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Page Last Revised on 04/25/2006

 

Loans

Table of Contents

 

Dollar signFederal Direct Loans

There are two different types of federal Direct Loans, subsidized and unsubsidized. Both loan programs have a fixed interest rate of 6.8% and the same repayment terms. Payment of interest and principal on the subsidized loan 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:

You must show financial aid eligibility as determined by the information you reported on the FAFSA.

You do not pay interest while in school (interest is paid by the federal government while you are enrolled at least half-time in an eligible program), nor do you begin payment until 6 months after you cease to attend at least half-time at Cal State San Marcos.

Unsubsidized:

You do not have to show financial aid eligibility; however you must complete the FAFSA to confirm that you do not have eligibility for any other forms of aid.

Interest accrues while you are in school. You may make interest payments while enrolled, or allow the interest to accrue and capitalize (your loan will “grow”).

It is possible for some students to have both subsidized and unsubsidized loan eligibility.

Loan Limits
There are two factors that determine how much you can borrow in student loans each year; the first, which pertains to the subsidized loan, is your financial aid eligibility. The second is your grade level or the number of units you have toward your degree at Cal State San Marcos (this includes transfer units).

Subsidized eligibility is calculated as follows:

 
  Financial aid budget
less EFC (expected family contribution)
less estimated financial aid and resources
equals Subsidized loan eligibility to the annual grade level maximum (see below), whichever is less

Unsubsidized eligibility is calculated as follows:
 
  Financial aid budget
less estimated financial aid and resources (including the subsidized loan)
equals Unsubsidized loan eligibility to the annual grade level maximum (see below), whichever is less

Annual Loan Limits:

Initial Subsidized and/or Unsubsidized Limit

Additional Unsubsidized
(independent students only)
1st year (0-29 units) $2,625   $4,000
Teaching credential prerequisites $2,625   $4,000
2nd year (30-59 units) $3,500   $4,000
3rd year or more (60+ units) $5,500   $5,000
Teaching Credential & MBA core $5,500   $5,000
Master’s Degree $8,500   $10,000

Aggregate Loan Limits

In addition to annual maximums, there are aggregate maximums when, if reached, a student is no longer eligible to borrow.
 
Level Subsidized Unsubsidized Combined
Undergraduate and Teacher Credential $23,000  $23,000  $46,000*
Graduate (Master’s) $65,500
(includes undergraduate borrowing)		 $73,000
(includes undergraduate borrowing)		 $138,500
(includes undergraduate borrowing)

*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
Your award letter will indicate your maximum loan eligibility at Cal State San Marcos.

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:

  • Go to www.csusm.edu/finaid
  • Click on “Financial Aid Information”
  • Click on “SMARTWeb”
  • Click on “Enter Secure Area”
  • Enter User ID and PIN # *
  • Click on “Enrollment Services, Financial Aid…”
  • Click on “Financial Aid” for your specific FA info

*User ID and PIN #, your User ID is your Student ID, your PIN # is your birthdate MMDDYY until you change it (and for privacy we suggest you do).

If this is your first loan at Cal State San Marcos, you have two additional steps to finalize the loan.

  1. Complete Loan Entrance Counseling via the web our website http://www.csusm.edu/finaid/loan/index.htm. Click on Online Loan Entrance Counseling.
  2. Sign the loan promissory note electronically using your federal PIN #. The direct loan promissory note website is http://dlenote.ed.gov. If you do not have a federal PIN # or have forgotten it, you can go to the PIN website http://www.pin.ed.gov.

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.

Dollar signFederal Direct Parent Loan for Undergraduate Students (PLUS)
The federal PLUS loan is for parents of dependent students who are enrolled at least half-time. Qualifying for this non-need-based loan requires a credit check. The annual limit is the cost of attendance minus any estimated financial aid awards and resources. The interest rate is fixed at 8.5 percent. A 2.5% loan fee is applied to disbursements.  Repayment begins within 60 days of the loan being disbursed, with a minimum monthly payment of $50 (possibly more, depending upon the amount borrowed), and the loan must be repaid within 10 years. As with all other federal aid, a FAFSA must be filed and eligibility for other aid determined before a PLUS loan can be processed.

To Apply for the PLUS Loan
A comparison of PLUS loans is available on the csusm.edu/finaid website under Parent Loan Information.  If Direct Loan is chosen, the Direct Loan PLUS promissory note is completed online at dlenote.ed.gov.  the parent must have a PIN (Personal Identifier Number) to complete the promissory note process.  Parents who choose a private lender submit a PLUS application online.  The lender forwards the request to the Cal State San Marcos Financial Aid and Scholarship Office.  A parent promissory note is completed through the lender.

The PLUS Loan is disbursed in two payments during the student's enrollment period.  If the student has outstanding University fees, the disbursement pays the fees first.  The difference is sent by check to the parent.  The parent borrower may have the PLUS disbursement paid to the student by indicating so on the paper Direct Loan PLUS Request.

Dollar signFederal Perkins Loan

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:

Teaching credential students, admitted to the concurrent/learning handicapped credential with an EFC of 4000 or less.
Full-time teaching credential students, starting in the fall, admitted to the bilingual credential program with an EFC of 4000 or less. Other full-time teaching credential students, starting in the fall, with an EFC of 4000 or less. Other priority groups will be determined as funding allows

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).

Dollar signCal State San Marcos Spicer Loan

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.

Dollar signCal State San Marcos Emergency Loan

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.