Federal student loans are available to most students regardless of income and provide a range of repayment options including loan forgiveness benefits, which private educational loans are not required to provide. The government pays the interest while the student is in school and during grace and deferment periods. A loan is money you borrow and must pay back.
All federal loan programs require the student to:
- Complete a current academic year FAFSA, and meet all FAFSA eligibility requirements.
- Not be in federal loan default, nor owe a federal grant overpayment.
- Be enrolled in at least half-time.
- Not exceed the annual loan and lifetime aggregate limits
Types of student loans available:
Manage Your Student Loans:
Sacramento State participates in the William D. Ford Federal Direct Loan program. You can find more information on Direct Loans here: https://www.studentloans.gov. Quick Reference: Direct Loan Checklist
Direct Loan Process
Accepting the Direct Loan offer, will initiate To Do items on your My Sac State Student Center to complete the Master Promissory Note (MPN) and Entrance Loan Counseling (ELC). All Sacramento State students must complete the MPN and Entrance Loan Counseling at least once. Check your My Sac State Student Center for instructions (if applicable) after you have accepted your loan.
The Federal Direct Subsidized Loan is a federally-sponsored loan. Subsidized loans are long-term with fixed interest rates and awarded to students based on financial need. Interest is paid by the government while the borrower is enrolled at least half-time. Student borrowers must be enrolled at least half-time to be eligible to receive these loans.
The Federal Direct Unsubsidized Loan is a federally-sponsored loan. Unsubsidized loans are long-term with fixed interest rates and awarded to students regardless of financial need. Interest is the borrower's responsibility. The borrower will be charged interest, usually on a quarterly-basis, and can either pay the interest while attending school or defer the interest which will be capitalized (added) to the outstanding principal when the student enters repayment. We strongly encourage students to pay the interest while attending school. Student borrowers must be enrolled at least half-time to be eligible to receive these loans.
Federal Perkins and Nursing Loans are both serviced by Sacramento State and are awarded to eligible students on a first come first serve basis to eligible students. The Perkins and Nursing loans are offered at a 5% interest rate. They are limited to a percentage of a student's need because of demand and limited funding. Repayment begins nine months after graduation and/or dropping below half-time status. The government pays the interest while the student is in school and during grace and deferment periods.
- Enrolled at least half-time
- Demonstrate financial (EFC) need
- Cannot be offered both loan programs during the same term
- Nursing loan only: 1.) Must be admitted to the clinical portion of Nursing Program and 2.) Financial aid applicants will be automatically selected for verification
Awarding and Disbursement:
Both the Perkins and Nursing loans are offered by the Financial Aid Office in a fair and equitable manner, and therefore discourages written requests for the Perkins and Nursing loans.
Students must complete additional loan requirements before a loan can disburse. Within a week of accepting the loan, you will have a To Do item in your My Sac State Student Center, providing you instructions and a link to complete the loan requirements.
Graduate students and parents of dependent students are eligible to borrow under the PLUS Loan program up to their Cost of Attendance minus other estimated financial resources. The Direct PLUS is a long-term program with a fixed interest rate and is subject to a credit check and approval by the lender. Students must be enrolled at least half-time to be awarded this loan.
PLUS loans are disbursed after all requirements are met, but no earlier than 10 days prior to the first day of instruction. Any debts owed to the University; including tuition, housing, etc., will be deducted from the PLUS disbursement. Any PLUS funds remaining will be refunded to the borrower.
- Graduate/Professional student, refer to the Direct Graduate/Professional PLUS Loan Request form (pdf) for the application process.
- Parent of dependent student, refer to the Direct Parent PLUS Loan Request form (pdf) for the application process.
Private lenders offer a variety of credit based education loans. These loans may be appropriate for some students who do not qualify for the federally guaranteed subsidized, unsubsidized and parent PLUS loans. However, students should always take advantage of their federal financial aid eligibility, including all loan programs when possible. In most cases, you will be required to meet with a financial aid counselor to review other aid options. This is a federal lending regulation. Because fees and interest rates can be based on your credit score, you are encouraged to shop different lenders for the best option available. Sacramento State does not endorse or recommend private lending programs.
Private (Alternative) Loan Process:
- You, the student initiate and complete a loan application with a private student loan lender;
- If your application is approved, the private lender will electronically send a School Certification request to the Financial Aid Office at Sacramento State for certification of your private loan;
- Once the School Certification is received by the Financial Aid Office, we will place an Alternative Loan Counseling To Do list item on your My Sac State Student Center;
- You must meet with a Financial Aid Counselor during drop-in counseling hours to complete the Alternative Loan Counseling requirement;
- During the Alternative Loan Counseling, the Financial Aid Counselor will provide you information regarding your private loan (processing, eligibility, disbursement, etc.)
