Loans

Many students and families decide that some type of student loan is necessary to help finance a college education. So you should not hesitate to review your student loan and federal loan options: Think of loans as an investment in your future - as long as you are prepared to meet your responsibilities to pay back what you borrow.

All loans, including student loans, represent debts that must be repaid. The good news is that you do not have to start repaying most student loans until after you leave school or graduate, when you will likely be working and earning a salary. Failure to repay your student loans will have serious consequences.

Loan Advantages

In addition to delayed repayment, most student loans offer various favorable terms and conditions, including:

  • Relatively low interest rates, thereby lowering the loan amount you will need to repay.
  • Several repayment options or plans from which you may choose.
  • Circumstances under which repayment of loans can be postponed. 

At Cal U, the federal government funds nearly 95% of all loans. Mandatory online loan counseling helps students understand the responsibilities that come with borrowing money for college education. Federal Direct Loan entrance counseling must be completed before loans can be disbursed. After a student graduates or drops below half time, exit counseling must be completed in order ensure compliance with federal regulations. 

Your Financial Aid Options

Loans are just one of the types of financial aid available to help with college costs. If you follow the steps Cal U has outlined to help you apply for financial aid and also complete the Free Application for Federal Student Aid (FAFSA), you'll be able to receive the best possible package to meet your financial aid needs.

The Office of Financial Aid is available to help you understand loans and all types of financial aid available to Cal U students.

Types of Loans 

Use these links to learn more about various types of federal loans.

Visit www.studentaid.ed.gov for information about:

  • Aggregate Federal Loan Limits
  • Code of Conduct
  • Federal Direct Loan Interest rates
  • Federal Direct Loan 150% Eligibility
  • Federal Loan Grade Level and Limits Federal Loan Proration
  • Federal Loan Repayment Options
  • Public Service Loan Forgiveness Program
  • Federal Loan Consolidation
  • Federal Loan Default Consequences
  • Federal Loan Deferment and Forbearance Options
  • Federal Loan Grace Period

Visit www.studentloans.gov to learn about:

  • Master Promissory Note
  • Entrance Counseling
  • Exit Counseling

Other Information

Enrollment Verification

 

Most lenders and servicers allow students to defer their loan payments while they are enrolled in school at least half time (6 credits for undergraduate students or 5 credits for graduate students). In most cases, students are required to provide proof of enrollment in order to be granted deferment. 

Below are the steps to request enrollment verification:

  1. Log on to your Vulcan Information Portal account at https://vip.calu.edu/.
  2. Click on the Academic Info tab. 
  3. Go to the Clearinghouse Self-Service section on the bottom left and click the National Student Clearinghouse logo. 
  4. This will open a new window to the National Student Clearinghouse. There you can obtain an enrollment certificate; view your enrollment information on file with the clearinghouse; and view student loan deferment notifications already made by the clearinghouse to your lenders, among other options.

For additional information contact the Office of Academic Records: http://www.calu.edu/current-students/records/index.htm.

Federal Loan Proration

 

Federal Direct Loans must be prorated for undergraduate students if the student's remaining period of study is shorter than an academic year. For example, Cal U's academic year is considered fall and spring. If a student is only enrolled for the fall semester because he or she is graduating, the Direct Loans must be pro-rated.  Pro-ration is based on the number of credits the student is enrolled in and the number of credits in a full academic year.

Student Federal Loan Repayments

 

Overview of Direct Loan and FFEL Program Repayment Plans (from http://studentaid.gov)

Repayment Plan

Eligible Loans

Monthly Payment  & Time Frame

Quick Comparison

Standard Repayment Plan

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Direct Loans
  • all PLUS loans
  • Payments are a fixed amount of at least $50 per month.
  • Up to 10 years
  • You'll pay less interest for your loan over time under this plan than you would under other plans.

Graduated Repayment Plan

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Direct Loans
  • all PLUS loans
  • Payments are lower at first and then increase, usually every two years.
  • Up to 10 years
  • You'll pay more for your loan over time than under the 10-year standard plan.

