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Loans and Loan
Assumption Programs Apply for a Federal PIN number NSLDS: The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid. It receives data from schools, agencies that guaranty loans, the Direct Loan program, the Pell Grant program, and other U.S. Department of Education programs. NSLDS provides a centralized, integrated view of Title IV loans and Pell grants that are tracked through their entire cycle; from aid approval through closure. You can use the web site to make inquiries about your Title IV loans and/or Pell grants. The site displays information on loan and/or grant amounts, outstanding balances, loan statuses, and disbursements.
Complete an electronic Master Promissory Note (eMPN): http://dlenote.ed.gov/
Complete the Loan Entrance Counseling at: http://www.dlssonline.com/entrancecounseling/main-entc.asp
Complete Loan Exit Counseling: http://www.dlssonline.com/exitcounseling/ecec-main.asp
Some financial aid programs allow eligible students to borrow money to pay their living and educational expenses. Various short-term and long-term loan programs are available to both students and parents.
Federal Nursing Student Loan (NSL): The Nursing Student Loan program provides up to $2,500 annually for the first two years of undergraduate study in the nursing program, $4,000 annually for subsequent undergraduate study. Up to $4,000 can also be provided for graduate study, based on available funding, which may vary from year-to-year. The aggregate total of NSL funds received cannot exceed $13,000. Repayment begins at a 5% interest rate nine months after a student graduates or ceases to be a half-time student. Federal Family Education Loan Programs (FFELP)/Ford Federal DIRECT Loan Programs: Federal Family Education Loan Programs, the FFELP loans, which previously consisted primarily of the Stafford Loan programs, both subsidized and unsubsidized, and the PLUS program have been replaced at CSU Bakersfield by the William D. Ford Federal DIRECT Loan programs. The Direct Loan program is virtually identical to the FFELP, except that the federal government is the lender, rather than a private bank, savings and loan, or other commercial lender. CSUB, as well as many other colleges and universities, has converted from the FFELP to the Direct Loan program as we believe it better serves the needs of our students, especially with respect to expediting the processing of their student loans. SUBSIDIZED Direct Student Loan: This loan is designed to meet the calculated need of students (up to the maximum allowed at each grade level) where grants, scholarships, and other resources do not completely fill the need for aid, as calculated by the federally-mandated need analysis process. For SUBSIDIZED Direct Loans, there is no interest charged as long as the student is continuously enrolled on at least a half-time basis (except for summers). Repayment, including interest, begins six months after a student is no longer enrolled on at least a half-time basis. The interest rate on new loans with a first disbursement on or after July 1, 1994, can change each year of repayment depending on changes to the Federal Treasury Bill interest rate, but it will never exceed 8.25%. UNSUBSIDIZED Direct Student Loan: For students who are not able to show need according to the required need analysis calculation, or where the calculated need for a subsidized loan is less than the maximum that is allowed for the student's grade level, students may apply for an UNSUBSIDIZED Direct Loan. For example, if a freshman has no calculated NEED for aid, and if he/she is receiving no scholarship or other resources, then that freshman could borrow, as an UNSUBSIDIZED Direct Loan, any amount he/she wishes, up to the freshman academic year limit of $2,625. For Unsubsidized Direct Loans, students must pay the interest on the loan. For example, the interest on an unsubsidized loan of $2,625 is currently $195 per year. Depending upon the amount due, students who are receiving unsubsidized loans will be billed monthly or quarterly for the interest, beginning within sixty days of the first disbursement of the loan. The student may defer the interest until graduation. Full repayment (not just interest) begins within sixty days after the student drops below full-time. Direct PLUS Loan: The PARENTS of students who are regarded as DEPENDENT for need analysis purposes may also choose to apply for a Direct PLUS (Parent Loans for Undergraduate Students) Loan. Typically, the Direct PLUS Loan takes the place of whatever calculated parent contribution (resulting from the need analysis process) that the parents cannot actually provide from current income and or savings. PLUS loans are limited only by the budget calculated by the school financial aid office minus any scholarships or other resources, which are to be received by the student. For example, if the calculated budget is $9,000 for an academic year, then the parents of a dependent student may borrow any amount they feel they need up to $9,000. However, if the student were to receive scholarships totaling $1,000, the parents could only borrow up to $8,000. Parents should take note that there is no deferment of interest or regular repayment for Direct PLUS loans. Full regular repayment will begin within sixty days of the last disbursement of the loan. The interest rate is variable, but it will never exceed 9%. Disbursement of Loan Money Academic Year Direct Loan Program Limits for Dependent Students
Academic Year Direct Loan Program Limits for Independent Students
