Direct Loans
Federal Direct Loans
Direct Subsidized Loans, also called Federal Direct Stafford/Ford Loans: The federal government will pay the interest on these loans while students are in school and during deferments (postponements of repayment). Students must demonstrate financial need as determined by the school in accordance with federal regulations to receive this type of loan. No repayment is required when in school at least half time, or during grace or deferment periods.
Direct Unsubsidized Loans: Students can get these loans regardless of financial need but will have to pay all interest charges, including the interest that accumulates during deferments. This loan shares the same terms and conditions as the Subsidized Federal Direct Loan, except the borrower is responsible for interest payments from the time the loan is disbursed. Borrowers are not obligated to pay the interest as it accrues during in-school, grace or deferment periods, but may do so to limit the interest that will be capitalized upon entering repayment. Eligibility is determined by subtracting estimated financial assistance from the cost of attendance. This type of loan may be used to replace all or part of an expected family contribution. Combined subsidized and unsubsidized loans may not exceed federal loan limits.
Federal Direct PLUS Loans -parents borrow for their student dependents. The parent is responsible for the loan repayment. Parents who do not have an adverse credit history may borrow up to the total cost of the student's education, minus any other aid received by the student. The PLUS loan requires an additional loan request form be completed and submitted by the parent(s) to our office; the form may be obtained from the Financial Aid Forms page. Payments begin within 60 days of the award year's last PLUS disbursement, or parents may choose to defer payments on the Direct PLUS Loan until six months after the date the student ceases to be enrolled at least half-time; may pay accruing interest monthly or quarterly, or allow interest to be capitalized quarterly.
Graduate Direct PLUS Loans- additional unsubsidized loans available to students enrolled in graduate or professional programs. These loans are available regardless of financial need and the amount of eligibility depends on the total cost of education. The interest rate is fixed at 7.9%; the borrower may not have an adverse credit history. Normally, repayment begins 60 days after the award year’s last PLUS disbursement, however, repayment may be postponed while enrolled at least half-time if qualified for an in-school deferment. There is NO grace period on PLUS loans. Most HSU Master’s students will meet their cost of attendance by borrowing through the Subsidized and Unsubsidized Direct Loan at a 6.8% fixed rate and better repayment terms; if these loans are insufficient to cover the cost of attendance, please contact the Financial Aid Office for information on the graduate Direct PLUS program.
More information is available from the Federal Direct Loans website.
Direct Loan Interest Rates
Current Direct Loan interest rates are available from the Department of Education.
How to Apply
In California, you may apply for Federal, state and local aid, including the Federal Pell Grant, state Cal Grants and Federal Direct Loans, by completing the Free Application for Federal Student Aid (FAFSA). Apply online or obtain a paper FAFSA from the Financial Aid Office, a local high school or college. If you have not yet filed the FAFSA you may Apply Online
Loan Requirements
Our office will determine your loan eligibility. You will be notified of any recommended amount and how to accept it. Direct Loan Entrance Counseling will be required if you are a first time borrower at HSU, and a promissory note may be required before your account can be credited. Students graduating, withdrawing, taking a leave of absence, or dropping below half-time study (6 units undergraduate; 5 units graduate)are REQUIRED to complete Direct Loan Exit Counseling.
Annual Loan Limits
| Yearly Maximum Loan Information | ||||||
|---|---|---|---|---|---|---|
| Dependent Student | Independent Student | |||||
| Borrower's Academic Level | Base Amount Subsidized & Unsubsidized | Additional Unsubsidized |
Total Amount Subsidized & Unsubsidzed |
Base Amount Subsidized & Unsubsidized | Additional Amount Unsubsidized Only | Total Amount Subsidized & Unsubsidized* |
| Freshman (less than 30 units) | $3,500 | $2000 | $5500 | $3,500 | $6,000 | $9,500 |
| Sophomore (30-59.9 units) | $4,500 | $2000 | $6500 | $4,500 | $6,000 | $10,500 |
| Junior/Senior (60 or more units) |
$5,500 | $2000 | $7500 | $5,500 | $7,000 | $12,500 |
| Graduate/Professional** | N/A | N/A | N/A | $8,500 | $12,000 | $20,500 |
| Teaching Credential*** | $5,500 | $0 | $5500 | $5,500 | $7,000 | $12,500 |
Total Federal Loan Limits:
Subsidized: $23,000 for undergraduate study; $65,500 for graduate study (including loans for undergraduate study).
Overall combined limit for subsidized and unsubsidized loans: $31,000 dependent undergraduates (no more than $23,000 may be subsidized); $57,500 independent undergraduates (and certain dependent students; no more than $23,000 may be subsidized)); $138,500 graduate/professional (including loans for undergraduate study).
* Total loan available is based on HSU Cost of Attendance, other educational resources and aid awarded. Eligibility may be less than the federal annual loan amounts. The combined total of your educational loans and other educational resources cannot exceed the HSU cost of attendance, nor may they exceed the federal overall loan limits.
**Graduate/Professional study at HSU is a Master's Degree.
***Although HSU admits teacher credential students in the "graduate" category, teacher credential students are considered undergraduates for student aid purposes because they are not pursuing a Graduate/Professional degree.