Loan Programs
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Loan Programs
Student loans can be a helpful way to cover the cost of your education, but they are borrowed money and must be repaid. UC Santa Cruz offers several types of loans, including federal, state, university, and private options. Some loans are based on financial need, while others are available to most students regardless of income.
Did you know? 57 percent of UC Santa Cruz undergraduate students who graduated between 2021 and 2022 graduated without loan debt (Federal Direct Subsidized/Unsubsidized Loans, Federal Perkins Loans, private loans).
Education loans are long-term funds that enable students and parents to pay educational expenses. When you accept a loan, you are legally obligated to repay the loan according to the terms of the promissory note.
Federal Direct Loans are available to students and parents regardless of family income. Federal loans have better terms than most private/bank loans. Most bank loans have high interest rates and do not have provisions for deferment that exist for federal loans. Loan repayments for Federal Direct Loans can be deferred until the student is no longer enrolled half time or more as an undergraduate or graduate student. Other deferment options are available while you are repaying a loan.
Cohort Default Rate Information
The U.S. Department of Education provided the official fiscal year 2020 national student loan cohort default rate, which decreased to 0.0%, from 2.3% in fiscal year 2019.
A cohort default rate is the percentage of a school’s borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year, October 1 to September 30, and default or meet other specified conditions prior to the end of the next fiscal year.
The UC Santa Cruz student loan default rate is 0.0%, compared to the national average of 0.0%.
Information on the national student loan default rate, as well as rates for individual schools, states, types of postsecondary institutions, and other sectors of the federal loan industry are available from the U.S. Department of Education.
Students who need further information about defaulted federal education debt may wish to visit the U.S. Department of Education Understanding Debt. The Department has many options available to borrowers to resolve their defaulted federal education debt, so read about your options before deciding on the right plan.
Federal Direct Subsidized & Unsubsidized Loans
Federal student loans are available to most students regardless of income and provide a range of repayment options including income-based repayment plans and loan forgiveness benefits, which other education loans are not required to provide. Loans must be accepted on your MyUCSC student portal no later than 10 business days prior to the end of your student’s term of enrollment for an academic year. Awards not applied for and approved (including all required loan documents) by this time cannot be processed.
If you decide to borrow you must complete the following steps:
- Step 1: Accept your loan on MyUCSC student portal: https://my.ucsc.edu
- Step 2: Complete the Direct Loan Entrance Counseling at studentaid.gov
- Step 3: Sign your Direct Loan Master Promissory Note (MPN) at studentaid.gov
For information on interest rates and loan fees click here.
Eligibility Requirements
- You must file your FAFSA
- You must be enrolled at least half-time in a degree of certificate program at a participating school
- You must be a permanent resident or U.S. Citizen
- Direct Subsidized Loans are available only to undergraduate students who have financial need
- Direct Unsubsidized Loans are available to both undergraduates and graduate or professional degree students regardless of financial need
Federal Direct Subsidized and Unsubsidized Loan Terms
- The Direct Subsidized Loan is available to students with financial need
- The Direct Unsubsidized Loan is available to students regardless of financial need
- The U.S. Department of Education pays the interest on the Direct Subsidized Loan while the student is enrolled at least half-time
- The borrower is responsible for paying interest on the Direct Unsubsidized Loan for any disbursed amount
- Interest and processing fees for the year are determined annually on July 1
- Loan servicer will be assigned by the U.S. Department of Education
- Does not require a credit check
- Processing fee deducted from each disbursement
Annual Borrowing Limits (Combined Federal Direct Subsidized and Unsubsidized Loan Limits):
| Grade Level | Dependent Student | Independent Student |
| Freshman | $5,500 ($3,500 sub max) | $9,500 ($3,500 sub max) |
| Sophomores | $6,500 ($4,500 sub max) | $10,500 ($4,500 sub max) |
| Junior/Seniors | $7,500 ($5,500 sub max) | $12,500 ($5,500 sub max) |
| Graduate Students | n/a | $20,500 |
Cumulative Lifetime Limits (Aggregate Limits):
| Undergraduate Dependent Students | $31,000 ($23,000 sub max) |
| Undergraduate Independent Students | $57,500 ($23,000 sub max) |
| Graduate Students | $138,500 |
University Loan Program
The University Loan is available to undergraduate students with financial need. If eligible, the University Loan will be included as part of your academic year financial aid offer. If you decide to borrow the University Loan, you need to complete the processes below. Loans must be accepted on your MyUCSC student portal no later than 10 business days prior to the end of your student’s term of enrollment for an academic year. Awards not applied for and approved (including all required loan documents) by this time cannot be processed.
What you need to do:
- Step 1. Accept your loan on MyUCSC student portal: https://my.ucsc.edu
- Step 2. Wait for an e-mail from webmaster@ecsi.net informing you of the loan requirements that must be completed online. The email will contain your Heartland ECSI PIN and information about where to complete these requirements.
- Step 3. Complete the loan requirements. Review the Truth and Lending (TILA) documents, complete the entrance counseling, and e-sign the promissory note.