The above academic year Direct Loan program limits represent maximum yearly award amounts; however, eligibility for subsidized loans is based on unmet need, while eligibility for unsubidized loans is based on the cost of education minus any other aid awarded. Therefore, please be aware that actual loan eligiblity may be less than the maximum yearly award amounts indicated above. To be considered for any of the William D. Ford Direct loans, you should complete the Free Application for Federal Student Aid (FAFSA). The priority deadline is March 2 of each year for the subsequent academic year, which begins in mid-September. Applications received after the deadline will be processed as soon as possible after on-time applications are considered. Cumulative Direct Loan Program Limits (for all post-secondary Federal Stafford Student loans)
* Unclassified Post-Baccalaureate Form available in the Office of Financial Aid & Scholarships. The above cumulative loan amounts represent maximum borrowing limits for the Federal Family Education Loan Programs (FFELP) and the Ford Federal DIRECT Loan Programs. Short-Term Emergency Loan: This loan is administered by the CSUB Foundation Office and is for assisting students with unanticipated temporary emergencies. The maximum loan is $150 and is repayable within 30 days. A nominal service fee is charged. The emergency loan is available to any enrolled student, not just those receiving financial aid. Applications are available in the Foundation Accounting Office, SC 122, phone (661) 654-3209. There are four ways you can repay a Direct Subsidized Loan or Direct Unsubsidized Loan. Direct PLUS Loan borrowers may choose only from the first three options given here. Borrowers can choose a plan to fit their financial circumstances and can change plans if their financial circumstances change. These are the four repayment options: The Standard Repayment Plan requires fixed monthly payments (at least $50) over a fixed period of time (up to 10 years). The length of the repayment period depends on the loan amount. This plan usually results in the lowest total interest paid because the monthly payment is higher and the repayment period is shorter than under the other plans. The Extended Repayment Plan allows loan repayment to be extended over a period from generally 12 to 30 years, depending on the total amount borrowed. You'll still pay a fixed amount each month (at least $50), but usually your monthly payments will be less than under the Standard Repayment Plan. These lower monthly amounts may make repayment more manageable; however, usually you'll pay more interest because the repayment period is longer. The Graduated Repayment Plan allows payments to be low at first and increase generally every two years. Graduated Repayment may be helpful if your income starts out low but will increase steadily. Your monthly payments must be at least half, but may not be more than one-and-a-half, of what you would pay under Standard Repayment. As in the Extended Repayment Plan, the repayment period will vary from generally 12 to 30 years, depending on the total amount borrowed. This extended repayment means your monthly payments may be lower but, again, you'll pay more interest than you would under Standard Repayment. The Income Contingent Repayment Plan bases monthly payments on your adjusted gross income (AGI) and the total amount of your Direct Loans. As your income rises or falls each year, your repayment amounts will be adjusted accordingly. Your required monthly payments will not exceed 20% of your discretionary income. The repayment period for this plan will not exceed 25 years. After 25 years, any unpaid amount will be discharged, but you'll have to pay taxes on the amount discharged. (Remember, this plan is not an option for Direct PLUS Loan borrowers.) If, because of exceptional circumstances, you can't repay your loans using one of the repayment plans described, you may be able to work out an alternative repayment plan with the Servicing Center. Such a plan would be provided only on a case-by-case basis. If you have student loans other than Direct Loans, you may want to apply for a Direct Consolidation Loan. Consolidation means making only one monthly payment to cover all your loans. There may be several advantages for you if you consolidate. Because the interest rate will be the same as for Direct Loans, you may be able to pay less interest than you're paying on your current loans. You may be able to reduce your monthly payments. You can also choose the repayment plan that best suits your financial circumstances. To consolidate under Direct Loans, you must have at least one Direct loan or FFEL Program loan. Listed below are the types of loans that may be consolidated:
Direct Loan Consolidation: This link is a new Direct Loan consolidation web site for Direct Consolidation Loans. This site contains more information and is more user-friendly than the previous site. In addition, the site contains three distinct channels for borrower services, school services, and loan holder services. The Higher Education Act (HEA) provides for a loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. Under these programs, a borrower’s loans are paid off and a new consolidation loan is created. These programs simplify loan repayment by combining several types of Federal education loans (that may have different terms and repayment schedules or may have been made by different lenders) into one new loan. The interest rate may be lower than on one or more of the underlying loans. In addition, the monthly payment amount on a consolidation loan is usually lower and the amount of time to repay may be extended beyond what was available in the separate loan programs. These features should result in more manageable debt, and make borrowers less prone to default. Assumption Program of Loans for Education (APLE) for Future Teachers K-12: This link provides information from the California Student Aid Commission concerning eligibility criteria and application procedures for the APLE program. The APLE is a competitive teacher incentive program designed to encourage outstanding students, district interns, and out-of-state teachers to become California teachers in subject areas where a critical teacher shortage has been identified or in designated schools meeting specific criteria established by the Superintendent of Public Instruction. The Commission may assume up to $11,000 in outstanding educational loan balances in return for four consecutive years teaching service. Assumption of student loan payments to lenders are disbursed as follows:
