Federal Undergraduate Loans

Learn about federal loans for undergraduate students.

Please note:

• Remember that borrowing money is a serious responsibility; you must repay loans with interest.
• Before you borrow, pursue outside agency scholarships.
• File your FAFSA by March 2 each year to be considered for the best types of financial aid awards.
• Submit any additional documents requested by the Financial Aid Office before the May 1 deadline.
• Review undergraduate eligibility requirements to make sure you're eligible to receive loans (or any other types of financial aid).
• If you've already exhausted federal loan possibilities, you might wish to consider private loan programs, although these loans may have higher interest rates, and you may have to meet additional requirements such as an approved co-signer.
• Read more about loans.

Click the links to learn more about these federal undergraduate loans:

• Federal Perkins Loan
• Federal Stafford Loan (Subsidized and Unsubsidized)
• Federal Parent Loan (PLUS Loan)

• Federal Perkins Loan

  Annual amount: $400 to $4,000 per year, depending on your need

  Need-based/ subsidized? Yes. The federal government pays (subsidizes) the interest on your behalf during in-school, grace, and authorized deferment periods. You begin paying interest after you leave school, or when your grace/ deferment period ends.

  Awarded and disbursed by: UCSD

  Interest rate: 5% fixed

  Loan fees: None

  Repayment of principal and interest begins 9 months after your full-time or half-time enrollment ends.

  To borrow the Federal Perkins Loan:

  1. File your FAFSA and provide any requested documents before the deadlines.
  2. UCSD notifies you of a Perkins loan.
  3. Accept the award online using the Financial Aid tool.
  4. Access your financial aid checklist to print and sign your Perkins Master Promissory Note and complete the loan information sheet. Return your promissory note to Student Business Services. These documents confirm your agreement to repay the loan.
  5. Complete online entrance loan counseling (first-time borrowers only).
  6. Loan funds will be credited to your UCSD student account (read more about how you get your money).

  If you've been awarded federal work-study but don't plan to work, you may ask the Financial Aid Office in writing to switch your federal work-study to a Perkins loan (if funding is available).

  Addendum to Perkins Loan borrowers

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• Federal Stafford Loan (Subsidized and Unsubsidized)

  Annual maximum amounts for
  dependent undergraduates:

  Undergraduate dependent students	Base loan (100% subsidized or a subsidized/ unsubsidized mix, depending on your need)	Additional unsubsidized-only loan for all dependent undergraduate students	Additional unsubsidized-only loan for dependent undergraduate students whose parents have been denied a PLUS loan
  1st year	$3,500	$2,000	$4,000
  2nd year	$4,500	$2,000	$4,000
  3rd year and beyond	$5,500	$2,000	$5,000

  Annual maximum amounts for
  independent undergraduates:

  Undergraduate independent students	Base loan (100% subsidized or a subsidized/ unsubsidized mix, depending on your need)	Additional unsubsidized-only loan
  1st year	$3,500	$6,000
  2nd year	$4,500	$6,000
  3rd year and beyond	$5,500	$7,000

  Is the Subsidized Stafford Loan need-based? Yes. You must demonstrate financial need to qualify for a Subsidized Stafford Loan. The federal government pays (subsidizes) the interest on your behalf during in-school, grace, and authorized deferment periods. You begin paying interest after you leave school, or when your grace/ deferment period ends.

  Depending on your financial need, you may not receive the maximum loan amount in a subsidized loan. However, you might still be able to borrow unsubsidized funds up to the total maximum Stafford loan amounts.

  Is the Unubsidized Stafford Loan need-based? No. You may borrow an Unsubsidized Stafford Loan regardless of your financial need. However, the federal government does not pay the interest. While you may defer the principal during in-school, grace, and authorized deferment periods, you're responsible for the interest upon disbursement.

  Funded by: A Stafford lender you select from the UC lender list. Carefully review the benefits and repayment comparison charts before you select a lender. See UCSD's Guide to Choosing a Lender.

  Disbursed by: Lender disburses to UCSD.

  Interest rates effective July 1, 2008 – June 30, 2009:

  • Undergraduate Subsidized:  6.0%
  • Undergraduate Unsubsidized:  6.8%

  Interest rates effective July 1, 2009 – June 30, 2010:

  • Undergraduate Subsidized:  5.6%
  • Undergraduate Unsubsidized:  6.8%

  Loan fees: You may pay a 1% origination fee and a default fee of up to 1%.

  Repayment of principal and interest begins 6 months after you are no longer enrolled at least half-time.

  To borrow a Federal Stafford loan:

  1. File your FAFSA and provide any requested documents.
  2. UCSD offers you a Stafford loan.
  3. Accept the award online using the Financial Aid tool.
  4. Sign the Master Promissory Note provided by your lender (first-time Stafford borrowers only). This document confirms your agreement to repay the loan.
  5. Complete online entrance loan counseling (first-time borrowers only).
  6. Loan funds will be credited to your UCSD student account (read more about how you get your money).

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• Federal Parent Loan (PLUS Loan)

  Amount: The annual maximum equals the cost of attendance minus any need-based and non-need-based aid.

  Need-based/ subsidized? No.

  Funded by: A PLUS lender you and your parent(s) select from the UC lender list. Carefully review these benefits and repayment comparison charts before you select a lender. See UCSD's Guide to Choosing a Lender.

  Disbursed by: Lender disburses to UCSD.

  Interest rate: 8.5% fixed

  Loan fees: 3% origination fee, and a default fee of up to 1%

  Repayment of principal and interest begins 60 days after the final disbursement of the academic year. Parents may request in-school deferments if at least one of these conditions apply:

  • The student is enrolled at least half-time
  • The student is in a grace period (6 months after the student is no longer atttending at least half-time)
  • The parent is enrolled at least half-time

  For parents borrowing the Parent PLUS loan:

  1. Apply for the loan through a selected lender.
  2. Complete the PLUS Loan Request form for 2008-2009 (including Summer 2009) or 2009-2010, and submit it to the Financial Aid Office.
  3. Sign and return a Master Promissory Note provided by the lender. This document confirms your agreement to repay the loan.

  Other information: Eligibility is limited to parents (with no adverse credit history) of a dependent student.

  If the Parent PLUS loan is denied, contact the Financial Aid Office for other possible options.

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Questions? Contact the Financial Aid Office, (858) 534-4480.