Educational Loans
Educational Loan Programs
Although California College of the Arts may have determined that you and, if applicable, your parent(s) are eligible to borrow a Perkins, Stafford, or PLUS loan, you are under no obligation to accept any loan. Declining a loan will neither jeopardize other financial aid offered to you, nor will it prevent you or your parent(s) from borrowing later in the term or in the future.
An educational loan is a serious financial obligation and must be repaid. Defaulting on any loan will seriously damage your credit rating. Complete information on educational loan repayment is available within the Financial Aid Office.
Federal Perkins Loan
Awarded to students with exceptional financial need, a Perkins loan carries an annual interest rate of 5 percent. However, interest does not accrue while the borrower is enrolled in school at least half time, during the grace period (the time before which the borrower must begin or resume repaying a loan), or during authorized deferments.
The borrower is responsible for paying the interest that accrues on the loan during repayment or forbearance (a temporary postponement of payments). Loans are repayable over a period of up to 10 years and have a nine-month initial grace period. Availability is limited.
Federal Stafford Loans
A Stafford Loan is a federal educational loan in the student's name. Even though it is a government loan program, you will be asked to select a bank to provide the loan using our online process if you accept it.
Two types of Stafford loans exist: subsidized and unsubsidized. The federal government pays the interest on subsidized loans while the borrower is enrolled at least half time and during authorized periods of deferment. Eligibility for a subsidized Stafford loan is based on financial need as demonstrated via the FAFSA. Students who do not demonstrate sufficient need may borrow an unsubsidized Stafford loan.
The interest on unsubsidized loans begins to accrue immediately upon disbursement and is generally capitalized (added to the amount borrowed) when the borrower is no longer enrolled at least half time.
Under this federal loan program, dependent and independent undergraduate students may borrow combined subsidized and unsubsidized amounts not to exceed the following annual totals:
- up to $3,500 for a first-year student
- up to $4,500 for a second-year student
- up to $5,500 for a third-, fourth-, or fifth-year undergraduate
Graduate students can borrow up to $8,500 per year, whether subsidized, unsubsidized, or a combination of both.
Independent undergraduate students and dependent undergraduate students whose parent(s) is unable to borrow PLUS loans may borrow additional unsubsidized Stafford loan amounts not to exceed the following annual totals:
- up to $4,000 for a first- or second-year student
- up to $5,000 for a third-, fourth-, or fifth-year student
Graduate students may borrow up to:
- $20,500 per year through the Stafford loan program, of which a maximum of $8,500 may be subsidized.
The maximum outstanding total subsidized and unsubsidized Stafford loan debt is:
- $46,000 for independent undergraduate students (or dependent undergraduate students whose parent(s) or legal guardian(s) does not qualify for PLUS loans). No more than $23,000 of this aggregate amount may be in the form of subsidized loans.
- $138,500 for graduate or professional students (including loans for undergraduate study). No more than $65,500 of this aggregate amount may be in the form of subsidized loans.
The interest rate on subsidized Stafford loans disbursed for enrollment periods that began after July 1, 2007, is fixed at 6 percent once the student enters repayment. The interest rate on unsubsidized Stafford loans disbursed for enrollment periods that begin after July 1, 2007, is fixed at 6.8 percent. Interest rates vary for loans disbursed prior to July 1, 2007.
An origination fee and a federal default fee, not to exceed 3 percent and 1 percent of the principal amount of the loan, respectively, may be deducted from each disbursement of the loan. The standard repayment period under this program is 10 years.
Complete information on Stafford Loan deferments is available from the Financial Aid Office.
See Applying for Stafford Loans.
Federal Parent & Graduate PLUS Loans
Parent PLUS loans are available to the parent(s) or stepparent(s) of dependent undergraduate students. Graduate or professional students are eligible for graduate PLUS loans on their behalf. These credit-based loans are awarded irrespective of financial need. Even though part of the government loan program, you will be asked to select a bank to provide the loan using our online process if you or your parent(s) choose to accept it.
The interest rate on parent and graduate PLUS loans disbursed for enrollment periods that began after July 1, 2007, is fixed at 8.5 percent. No annual limit exists to the amount that can be borrowed through the PLUS loan program. In general, parents and graduate students may borrow the difference between the cost of the student's education and any other financial aid received. An origination fee and an insurance premium, not to exceed 3 percent and 1 percent of the principal amount of the loan, respectively, may be deducted from each disbursement of the loan.
The standard repayment period under the parent PLUS loan program is 10 years. Repayment of the principal and interest on this loan begins within 60 days after the loan is fully disbursed. A parent(s) may request an in-school forbearance from the lender, during which no payments or interest-only payments are required.
Graduate PLUS loans, for borrowers who are certified by their college as enrolled at least half time, will be placed into in-school deferment, during which no payments are required.
Alternative Loans
If the combination of federal loans and CCA-administered financial aid does not meet the financial need of a student, "alternative loan" programs should be a consideration. These private-educational loan programs require the borrower to have a satisfactory credit history and, in some cases, can require a credit-worthy cosigner.
Visit CCA's financial aid section to review a list of alternative loan providers. Most Stafford lenders offer alternative loan programs. If you have a Stafford loan, it can make sense to also use the same lender for an alternative loan.
Loan Resources
NSLDS: the National Student Loan Data System for Students provides information about federal student loans. The same PIN you used to e-sign your FAFSA is required (if you completed and submitted that document online).
ELMNet: an Internet-based system that helps schools and loan providers manage student loan data, such as information about CCA-certified educational loans. Registration and user ID/password are easy to set up.
Each website is quite useful for keeping track of your financial obligations, as well as who is the lender or current holder of your loan(s).