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 sign a Direct Loan Master Promissory Note (MPN). You may return all or a portion of your quarterly loan to the University within 14 days of disbursement, and we will return the funds the Direct Loan Program. After 14 days, you may repay all or a portion of your student loan directly to the Direct Loan Program. There is no prepayment penalty on any student loan.
CSU's Student Lending Code of Conduct
All Cal State East Bay staff are held to a strict code of conduct governing the administration of student loans. These rules specifically govern activities involving our interactions with private lending institutions. Please click on the link below to read the full policy:
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.
You may return Direct Loans funds to the Cashier up to thirty days after your refund is issued. After thirty calendar days, you must contact your Direct Loan servicer to repay loans refunded to you.
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:
- Meet the requirements listed in MyCSUEB To Do List, including attending a Direct Stafford Loan Counseling Session (for new borrowers at Cal State East Bay, and for continuing students who have experienced a prolonged break from classes)
- 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)
- Use MyCSUEB to accept your actual loan offer, when it is no longer an estimated amount.
- Sign your Federal Direct 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.
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:
Need Help Repaying Your Loans?
When you graduate, or know you will cease college attendance for more than six consecutive months, you should immediate contact your Loan Servicer or the Department of Education.
Don’t know who your Loan Servicer is? Simply go to: http://www.nslds.ed.gov/nslds_SA/ and create an account that will allow you to see your full loan history, loan balances, and Loan Servicer information.
Don’t ruin your future by defaulting on your student loans. If you can’t begin making payments at the scheduled time, or if you can only make very small payments, one of the repayment options below may be right for you:
- Loan Payment Deferment
- Loan Consolidation
- Income Sensitive or Graduated Repayment
- Loan Forgiveness, Discharge, or Cancellation
You can learn more about your loan repayment options at: https://studentloans.gov/myDirectLoan/index.action
The Financial Aid Office can also help you keep your student loans in good standing. Contact us at: firstname.lastname@example.org or telephone us at (510)885-2784 for assistance.