Loan Information

Do I have to accept a loan? 

No, there is no need to accept a loan if you can meet your educational expenses without a loan. Even after you accept a loan, you may reconsider your decision. You can always talk over your financing options by connecting with us during regular business hours. 

What if I want to increase the amount I accepted or reinstate a loan I declined?  

Connect with us during regular business hours if you would like to increase or reinstate your loan. 

What if I want to cancel an accepted loan? 

Connect with us during regular business hours if you would like to cancel your accepted loan. Please note that if you are canceling a loan that has already been paid to your student account, you may have to repay some or all of the amount already borrowed. 

Loan Simulator from Federal Student Aid: 

If you’re looking for help with your student loan decisions, the Loan Simulator Tool from Federal Student Aid can help! Features of the tool include:

• Personalized scenarios to reflect your goals and needs​
• Comparisons of different repayment plans​
• Advice to lower your monthly payment or pay off your loan faster
  

Federal Direct Loans are loans offered by the Department of Education to help you pay for your education. They have a fixed interest rate and a variety of repayment options.  

Applying for a Direct Student Loan 

You will have been offered Direct Loans in your financial aid package, if you are eligible for the funding. The Direct Loan program offers two types of loans: Subsidized and Unsubsidized. Depending on your eligibility, as determined by your FAFSA, you might be offered either or both types of loans. Learn about the differences between Subsidized and Unsubsidized loans from Federal Student Aid. 

There are limits on how much you can borrow based on your grade level; enrollment; your dependency status; and your overall lifetime borrowing. You can review the maximum eligibility amounts on the Student Aid website and then check your own lifetime and annual borrowing by logging in to your account on StudentAid.gov. 

Steps to receiving your Direct Loan at Cal Poly Pomona

1. Accept your loan
   Determine how much of your offered loans you would like to accept, and then accept that amount on your MyCPP Student Center. 
2. Complete Entrance Counseling and Promissory Note
   If you are a first-time Direct Loan borrower at Cal Poly Pomona, you will need to complete two requirements online before your loan funds can be released:  
   1. Direct Loan Entrance Counseling  
      Entrance Counseling will explain your rights and responsibilities as a loan borrower.  The counseling process takes approximately 30 minutes and must be completed in a single session. 
      1. Undergraduate Students:  Your Entrance Counseling will fulfill counseling requirements for both Direct Subsidized and Direct Unsubsidized Loans. 
      2. Graduate Students:  Your Entrance counseling will fulfill counseling requirements for Direct Unsubsidized Loans and Direct PLUS Loans. 
   2. Master Promissory Note for a Subsidized/Unsubsidized Loan (MPN)  
      The MPN is a legal agreement by which you agree to repay the loan, including any interest and fees, to Federal Student Aid or the holder of your loan.  The MPN process takes approximately 30 minutes and must be completed in one single session. 
      1. A Master Promissory Note is valid for ten years, so you don't need to complete one each year you borrow.
      2. You might be asked to re-complete a Master Promissory Note if the system indicates that your MPN has expired. 
3. Complete Annual Student Loan Acknowledgement
   You must complete the Annual Student Loan Acknowledgment each year you accept a new federal student loan.  You are acknowledging that you understand your responsibility to repay your loan, as well as that you understand how much you owe and how much more you can borrow.

To complete your Loan Counseling Session, MPN, and Annual Student Loan Acknowledgement, you will need the following: 

• Your Verified FSA ID
• Personal Information 
• School Name (Cal Poly Pomona) 
• Reference Information for two people with different U.S. addresses (Required for the MPN only) 

When does repayment begin? 

You will enter repayment any time you drop below half-time, whether that is due to graduation, withdrawal, or enrolling less than half-time. You will have a 6-month grace period at the start of repayment; there are no payments required during the grace period and interest does not accrue on your Subsidized loans. There are a variety of repayment options available for Direct Loans. You can pay off your loan earlier without any penalty. You can use the Department of Education's Loan Simulator to see your repayment options. 

Exit Counseling For Direct Loan Borrowers 

Exit counseling provides important information to prepare you to repay your Direct loan(s). If you have borrowed a Direct Loan, you must complete exit counseling each time you drop below half-time enrollment; graduate; or leave school. Our office will email you about any requirement to complete Exit Counseling. 

The California Dream Loan Program provides eligible AB540 students with the option to borrow a loan to help cover the cost of attending Cal Poly Pomona.  The CA Dream Loan is borrowed money that you must repay with interest. 