Eligibility Requirements
- You must file your FAFSA
- You must be enrolled at least half-time in a degree or certificate program at a participating school
- The University Loan is available to undergraduate students with financial need
University Loan Terms
- Interest accrual and repayment of the University Loan begins 9 months after you leave school
- Interest is fixed at 5%
- The standard repayment period is 10 years
- UC Santa Cruz is your lender. You will make your payments to our contracted loan servicer, ACS.
- Before leaving school or graduating, be sure to complete your Institutional Loan Exit Interview.
- Keep your contact information up-to-date with UC Santa Cruz so that you receive important information about your repayment.
- Toward the end of your 9-month grace period, you should receive information about beginning repayment. If you have not received anything at the beginning of the 9th month of your grace period, contact the Student Business Services Office at oarinfo@ucsc.edu or by phone to 831-459-2107.
- You can repay your loan without penalty. This means that the faster you pay your loan, the less interest you pay over time.
California Dream Loan Program
The California DREAM Loan Program provides eligible undocumented AB 540 undergraduates with the option to borrow loans to help cover the cost of attending UC. The DREAM loan program, funded by the state and UC, aims to close that gap and provide eligible students with the opportunity to borrow student loans to help pay for their education. Loans must be accepted on your MyUCSC student portal no later than 10 business days prior to the end of your student’s term of enrollment for an academic year. Awards not applied for and approved (including all required loan documents) by this time cannot be processed.
We encourage you to explore other funding options prior to taking out a loan. Private Scholarships, institutional work-study and internships are among the other resources available to help reduce your need to accept student loans.
If you decide to borrow the Dream Loan, you need to complete the following processes.
What you need to do:
- Step 1: Accept your loan on MyUCSC student portal: https://my.ucsc.edu/
- Step 2. Wait for an e-mail from webmaster@ecsi.net informing you of the loan requirements that must be completed online. The email will contain your Heartland ECSI PIN and information about where to complete these requirements.
- Step 3. Complete the loan requirements. Review the Truth and Lending (TILA) documents, complete the entrance counseling, and e-sign the promissory note.
California Dream Loan Details
Eligibility Requirements
- Must be AB 540 Eligible
- Ineligible for Federal Loans
- Complete a DREAM Act Application
- Determined to have financial need
- Academic Program must qualify as an eligible program under Cal Grant guidelines
University Loan Terms
- Annual loan maximum $4,000 (even if enrollment at multiple institutions)
- Aggregate maximum $20,000 at any one institution
- Annual promissory note
- Annual entrance counseling (through ACS Financial Counselor)
- 6-month grace period, 10-year repayment
- Interest rate matches Subsidized Direct Loan rate for that same year
- No interest while in deferment
- Interest will accrue in forbearance
Additional Loan Details
Deferment:
You may quality to postpone your monthly payments in which no interest accrues if you are:
- Unemployed (maximum 3 years)
- In-School
- Experiencing Economic Hardship or
- Are in Active duty in the U.S. Armed Forces
Forbearance:
If not eligible for deferment, you may be eligible to postpone or reduce your monthly payments under forbearance if you are:
- Experiencing financial hardship
- Experiencing a prolonged illness
To apply for a deferment or forbearance, contact Student Business Services at (831) 459-2107.
Resources You May Find Useful
Federal Parent Loans (PLUS)
Parents may borrow up to the full cost of attendance – as established for students by the university – minus any financial assistance the student receives. Borrowers must be US citizens or permanent residents and demonstrate creditworthiness for loan approval. Principal and/or interest payments may be deferred until after the student is not enrolled or is enrolled less than half-time. The parent Loan must be applied for and approved no later than 10 business days prior to the end of your student’s term of enrollment for an academic year. Awards not applied for and approved (including all required loan documents) by this time cannot be processed.
To apply for a Parent Plus Loan complete the next steps:
- Step 1: Log-in to studentloans.gov and apply for the loan. You will receive a notification via-e-mail indicating the approval or denial of your parent loan.
- Step 2: If your parent loan was approved, sign the PLUS Master Promissory Note (MPN).
- Step 3: If your loan is denied, contact our office for additional information on other loan options available.
Application– You can apply and complete a PLUS Loan Request beginning June 1.
Information on interest rates and loan fees.
Eligibility Requirements
- You must be the parent of a student enrolled at least half-time in a degree of certificate program at a participating school
- You must be a permanent resident or U.S. Citizen to apply
- Your student must have a FAFSA on file
Parent Plus Loan Terms
- Parents of dependent students may borrow up to the cost of attendance minus financial aid and outside resources
- Begins accruing interest at the time of disbursement
- Interest and processing fees for the year are determined annually on July 1
- Processing fee is deducted from each disbursement
- Credit check required
- Parents can complete the application and a promissory note at studentaid.gov
Receiving Loan Funds – The student must have a permanent address in MyUCSC. The permanent address must be set to “active” before the loan will disburse. To avoid delays, be sure this address is current and active. Loan funds are credited to the student’s billing account. Any PLUS funds remaining after charges are paid will be given to the student unless the parent borrower requests the excess funds. This request is made when the application is submitted. If the student is on an Education Abroad Program (EAP), the funds will always go to the parent.
