Education loans are a form of financial aid that must be repaid, with interest. They are also the most prevalent type of financial assistance. Many students, and their parents, will turn to some form of loan aid as a way of closing the gap between educational expenses and available resources. You can make better choices if you have a comprehensive understanding of educational loan options.
By filing the Free Application for Federal Student Aid (FAFSA), loans may be included as part of your financial aid award. Most students and their families are eligible for some form of federal educational loan assistance. We highly recommend that you file a FAFSA, regardless of income.
CSU, Chico participates in two types of federal student loan programs: Federal Direct Loan Programs and Federal Perkins Loan.
CSU, Chico is part of the Federal Direct Student Loan Program, also known as the William D. Ford Direct Loan Program. In this loan program, long-term, low-interest loans, called Stafford loans, are borrowed directly from the U.S. Department of Education, with the loan proceeds delivered through CSU, Chico.
The Stafford loans we administer are Direct Loans. We do not certify Stafford loans arranged through banks and other lenders, which is the arrangement provided under the provisions of the Family Educational Loan Program (FFEL). The FFEL is similar to the Direct Loan program but the lenders are banks, credit unions, or private companies in partnership with guarantee agencies and the federal government.
- If you are applying to more than one college, check with their financial aid offices to determine which Stafford program is administered.
- If you are transferring from a school that used FFEL, at CSU, Chico, you will be required to sign a master promissory note with Direct Loans, as the U.S. Department of Education will be your new lender.
The Federal Perkins Loan is a low interest loan for students with exceptional need. Funding is extremely limited.
Direct PLUS loans are available to your parents if you are a dependent, undergraduate student enrolled at least half time (six units or more). Your parent may borrow an amount up to the cost of attendance minus any other aid you are receiving.
Direct PLUS Loans are available to graduate students (master’s level), enrolled at least half time (four units or more), who have reached their annual limit in subsidized and unsubsidized Stafford Direct Loans, and still have unmet need.
If additional funding is needed due to educational expenses that cannot be met by federal student loan programs and family resources, or to loss of eligibility for aid programs, alternative/private educational loans may be an option.
The Short-Term Loan Program provides short-term financial assistance of up to $500 to CSU, Chico students for expenses related to their University attendance. Short-term loans must be repaid within 90 days.
Other Loan Information:
- Federal Direct Stafford Loan
- First-time Direct Loan borrowers are required to complete the following:
- Federal Direct Graduate PLUS Loan
- When you graduate or leave CSU, Chico, and you have received a federal Direct Stafford and/or a Federal Direct Graduate PLUS loan:
- Federal Direct PLUS Loan for Parents
- For parents when they first take out a Direct PLUS Loan for Parents:
- Perkins Loans
- First-time Perkins Loan borrowers are required to complete:
- Exit Counseling - Upon graduating or withdrawing from CSU, Chico. Contact Student Financial Services, SSC 230 for instructions.
- Assumption Program of Loans for Education (APLE)
- Consolidation Loans
- Loan Dispute Intervention
- Alternative Loans: Selecting a Lender
- Computer Budget Adjustment