Loans are funds that must be repaid. Students should only borrow the amount that is absolutely necessary. It is a good idea to project what your total borrowing needs will be throughout your college career, and to be aware of what the necessary payments will be upon earning a degree.
Loans are available for fall and spring semesters. Summer loans are evaluated on a case-by-case basis. Visit Summer Financial Aid for more information.
The amount of the loan is determined by:
- Cost of attendance
- Loan eligibility
- Year in school, and
- Other aid already awarded.
|Maximum Annual Loan Amounts: Dependent|
|Freshman (0-29 units)||$3,500||$2,000||$5,500|
|Sophomore (30-59 units)||$4,500||$2,000||$6,500|
|Junior/Senior (60+ units)||$5,500||$2,000||$7,500|
|Maximum Annual Loan Amounts: Independent|
|Freshman (0-29 units)||$3,500||$6,000||$9,500|
|Sophomore (30-59 units)||$4,500||$6,000||$10,500|
|Junior/Senior (60+ units)||$5,500||$7,000||$12,500|
|Maximum Aggregate Loan Amounts|
|Academic Level||Subsidized and Unsubsidized Totals|
|Dependent Undergraduate Students||$31,000 (no more than $23,000 of which can be subsidized)|
|Independent, Undergraduate/Credential Students||$57,500 (no more than $23,000 of which can be subsidized)|
- Federal Direct Stafford Loans (Subsidized and Unsubsidized)
- Federal Direct PLUS (Parent) Loan
- Federal Direct Grad PLUS Loan
- Federal Perkins Loan
- Short-Term Loan (Available through the Bursar's Office)
- Alternative Loans (Private Lender Loans)
|Loans first disbursed on/or after July 1, 2015 and prior to July 1, 2016|
|Loan Type||Borrower Type||Interest Rate|
|Direct Subsidized||Undergraduate students||4.29%|
|Direct Unsubsidized||Undergraduate students||4.29%|
|Direct Unsubsidized||Graduate/Professional students||5.84%|
|Direct PLUS||Parents of dependent undergraduate students and Graduate/Professional students||6.84%
|Loans first disbursed on/or after July 1, 2014 and prior to July 1, 2015|
|Loan Type||Borrower Type||Interest Rate|
|Direct Subsidized||Undergraduate students||4.66%|
|Direct Unsubsidized||Undergraduate students||4.66%|
|Direct Unsubsidized||Graduate/Professional students||6.21%|
|Direct PLUS||Parents of dependent undergraduate students and Graduate/Professional students||7.21%|
Students must be enrolled in, and successfully complete, at least half-time enrollment (6 units for Undergraduate, Credential, Post-baccalaureate; 4 units for Graduate students) during each semester of attendance.
Disbursement of funds
The initial disbursement of funds begins the first week of each semester; thereafter, disbursements occur on a weekly basis. Financial Aid funds are first applied towards any current fees owed to the university (i.e., tuition, campus fees, housing, etc.). If students are owed a refund after fees have been paid, the Bursar's Office will refund students either by check or direct deposit. Students are encouraged to enroll in Direct Deposit (eRefund).
- Origination Fees: All Direct subsidized, unsubsidized, and PLUS loans have origination fees. For subsidized and unsubsidized loans the fee is 1.073%. For Direct PLUS loans (both parent and graduate) the loan fees are 4.292%.
- Entrance Loan Counseling (ELC): ELC is an on-line session which addresses interest rates, deferments, and how to avoid default. Students who are first time Direct Stafford loan borrowers with SJSU must complete the online Entrance Loan Counseling session prior to receiving the first loan disbursement; there are no exceptions to this federal requirement.
- The Master Promissory Note (MPN): The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. The MPN must also be completed for first time Direct Loan borrowers. View Sample MPN (Note: the SAMPLE MPN is NOT for submission)
- Perkins Loan Counseling: Students awarded the Perkins Loan must eSign a promissory note and/or borrower information sheet before loans can be disbursed. For additional information on the Perkins Loan, please contact the Bursar's Office at email@example.com or at 408-924-1601.
- Exit Loan Counseling: As a recipient of funds from the Federal Direct Stafford Loan Program, students are required to complete an exit loan counseling session within sixty (60) days of your last date of attendance at SJSU.
- Federal Direct Stafford Loan Repayment and Loan Consolidation: View repayment plans that are right for your financial situation. Federal student loans may be consolidated.
Responsibility as a Borrower
Students must maintain updated information with the U.S. Department of Education Direct Loan Servicing Center. Report the following changes, if any:
- Name, address or phone number
- Transferring to another school
- Leave of absence, withdrawal from school, or dropping below halftime enrollment
- New graduation date