Private Alternative Loans
Private educational loans are unsecured funds offered by private lenders. They are credit based consumer loans, used for educational costs, usually with varying interest rates and repayment schedules. These loans may be appropriate for students who do not qualify for guaranteed subsidized, unsubsidized and parent PLUS loans. These loans must be certified by the Office of Financial Aid & Scholarships before funds can be disbursed.
Students should always exhaust all of their federal financial aid eligibility options, first. CSUSB Office of Financial Aid & Scholarships encourages students to complete their FAFSA applications and use their federal loan options first.
Application Process:
It is a student’s responsibility and CSUSB strongly encourages students to research private educational loan resources, select a lender of their choosing, and complete the application as designated by the lender.
For a list of lenders and products typically used by students at CSUSB, please click on our:
If a student wishes to use another lender that is not on this list, please follow the lender’s application instructions.
Once a lender is selected and an application is processed, the Office of Financial Aid & Scholarships will be notified for certification of enrollment, cost of attendance and amount approval.
Loan Certification Information:
CSUSB begins certifying ALL student loans beginning in July for the next academic year. Alternative loans are certified for one academic year at a time.
Eligibility:
Eligibility requirements vary by lender. These include enrollment, maintaining academic progress, having established credit, and citizenship requirements.
Annual Award Amounts:
The maximum annual amount a student can borrow is the total cost of attendance minus any other financial aid received. The minimum amount is determined by the lenders.
Fees:
Origination and guarantee fees may vary by lender, but most private educational loans do not carry origination/guarantee fees.
Interest Rate:
Lenders use a variety of financial indexes to calculate interest rates on private loans. These are tied to economic factors that make interest rates on private loans a variable rate, although some private educational loans carry fixed rates. The two most common indexes are LIBOR and Prime Rate.
Since lenders compute the interest rate differently, check with each lender to determine how the interest rate is calculated and to find the most current rates.
Disbursement:
Funds are generally disbursed equitably among all terms of anticipated attendance. Funds are requested no earlier than 10 days before the start of a term. All private educational loan funds are processed through a third party servicer, ELMOne; and funds are issued electronically into a student’s CSUSB account for disbursement via check or direct deposit.
The Office of Financial Aid & Scholarships will confirm that a student is continuing to meet eligibility requirements established by the lender before the Student Financial Services releases the funds to the student.
Items to remember/consider when selecting a lender:
- Minimum and maximum loan amounts available.
- How will a student's credit rating affect his/her loan?
- Is a co-signer required? Can the co-signer be released at a later date?
- What is the current interest rate?
- What fees, interest reductions or incentives are offered?
- When do payments begin?
- What are the minimum and maximum terms and payment amounts?
- Is there a penalty for paying off the loan early?
- How the lender services the loan?
Nurse Faculty Loan Program
The Nurse Faculty Loan Program is available for graduate students in the Nurse Educator concentration of the MS in Nursing program aimed to increase the number of qualified nurse faculty. In exchange for full-time, post-graduation employment as nurse faculty, the program authorizes cancellation of up to 85% of any such loan (plus interest thereon).
California Dream Loan
The California Dream Loan is borrowed money that must repaid with interest. The interest rate for the California Dream Loan corresponds with the interest rate on a Federal Direct Subsidized loan and is subject to change annually. The California Dream Loan does not accrue interest while a student is enrolled at least half-time, during periods of approved deferment, and during the 6-month grace period before he/she enters repayment. The student is responsible for the interest charged at all other times.
CA Dream Loan borrowers have a standard repayment and income based repayment plan available. For more information visit heartland.ecsi.net. Under Download Forms, search for California State University (Dream Loans).
Loan Requirements
To accept a California Dream Loan, a student must log in to My Coyote portal and accept the loan offer within 30 days of the award in order to receive funding. A student may decline the loan offer or accept less than what is offered but funds are limited and may not be increased at a later time.
Students who accept the California Dream loan must complete a promissory note and entrance counseling. Failure to complete all the required steps to receive loan funds by the assigned deadline may result in cancellation of the loan offer. Funds are limited and may not be re-awarded again at a later date.
To complete the California Dream Loan Promissory Note and Entrance Counseling please visit ECSI.
Receipt of funds in one year does not guarantee availability or receipt of funds in subsequent years.
Qualifications
Please note: All financial aid recipients, including California Dream Loan borrowers, must meet basic eligibility criteria.
- Submit a DREAM Act Application by the March 2 priority deadline through the California Student Aid Commission (CSAC)
- Demonstrate financial need
- Meet Satisfactory Academic Progress (SAP)
- Undergraduate/Graduate
- Be enrolled in at least 6 units
- Not in default on a student loan
- Have a valid AB540 Affidavit on file (T and U Visa eligible) with CSUSB
T-Visa holders should file a FAFSA and may also be considered for CA Dream Loan eligibility.
CSUSB Emergency Loan
Through the generosity of the Associated Students, Alumni Association and the Foundation at CSUSB, students may borrow up to 100% of tuition costs. The Bailey emergency loan, which is available for other non-tuition expenses, is available for up to $600.
Emergency loans are available throughout the school year. Repayment of the loan is due by the last lecture day of each term. Any student who has completed the registration process at CSUSB and has at least a 2.5 GPA may apply. You must apply online at the Students Accounts-Emergency Loan site.