Loans Table of Contents
There are two different types of federal Direct Loans, subsidized and unsubsidized. Both have the same interest rate, variable with an 8.25% cap, and the same repayment terms. Payment of interest and principal begins 6 months after you cease to attend at least half-time at Cal State San Marcos. This 6 month leeway is known as your “grace period”. Subsidized:
Unsubsidized:
It is possible for students to have both subsidized and unsubsidized loans.
Loan Limits Subsidized eligibility is calculated as follows:
Unsubsidized eligibility is calculated as follows:
Annual Loan Limits:
Note that for students who are not required to provide parental information (“independent” students), there is additional loan eligibility beyond the initial grade level maximum. However this additional loan is all unsubsidized, meaning interest will accrue while enrolled and can either be paid quarterly, or allowed to capitalize on the principal (the loan will increase each time you make the decision not to pay interest). Example I:
Students whose EFC is in excess of the budget would not be eligible to apply for a subsidized loan; however they could borrow the full grade level maximum as an unsubsidized loan.
Important: Any aid, including student loans, cannot exceed the financial aid budget for the loan period.
Example II:
Aggregate Loan Limits
In addition to annual maximums, there are aggregate maximums when, if reached, a
student is no longer eligible to borrow.
*If parental information is required, the maximum aggregate is $23,000 in both subsidized and unsubsidized loans. The $46,000 combined is only if the student is eligible to borrow additional unsubsidized amounts.
Steps to Receiving a Direct Loan Once you review the award letter, you need to go to Cal State San Marcos’ SMARTWeb and either, accept, decline or reduce the loan amount offered. To access SMARTWeb:
*User ID and PIN # is your social security number and until you change it (and for privacy we suggest you do) your Pin # is your birthdate MMDDYY. If this is your first loan at Cal State San Marcos, you have two additional steps to finalize the loan.
If you have previously borrowed a loan at Cal State San Marcos, then you simply need to accept the loan on our website as noted above Please refer to the disbursement information section later in this handbook for details regarding disbursement of loan aid.
To Apply for the PLUS Loan In the PLUS Loan Request gives the parent the option of having the loan disbursed to the student, or having a check sent to the parent. In either case, if there are any outstanding fees on the student account, those fees will be paid first. The difference will then be disbursed either to the student or parent, as directed by the parent. A PLUS loan certified for the full year is made in two disbursements. The promissory note will indicate the expected dates of disbursement.
The Federal Perkins Loan is a low interest (5%) loan available to undergraduate and graduate students with exceptional financial need. Perkins loans are disbursed by Cal State San Marcos and the loan is repaid to the University. Repayment of this loan begins 9 months after the borrower has ceased to attend at least half-time at Cal State San Marcos. The minimum monthly payment is $40 (it may be higher depending upon the amount borrowed), and the loan must be repaid within 10 years. The money repaid to the Perkins fund is then available to re-award to other Cal State San Marcos students. Due to the limited funding, Cal State San Marcos has established priority groups to which this loan is first offered:
A Perkins Loan is offered on the assumption that you will meet one of the above criteria, and if it is later discovered that you do not, the loan will be removed from your award (for example, offered to a student who does not get admitted to the credential program in the fall, or is admitted to the part-time rather than the full-time program).
This loan was made possible through the generosity of Lucille and Prescott Spicer. It is a 5% loan with repayment beginning 6 months after a student ceases to attend at least half-time at Cal State San Marcos and which must be repaid within 5 years. The maximum loan is $4000. Eligibility for this loan is determined by the Director of Financial Aid & Scholarships.
The Cal State San Marcos emergency loan is also funded through the generosity of Lucille and Prescott Spicer as well as other benefactors. The emergency loan is a short term loan with a maximum of $500, which must be repaid by the due date of the semester in which the loan is received. This is a no interest loan, although there is a $2 administrative processing fee. Students who do not repay the loan by the required due date are charged a $40 late fee, and will not be allowed to register for the following semester until the loan is repaid. Emergency loan applications are available at the Student Financial Services Office. The Student Financial Services Office begins accepting applications for emergency loans 12 days prior to the beginning of the semester. The loan is then available approximately 2 working days after the application is processed. To be eligible for the emergency loan a student must have a zero Cal State San Marcos account balance, and must have good credit with the University (no returned checks, no failure to repay a previous emergency loan). Exceptions to the zero balance requirement are made for students expecting a financial aid disbursement. In that case, Student Financial Services will confirm with the Financial Aid and Scholarship Office the expectation of aid in excess of fees. If confirmed, and the student meets the good credit criteria, the loan will be approved.
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
