Types of Aid for Distance Learning Programs

State University Grant

Students enrolled through Extended Education (Televised MBA, Internet MBA, MA Behavioral Science, and Drug & Alcohol Certificate), recipients of Cal Grant A and B, and students whose fees are paid by another party are NOT eligible for SUG.

William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Loan Program provides low-interest long-term loans through the University. These funds must be REPAID. Funding for these loans comes from the U.S. Department of Education. These loans can be subsidized or unsubsidized. Eligible students must be admitted and enrolled in good standing at least half-time in a program leading to a degree or certificate. If you drop below half-time during a term or semester, the remainder of your loan may be canceled.

Students are required to enroll at least as a half-time student (6 units undergraduate or credential and 4 units for Master's). If you decide to borrow a Federal Direct Loan, you are required to sign a loan promissory note, which the university will forward to the Direct Loan Servicing Center. First time borrowers at CSUDH are required to attend an Entrance Interview session. You can view the interview schedule online. Please pay close attention to your Loan Disclosure Statement for your scheduled disbursement date.

Federal Maximums

$3,500 per academic year for freshmen year of undergraduate study; $4,500 per academic year for the sophomore year of undergraduate study; $5,500 per academic year for the remaining years of undergraduate and credential study, up to total of $23,000.
$8,500 per academic year for master's degree students; $65,500 (subsidized) combined total for undergraduate and graduate study.

First-time Borrower Requirements

Before receiving a William D. Ford Federal Direct Loan, first-time student borrowers must complete a Loan Entrance Counseling Session and Electronic Master Promissory Note (EMPN). You may fulfill the Entrance Counseling requirement, by either going online at www.dl.ed.gov or in person by attending one of the sessions listed below. You may complete the EMPN by going online to www.dlenote.ed.gov.

Federal Interest Rates 2008-2009

Effective July 1, 2008-June 30, 2009

Stafford Loan In School, Grace and Deferment Annual Variable Rate equal to the 91-Day T-Bill +1.70%	6.00 %
Grad PLUS and Parent PLUS Loans Annual Variable Rate equal to the 91-Day T-Bill +3.10%	7.90%

Repayment normally begins six months following graduation or when you cease to be enrolled at least half-time. Payments and length of repayment period depend on the size of your debt but must be a minimum of $600 per year.

We will offer either subsidized or unsubsidized or a combination of both as part of your financial aid award. Read the following paragraphs to learn the differences between the subsidized and unsubsidized Federal Direct Loans.

Subsidized Federal Direct Loan

The amount of a subsidized Federal Direct Loan you can borrow is the difference between the cost of education and your resources (family contribution, financial aid, and any other assistance you received from the school and outside sources). However, you cannot borrow more than the federal maximums ($3,500; $4,500; $5,500; or $8,500, depending on your grade level). If you are eligible for a subsidized Federal Direct Loan, the federal government pays the interest for you until your repayment begins. You will be assessed an origination fee and an insurance premium. These charges do not reduce the amount you are required to pay.

Unsubsidized Federal Direct Loan

The unsubsidized Federal Direct Loan is awarded to students who do not qualify for the maximum subsidized loan eligibility. Students requesting funding from this loan program are required to submit their request using the Appeal Form. Students must clearly state why this loan is needed and must attach supporting documents to substantiate their request. The unsubsidized loan can replace all or part of the family contribution. However, the amount of the loan cannot be more than the difference between the cost of education and any financial assistance you will receive from the school and any outside source (including subsidized, unsubsidized or a combination of both) cannot exceed the federal maximum for a subsidized loan. Interest accrues on the unsubsidized Federal Direct Loan while you are in school and during the six-month grace period before repayment begins. You have the option pf paying the interest or to add the interest to the principal. An origination fee and an insurance premium are deducted from each disbursement of an unsubsidized loan. These charges do not reduce the amount you are required to pay.