Extended Repayment Plan

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Direct Loans
  • all PLUS loans
  • Payments may be fixed or graduated.
  • Up to 25 years
  • Your monthly payments would be lower than the 10-year standard plan.
  • If you are a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans. FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans.
  • For example, if you have $35,000 in outstanding FFEL Program loans, and $10,000 in Direct Loans, you can use the extended repayment plan for your FFEL Program loans, but not for your Direct Loans. For both programs, you must also be a new borrower as of Oct. 7, 1998. You'll pay more for your loan over time than under the 10-year standard plan.

Income-Based Repayment Plan (IBR)

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Direct Loans
  • all PLUS loans made to students
  • Consolidation Loans (Direct or FFEL) that do not include Direct or FFEL PLUS loans made to parents
  • Your maximum monthly payments will be 15 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply).
    • Your payments change as your income changes.
  • Up to 25 years
  • You must have a partial financial hardship.
  • Your monthly payments will be lower than payments under the 10-year standard plan.
  • You'll pay more for your loan over time than you would under the 10-year standard plan.
  • If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven.
  • You may have to pay income tax on any amount that is forgiven.

Pay As You Earn Repayment Plan 

  • ·Direct Subsidized and Unsubsidized Loans
  • ·Direct PLUS loans made to students
  • ·Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents
  • ·Your maximum monthly payments will be 10 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply).
  • Your payments change as your income changes.
  • Up to 20 years
  • You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011.
  • You must have a partial financial hardship.
  • Your monthly payments will be lower than payments under the 10-year standard plan.
  • You'll pay more for your loan over time than you would under the 10-year standard plan.
  • If you have not repaid your loan in full after you made the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven.
  • You may have to pay income tax on any amount that is forgiven.

Income-Contingent Repayment Plan

  • Direct Subsidized and Unsubsidized Loans
  • Direct PLUS Loans made to students
  • Direct Consolidation Loans
  • Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans.
  • Your payments change as your income changes.
  • Up to 25 years
  • You'll pay more for your loan over time than under the 10-year standard plan.
  • If you do not repay your loan after making the equivalent of 25 years of qualifying monthly payments, the unpaid portion will be forgiven.
  • You may have to pay income tax on the amount that is forgiven.

Income-Sensitive Repayment Plan

  • Subsidized and Unsubsidized Federal Direct Loans
  • FFEL PLUS Loans
  • FFEL Consolidation Loans
  • Your monthly payment is based on annual income.
  • Your payments change as your income changes.
  • Up to 10 years
  • You'll pay more for your loan over time than you would under the 10-year standard plan.
  • Each lender's formula for determining the monthly payment amount under this plan can vary.

*A new income-driven repayment plan, the Revised Pay As You Earn (REPAYE) Plan has been established and will be offered beginning December 2015.  REPAYE is similar to the original Pay As You Earn plan, but will extend the repayment plan to an additional 5 million borrowers.  Please see NASFAA's chart comparing the five income-driven repayment plans: http://www.nasfaa.org/uploads/documents/idr_plansummary_1.pdf.

Student Loan Servicers

 

Who is my Loan Servicer?

Visit the National Student Loan Data System (NSLDS) to view information about all of the federal student loans you have received and to find contact information for the loan servicer or lender for your loans. You will need your Federal Student Aid PIN to access your information.

The following are loan servicers for federally held loans made through the William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program.

Aspire Resources Inc.

1-855-475-3335

CornerStone

1-800-663-1662

COSTEP

1-877-292-8639

Direct Loan Servicing Center (ACS)

1-800-848-0979

EDGEucation Loans

1-877-292-7470

EdManage

1-855-479-0490

ESA/Edfinancial

1-855-337-6884

FedLoan Servicing (PHEAA)

1-800-699-2908

Granite State - GSMR

1-888-556-0022

Great Lakes Educational Loan Services, Inc.

1-800-236-4300

KSA Servicing

1-877-292-4825

MOHELA

1-888-866-4352

Nelnet

1-888-486-4722

OSLA Servicing

1-866-264-9762

Navient

1-800-722-1300

VSAC Federal Loans

1-888-932-5626

If you have other types of federal student loans, here's how to contact for repayment information.

Federal Perkins Loans - Contact the school where you received your Federal Perkins Loan for details about repaying your loan. Your school may be the servicer for your loan.

Privately Owned Program Loans - Contact your lender for details about repayment options and tools for your loans that are not owned by the U.S. Department of Education