Steps to receiving your Dream Loan at Cal Poly Pomona

1. Accept Your Loan
   If you are eligible for the Dream Loan you will be notified by email after the loan has been added to your Award Summary (on MyCPP).   You may choose to decline the loan offer, or accept less than what is offered to you, but funds are limited and you may not be able to increase your loan at a later time.
2. Complete Entrance Counseling & Promissory Note 
   Once you have accepted your loan, you will need to complete the following requirements: 
   1. Entrance Counseling 
   2. Promissory Note  
   3. You will need to complete the Promissory Note each year that you borrow a DREAM loan. 

These will be posted on your To Do List on your MyCPP Student Center.  You will receive an email from ECSI, the loan servicer, with instructions for completing these items. Be sure to complete all items prior to the deadline listed in your To Do List.  

When all steps have been completed, ECSI will notify our office (within 3 business days), after which we will remove the items from your To Do List, and will be able to release the DREAM Loan funds to your student account. Any amount received in excess of outstanding Cal Poly Pomona charges will be refunded to you. 

When does repayment begin? 

You will enter repayment any time you drop below half-time enrollment, whether that is due to graduation, withdrawal, or enrolling less than half-time. You will have a 6-month grace period at the start of repayment; there are no payments required during the grace period and interest does not accrue on your loans during that time.  

After the grace period, you will begin making payments to ECSI, the Dream Loan servicer:

• No payments required during the 6-month grace period
• Repayment Period is 10 years 
• Minimum monthly payment is $50 
• You can pay off your loan earlier without penalty 

Repayment Plans 

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). 

Exit Counseling For Dream Loan Borrowers 

Exit counseling provides important information to prepare you to repay your Dream loan(s). If you have received a Dream Loan, you must complete exit counseling each time you drop below half-time enrollment; graduate; or leave school. 

When it is time for you to complete your Exit Counseling, you will be notified by Cal Poly Pomona and ECSI with instructions. 

Graduate PLUS Loans are loans offered by the Department of Education to help you pay for your education. Grad PLUS loans have a fixed interest rate and a variety of repayment options; you must not have an adverse credit history to borrow a Grad PLUS loan.   

Grad PLUS Loans are an option for graduate or doctoral students who have borrowed their maximum annual Direct Student Loan amount. PLUS loans can be borrowed up to the cost of attendance, minus any other aid received.  More information about the Graduate PLUS Loan  is available from Federal Student Aid.  

Applying for the Grad PLUS Loan at Cal Poly Pomona

To apply, please visit Student Loans.gov; Complete the steps listed below (which are also deteailed in our Graduate PLUS Instruction Guide (PDF)).

How Do I Apply for a Graduate PLUS Loan?

1. You must complete and submit your Free Application for Federal Student Aid (FAFSA)
2. Go to the Graduate PLUS Loan application on the Federal Student Aid website
3. Log in with your Federal Student Aid ID (FSA ID) - the same login used for your FAFSA
4. If prompted, accept the terms and conditions of the platform
5. Complete the application, review the information for accuracy, and submit

Tips on Applying:

• Make sure you select the correct Award Year at the top of the application (example: Fall 2022 and Spring and Summer 2023 would be the 2022-2023 year)
• Carefully read the options about in-school and post-enrollment deferment
• Make sure the loan is sent to Cal Poly Pomona - School Code/Branch 001144 - not other schools with similar names such as Cal Poly
• Choose the right Loan Period:
  • To apply for both Fall 2023 and Spring 2024, it would be August 2023 through May 2024
  • For Fall 2023 only, it would be August 2023 through December 2023
  • For Spring 2024 only, it would be January 2024 through May 2024
  • For Summer 2023, it would be May 2023 through August 2023

Additional Requirements You Must Complete

Funds cannot be disbursed to your account until all requirements are complete. Borrowers must complete a Loan Agreement (Master Promissory Note) for the loan. After you are approved for the loan, you must:

1. Log into the Federal Student Aid website with your FSA ID
2. Accept terms and conditions if prompted, then you should be in your Dashboard
3. In the CHECKLISTS section of your Dashboard page, click on "I'M IN SCHOOL"
4. Under "I'M IN SCHOOL" click on "Complete Entrance Counseling"
5. Scroll down to the "I am a Graduate or Professional Student" section, and click the "Start" button
6. Complete and submit your Entrance Counseling, and make sure you list Cal Poly Pomona as a school that you want notified that it has been completed (School Code 001144)
7. To return to your Dashboard, click on your name in the top righthand side of the screen, and choose Dashboard from the options
8. In the CHECKLISTS section of your Dashboard page, click on "I'M IN SCHOOL"
9. Under "I'M IN SCHOOL" click on "Complete MPN (i.e., Loan Agreement)
10. Scroll down to the "I am a Graduate or Professional Student" section, and click the "Select MPN Type" button
11. Scroll down to the "MPN for Direct PLUS Loans" section, and click the "Start" button
12. Complete and submit the MPN

You will enter repayment any time you drop below half-time, whether that is due to graduation, withdrawal, or enrolling in less than half-time.  There are a variety of repayment options available for PLUS Loans . You can pay off your loan earlier without any penalty. You can use the Department of Education's Loan Simulator  to see your repayment options.  

