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University of California, RiversideUCR



 Loans  


Federal School Code: 001316


Loans  

Take out a loan

Loans are an excellent investment in your future, offering you the opportunity to cover the cost of your educational expenses by borrowing now and repaying after you complete your education. We know borrowing can be scary, but you can do it! 65% of UCR's 2012 graduates took out student loans. UCR's repayment rate is excellent, with just under 97% of students repaying their federal loans on-time. Loans are included in most financial aid packages and require repayment after graduation (see more detail under "Loan Repayment").

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.

Most of UCR’s loan programs are federally funded. Some are based on financial need, but there are loan programs available to all students regardless of income. Unsubsidized loans are available to students with no financial need. Undergraduate students, graduate students, and parents of dependent undergraduate students may borrow through loan programs offered by UCR.

What You Should Know: Interest will be charged on the amount you borrow. Federal loans available through UCR’s Financial Aid Office have interest rates ranging from 3.86% to 6.41%. The federal government pays the interest on subsidized loans while you are enrolled at least half-time. The interest on unsubsidized loans will accrue to your loan while you are enrolled.

Learn more about loans:



Loan Repayment

Monthly repayment usually begins six months after graduation or withdrawal from the University. Most UCR students are able to repay their student loans after graduation. You can monitor the total amount you borrow and the repayment requirements that you will have when you finish your education through www.studentloans.gov.

All new borrowers at UCR must complete online loan entrance counseling in which loan responsibilities and repayment terms are explained. Sample Direct Loan repayment schedules are available on the U.S. Department of Education Direct Loan website. You can choose from a variety of repayment plans to fit your financial circumstances and modify plans if circumstances change. For example, Income Contingent and Graduated Repayment plans are available. (Note: Entrance Counseling is not the same as the Financial Awareness Counseling Tool on the same site.)

You can defer your loan under various circumstances, which will postpone your loan payments. For example, while you are enrolled as a half-time student (including graduate school) or while you are unemployed, you can request loan deferment. Learn more about deferment provisions and repayment options through StudentLoans.gov and the Direct Loan website. Provisions for loan deferment or cancellation can be found on the loan promissory note you submit, and are also provided to you online via the Student Business Services Office loan exit counseling. You must complete this online loan counseling before you leave UCR.

Federal Direct Subsidized Stafford Loans

Loans from this program are awarded to students with financial need. A "subsidized" loan means the federal government pays the interest while the student is in school. The maximum amount that may be borrowed is based on dependency status and grade level according to the annual and aggregate loan limits established by Congress. Effective July 1, 2012, only undergraduate students may qualify for federal Direct Subsidized Stafford Loans. 

Students' eligibility for subsidized loans is computed before unsubsidized loans are awarded. Applicants may receive both types of loan, but the total may not exceed the federal loan limits. 

Interest rate: For new loans disbursed on or after July 1, 2013, interest will be a fixed rate of 3.86%. A federal loan origination fee of 1.051% is deducted from the amount of the loan prior to disbursement. Interest rates and origination fees may be subject to change in the 2014-15 academic year.

Note: Subsidized loans can be borrowed for up to 150% of the published length of the program of study.  For a 4-year bachelor’s degree program, the maximum period of subsidized loan eligibility is 6 years. Read more information on the 150% Federal Direct Subsidized Loan Limit.

New borrowers are required to complete an entrance counseling session online as a requirement for disbursement of the loan. (Note: Entrance Counseling is not the same as the Financial Awareness Counseling Tool on the same site.)

Federal Direct Unsubsidized Stafford Loans

This loan is not based on financial need and is available to all eligible students whose other financial aid doesn't meet the cost of attendance. A FAFSA application is required to apply. The loan is "unsubsidized" because the student is responsible for paying all interest due; there is no federal interest subsidy for the loan. The terms and conditions for Direct Unsubsidized Loans are otherwise the same as for Direct Subsidized Loans.

