Other Loans

Private/Alternative Educational Loans

From time to time, students find themselves in need of additional loan funds in order to meet their cost of attendance. Private educational loans are funds offered by private lenders and are credit based consumer loans which are to be used for educational costs.

These consumer loans tend to cost more than educational loans offered by the federal government but are less expensive than credit card debt. CSUSB Office of Financial Aid and Scholarships encourages students to complete their FAFSA applications and use their federal loan options first.

Application Process

It is a student’s responsibility to research private educational loan resources, select a lender of their choosing, and complete the application as designated by the lender. Once a lender is selected and an application is processed, the Office of Financial Aid and Scholarships will be notified for certification of enrollment, cost of attendance and amount approval.

Eligibility

Eligibility requirements vary by lender. These include enrollment, maintaining academic progress, having established credit, and citizenship requirements.

Annual Award Amounts

The maximum annual amount a student can borrow is the total cost of attendance minus any other financial aid received. The minimum amount is determined by the lenders.

Fees

Origination and guarantee fees may vary by lender, but most private educational loans do not carry origination/guarantee fees.

Interest Rate

Lenders use a variety of financial indexes to calculate interest rates on private loans. These are tied to economic factors that make interest rates on private loans a variable rate, although some private educational loans carry fixed rates. The two most common indexes are LIBOR and Prime Rate.

Since lenders compute the interest rate differently, check with each lender to determine who the interest rate is calculated and to find the most current rates.

Disbursement

Funds are generally disbursed equitably among all terms of anticipated attendance. All private educational loan funds are processed through a third party servicer, ELMNet and funds are issued via check directly to CSUSB.

The Office of Financial Aid and Scholarships will confirm that a student is continuing to meet eligibility requirements established by the lender before the Student Accounts Office releases the check to the student.

The Student Accounts Office will mail the check to the student borrower. 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 University Hall, Room 034; their phone number is 909-537-5162.

Items to remember/consider when selecting a lender

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

Tips for researching Private (Alternative) Educational Loans

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 for Federal Student Aid (FAFSA) 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.

In order to receive a Federal Direct Perkins Loan you must also have completed a Master Promissory Note. You may complete an electronic MPN by accessing the Educational Computer Systems, Inc. homepage, clicking on "Students", and then selecting "eSign a Promissory Note" and following the instructions. In addition, all first time borrowers must also complete an Entrance Counseling Interview.

The amount of loan awarded depends on the student's need. Students demonstrating exceptional financial need, as defined by CSUSB, have priority. After a student's need is determined, CSUSB must consider the student's willingness to repay. If the student appears to be willing to repay the loan, then eligibility is determined by availability of funds. Due to limited funding, not all that qualify will receive a Perkins Loan.

The annual maximum and aggregate loans are as follows:

Annual Limits

Undergraduate students $5,500
Graduate Students
$8,000

Aggregate Limits

Grade Leveles 1 and 2 $11,000
Grade Leveles 3, 4 and 5
$27,500
Graduate
$60,000

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

Total Loan Amount Number of Payment Approximate Monthly Payment Total Interest Charges Total Repaid
$ 4,000 120 $ 42.43 $1,091.01 $ 5,091.01
$ 5,000 120 $ 53.03 $1,364.03 $ 6,364.03
$15,000 120 $159.10 $4,091.73 $19,091.73

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 University Hall (UH-034) 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

California Dream Loan

The California Dream Loan is borrowed money you must repay with interest. The interest rate for the California Dream Loan corresponds with the interest rate on Federal Direct Subsidized loan and is subject to change annually. The California Dream Loan does not accrue interest while you are enrolled at least half-time, during periods of approved deferment, and during the 6-month grace period before you enter repayment. You will be responsible for the interest charged at all other times.

Loan Requirements

To accept your California Dream Loan, you must log in to your My Coyote portal and accept the loan offer within 30 days of the award in order to receive funding. You may decline the loan offer or accept less than what is offered to you, but funds are limited and you may not be able to increase your loan at a later time.

Students who accept the California Dream loan must complete a promissory note and entrance counseling. If you fail to complete all the required steps to receive your loan funds by the assigned deadline, CSUSB may cancel the loan offer. Funds are limited and you may not be awarded the funds again at a later date.

To complete your California Dream Loan Promissory Note and Entrance Counseling please visit ECSI.

Receipt of funds in one year does not guarantee availability or receipt of funds in subsequent years.

Qualifications

Please note: all financial aid recipients, including California Dream Loan borrowers, must meet basic eligibility criteria.

  1. Submit a DREAM Act by March 2 priority deadline through the California Student Aid Commission (CSAC)
  2. Demonstrate financial need
  3. Meets Satisfactory Academic Progress (SAP)
  4. Undergraduates only
  5. Enrolled in at least 6 units
  6. Not in default on a student loan
  7. A valid AB540 Affidavit on file (T and U Visa eligible) with CSUSB

T-Visa holders should file a FAFSA and may also be considered for CA Dream Loan eligibility.

CSUSB Emergency Loan

Through the generosity of the Associated Students, Alumni Association and the Foundation at CSUSB, students may borrow up to 100% of tuition costs. The Bailey emergency loan, which is available for other non-tuition expenses, is available for up to $600.

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 2.5 GPA may apply. You must apply online, Students Accounts-Emergency Loan site.

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 Office of Financial Aid and Scholarships where applications for the loans are available.