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Types of Aid for Distance Learning Programs

State University Grant (SUG)

Students enrolled through Extended Education programs (Alcohol & Drug Certificate, Applied Studies (televised/online), Communication Science & Disorders Certificate, online MBA, MPA, MSQA, and NCRP) recipients of Cal Grant A and B, and students whose fees are paid by another party are NOT eligible for SUG.

William D. Ford Federal Direct Loan Program

The William D. Ford Federal Direct Loan Program provides low-interest long-term loans through the University. These funds must be REPAID. Funding for these loans comes from the U.S. Department of Education. These loans can be subsidized or unsubsidized. Eligible students must be admitted and enrolled in good standing at least half-time in a program leading to a degree or certificate. If you drop below half-time during a term or semester, the remainder of your loan may be canceled. Beginning 2012-2013, graduate students will no longer be eligible to borrow a SUBSIDIZED Federal Direct Loan due to recent federal legislation. Graduate students will be eligible to only borrow an Unsubsidized Federal Direct Loan up to $20,500 for the academic year.

Loan Types

If you are eligible for a Federal Direct Loan, we have recommended one (either subsidized or unsubsidized or a combination of both) as part of your financial aid award. Read the following paragraphs to learn the differences between the subsidized and unsubsidized Federal Direct Loans. If you decide to borrow a Federal Direct Loan, you are required to attend an Entrance Interview Session and sign a loan promissory note, which the university will forward to the Direct Loan Servicing Center.

Subsidized Federal Direct Loan

The amount of a subsidized Federal Direct Loan you can borrow is the difference between the cost of education and your resources (family contribution, financial aid, and any other assistance you receive from the school and outside sources). However, you cannot borrow more than the federal maximum. If you are eligible for a subsidized Federal Direct Loan, the federal government pays the interest for you until your repayment begins.

Unsubsidized Federal Direct Loan

The unsubsidized Federal Direct Loan can replace all or part of the family contribution. However, the amount of the loan cannot be more than the difference between the cost of education and any financial assistance you will receive from the school and any outside source (including the subsidized Federal Direct Loan). If you are a dependent student, your total Federal Direct Loan (subsidized, unsubsidized, or a combination of both) cannot exceed the federal maximum for a subsidized loan. Interest accrues on the unsubsidized Federal Direct Loan while you are in school and during the six-month grace period before repayment begins. You have the option of paying the interest or to add the interest to the principal.

First-time Borrower Requirements

Before receiving a William D. Ford Federal Direct Loan, first-time student borrowers must complete a Loan Entrance Counseling Session and Electronic Master Promissory Note (EMPN). You may fulfill both requirements by going online to StudentLoans.gov.