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Need-Based Loans Available for UC Santa Cruz Students

UC Santa Cruz students who submit a FAFSA and complete any additional To Do requirements will automatically be considered for the all loans available through UC Santa Cruz. Loan eligibility is determined by the Financial Aid Office. You must repay loans, generally after you graduate or leave school. Unsubsidized and parent loans accrue interest from the time funds are paid. Loan limits, interest rates, and repayment terms are subject to change.

Federal Direct Subsidized Student Loans

These loans are awarded to undergraduate and graduate students based on need. You are not charged interest until you begin repayment. Beginning July 1, 2009, the rate will be 5.6% for undergraduates and 6.8% for graduate students. Repayment begins six months after you graduate, leave school, or drop below half-time enrollment.

Combined origination and insurance fees: 2.5% less an upfront interest rebate of 2.0% results in a net upfront deduction of .5% as of July 1, 2008.

Note: Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students is being reduced. The applicable interest rates for loans made during this period are as follows:

First Disbursement of a Subsidized Loan for Undergraduate Students Interest Rate on the Unpaid
Balance
Made on or after And made before
July 1, 2008 July 1, 2009 6.0 percent
July 1, 2009 July 1, 2010 5.6 percent
July 1, 2010 July 1, 2011 4.5 percent
July 1, 2011 July 1, 2012 3.4 percent


A Federal Direct Loan Master Promissory Note must be completed on line before you will receive funds you accept under this program.

Federal Direct Loan Entrance Counseling must be completed the first time you receive this loan.

Annual Loan Limits depend on your year in school. If you are accepting Federal Direct Unsubsidized Student Loans, your combined subsidized and unsubsidized loan limt also depend on your dependency status. See combined limits in section about non-need based loans.

Frosh
$3,500
Sophomores
$4,500
Juniors/Seniors
$5,500
Graduate Students
$8,500

Avoid Delays: Update your permanent address on the MyUCSC student portal. This address must be set to “active” before your loan will disburse.


  

Federal Perkins loans

These loans are awarded to undergraduate frosh and sophomore students based on financial need. You are not charged interest until you begin repayment.The rate is 5% per year. Repayment begins 9 months after you graduate, leave school, or drop below half-time enrollment.

A Perkins Loan Master Promissory Note must be completed on line before you will receive funds you accept under this program.

  1. Log onto MyUCSC Student Center
  2. Click on View Financial Aid
  3. Click on the current Aid Year
  4. This takes you to the AwardSummary page where you should see a link called “Sign Promissory Note” under the loan details for the Perkins Loan
  5. 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 financial aid Accept/Decline process.

Entrance Counseling must be completed once each before you will receive Perkins Loan funds.

Entrance and Exit Counseling Requirements
All federal student loans require students to complete a pre-loan counseling/interview session either in person or on line. In addition, just prior to leaving school, you are required to complete an exit counseling session. These session are intended to ensure you fully understand the requirements and obligations you accept when taking the loans. The exit counseling/interview session also helps to prepare you for repaying the loans you have taken.

Loan Forgiveness Programs

Portions of a federal student loans 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. 

Click here for a complete list of loan forgiveness programs.

Calculate Your Future Monthly Payments

EdFund, a CA state loan guarantee agency offers an easy to use loan repayment calculator. If you are not sure what the total federal student loan amount you have borrowed is, login to the National Student Loan Data System (NSLDS).

Resources for Federal Direct Loan Borrowers