Interest rate: The interest rate for new loans disbursed on or after July 1, 2013, will be a fixed rate of 3.86% for undergraduates and 5.41% for graduate students. Interest accrues immediately upon disbursement of the loan to the student. Borrowers may elect to pay accrued interest on a monthly or quarterly basis, but most students elect to have it added back to the principal balance in a process called capitalization. The interest is then added into the total amount borrowed and is not paid until the loan repayment period begins, six months after graduation or withdrawal from the University.

Click here for more information on repayment options.

Repayment: Direct Unsubsidized Stafford Loans are also subject to the federal loan origination, or activation, fee of 1.051%, which is deducted from the amount of the loan prior to disbursement.

Direct Loan Limits

Below are the current annual and aggregate federal loan limits for subsidized and unsubsidized Stafford loans.

Annual Loan Limits

Dependent Undergraduates (Except students whose parents are unable to obtain PLUS Loans)

Base Amount*

Additional Limit for Unsubsidized Loan

Combined (maximum levels)

Freshman

$3,500

$2,000

$5,500

Sophomore

$4,500

$2,000

$6,500

Junior or Senior

$5,500

$2,000

$7,500

Independent undergraduates and dependent students whose parents are unable to obtain PLUS Loans

Freshman

$3,500

$6,000

$9,500

Sophomore

$4,500

$6,000

$10,500

Junior or Senior

$5,500

$7,000

$12,500
Graduate and Professional Students

Eligible for Unsubsidized Loans Only

$20,500

Aggregate Loan Limits

Grade Level Subsidized Unsubsidized Combined

Dependent Undergraduate
Students

$23,000

$8,000

$31,000

Independent Undergraduate 
Students

$23,000

$34,500

$57,500

Graduate and Professional Students

$65,500

$73,000

$138,500

*Graduate aggregate limits include undergraduate loans borrowed.

Federal Perkins Loans

Undergraduate students may be awarded up to $4,000 annually, for an undergraduate aggregate maximum of $20,000. Actual award amounts may be less based on annual funding levels and UCR's institutional awarding policy. Borrowers are required to complete an electronic master promissory note and an entrance counseling session online as a requirement for disbursement of the loan. (Note: Entrance Counseling is not the same as the Financial Awareness Counseling Tool on the same site.)

Interest rate: Simple interest of 5% per year on the unpaid principal balance begins six months after graduation or withdrawal from UCR.

Repayment: Borrowers may be eligible to postpone (or defer) repayment under certain circumstances. Full or partial loan cancellation may be available for full-time employment in selected public service jobs and/or for permanent and total disability. The deferment and cancellation provisions for this loan are available at the Perkins loan master promissory note website.

Federal Direct PLUS Loan Programs (Parent Loan)

If you're a parent, you can borrow up to the annual cost of education minus any estimated financial aid received by the student, regardless of financial need. A FAFSA application is required for this loan. To determine the maximum amount you may qualify to receive, subtract the Total Financial Aid shown on the Financial Aid Award from the Total Cost of Attendance.

New parent borrowers awarded the PLUS loan will be instructed to complete a PLUS Loan Request form online, then a separate online loan promissory note. The application approval process includes a standard credit check for all parent borrowers. Get more info on PLUS Loans.

Interest rate: This loan has a fixed interest rate of 6.41%, for new loans disbursed on or after July 1, 2013. Interest begins accruing on the PLUS loan after the first disbursement. The first payment of principal and interest is due approximately 60 days after the final loan disbursement for the year is made, but may be deferred while the student is enrolled. For more information on deferment, click here.

Repayment: A federal loan origination, or activation, fee of 4.204% is deducted from the amount of the loan prior to disbursement. For information on repayment, click here.

Grad PLUS

Graduate students may borrow a federal Grad PLUS Loan for up to the annual cost of education minus any estimated financial aid received. A FAFSA application is required.

Interest rate: This loan carries a fixed interest rate of 6.41%, which begins accrual immediately upon disbursement; the terms, including the six-month grace period, are otherwise the same as the Unsubsidized Stafford loan.

Repayment: A federal loan origination, or activation, fee of 4.204% is deducted from the amount of the loan prior to disbursement. For information on loan repayment, click here.