Graduate Assumption Program of Loans for Education (Graduate APLE) for Future Postsecondary Faculty: This link provides information from the California Student Aid Commission concerning eligibility criteria and application procedures for the Graduate APLE program. As a result of the 2003-04 State Budget, renewal Graduate APLE loan assumptions will continue to be funded. However, the California Student Aid Commission (CSAC) is not authorized to issue new Graduate APLE agreements for the 2003-04 academic year. The statue is expected to remain in place, however. The Graduate APLE is designed to encourage individuals to complete their graduate education and serve as faculty at accredited colleges or universities in California. The above link will provide more information including applications and applicant requirements. Once a Graduate APLE participant has obtained a graduate degree, the California Student Aid Commission (Commission) may assume a total of $6000 in outstanding educational loans in return for a cumulative total of three consecutive full-time years of eligible teaching service at one or more colleges or universities in California. A Graduate APLE participant who teaches on less than a full-time basis is not eligible for loan repayment until they have taught the equivalent of a full-time academic year. Participants may receive $2000 in loan assumption benefits for each academic year of eligible teaching service. ($6000 maximum for three consecutive years, or the equivalent, of service). Priority filing date is June 30 preceding the application year. Applications are reviewed on a first come first serve basis until all awards are filled or until March 1st of the application year, whichever comes first. For further information, please contact the Specialized Program Unit at:
Teacher Loan Forgiveness Program: Students are advised that on October 30, 2004, President Bush signed the "Taxpayer-Teacher Protection Act of 2004" that established provisions under which new Stafford Loan borrowers may qualify for teacher loan forgiveness of up to $17,500. The increased amount of teacher loan forgiveness is only available to an individual who had no outstanding balance of principal or interest owing on any loan made, insured or guaranteed under Title IV of the HEA prior to October 1, 1998 and has borrowed eligible loans prior to October 1, 2005. This federally funded “Teacher Loan Forgiveness” program differs from the California state-funded Assumption Program of Loans for Education (APLE) for future teachers K-12, which may assume up to $11,000 in outstanding educational loan balances. It also differs from the Graduate Assumption Program of Loans for Education (Graduate APLE) program, which may assume up to $6,000 in outstanding educational loan balances. The borrower must be employed full-time for five consecutive years as a highly qualified secondary school teacher of science or math or a highly qualified elementary or secondary school special education teacher. The definition of "highly qualified teacher” is defined on the Department of Education's (DOE) website at the following link: http://www.ifap.ed.gov/dpcletters/GEN0414.html . A special education teacher in an elementary school or secondary school for purposes of loan forgiveness is a special education teacher whose primary responsibility is to provide special education to children with disabilities, as those terms are defined in section 602 of the Individuals with Disabilities Education Act. The chief administrative officer of the public or non-profit private elementary school or secondary school in which the borrower is employed must certify that the borrower is teaching children with disabilities that correspond with the borrower's special education training, and has demonstrated knowledge and teaching skills in the content areas of the elementary school or secondary school curriculum that the borrower is teaching. As under prior law, the borrower must teach in an elementary or secondary school that:
An otherwise eligible borrower who has already received loan forgiveness under the prior requirements is eligible to receive further loan forgiveness, up to the difference between $17,500 and the amount previously forgiven, once the borrower has completed the required five years of teaching service as a highly qualified special education teacher or as a highly qualified secondary school math or science teacher. For a new Stafford loan borrower to qualify for loan forgiveness of up to the previously authorized level of $5,000 after the date of enactment of this legislation, the borrower must now be a highly qualified teacher and employed full-time for five years in an elementary or secondary school that meets the above standards for inclusion in the annual Directory of Designated Low-Income Schools . Please note that a borrower who commenced teaching service under the requirements that existed under prior law, and who continues to meet those requirements, will remain eligible for up to $5,000 in loan forgiveness without meeting the highly qualified teacher standard. The “Teacher Loan Forgiveness” application form may be downloaded from the following link: http://www.ifap.ed.gov/dpcletters/attachments/gen0115b.pdf . For detailed information on the program and to find out if you qualify for this loan forgiveness program, please call the Department's Federal Student Aid Customer Service hotline at 1-800-433-7327.
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| about us California State University, Bakersfield · Office of Financial Aid and Scholarships · Building SA 114 9001 Stockdale Highway 48SA · Bakersfield, CA · 93311 · (661) 654-3016 · School Code: 007993 |