Federal Plus Loan & Private Student Loan Comparison Chart – Loans offer you the opportunity to cover the cost of your educational expenses. It is important to explore all options and find what works best for you and your family. The Federal Plus Loan & Private Student Loan Comparison Chart provides you with additional information on the differences between the Federal PLUS Loan and Private Student Loan options for those families who demonstrate creditworthiness and wish to explore alternative options that may better suit your family financial situation.
Federal Grad PLUS Loans
Long-term federal loans for graduate students who are US citizens or permanent residents. Students may borrow up to the full cost of attendance, as defined by the UCSC Financial Aid Office, less any financial assistance the student receives. Borrowers must demonstrate creditworthiness for loan approval. Principal and/or interest payments may be deferred until after the student is not enrolled or is enrolled less than half-time. The Graduate PLUS Loan must be applied for and approved no later than 10 business days prior to the end of your term of enrollment or an academic year. Awards not applied for and approved by this time (including all required loan documents) cannot be processed.
To apply for a Graduate Plus Loan complete the next steps:
- Step 1: Log-in to studentloans.gov and apply for the loan. You will receive a notification via-e-mail indicating the approval or denial of your loan.
- Step 2: If your graduate plus loan was approved, sign the Master Promissory Note (MPN).
- Step 3: If your loan is denied, contact our office for additional information on other loan options available.
Application– You can apply and complete a PLUS Loan Request beginning June 1.
For information on interest rates and loan fees click here.
Eligibility Requirements
- You must file a FAFSA to be considered for the loan
- You must be enrolled at least half-time in a degree of certificate program at a participating school
- You must be a permanent resident or U.S. Citizen
- Direct Unsubsidized Loans are available graduate or professional degree students regardless of financial need
Graduate Plus Loan Terms
- Graduate students may borrow up to the cost of attendance minus financial aid and outside resources
- Begins accruing interest at the time of disbursement
- Interest and processing fees for the year are determined annually on July 1
- Processing fee is deducted from each disbursement
- Credit check required
- Graduate students can complete application and a promissory note at studentaid.gov
- First payment is due within 60 days of the final annual disbursement
To Receive Loan Funds– the student must have a permanent address in MyUCSC. The permanent address must be set to “active” before the loan will disburse. To avoid delays, be sure this address is current and active.
Private Loans
Private loans are funded by banks, credit unions, or other private lending institutions. Private loans serve as an alternative funding resource, but typically do not include many of the benefits that federal students loans do such as deferment provisions, fixed interest rates, and income-based repayment plans. We encourage all students who are considering private loans to first submit a FAFSA and learn about their eligibility for federal loans before applying for a private loan.
Compare Private Loans to Federal Loans
Loans offer you the opportunity to cover the cost of your educational expenses. It is important to explore all options and find what works best for you and your family. The Federal Plus Loan & Private Student Loan Comparison Chart provides you with additional information on the differences between the Federal PLUS Loan and Private Student Loan options for those families who demonstrate creditworthiness and wish to explore alternative options that may better suit your family financial situation.
Compare Private Loans
When choosing a private loan, there are many factors to consider including the fees the lender charges to make the loan, the interest rate, repayment terms, and deferment options. To assist students and their families in this process, the University of California has created the following lists which were developed specifically for UC students. These include a few of the highest-rated lenders:
Private Lender List Available on ELM Select!
Lenders are required by federal law to collect the Private Loan Certification Form. If you plan to apply for a private loan, complete and submit this form to your lender. Information on the University of California Code of Conduct in regard to preferred lender arrangements.
Other Loan Options
Interest-free loans are available to Jewish students enrolled full-time in undergraduate or graduate programs, professional programs, or vocational schools.
UCSC Financial Aid Emergency Advance Program
UCSC Financial Aid Emergency Advance Program
The Financial Aid Emergency Advance is a resource available to assist UCSC students experiencing temporary difficulties meeting their financial obligations due to a delay in the disbursement of their financial aid. The Financial Aid Emergency Advance is made against yet-to-be disbursed current quarter institutional, state and federal funds. Approved advances are typically for small amounts- usually less than $500- and are expected to normally be repaid within 20 days. Funds are meant to be used for educational expenses included in the cost of attendance (such as tuitions, fees, food, housing, etc.).
Eligibility Requirements
To qualify for a Financial Aid Emergency Advance you must:
- Complete the Financial Aid Emergency Advance Application
- Be a registered UCSC student enrolled in the current quarter
- Have enough pending institutional, state or federal funds to cover the full amount of the request
The Financial Aid Emergency Advance Application can be obtained by visiting our Financial Aid and Scholarship Office located at 205 Hahn Building.
Contact Us
Have a question or need support? We’re here to help.
Location: 205 Hahn Student Services (view map)
In-Person Advising: Monday–Friday, 1 – 5 p.m.
Phone and Zoom Advising (Monday–Friday, 9 a.m. – 12 p.m.):
Phone: Call (669) 900-6833
Zoom: Join Zoom drop-in