New borrowers are required to complete a pre-loan counseling session online as a requirement for disbursement of the loan.

University Loans

A very limited number of these loans are available to undergraduate students for up to $5,500 annually.

Interest rate: Simple interest of 5% per year on the unpaid principal balance begins six months after graduation or withdrawal from UCR.

Interest rates on UCR University loans will be fixed, not variable.
UC loans can have a range of interest rates.
UC loans are not awarded based on the credit history of the borrower.
UC loans do not require a co-signer.

Alternative Private Loans

Private loans, sometimes called "Alternative" or "Outside Agency" loans, are funded through banks and other private lending institutions. Since the Department of Education does not regulate private educational loans, their terms and conditions can vary widely. We recommend you only consider private loans if you need more money after taking the federal student loans for which you qualify. Unlike federal Stafford and Perkins loans, they usually require a credit-worthy co-signer. In general, federal loan terms are better than private loan terms. In keeping with the Higher Education Opportunity Act (HEOA) of 2008 and our Program Participation Agreement we abide by the University of California Code of Conduct in Regard to Preferred Lender Arrangements. 

For a look at some of the concerns with private loans, you may be interested in this documentary.

Private Loan Options

UC maintains a list of possible lenders you may wish to include when comparing private loan options; these lists are in no way exclusive or exhaustive of all existing lenders. Students may borrow from any lender they choose and are not required to use lenders listed.  UCR will process loans from any eligible lender you select. 

SB 1289 Disclosure

Students considering student loans need to be aware of the differences between federal student loans and private student loans:

• Federal student loans are required by law to provide a range of flexible repayment options including, but not limited to, income-based and income-contingent repayment plans as well as loan forgiveness benefits that private lenders are not required to provide.

• Federal direct loans are available to most students regardless of income. Other qualification criteria do apply. For more information, please visit http://www.studentaid.ed.gov/eligibility.

• Private student loan lenders can offer variable interest rates that can increase or decrease over time, depending on market conditions.

• The interest rate on a private loan may depend on the borrower's and/or co-signer's credit rating.

• Private student loans have a range of interest rates and fees and students should determine the interest rate of, and any fees associated with, the private student loan included in their financial aid award package before accepting the loan. Students should contact the lender of the private student loan or their UC campus' financial aid office if they have any questions about a private student loan.              

Loan Discount Analyzer

Before choosing a private loan, use the Loan Discount Analyzer. This calculator helps you evaluate the total cost of various student loan programs which offer up-front discounts in loan fees, reduction of principal incentives, prompt payment discounts, repayment discounts for direct debit payments, the financial benefit of subsidized interest, and more.

How do I apply?

Contact your chosen lender for pre-approval or fill out an application online. After submitting your application, the lender may send you a request for additional information. Please respond quickly to all requests to ensure prompt receipt of funds. After all additional information is received and your loan approved, the lender will contact UCR to certify the loan. Once we have confirmed your eligibility, we will certify the amount of your loan and usually return an electronic response to your lender. Following final loan approval, generally your lender will send funds to UC Riverside for disbursement to your student billing account. Note: although UCR attempts to process private loans as quickly as possible, we must allow for their "right to cancel" period to expire. In accordance with the Higher Education Opportunity Act, after you receive your final disclosure, you have three days to cancel your loan. Please allow up to seven additional days for processing and mail time.

Private Loan Disbursement

Private Loan funds are usually disbursed evenly among the terms you enroll. UCR receives most private loan funds electronically from the lender and will credit your student billing account when funds are received. Occasionally, a lender sends funds in the form of a check to the Financial Aid Office. In this case, you will be notified via email or phone with instructions on how to receive the funds. To find out the status of your loan, call the Financial Aid Office at (951) 827-3878.



More Information

General Campus Information

University of California, Riverside
900 University Ave.
Riverside, CA 92521
Tel: (951) 827-1012

Department Information

UCR Financial Aid Office
900 University Ave.

Tel: 951-827-3878
Fax: 951-827-5619
E-mail: finaid@ucr.edu

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