Student Loans
Students who complete a FAFSA will generally be offered Federal Student Loans as part of your financial aid award. These are loans made available by the Federal Government for you to pay for education costs. Federal loans awarded are subsidized or unsubsidized with varying amounts depending on financial need, grade level, and cost of attendance.
Subsidized loans
Awarded based on financial need as determined by the FAFSA and are not charged interest while enrolled at least half time and maintaining subsidy requirements. This type of loan is available to Undergraduate and Teaching Credential students.
Unsubsidized loans
Are not awarded based on financial need and are charged interest as soon as they are disbursed. This type of loan is available to Undergraduate, Teaching Credential, and Masters students.
Requirements
CSUMB is committed to ensure students are understand all requirements when borrowing student loans. If you're interested in taking out loans, make sure you complete the following requirements:
- You must be enrolled at least half-time (6 credits for undergraduate/teaching credential and 4 units for masters students);
- Accept your loan offer on your OASIS student account;
- Complete the on-line Loan Entrance Counseling at studentaid.gov
- Complete a Master Promissory Note (only when it's your first time taking out a loan at CSUMB); and
- Make sure you attend the the virtual Exit Counseling before you graduate.
Loan Limits
| Dependent Students | Independent Students | |||
|---|---|---|---|---|
| Class Year | Base Amount Offered |
Additional Unsubsidized Available |
Base Amount Offered | Additional Unsubsidized Available |
| Freshman | $3,500 | $2,000 | $3,500 | $6,000 |
| Sophomore | $4,500 | $2,000 | $4,500 | $6,000 |
| Junior | $5,500 | $2,000 | $5,500 | $7,000 |
| Senior | $5,500 | $2,000 | $5,500 | $7,000 |
CSUMB is required by regulations to develop, publish, administer, and enforce a code of conduct with respect to its administration of Title IV loan programs. This code of conduct applies to the officers and employees.
CSU Student Lending Code of Conduct
Cohort Default Rate
The cohort default rate is the percentage of a school's student borrowers who enter repayment during a particular federal fiscal year, Oct. 1 to Sept. 30, and default or meet other specified conditions before the end of the next fiscal year. The default rate applies to the Federal Family Education Loan Program and the William D. Ford Federal Direct Loan Program. CSU Monterey Bay's Cohort Default Rate for 2019 is 1.7%.
Parent PLUS Loan is available to parents of dependent undergraduate students. Interest rates for the Parent Plus Loans are fixed and repayment begins 60 days from the date the loan is fully disbursed. Parents have the option to request continued deferment as long as student is enrolled at least half-time. For more information on interest rates and deferment please visit studentaid.gov.
Parent PLUS Loan amounts are determined by subtracting the amount of financial aid awarded from the total cost of attendance. Parent borrowers must complete an application and undergo a credit check with the Department of Education and complete a Master Promissory Note.
Special loan counseling is required for PLUS Loan applications, who have an adverse credit history who qualify for a PLUS Loan by either getting a loan endorser or by documenting to the satisfaction of the Department that there are extenuating circumstances related to the adverse credit. If a credit denial is determined, the PLUS loan will be canceled. Students with a Parent Plus credit denial are eligible for additional Unsubsidized loans. If approved, all PLUS funds are sent to CSUMB in two installments (fall and spring) and are applied to the student account.
Excess funds are issued to the borrowing parent or student and mailed at the end of the second week of school to the address entered on the Parent PLUS Application. Loan funds cannot be released if the student has dropped below half-time (6 credits), does not meet satisfactory academic progress policy, or has any university holds.
For students who are eligible for federal student aid, think FAFSA first!
Private Student Loans non-federal education loans that are made by lenders such as a bank or a credit union. This option may be right for you if scholarships, grants, and federal student loans do not cover your total educational costs.
Be sure to do your research, as it is your responsibility to research private loans and select a lender. The CSUMB Financial Aid Office does not participate in a preferred lender list.
Approval for a private loan is typically based on your credit rating and debt-to-income ratio and may require a co-signer. Private loans often can have higher interest rates and fees than federal loans and may have less flexible repayment terms.
Once your have been approved for a private loan, you will need to complete a Private Loan Self Certification Form in order for us to certify and process your private loan funds. You must request the Private Loan Self Certification Form from our office. You can do so by email us at financial_aid@csumb.edu. Please allow 2-3 weeks for processing and for disbursement of your private loan funds. You must be enrolled for the loan period listed on the Private Loan Self Certification Form in order for us to certify your private loan. You are responsible for paying any outstanding balance or late fees if your loan is not certified before payment deadlines.
Truth in Lending Requirements
The Truth in Lending Act requires that lenders who provide private loans comply with the following requirements:
- Lenders must provide 3 separate loans disclosures to borrowers: (1) at the point of application, (2) when the loan is approved, (3) before the loan is disbursed;
- A waiting period of 3 business days is required between the time the borrower receives the final loan disclosure and the time the loan is disbursed; and
- Students must also sign and submit the self-certification form to the lender before the loan can be disbursed.
Federal Teacher Loan Forgiveness Program offers cancellation of up to $5,000.00 of Stafford/Direct loans for five years of teaching in a low-income school and up to $17,500.00 if you teach math, science or special education in high school or special education in elementary school that serve low-income families and meet other qualifications .For more information visit the Department of Education Federal Student Aid Website.
As a borrower, it is the student's responsibility to know how much you have borrowed, who is your lender, and how much you will be required to repay when you leave school. The following links will help you collect your federal loan borrowing history at all educational institutions and calculate future payments:
The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.
For more information visit the Department of Education Federal Student Aid Website.
If you are graduating from CSUMB, please make sure to complete an in person Loan Exit Counseling Workshop. We will email you during the semester you are graduating to sign up for the workshop.
Having trouble with your repayment plan? There are multiple repayment plans you could be eligible for.
- Standard Repayment Plan
- Graduate Repayment Plan
- Extended Graduate Repayment Plan
- Income Driven Repayment Plans
For more information on the repayment plans, please visit studentaid.gov.
You may be eligible for loan deferment or cancellation under the provisions of the Peace Corps Act, the Domestic Volunteer Services Act of 1973, and comparable service as a volunteer within a tax-exempt organization active in community service.