- Federal Perkins
- Federal Nursing
- Direct Loans
- Grad PLUS
- Parent PLUS
- Alternative Loans
- Loan Forgiveness 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. The government pays the interest while the student is in school and during grace and deferment periods.
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.
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. 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.
- Enrolled at least half-time
- Not receiving a Nursing Loan
- Demonstrate financial (EFC) need
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.
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.
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.
- 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.
Nursing Loan funds are automatically awarded on a first-come first-serve basis to eligible students based on financial need and who meet the eligibility 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.
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.
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. Student borrowers must be enrolled at least half-time to be eligible to receive these loans.
*Includes loans received for undergraduate study
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.
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.
Refer to the Direct Graduate/Professional Plus Loan Request Form (pdf) for the application process
The Federal Direct Parent 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. Student must be enrolled at least half-time to be awarded this loan.
Refer to the Direct Parent PLUS Loan Request Form (pdf) 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.
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.
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.
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