Loan Programs

Federal Programs

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.

Federal Perkins Loan

Federal Perkins Loans are offered at a 5% interest rate and 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.

Eligibility Criteria

• Enrolled at least half-time
• Not receiving a Nursing Loan
• Demonstrate financial (EFC) need

Awarding Policy

Perkins Loan funds are automatically awarded to eligible students on a first come first serve basis to eligible students based on financial need.

The Financial Aid Office strives to offer funds to students in a fair and equitable manner, and therefore discourages written requests for Perkins Loans; however, exceptions may be made by a financial aid counselor in the case of extreme financial hardship.

Disbursement Prerequisites

Perkins Loans are awarded by the Financial Aid Office, and students must complete additional requirements before their loan will disburse. After accepting the loan, please wait at least two days to check your To Do List in your My Sac State Student Center. You will be given a link where you can go to complete pre-loan counseling and a promissory note.

Federal Nursing Loan

The Nursing Loan is a long-term, low-interest (5%) loan for students enrolled in the clinical nursing program. The government pays the interest while the student is in school and during grace and deferment periods. Repayment begins nine months after graduation and/or dropping below half-time status.

Eligibility Criteria

• Admitted into the clinical portion of the Nursing Program
• Enrolled at least half-time
• Demonstrated financial need
• Not receiving a Perkins loan

Financial aid applicants will be automatically selected for verification upon acceptance into the clinical nursing program and will be notified via your My Sac State Student Center to submit verification documents.

Awarding Policy

Nursing Loan funds are automatically awarded on a first-come first-serve basis to eligible students based on financial need and who meet the eligbility criteria.

The Financial Aid Office strives to offer funds to students in a fair and equitable manner, and therefore discourages written requests for Nursing Loans; however, exceptions may be made by a financial aid counselor in the case of extreme financial hardship.

Disbursement Prerequisites

Nursing loans are awarded by the Financial Aid Office, and students must complete additional requirements before their loan will be disbursed. After accepting the loan, allow at least two days to check your To Do List in your My Sac State Student Center. You will be given a link to complete your entrance loan counseling and promissory note.

Federal Direct 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

Direct Loan Process

Accepting the Direct Loan offer, will initiate To Do list items on your My Sac State Student Center to complete the Master Promissory Note (MPN) and Entrance Loan Counseling (ELC).   All Sac State students must complete the MPN and Entrance Loan Counseling at least once.  Check your My Sac State Student Center for instructions after you have accepted your loan.

Quick Reference: Direct Loan Checklist

Federal Direct Loan Programs

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.

Annual Direct Loan Limits

Aggregate Lifetime Direct Loan Limits

*Includes loans received for undergraduate study

IMPORTANT New Loan Information! 

• Beginning July 1, 2012, all Federal Direct Subsidized and Unsubsidized loans will have a 1% 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.
• Beginning July 1, 2012 the Federal Direct PLUS loan will have a 4% origination fee applied at disbursement.

Federal Direct Graduate PLUS Loan

Graduate students are eligible to borrow under the PLUS Loan program up to their Cost of Attendance minus other estimated financial resources.  The Graduate PLUS is a long-term program with a fixed interest rate of 7.9% 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.

Federal Direct PLUS Loan

The Federal Direct PLUS Loan is a credit based loan, with a fixed interest rate of 7.9% and is subject to a credit check and approval by the lender.  Parents of dependent students may apply for this loan.  Parent borrowers may apply for amounts up to the Cost of Attendance minus other estimated financial aid/resources.

Refer to the Parent Loan Request Form (PNRQ) for the application process.

PLUS loans will disburse 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 mailed to the parent at the address provided on the MPN.

What about my FFEL loans?

Sacramento State no longer participates in the Federal Family Education Loan (FFEL) program.  The terms and conditions of your prior FFEL will remain the same.  After you have completed your higher education and student loan borrowing, you can consolidate your FFEL and Direct Loans into a single Consolidated Direct Loan.  The terms and conditions will change, however, your loans will be combined into one loan with one repayment schedule.  For more information regarding Direct Loan Consolidation click here: https://loanconsolidation.ed.gov/

State Programs

Assumption Program of Loans for Education (APLE) for CSU Students.  If you teach in California, the state may help you pay back your student loans.

New awards are not available during 2012-13, but all current APLE loan cancellation agreements will be honored. The APLE program still exists, and it is possible that new awards could be re-instated in 2013-14. You are encouraged to visit this web site again in July 2013 to obtain an update.

University Programs

Emergency Short Term Loan

The Emergency Short Term Loan program is available to enrolled CSUS students who encounter an unexpected emergency which results in a temporary shortage of funds.  It is a zero-free interest loan from Sacramento State which must be repaid within 60 days.  Short Term Loans are not available for planned expenses, such as registration fees, books or rent.

Short Term Loans will not be considered for students:

• Whose financial aid is delayed due to filing the FAFSA after the March 2 priority deadline;
• Failure to submit required documents in a timely manner; or
• As an advancement on an anticipated financial aid disbursement (generally if aid is expected to be disbursed within two weeks)

Eligibility Criteria:

•     Enrolled at least half-time;
•     Not enrolled through Open University or the College of Continuing Education;
•     Have an unanticipated emergency (must be documented);
•     Demonstrated ability to repay the loan within 60 days (excludes financial aid)

You must meet with a Financial Aid Counselor to discuss and/or pick-up a Short-Term Loan application.   Financial Aid Counselors are available on a drop-in basis only.  View Office Hours for current hours.

Alternative Loan Programs

Private Loan Program

Alternative (Credit Based) Loans

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.

If you apply for a private education loan which requires school certification, your lender will forward your application for certification ONLY IF YOUR CREDIT AND APPLICATION HAVE BEEN APPROVED. Once we receive your application from your lender, we will alert you through your My Sac State Student Center of any next steps required. Please monitor your To Do list about any pending private loan applications.