Loans
Note: To accept or decline all or part of any loan, go to my.calpoly.edu.
Federal Perkins Loan
Need-based loan with a fixed interest rate of 5%. This loan requires a separate loan application. No interest accrues while you are in school and for 9 months after you leave school, or cease to be enrolled at least half-time. By filling the FAFSA, you are automatically considered for the Perkins Loan.
Federal Stafford Loan
- The Federal Stafford Loan is a part of the Federal Family Education Loan Program (FFELP).
- This type of loan was created by the federal government to help finance all or part of educational costs. The
loans are certified by Cal Poly and insured by a guaranty agency.
- The interest rate for new loans is fixed at 6.8%. Monthly payments generally begin six months after the student
is no longer enrolled at least half-time, graduates, or leaves school.
- All students need to carefully consider potential debt before accepting loans. Contact the Financial Aid Office with any questions.
Subsidized vs. Unsubsidized
There are two types of Stafford loans: subsidized and unsubsidized.
- Subsidized loans are based on financial need, the Expected Family Contribution (EFC), and the Cost of
Attendance (COA) at Cal Poly. The federal government pays the interest on these loans while the student is
in school and for the first 6-months after the student leaves school or drops below half-time enrollment. After
this 6-month grace period, the student is required to make payments on the loan including interest.
- Unsubsidized loans have no interest subsidy, and therefore they accrue interest while the student is in
school and during the 6-month grace period. The student may pay the interest while in school or may choose
to postpone interest payments. Any accrued interest will be added to the original loan amount (capitalization).
The Stafford Loan Process
- Accept the loan(s) on my.calpoly.edu. All new borrowers at Cal Poly need to choose a lender. See Choosing a Lender for lender information.
- All new Stafford Loan borrowers are required to complete Entrance Counseling before receiving their first loan disbursement. Complete Entrance Counseling as early as possible to avoid funding delays. The proof of completion form is for your records. Cal Poly electronically receives notification and will release the hold when complete.
- The Financial Aid Office will certify the loan and transmit the information to EdFund, which is the loan
guarantor. If this is the first loan, complete a Master Promissory Note (MPN). More information on the MPN will be sent from EdFund via e-mail. This is the contract between the borrower and the lender. Loan processing begins in August. Cal Poly encourages you to check your emails often.
- Complete the MPN. Print or request a copy for your records. If the MPN is not signed within 90 days, the loan will be canceled.
- When the lender receives the promissory note (first time borrower), or certification from Cal Poly (continuing borrower), the loan funds will be electronically transmitted to the Cal Poly Student Accounts Office. Please note:
- Funds will be refunded when classes begin.
- All borrowers receive a disclosure statement with the borrowed amount and the date funds will be sent to Cal Poly.
- Lenders may charge up to a 1.5% origination fee for each Stafford Loan. The fee is automatically deducted from each disbursement of the loan. Guaranty agencies charge a 1% default reduction fee for loans.
- For a student in transition between an undergraduate and a graduate program, or if provisionally admitted, aid is subject to delay. When the undergraduate degree is awarded, notify the financial aid office.
- Everyone who borrows a Stafford Loan must complete an Exit Interview online with the Student Accounts Office either the quarter before graduating, or otherwise withdrawing from school.
Federal PLUS Loan
- The Federal PLUS (Parent Loan for Undergraduate Students) helps parents of dependent students pay
college expenses. Parents may borrow up to the Cost of Attendance (COA) minus any financial aid received
by the student. At Cal Poly, the FAFSA must be completed for a parent to borrow through the program. The
interest rate for new loans is fixed at 8.5%. Payments on this loan begin immediately. To continue the PLUS
loan process, go to the PLUS Portal.
- To qualify for a PLUS, a parent must be a U.S. citizen or an eligible non-citizen, have a valid Social Security number and a favorable credit history. Parents with an adverse credit history may still be able to borrow a
PLUS loan with a co-signer. Dependent students whose parents have been denied a PLUS loan may apply for
an unsubsidized Stafford loan and should contact the Financial Aid Office. If the PLUS loan application is
completed before June, the lender may complete a second credit verification before the loan is disbursed.
Federal GRAD PLUS Loan
A federally insured, credit based educational loan similar to the Federal PLUS Loan program. The Grad PLUS Loan helps graduate students with loan assistance beyond the Federal Stafford subsidized and unsubsidized Loan program. Graduate students may borrow up to the Cost of Attendance (COA) minus financial aid received. The Grad PLUS Loan has an 8.5% fixed rate --a higher rate than Stafford Loans. Eligibility requires you to pass a financial credit review. It has more advantageous benefits than most alternative or private loan options. We encourage you to first use your annual Stafford Loan eligibility before borrowing through the Grad PLUS program. To continue the PLUS application, go to the EdFund PLUS Loan Portal .
Alternative Loans
In addition to federal loan programs, many lenders offer alternative educational loans. Alternative loans can fill the gap between what you receive from other financial aid sources and what you really need to cover the cost of your education. Alternative loans also assist borrowers who wish to acquire an educational loan, but do not qualify for federal loan programs. The interest rate and repayment provisions vary with each lender. Check with the lenders for current rates and application.
How do lenders get on the list?All of the lenders were determined to have outstanding customer service and outstanding loan benefits to borrowers. None of the lenders listed provide any money or benefits to Cal Poly in exchange for this listing.
There are also many lenders not listed and you may wish to select one of them. Please note that for NEW borrowers, you may select from a drop box that has over 50 lenders noted. If your lender is not in the drop box, please contact the Financial Aid Office so the process set up can be completed for your lender (based on lender and guarantor feedback, this process may take up to 30 days). Continuing borrowers are urged to remain with the same lender to facilitate easy repayment after completion of your schooling. However, you also may contact the Financial Aid Office to change your lender choice.
Loan processing begins in August. Cal Poly encourages your to check your emails often.
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