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Loans through UC Santa Cruz

UC Santa Cruz students who submit a FAFSA and complete any additional To Do requirements will automatically be considered for the following types of loans:

Perkins Loans

Subsidized Federal Direct Loans

University Loans

Students who still need help meeting expenses after applying for and/or accepting the above loans may wish to consider these additional loan options:

Unsubsidized Federal Direct Loans

Federal Parent Loans for Undergraduate Students (PLUS) are non need-based loans for PARENTS of dependent undergraduate students. A separate application is required.

Private Loans are educational loans offered through banks and other private lending institutions.

Graduate PLUS Loans are an additional federal loan option for graduate students only. Private Loans are educational loans offered through private financial institutions not affiliated with UCSC.

Emergency Short Term Loans These loans are typically for no more than $200 and typically must be repaid within 30 days. Currently enrolled, registered UCSC students experiencing temporary difficulties meeting their financial obligations may be eligible to apply for an Emergency Short Term Loan.

Perkins Loans
...are long-term loans for undergraduate students funded by the federal government.

Qualifications Available to Undergraduates? Available to Graduates? Must Demonstrate
Financial Need?
Yes No Yes
Interest Fixed interest rate of 5% per year for the life of the loan. You are not charged interest until you begin repayment.
Fees None
Repayment Begins 9 months after you graduate, leave school, or drop below half-time enrollment.

Prior to beginning your repayment, you don't have to pay any principal, and you won't be charged interest.

All student loan borrowers must complete Exit Counseling prior to leaving school. Here you'll receive information about repayment, and your loan provider will notify you of the date loan repayment begins.

Loan Limits

There are limits on the amount you may borrow depending on when you apply, your level of need and UCSC's funding level.

  Annual Limit  
Undergraduate $4,000
At UCSC Perkins Loans are awarded to first and second year undergraduates only due to limited funding.

Keep in mind that maximum awards for Perkins Loans can rarely be funded at UCSC. Loans are awarded to the students with greatest financial need. Portions of a Perkins Loan may be forgiven or canceled and/or payments may be deferred for specified activities including teaching (e.g., in designated teacher shortage areas) or full-time duty in the armed services, law enforcement, Peace Corps, VISTA, or Head Start programs. 

Application Process

Step 1: Application To apply, you must file a FAFSA for the current aid year.
Step 2:
Master Promissory Note

If you accepted a Federal Perkins Loan at UCSC, you must complete a Federal Perkins MPN. After July 7, 2008 log onto your student portal, go in to the MyUCSC Student Center, click View Financial Aid and click on Aid Year 2009. On the Award Summary page, you should see a link called “Sign Promissory Note” under the loan details for the Perkins Loan. Click on the link to begin the process of signing your Perkins Promissory Note. If you have not yet accepted your Perkins Loan, you will be guided to sign the Promissory Note as you complete the Accept/Decline process.

Step 3:
Loan Entrance Counseling 		Complete Federal Pekins Loan Entrance Counseling. If you attended pre-loan counseling at another school, a photocopy of the signed counseling form from that school will satisfy this requirement. It can be faxed or mailed to Office of Student Business Services, UCSC, 1156 High Street , Santa Cruz , CA 95064 ; Fax: (831) 459-3918. For more information, call (831) 459-2107.
Step 4: Permanent Address Update your permanent address on the MyUCSC student portal. This address must be set to “active” before your loan will disburse.
Step 5 (optional): Direct Deposit Sign up for Direct Deposit/Electronic Funds Transfer (EFT) for a quicker refund. (Recommended, but not required).

For further information about Pre-Loan Entrance Counseling, the Perkins Master Promissory Note, or Direct Deposit please contact:

Student Business Services
203 Hahn Student Services Bldg
UC Santa Cruz
1156 High Street
Santa Cruz, CA 95064-1077
Email: oarinfo@ucsc.edu
Phone: (831) 459-2107
FAX: (831)459-3918


Subsidized Federal Direct Loans

... are one of the low-interest loans that make up the William D. Ford Federal Direct Loan Program (also known as “Direct Loans”). The Direct Loan Program enables students and parents to receive funds directly from the U.S. Department of Education to pay for education after high school. The Department is the lender, rather than a bank or credit union, and delivers loan proceeds through the
student’s school. Students and parents repay the Department.

Qualifications Available to Undergraduates? Available to Graduates? Must Demonstrate Financial Need?
Yes Yes Yes
Interest Interest rate adjusted annually. Currently 6.8 % fixed interest rate for loans received on or after July 1, 2006. On a subsidized loan, the government pays the interest while you are in school. You are not charged interest until you begin repayment.
Fees Combined origination and insurance fees: 2.5% less an upfront interest rebate of 2.0% results in a net upfront deduction of .5% beginning July 1, 2008.
Repayment Begins 6 months after you graduate, leave school, or drop below half-time enrollment. Prior to beginning your repayment, you don't have to pay any principal, and you won't be charged interest. All student loan borrowers must complete Exit Counseling prior to leaving school. Here you'll receive information about repayment, and your loan provider will notify you of the date loan repayment begins.

Federal Direct Loan Limits

  Annual Limits Additional Unsubsidized loans for independent undergrads
Freshmen $3,500

$4,000 (total annual limit of $7,500) *

Sophomores $4,500 $4,000 (total annual limit of $8,500) *
Juniors & Seniors $5,500 $5,000 (total annual limit of $10,500) *
Graduate Students $8,500 $12,000 (total annual limit of $20,500) *

* Note: Total annual limit is for total subsidized and unsubsidized loans combined.

