Application Process and Lender Guide for Federal and Private Loans
The Financial Aid Office has formed a list of established lenders who have the highest volume of educational loans with California Baptist University students. These lenders have provided excellent customer service and benefits designed to meet the needs of students. You are not required to borrow from one of the listed lenders. You may use another lender of your choosing. Please contact the Financial Aid Office, if you choose a lender that is not listed. Please visit each lender's website to learn more about their features and benefits.
Types of Federal and Private Loans
Federal Stafford loans are made available to university students to help pay for the cost of education. Federal Stafford loans are offered to graduate and undergraduate students at a fixed low interest rate. Students must be enrolled at least half time to be eligible. Students are eligible to receive Stafford loans regardless of credit history. Stafford loans may be subsidized by the U.S. Government or unsubsidized depending on the student's financial need. Repayment begins six months after the student leaves school of falls below half-time status. For the 2009 - 2010 academic year, subsidized Stafford loans are offered at a fixed 5.6% interest rate, and unsubsidized Stafford loans are offered at a fixed 6.8% interest rate.
Graduate Plus loans are available to gradaute students to help pay for the cost of education. Federal Grad Plus Loans are funded by private lenders, including banks and credit unions. The federal government sets the interest rate, limits fees, and sets minimum deferment options for federal Grad Plus loans. However, many lenders offer benefits to borrowers beyond the minimum requirements set by the government. We encourage you to carefully review your options before choosing a lender. For the 2009-2010 academic year, Grad Plus is offered at a fixed 8.5% interest rate
Subsidized Stafford Loan—The government pays the interest while a student is in school. Based upon need
Unsubsidized Stafford Loan—Interest accrues while the student is in school. Not based upon need.
Private or alternative loans are available when federal loans and other aid do not cover your cost of education. Private educational loan programs vary by lender. Please contact specific lenders to find out about terms and conditions that may apply.
There are forgiveness programs available to graduate education students: Assumption Program of Loans for Education (APLE), and Teacher Loan Forgiveness. Each has special requirements, and each promises significant benefits for those eligible to participate. Numerous nursing scholarships also are available, with eligibility and application information available from the web sites below.
APLE—This is a competitive teacher incentive program designed to encourage outstanding students, district interns, and out-of-state teachers to become California teachers in subject areas where a critical teacher shortage has been identified or in designated schools meeting specific criteria established by the superintendent of public instruction.
- Applicants must agree to teach in one of the following teacher shortage areas: mathematics (grades 7-12), science (life/physical, grades 7-12), foreign language, education specialist instruction (formerly special education), business (grades 7-12), agriculture (grades 7-12), low-income-area schools, schools serving rural areas, state special schools, schools with a high percentage of emergency permit teachers, and low-performing schools.
- Up to $19,000 in outstanding educational loan balances may be assumed in return for four consecutive years of teaching. To be eligible, applicants must be approved to receive, or have received, an educational loan(s), must not be in default on any educational loans, and must agree to teach in a California public school in one of the areas listed above for at least four years.
- Applicants must be legal residents of California, must have completed 60 semester units (90 quarter units), and must be enrolled in a program leading to a BA or in a teacher preparatory program. Applications may be obtained through the Financial Aid Office at CBU.
- Eligible participants will receive reimbursement for up to a combined total of $5,000 of their subsidized and/or unsubsidized federalStafford or Direct loans, and in certain cases federal or Direct Consolidation loans. Reimbursement for up to a combined total of $17,500 in loans is available to highly qualified math, science or special education teachers.
- To be eligible, borrowers must have no outstanding loan balance on the date a loan is obtained.
- They also must be employed as a full-time teacher at a qualifying school for five complete and consecutive years, and at least one of those years must be after the 1997-98 academic year. Applicants also must be employed as an elementary or secondary school teacher and be “highly qualified” as defined on the Teacher Loan Forgiveness application.
- Loan balances must be outstanding at the time the loan is forgiven.