Federal Direct Subsidized and Unsubsidized Loans
Federal Direct Subsidized and Unsubsidized student loans are issued through the Federal Direct Loan program from the U.S. Department of Education.
Subsidized and Unsubsidized loans are low-interest loans for students to help pay for the cost of higher education after high school. Federal student loans can help fill the gap between grants or scholarships and the cost to attend school. You are not required to accept any loans and we will not process the loans unless you accept them. Loans are available to both dependent and independent students. Keep in mind that student loans must be repaid.
You can manage your Federal loan history on studentaid.gov
, where you will have a single point of contact and online access to your Direct Loan account information. Once you graduate, withdraw from school or you cease half-time enrollment you will begin a six-month grace period and then begin repayment. There are several repayment plans
to choose from once you are in repayment.
Note: All Undergraduate students are required to be enrolled in 6 units for the loans to disburse.
Eligibility Requirements
-
Submit your Free Application for Federal Student Aid (FAFSA
) and other supporting documents, if required. -
Must be a citizen or eligible non-citizen (permanent resident) of the United States.
-
You must be enrolled or accepted for enrollment in a degree, certificate or professional program.
-
Your enrollment status must be at least half-time, (the equivalent of 6 units).
Subsidized Loan
-
Student must have financial need as determined by your FAFSA
application -
Maximum loan eligibility is based on grade level and financial need as determined by your FAFSA application
-
Federal government pays interest on your behalf for the first six months after you leave school (referred to as a grace period
), and during a period of deferment
(a postponement of loan payments). -
Repayment begins at the end of the 6 months grace period
-
Interest rate is fixed
Unsubsidized Loan
- Not need based
- Maximums based on grade level and dependency status
- Federal government does not pay interest
- Interest is fixed
- No obligation to make payments while enrolled at least half-time
- Interest accrues and capitalized during periods of enrollment in school and/or in deferment
Interest Rates and Loan Fees
Interest rates are adjusted by Congress annually, with a new rate taking effect each July 1st. Although the interest rate for new loans may change each July 1, the rate received will be fixed for the life of the loan.
In addition to the interest rate, Direct Loans charges an origination fee on all Stafford loans, which is deducted from your loan funds at the time of disbursement.
Please check the student aid website
for interest rates and loan fees for current and past years.
How to Accept and Decline Loans
- Log into your CSUF Portal
- Click on Titan Online
- Click on Student Homepage
- Click on Financial Aid tile and ensure you are in the correct aid year (top left)
- Click on Accept/Decline tab on the left side under Awards
- Click on the pencil icon to edit Award Decision
- Click on the drop-down menu for the loan under Award Decision column then select Accept or Decline
- To accept a smaller loan amount, check the Reduce box then enter the new loan amount in the Accepted column
- Review then click on Submit button to finalize your loan decision
- Complete both the Loan Entrance Counseling
and the Loan Master Promissory Note (MPN)
on Federal Student Aid
Please note: typically, accepted loan amount will be split in half: you will receive half for fall term and the other half will be reserved for spring term. For example, if you accept a loan amount of $2,000 - you will receive $1,000 for fall term and $1,000 for spring term.
HOW MUCH CAN I BORROW
There are limits on the amount in subsidized and unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts you may borrow for undergraduate and graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on your grade level and your dependency status.
| Academic Year | Dependent Students* | Independent Students* | ||||
|---|---|---|---|---|---|---|
| Subsidized | Unsubsidized | Combined | Subsidized | Unsubsidized | Combined | |
|
Year 1 (0-29 Earned Units) |
$3,500 | $2,000 | $5,500 | $3,500 | $6,000 | $9,500 |
|
Year 2 (30-59 Earned Units) |
$4,500 | $2,000 | $6,500 | $4,500 | $6,000 | $10,500 |
|
Year 3 (60-89 Earned Units) Year 4 (90+ Earned Units) |
$5,500 | $2,000 | $7,500 | $5,500 | $7,000 | $12,500 |
|
Post-Baccalaureate Unclassified |
$5,500 | N/A | $5,500 | $5,500 | $7,000 | $12,500 |
AggregaTe Loan Limits
For financial aid purposes, you must have earned a minimum of 30 units to be considered a sophomore; 60 units to be considered a junior; 90 units to be considered a senior. Your loan will be processed at the grade level assigned by the office of Admissions and Records.
* Includes Dependent students whose Parents are PLUS loan denied.
Restriction for graduating seniors with one-semester loan: Federal regulations require schools to prorate the Federal Direct Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year. The loan limit proration determines the maximum loan amount that a student may borrow for the final term of study based on the units enrolled in.
|
Aggregate Limits |
Subsidized Only |
Subsidized and
|
|
Undergraduate - Dependent |
$23,000 |
$31,000 |
|
Undergraduate - Independent |
$23,000 |
$57,500 |
Federal Loan Servicers
You may find your loan servicer by logging into the Federal Student Aid website
using your federal ID and password. If you forgot your ID or password, you may indicate so on the site, and you will be directed to enter your email to re-set and gain access to your information. If you have any general questions, please feel free to contact the Office of Financial Aid
.