Application Process

The following four steps must be completed before an unsubsidized Direct Loan can be disbursed to you.

Step 1: Application To apply, you must file a FAFSA for the current aid year.
Step 2: Master Promissory Note Complete your Federal Direct Loan MPN (Master Promissory Note) . You will need the Department of Education PIN that you used to file your FAFSA. To apply for or re-establish a PIN, go to http://www.pin.ed.gov . For general information on Federal Direct Subsidized and Unsubsidized Loans, visit www.ed.gov/DirectLoan . Give an indication of when students can start this process prior to the fall quarter. – shall we say sometime in August?
Step 3: Loan Entrance Counseling Complete Federal Direct Loan Entrance Counseling . If you attended pre-loan counseling at another school, a photocopy of the signed counseling form from that school will satisfy this requirement. It can be faxed or mailed to Office of Student Business Services, UCSC, 1156 High Street , Santa Cruz , CA 95064 ; Fax: (831) 459-3918. For more information, call (831) 459-2107.
Step 4: Permanent Address Update your permanent address on the MyUCSC student portal. This address must be set to “active” before your loan will disburse.
Step 5 (optional): Direct Deposit Sign up for Direct Deposit/Electronic Funds Transfer (EFT) for a quicker refund. (Recommended, but not required).

For further information about Pre-Loan Entrance Counseling, the Perkins Master Promissory Note, or Direct Deposit please contact:

Student Business Services
203 Hahn Student Services Bldg
UC Santa Cruz
1156 High Street
Santa Cruz, CA 95064-1077
Email: oarinfo@ucsc.edu
Phone: (831) 459-2107
FAX: (831)459-3918


Unsubsidized Federal Direct Loans

...are one of the loans that make up the William D. Ford Federal Direct Loan Program (also known as “Direct Loans”). The Direct Loan Program enables students and parents to receive funds directly from the U.S. Department of Education to pay for education after high school. The Department is the lender, rather than a bank or credit union, and delivers loan proceeds through the student’s school. Students and parents repay the Department.

Qualifications Available to Undergraduates? Available to Graduates? Must Demonstrate Financial Need?
Yes Yes No
Unsubsidized loans are available to all students who do not qualify for need-based loans, as well as to independent students who need additional assistance.
Interest Interest rate adjusted annually. Currently 6.8 % fixed interest rate for loans received on or after July 1, 2006. On an unsubsidized loan, interest accrues from the point you take out the loan, although you can have the payments deferred until after graduation.
Fees Combined origination and insurance fees: 2.5% less an upfront interest rebate of 1.5% results in a net upfront deduction of 1.0%. Fees are deducted up front.
Repayment Begins 6 months after you graduate, leave school, or drop below half-time enrollment. Prior to repayment you don't have to pay any principal, but you will be charged interest.

You can either pay the interest or add it to your loan balance, increasing the principal upon which future interest will be calculated, thus increasing the amount you'll repay). All student

loan borrowers must complete Exit Counseling prior to leaving school. Here you'll receive information about repayment, and your loan provider will notify you of the date loan repayment begins.

Loan Limits

  Annual Limits Additional Unsubsidized loan for independent undergrads
Freshmen $3,500
$4,000 (total annual limit of $7,500) *
Sophomores $4,500 $4,000 (total annual limit of $8,500) *
Juniors & Seniors $5,500 $5,000 (total annual limit of $10,500) *
Graduate Students $8,500 $12,000 (total annual limit of $20,500) *

* Note: Total annual limit is for total subsidized and unsubsidized loans combined.

Application Process

The following four steps must be completed before an unsubsidized Direct Loan can be disbursed to you.

Step 1: Application You must file a FAFSA for the current aid year. Even though the unsubsidized Stafford Loan is available to all students regardless of financial need, you must still submit the FAFSA to be eligible. Click here for information for first time UCSC borrowers .
Step 2:
Master Promissory Note 		Complete your Federal Direct Loan MPN (Master Promissory Note) . You will need the Department of Education PIN that you used to file your FAFSA. To apply for or re-establish a PIN, go to http://www.pin.ed.gov . For general information on Federal Direct Subsidized and Unsubsidized Loans, visit www.ed.gov/DirectLoan .

Give an indication of when students can start this process prior to the fall quarter. – shall we say sometime in August?
Step 3:
Loan Entrance Counseling 		Complete Federal Direct Loan Entrance Counseling . If you attended pre-loan counseling at another school, a photocopy of the signed counseling form from that school will satisfy this requirement. It can be faxed or mailed to Office of Student Business Services, UCSC, 1156 High Street , Santa Cruz , CA 95064 ; Fax: (831) 459-3918. For more information, call (831) 459-2107.
Step 4: Permanent Address Update your permanent address on the MyUCSC student portal. This address must be set to “active” before your loan will disburse.
Step 5 (optional): Direct Deposit Sign up for Direct Deposit/Electronic Funds Transfer (EFT) for a quicker refund. (Recommended, but not required).


University Loans

These loans are rarely offered due to very limited funds. They are long-term loans for undergraduate students funded by the University of California. The loan has a fixed interest rate of 5% per year for the life of the loan. Interest does not accrue while you are enrolled at least half-time or during periods of deferment. Repayment begins 6 months after you graduate or leave school. A cosigner is required for this loan.