- Sacramento State begins certifying ALL student loans (including private) beginning in July
- Credit approvals expire. You are encouraged to apply for a private loan no earlier than July 1 for the upcoming academic year
- Private loans are certified by the Financial Aid Office one academic year at a time. Meaning, we cannot certify a private loan if you are requesting one for longer than one academic year
- When applying for a private loan, use the correct loan period for the term(s) or academic year you are requesting the private loan for
Loan Periods for 2013-2014
- An academic year loan is considered to include Fall 2013 and Spring 2014: Academic Year Loan Period: 09/03/13 - 05/23/14
- Fall 2013 only loan - Loan Period: 09/03/13 - 12/20/13
- Spring 2014 only loan - Loan Period: 01/27/14 - 05/23/14
- Summer only loans: Loan period date should start with the beginning date of your first summer course and should end with the last date of enrollment for summer
|Class Level||Subsidized||Additional Unsubsidized Dependent||Additional Unsubsidized Independent|
*Includes loans received for undergraduate study
|Borrower||Loan Type||Loan Period||Fixed Interes Rate|
|Undergraduate Students||Direct Subsidized and Unsubsidized||7/1/2013 - 6/30/2014||3.86%|
|Graduate and Professional Students||Direct Unsubsidized||7/1/2013 - 6/30/2014||5.41%|
|Parents and Graduate Students||Direct PLUS||7/1/2013 - 6/30/2014||6.41%|
IMPORTANT New Loan Information!
- During the current federal budget sequestration enacted March 1, 2013, the origination fees for loans disbursed after July 1, 2013 are; 1.051% for Direct Subsidized and Unsubsidized and 4.204% for Direct PLUS loans.
- Beginning July 1, 2012, all Federal Direct Subsidized and Unsubsidized loans will have a 1% origination fee applied at disbursement, and the Direct PLUS loan will have a 4% origination fee applied at disbursement.
- *Graduate and professional students are no longer eligible to receive subsidized loans made for payment periods beginning on or after July 1, 2012. However, if you are a graduate or professional student, you may still qualify for up to $20,500 in unsubsidized loans each year.
- Federal Direct Subsidized Loans originated before July 1, 2012, interest is deferred while the borrower is enrolled at least half-time, during grace periods and periods of deferment.
Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time. Contact your loan servicer to discuss repayment options or change your repayment plan. You can access your federal student loan information using the National Student Loan Data System (NSLDS). There different repayment plans to choose from:
- Standard Repayment Plan - You would pay less interest for your loan over time under this plan than you would under other plans.
- Graduated Repayment Plan - You'll pay more for your loan over time than under the 10-year standard plan.
- Extended Repayment Plan - Your monthly payments would be lower than the 10-year standard plan.
- Income-Based Repayment Plan (IBR) - You must have a partial financial hardship. Your monthly payments will be lower than payments under the 10-year standard plan. You'll pay more for your loan over time than you would under the 10-year standard plan.
- Pay As You Earn Repayment Plan - You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You must have a partial financial hardship. Your monthly payments will be lower than payments under the 10-year standard plan. You'll pay more for your loan over time than you would under the 10-year standard plan.
- Income-Contingent Repayment Plan - You'll pay more for your loan over time than under the 10-year standard plan. If you do not repay your loan after making the equivalent of 25 years of qualifying monthly payments, the unpaid portion will be forgiven.
- Income-Sensitive Repayment Plan - You'll pay more for your loan over time than you would under the 10-year standard plan. Each lender's formula for determining the monthly payment amount under this plan can vary.
Exit Loan Counseling
A mandatory information session which takes place when you graduate or attend school less than half-time that explains your loan repayment responsibilities and when repayment begins. If you graduated or stopped attending half-time at Sacramento State, we will place a To Do item in your My Sac State Student Center to complete this requirement, even if your returning to the Univeristy or attending college elsewhere.
Before you contact your loan servicer to discuss repayment plans, you can use your the Repayment Estimator to get an early look at which plans you may be eligible for and see estimates for how much you would pay monthly and overall.
For additional information on repaying your student loans visit Federal Student Aid.
Student borrowers are encouraged to research all loan forgiveness and loan assumption programs prior to going into repayment. Resources may be federal, state or private. Some non-profit employer programs and service organizations may, like the Peace Corps, Teach American, etc. may also assist. The following list are examples of some of the larger loan forgiveness programs.
- Public Service Loan Forgiveness Program - Click Here
- Teacher Loan Forgiveness Program - Click Here
- Federal HRSA Nursing Loan Forgiveness Program - Click Here
California Teachers: Assumption Program of Loans for Education (APLE)
APLE is a teacher incentive program designed to encourage students to become California teachers in a range of critical teacher shortage areas and several types of high need schools. Administered by the California Student Aid Commission (CSAC), the program assumes up to $19,000 in outstanding educational loan balances in return for four consecutive years of qualifying teaching service. Learn More.
Cancellation and Discharge
Cancellation is the release of the borrower's obligation to repay all or a designated portion of principal and interest on a student loan. Discharge is the release of a borrower from the obligation to repay the loan borrowed.
For more information on federal student loan forgiveness, cancellation or discharge, click here.