Loans
Low interest student and parent loans are borrowed money that must be repaid. Loans are a large part of many students' aid package. Borrow only what you need. Always remember that you will pay back what you borrow.
In addition to this chart, key links to loan information can be found using the Loans link on the navigation bar.
| Program | Description | Eligibility | Amount | Terms | Repayment |
|---|---|---|---|---|---|
| Federal Perkins Loan | Federally funded long-term loan awarded by UC | Based on financial need; early FAFSA application | $2,100 | 5% fixed interest deferred while enrolled | Begins 9 months after less than half-time enrollment |
| Nursing Student Loan | Same as Perkins | Undergraduate nursing student; based on financial need; early FAFSA application | Ranges from $2,100 to $2,700 | Same as Perkins | Same as Perkins |
| Health Professions Student Loan | Same as Perkins | Pharmacy student; based on financial need; early FAFSA application | $2,100 | Same as Perkins | Begins 12 months after less than half-time enrollment |
| Federal Direct Subsidized Loan |
Federally funded long-term loan certified and transmitted by UC; choice of amount borrowed NOTE: Choice of lender discontinued with July 1, 2010, switch to Direct Lending. |
Based on financial need NOTE: Beginning July 1, 2012, graduate and professional students will no longer be eligible for Federal Direct Subsidized Loans. |
Maximum combined amount based on budgeted cost of attendance and other aid: Dependent Independent |
3.4% (undergraduate) and 6.8% (graduate) fixed interest rate deferred while enrolled; see note below on past rates | Begins 6 months after less than half-time enrollment |
| Federal Direct Unsubsidized Loan | Same as Direct Subsidized Loan | Any student may borrow | 6.8% fixed interest rate accrues while enrolled; see note below on past rates | Principal - same as Subsidized Loan; interest - choice of paying while enrolled or allowing it to capitalize onto the principal | |
| Federal Direct Graduate PLUS Loan | Same as Direct Subsidized Loan | Graduate student may borrow; based on credit check | Maximum amount cannot exceed budgeted cost of attendance less other aid | 7.9% fixed interest rate; see note below on past rates | Begins 60 days after loan disbursed; possible deferment based on request |
| Federal Direct Parent PLUS Loan | Same as Direct Subsidized Loan | Parent or stepparent of dependent student may borrow; based on credit check | Maximum amount cannot exceed budgeted cost of attendance less other aid | 7.9% fixed interest rate; see note below on past rates | Begins 60 days after loan disbursed; deferment option until 6 months after student enrolled less than half-time available as of July 2008 |
Notes:
- Must be admitted into a degree program and enrolled at least half-time to receive a loan.
- Eligibility criteria subject to change; maximum amounts are estimates and dependent upon sufficient funding.
- Early FAFSA application means limited funding; awards are made on a first-come, first-serve basis until funding is depleted.
- Listed interest rates are for the 2011-12 and 2012-13 academic years; details on past interest rates noted below.
- Federal Subsidized (undergraduate): 4.5% fixed rate for loans first disbursed July 2010 to June 2011; 5.6% fixed rate for loans first disbursed July 2009 to June 2010; 6.0% fixed rate for loans first disbursed July 2008 to June 2009; 6.8% fixed rate for loans first disbursed July 2006 to June 2008; variable rate up to 8.5% for all loans prior to July 2006.
- Federal Subsidized (graduate): Variable rate up to 8.5% for all loans prior to July 2006.
- Federal Unsubsidized: Variable rate up to 8.5% for loans prior to July 2006.
- Federal Graduate PLUS: Fixed 8.5% July 2006 to July 2010.
- Federal Parent PLUS: Variable rate up to 9.0% for loans prior to July 2006; fixed 8.5% July 2006 to July 2010.
- Interest rates for Federal Direct Subsidized Loans were maintained at 3.4% for 2012-13 by eliminating subsidized loan eligibility and subsidy on previously borrowed subsidized loans effective July 1, 2013, to students who have exceeded 150% of their academic program.
- Interest subsidy for Federal Direct Subsidized Loans was eliminated during the grace period for new loans between July 1, 2012 and July 1, 2014. Repayment does not begin during the grace period, but students (rather than the government) will now be responsible for interest accumulation during the 6-month grace period following enrollment of at least half-time.
- The Budget Control Act of 2011 eliminated in-school loan subsidy for graduate and professional students starting summer 2012. These students borrowing Federal Direct Loans beginning July 1, 2012, will be limited to $20,500 in unsubsidized funding based on eligibility.
- Federal Direct Subsidized, Unsubsidized, Graduate PLUS, and Parent PLUS Loans all have origination fees that should be accounted for in estimating disbursement amounts.
- Loan program change required July 1, 2010.
Promissory Notes
Following your acceptance of a loan on the Award Offer, you will need to complete the required loan promissory note. This note is a legal document. It is your promise to use the money for educational purposes and to repay the loan. Because it is a master promissory note, you are accepting the terms of the loan now and in future years. Promissory notes can be completed online.
In the case of Federal Direct Subsidized, Unsubsidized and PLUS Loans, you will choose the amount you wish to borrow on your Award Offer. The Student Financial Aid Office will then certify these loans. Perkins, Health Professions and Nursing Loans are for specified amounts. Once promissory notes are completed, funds can be disbursed each semester to the Student Accounts Office for posting on your eBill.
Federal Graduate and Parent PLUS Loans promissory notes carry out the required credit check as part of their process. Once approved, loan disbursements will be sent each semester to UC's Student Accounts Office. If a parent loan is denied based on the credit check, the student may be eligible for limited, additional loans in their name.
