Loans

Loans are funds that are borrowed to help meet educational expenses. Loans provide funds now, but require future repayment. Interests rates and repayment terms vary for different types of loans. Before you accept a student loan, you should carefully consider the cost of the loan–and the commitment you are making to repay it–against the advantages of borrowing for college expenses.

Although your financial aid offer may contain an offer for a student loan, you have the right to decline your loan offer.  You may also request a loan that is less that the amount you were originally offered.  In fact, Financial Aid will only originate a student loan, for you if you accept your loan and choose a lender each year.  You may return all or a portion of your quarterly loan to the University within 30 days of disbursement, and we will return the funds to your lender.  After 30 days, you may repay all or a portion of your student loan directly to your lender.  There is no prepayment penalty on any student loan.  

Loan Repayment Conditions

Loans must be repaid according to the terms agreed upon even if:

• You are dissatisfied with your educational program
• You do not complete your degree
• You are underemployed when you leave school.

Planning for Loan Repayment

You are encouraged to prepare a budget and to consider using part-time employment to help meet your expenses. Many students borrow excessively, and later find themselves burdened with large monthly loan payments after graduation. Make the sacrifice to live modestly now, so that loan debt does not prevent you from upgrading your standard of living when you begin to repay your loans.

Obtaining a Loan

After your Financial Aid application (FAFSA) has been sent to the University and evaluated, check your account in MyCSUEB for the status of your financial aid application. New students will receive a Financial Aid Offer Letter, which should contain a loan offer. To obtain your loan, complete the following steps:

1. Meet the requirements listed in MyCSUEB To Do List, including attending a Stafford Loan Counseling Session (for new borrowers at Cal State East Bay, and for continuing students who have experienced a prolonged break from classes)
2. Register for a minimum of 6 units (for undergraduates, second bachelor's, teaching credential or unclassified students) OR a minimum of 4 units (for master's degree students)
3. Use MyCSUEB to accept your actual loan offer, when it is no longer an estimated amount.
4. Sign your Federal Stafford Loan Master Promissory Note (MPN).

If you have a Department of Education Personal Identification Number or PIN, you may use your PIN to e-sign your MPN. Cal State East Bay uses the MPN as a multiple, or serial note. This means the first MPN you sign can be used for multiple loans, and can cover a 10-year borrowing period. You must complete a new MPN if you change lenders, and you may need to complete a new MPN if you transfer to another school.

Types of Loans

There are a variety of loan types available to students. Some loans are administered through government-sponsored programs, such as Perkins and Stafford loans. There are loans available for parents, graduate and professional degree students (PLUS loans). Some loans are for students who plan to be educators, and other loans are available for military personnel or loan consolidation. Each loan has a separate application process:

• Perkins Loans
• Stafford Loans
• PLUS Loans
• Loans for Educators
• Other Loans