What if my Grad PLUS Loan application is denied? 

If you do not pass the credit check for your PLUS loan, you have the following options:  

• You may appeal the credit decision  
• You may apply with a credit-worthy endorser.   
• This person will be responsible to repay the loan in the event you are unable to make payments  

You will receive the results of your credit check by the Department of Education. If you decide to appeal the credit check or to apply with a credit-worthy endorser, follow the instructions provided by the Department of Education.

You can find more information from Federal Student Aid's Direct PLUS Loans and Adverse Credit guide (PDF).  

Parent PLUS Loans  are loans offered by the Department of Education to help you pay for your student's education. Parent PLUS loans have a fixed interest rate and a variety of repayment options; you must not have an adverse credit history to borrow a Parent PLUS loan.   

Parent PLUS Loans are an option for parents of dependent students to help cover educational expenses. PLUS loans can be borrowed up to the cost of attendance, minus any other aid received.  More information on the Parent PLUS loan is available from Federal Student Aid.  

Applying for the Parent PLUS Loan at Cal Poly Pomona

If you are interested in borrowing a Parent PLUS loan, you can apply by completing the following steps:

1. The student must complete and submit their Free Application for Federal Student Aid (FAFSA)
2. The parent must go to the Parent PLUS Loan application on the Federal Student Aid website
3. Your parent must log in with their Federal Student Aid ID (FSA ID) - not the student's
4. If prompted, accept the terms and conditions of the platform
5. Complete the application, review the information for accuracy, and submit
6. If you are approved for the loan, through a credit check, the amount you are eligible (based on your requested amount) for will be posted to your student's financial aid package.

Refer to the step-by-step instructions (with screen captures) in our Parent PLUS Instructions Guide (PDF).

Tips on Applying:

• Make sure your parent selects the correct Award Year at the top of the application (example: Fall 2022 and Spring and Summer 2023 would be the 2022-2023 year)
• Carefully read the options about in-school and post-enrollment deferment
• Make sure the loan is sent to Cal Poly Pomona - School Code/Branch 001144 - not other schools with similar names such as Cal Poly
• Choose the right Loan Period:
  • To apply for both Fall 2023 and Spring 2024, it would be August 2023 through May 2024
  • For Fall 2023 only, it would be August 2023 through December 2023
  • For Spring 2024 only, it would be January 2024 through May 2024
  • For Summer 2023, it would be May 2023 through August 2023

Additional Requirements Parents Must Complete

Funds cannot be disbursed to your student's account until all requirements are complete. Borrowers must complete a Loan Agreement (Master Promissory Note) for the loan. After you are approved for the loan, you must:

1. Log into the Federal Student Aid website with your FSA ID
2. Click on "Complete Loan Agreement (Master Promissory Note)"
3. Scroll down to "PLUS MPN for Parents" and click on the "Start" button on the right to begin

PLUS Credit Counseling

Although not part of the initial PLUS Loan requirements, we strongly encourage parents applying for a  Parent  PLUS Loan to complete the  PLUS Credit Counseling . PLUS Credit Counseling helps borrowers understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.  

PLUS Credit Counseling can be completed voluntarily at any time.  If PLUS Credit Counseling is completed voluntarily and you are determined to have an adverse credit history by the U.S. Department of Education within 30 days of PLUS Credit Counseling completion, your PLUS Credit Counseling requirement will be considered to be fulfilled. PLUS Credit Counseling is  required  if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documented extenuating circumstances to the satisfaction of the U.S. Department of Education  

When does repayment begin? 

You can request a deferment and then you will not need to make payments while your student is enrolled at least half-time and for an additional six months after your student graduates, leaves school, or drops below half-time enrollment. You would request deferment with your  loan servicer . If you do not request a deferment from your loan servicer, you will be expected to begin making payments after the loan is fully disbursed. There are a variety of  repayment options available for PLUS Loans . You can pay off your loan earlier without any penalty.  

What if my Parent PLUS Loan application is denied?

If you are not approved for a PLUS loan,  you still have options. You can review information about borrowing with an adverse credit history with this PLUS loan guide (PDF) from Federal Student Aid.

The U.S. Department of Education will send the parent information about appealing the credit decision or using an endorser/cosigner. 

