Loans

The Department of Education is reducing interest rates to 0% and suspending payments on all Federal Direct Stafford Loans. All students are qualifying for this automatically and it takes effect March 13, 2020 to September 30, 2021. Loans include:

  • Parent PLUS
  • Grad PLUS
  • Subsidized and Unsubsidized Federal Direct Stafford loans  

Does not include Perkins, Private, or any older FFEL type loans
For more information, see the Coronavirus and Forbearance Loan Information announcement and Who's My Loan Servicer? on the Federal Student Aid website. You will find a detailed FAQ for more specific questions.

 

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.

The amount of the loan is determined by:

  1. Cost of attendance
  2. Loan eligibility
  3. Year in school
  4. Other aid already awarded 
Thumbnail of A Minute to Learn It - Borrowing Student Loans

Types of Loans

There are many types of loans available for students at San Jose State University, including: 

Undergraduate Loans

Graduate/Parent/Professional Loans

Other Loans

  • Alternative Loans (Private Lenders)
  • Short-Term Loans: Short-Term (Emergency) loans are available through the Bursar's Office. To be eligible you must have no outstanding debts to the university and must have sufficient financial aid or be gainfully employed. Contact the Bursar's Office for more information.


Information about Loans

Steps to Accepting Loans

  1. Students accept loans in their MySJSU - Instructions to Accepting  a Federal Direct Stafford Loan. [pdf]
  2. First time student loan borrowers at SJSU, must complete the on-line Entrance Loan Counseling session prior to receiving their first loan disbursement. Entrance Loan Counseling is an online session which addresses interest rates, deferments, and how to avoid default. There are no exceptions to this federal requirement. Make sure San José State is selected as your school when completing Entrance Loan Counseling.
  3. Students MUST eSign the Master Promissory Note prior to receiving a loan disbursement (must be signed every 10 years).  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. 

Deadlines

  • Fall 2020/Spring 2021 deadlines to accept loans:
    • December 1, 2020 for students attending Fall 2020 only
    • April 26, 2021 for Academic Year loan(s), or Spring 2021 only

General Info

  • Most loans are available for fall and spring semesters. 
  • Summer loans are evaluated on a case-by-case basis. Visit the Summer Financial Aid web page for more information.
  • 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 change
    • Transferring to another school
    • Leave of absence, withdrawal from school, or dropping below half-time enrollment
    • New graduation date

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 bursar@sjsu.edu 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.

This counseling session covers the following federal student loan types:

  • William D. Ford Federal Direct Loan Program (DL)
    • Direct Subsidized Loans
    • Direct Unsubsidized Loans
    • Direct Grad PLUS Loan
  • Federal Family Education Loan Program (FFELP)
    • Subsidized Federal Stafford Loans
    • Unsubsidized Federal Stafford Loans
    • Federal PLUS Loans (for graduate/professional students)

Go to StudentAid.gov to complete online exit loan counseling.

Loan Consolidation

Loan consolidation allows you to refinance any or all eligible outstanding federal student loans and create a single new loan with one monthly payment. The new loan will have a fixed interest rate, new terms, and may have an extended repayment period of up to 30 years.

For more detailed information, go to the Loan Consolidation web page.

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