Types of Aid

Loans

Federal Direct Loans

CSU San Bernardino participates in the Federal Direct Loan Programs, also known as Stafford Loans. These loan programs are low interest, long-term loans borrowed from and guaranteed by the U.S Department of Education. Students who are undergraduate, credential and graduate students enrolled at least half-time are eligible to borrow. The loans a student is awarded are either subsidized, unsubsidized or a combination of both.

Subsidized Direct Loan:

A subsidized loan is awarded on the basis of financial need. If you're eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you're in school, for the first six months after you leave school, and if you qualify to have your payments deferred. Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your level of study.

Unsubsidized Direct Loan:

An Unsubsidized loan is not awarded on the basis of financial need. Yet, unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.

How to Apply for Direct Loans:

For either type of loan, the student must first fill out a FAFSA for the academic year in which they are requesting financial assistance. Students applying for Direct Loans must also be admitted to the University in an approved program leading to a degree or certificate.  After your FAFSA is processed, the Financial Aid Office will inform you about your loan eligibility. A student may view,  accept or decline, all or in part,  their Direct Loans offered via their MyCoyote site.

Students who apply for a Direct Loan may also be required to complete a Master Promissory Note (MPN) to receive Federal Direct Loan(s). Clicking the link Electronic Master Promissory Note on the Financial Aid homepage will direct you to the site in order to complete this process.

Students who are first time borrowers at CSUSB must complete an Entrance Loan Workshop. This requirement may be fulfilled by attending a session held on campus or by completing the U.S. Department of Education's Online Entrance Counseling Session. In addition, all borrowers must also attend an Exit Loan Workshop prior to separation from CSUSB.

Interest Rates and Origination Fees:

Interest rates are adjusted annually in July . For all Direct Loans first disbursed on or after July 1, 2006, the interest rate is listed below. Interest rates for the Subsidized and Unsbsubsidized Direct Loans will not exceed 8.25%

Variable Rates for Loans First Disbursed Between 7/1/98 and 6/30/06

Borrrowers will pay an origination fee of 3 percent of the loan, deducted proportionately from each loan disbursement for Subsidized and Unsubsidized Direct Loans. For a Direct Stafford Loan, the entire fee goes to the government to help reduce the cost of the loans.

Loan Limits:

Federal Direct Loans have annual and aggregate borrowing limits. The annual limit for a student borrower is based on the student’s academic level and their dependency status. Aggregate borrowing limits are based on a student’s Undergraduate or Graduate classification.

Graduating seniors who will attend college for less than a full year and graduate, will have their Direct Subsidized and Unsubsidized Loans prorated based upon the number of enrolled units at CSUSB during the year. The maximum loan eligibility will be determined by the prorated amount or your financial aid need, whichever is less.

Students seeking certificates, excluding Credential, must be admitted to a program that is a minimum of one academic year in length to be eligible for Direct Subsidized and Unsubsidized Loans. Students in programs that are shorter than an academic year in length are not eligible for financial aid.

 Dependent Undergraduate or Post Baccalaureate

Independent Undergraduate or Post Baccalaureate

Independent Graduate

* Annual limit, or up to the Cost of Attendance, whichever is less. New loan limits apply to loans first disbursed on / after  July 1, 2008.

Disbursement:

Loans are generally disbursed equally among the student’s terms of attendance. For example, a student attending an entire academic year, would receive three equal disbursements for each quarter of attendance. Loans that are awarded for one quarter will be disbursed in two equal disbursements, half at the beginning of the term and the second half at the terms midpoint.

 Direct Loan checks will not be disbursed to first time borrowers who are first time freshmen until 30   

 days after the start of their first term classes.

Repayment:

Aftera student graduates, leaves school, or drops below half-time enrollment, the borrower will have a six-month "grace period" before they begin repayment. During this period, the borrower will receive repayment information from their lender.

When the repayment process begins, the borrower will be provided additional information regarding the various repayment plans available. Typically, the minimum monthly payment is $50, but may vary depending on the amount of loans debt incurred.

If you are a Direct Loan borrower, your loans are managed by the Direct Loan Servicing Center.  A Direct Loan borrower may access their loan infomration at the Direct Loan Servicing Center website. You may view your balance, interest, payment history, estimate repayments, change your address, download forms, and more. You may contact the Direct Loan Servicing Center at:

IMPORTANT LINKS:

• Electronic Master Promissory Note:
• http://dlenote.ed.gov

Online Entrance Loan Workshop:

http://www.dlssonline.com/entrancecounseling/main-entc.asp

Online Exit Loan Workshop:

http://www.dlservicer.ed.gov

Online Entrance Loan Workshop: http://www.dlssonline.com/entrancecounseling/main-entc.asp

Online Exit Loan Workshop: http://www.dlservicer.ed.gov