial aid program, but the loan is made to the student borrower by a bank. The bank conducts a credit check as part of the application process.

To apply for a Private Loan, the student applicant must complete and sign the Private loan application / promissory note in which the student borrower attests that he/she understands and accepts the terms and conditions of the loan a promise to repay it. Both the loan application and promissory note are contained in a single form. It is recommended that the student first file the FAFSA (Free Application for Federal Student Aid at www.fafsa.ed.gov) to determine if he/she qualifies for federal aid/loans.

You may contact your Private Loan Lender directly to begin the application process. Many lenders have web based applications and promissory notes that will expedite the process for the student.

How is the Private loan funds delivered?

Private loan funds are delivered to CSUSB by check payable to the student borrower. The loan will be disbursed in one installment for each quarter. The college cannot release the funds any earlier than 10 days before instruction begins and only after the student’s enrollment status and academic progress have been verified. The Financial Aid Office will confirm that your child is enrolled in a minimum of 6.0 units before the Student Accounts Office releases the check to the student.

If the loan funds are received by check, the college may require the student borrower to endorse the disbursement check(s). If the student’s account with CSUSB (Tuition/fees, housing, due emergency loans, etc.) is paid in full for the term, the Student Accounts Office will mail the check to you, the student borrower at the address on the loan application. If the student’s account is not paid in full, you must contact the Student Accounts Office to arrange for payment and receipt of your Private loan check. The Student Accounts Office is located in Sierra Hall, Room 119, their phone number is 909-537-5162. Their office hours are Monday – Friday from 8AM to 5PM.

Assumption Program of Loans for Education (APLE)

Now accepting APLE application for 2007-2008 academic year.

The Assumption Program of Loans for Education is a competitive teacher incentive program designed to encourage students to become teachers and serve in either a critical teacher shortage area or in schools that meet specific criteria.

APLE may assume up to $11,000 in outstanding educational loan balances in return for four consecutive years of full-time eligible teaching service in a California K-12 public school. Participants must agree to teach in a California public school in a designated subject matter area or in a school that meets criteria specified by the Superintendent of Public Instruction. An additional $8,000 of loan forgiveness (up to $19,000 total) is available to candidates providing teaching service in mathematics, science, special education and in very low-performing schools.

In order to be eligible for this program, applicants must:

• Be legal residents of California
• Have completed a minimum of 60 semester or 90 quarter units prior to the fall term of the year of application
• Enroll in a program leading to a baccalaureate degree or an approved program of professional teacher preparation
• Have received or have been approved to receive educational loans issued to students through institutions of higher education for the purpose of defraying costs associated with obtaining a baccalaureate degree or an initial teaching credential
• Be free of any obligation to repay any state or federal educational grant and not be in default or become delinquent on any state or federally insured educational loan
• Not have completed all of the course work necessary to obtain an initial teaching credential and are pursuing a specialist credential and are pursuing a specialist credential required for teaching in specific/special areas targeted under the APLE
• Agree to teach in a California K-12 public school for at least four consecutive years after obtaining a full teaching credential

You may submit an application in person or by mail. Please submit your applications to the Financial Aid Office at UH-150 or mail them to our address:

California State University, San Bernardino
Financial Aid Office UH-150
5500 University Parkway
San Bernardino, CA 92407-2397

Please remember that in order to apply for the APLE Loan Assumption program, you will also need to submit the following documentation with your APLE Program Application for 2007-2008 academic year:

1. 1. The APLE Program Application for 2007-2008
2. 2. Write a paragraph explaining why you want to become a teacher. Include any extra curricular and/or volunteer work you have performed.

Applications will be forwarded to the California Student Aid Commission (CSAC) for review and final approval; notice of approval will come directly from CSAC. This approval frequently takes a number of months. Additional information from CSAC is available on their website: http://www.csac.ca.gov

Federal Perkins Loans

The Federal Perkins Loan is a long-term loan. Undergraduates, credential students, and classified graduates maintaining at least half-time status and demonstrating exceptional financial aid need may apply for this loan. Students will be considered for the Federal Perkins Loan by submitting the Free Application and indicating a desire for a loan.

California State University, San Bernardino is the lender. The loan is made with funds provided by the federal government with a share contributed by the institution. You must repay this loan to California State University, San Bernardino.

Perkins Loan recipients will be required to complete a Federal Perkins Loan Master Promissory Note (MPN) to receive the loan and must attend an Entrance and Exit Session. If you are interested in scheduling either an Entrance or Exit session or need information on the Perkins MPN select the link below:

http://sao.csusb.edu/perkins.htm

The amount of loan awarded depends on the student's need. The annual maximum and aggregate loans are as follows:

The repayment period begins six or nine months after the student is no longer enrolled on at least a half-time basis depending on when the loan was initiated. The payment period may be extended for up to ten years. The minimum monthly payment is $40. Interest is not charged until the repayment period begins. The interest rate is 5%. The following schedule is a sample of monthly repayments. Your repayment schedule will be different.

Federal Perkins Loan Repayment Schedule 5% Interest (example)

The Federal Perkins Loan Program offers cancellation provisions to various borrowers. If you believe you qualify for cancellation of part of your loan, contact the CSUSB Student Accounts Office (SAO) office located in Sierra Hall (SH-119) for further information.

Restrictions apply to all the following categories. You are encouraged to review your eligibility for cancellation provisions with the SAO during your senior year or your last scheduled year of attendance at CSUSB.

Programs which may qualify for partial cancellation of the Federal Perkins Loan Program include:

• Military or VISTA service
• Teaching in designated schools*
• Be a teacher providing special educational services to handicapped children*
• Law enforcement or Corrections Officer*
• Teaching at a Chapter I designated school*
• Nursing profession*
• Teachers in math, science, foreign language, and bilingual education*
• Teachers and care-providers of disabled children*
• Employees of family service agencies that serve high-risk children.*
• Requires full-time employment in these fields

All or a portion of the total amount borrowed under the Federal Perkins Loan may discharged or cancelled under the following conditions:

CSUSB Emergency Loan

Through the generosity of the Associated Students, Alumni Association and the Foundation at CSUSB, students may borrow up to $900 for emergency purposes. Emergency loans are available throughout the school year. Repayment of the loan is due by the last lecture day of each quarter. Any student who has completed the registration process at CSUSB and has at least a 2.0 GPA may apply. You must apply online at https://sao.csusb.edu/olel.

M. Jeanne Hogenson International Student Loan Program

The Associated Students of CSUSB established the International Student Loan Fund so that international students may borrow a maximum of $500 in short-term emergency loans. Any enrolled international student with an F-1 visa is eligible. A letter of recommendation must be obtained from the Director of International Student Services. Repayment arrangements are made through the CSUSB Financial Aid Office where applications for the loans are available.