• You may appeal the credit decision
• You may apply with a credit-worthy endorser.   
  • This person will be responsible to repay the loan in the event you are unable to make payments  

You will receive the results of your credit check by the Department of Education. If you decide to appeal the credit check or to apply with a credit-worthy endorser, follow the instructions provided by the Department of Education.

 If the parent does not pursue these options, the student may be eligible to add up to an additional $4,000 to their Unsubsidized Loan for the aid year for a freshman or sophomore, or up to an additional $5,000 to their Unsubsidized Loan for the aid year for a junior or senior (or as a Credential Student).

Review our Parent PLUS Instructions Guide (PDF) for more information on the steps involved if the parent is credit denied. The Federal Student Aid website for parent borrowers with adverse credit history provides additional guidance.

Private loans are loans made by a lender such as a bank or a credit union, not the Department of Education. These loans are typically borrowed by students who are not eligible or do not qualify for federal loans or who have exhausted their federal loan, or Dream Loan, eligibility. If you have not yet borrowed your full Federal loan eligibility, consider doing so before borrowing a private loan.  

Approval of a private loan is typically based on your credit rating and a debt-to-income ratio and may require a co-signer.  Private loans often carry higher interest rates and fees than federal loans   and may have less attractive repayment terms. The interest rates are variable, meaning they can change on a monthly basis, and are determined by the information in your credit report. Find out more about  the differences between federal and private loans  on the Federal Student Aid website.  

If you have exhausted all sources of federal funding and decide to borrow a private loan, compare lenders to ensure you are making the best choice for you.  

Truth in Lending requirements 

The Truth in Lending Act requires lenders who provide private loans to comply with the following requirements:  

• Lenders must provide three separate loan disclosures to borrowers — one at the point of application, one when the loan is approved, and one before the loan is disbursed.  
• A waiting period of three business days is required between the time the borrower receives the final loan disclosure and the time that the loan is disbursed.  
• Students must also sign a self-certification form and submit it to the lender before the loan can be disbursed.  

Your lender should provide you with all of the information you need to know about these requirements, but if you have questions, feel free to contact our office.  

Private Education Loan Process at Cal Poly Pomona

• Apply for a Private Loan directly with the lender of your choice
• Complete the CPP Private Loan Request Form which is available through our Student Forms Portal.
• Your lender should provide you with a copy of the required Private Education Loan Self-Certification Form. 
  • To complete your Private Education Loan Self-Certification Form, you will need to know your cost of attendance and estimated financial assistance.  
  • If you receive financial aid, this information can be found on your Financial Aid Summary in your MyCPP Student Center.  Otherwise, refer to the Costs page on our website.
• Send your completed self-certification form to your lender. Your loan cannot be disbursed until your lender receives it. 

There are a number of responsibilities – and rights – that go along with being a student loan borrower.  

Student Loan Borrower Responsibilities

When you accept a student loan, you agree to:  

• Repay your loan, including accrued interest and fees, whether or not you complete your education, complete the program within the regular time frame, obtain employment or are satisfied with your education;  
• Complete Exit Counseling before you leave school or drop below half-time enrollment;  
• Notify the current holder of your loan within 10 days if you change your name, address or phone number, drop below half-time status, withdraw from school or transfer or change your graduation date;  
• Direct all correspondence to the current holder or servicer of your loan;  
• Make monthly payments on your loan after leaving school, unless you are granted a deferment or forbearance; and  
• Notify the current holder of your loan of anything that might affect your eligibility for an existing deferment.  

Student Loan Borrower Rights

As a student borrower, you have the right to:  

• Receive a copy of your promissory note either before or at the time the loan is made;  
• Receive a disclosure statement before repayment on your loan begins, including information about interest rates, fees, loan balance and the size and number of payments;  
• A grace period after you leave school or drop below half-time enrollment and before your loan payments begins (if applicable);  
• Prepay all or part of your loans without a prepayment penalty;  
• Consolidate your loans, if applicable;  
• Apply for loan forgiveness, if eligible;  
• Receive written notice if your loan is sold to a new holder;  
• Apply for deferment of your loan payments for certain specified periods, as long as you're eligible;  
• Request forbearance from the holder of your loan if you are unable to make payments and do not qualify for deferment (you must qualify according to the loan holder's requirements);  
• Loan cancellation under certain circumstances; and  
• Receive proof when your loan is paid in full.  

There is a lot to consider when it comes to repaying federal student loans.  Understanding the details of repayment can go a long way in your financial planning.  Find out when your repayment begins, how to make a payment, repayment plan options and what to do if you have trouble making payments and much more.   You can access your federal student loan information by logging in to your account at studentaid.gov.  

Loan Simulator

You can use the Federal Student Aid Loan Simulator Tool to get an early look at which plans you may be eligible for and see estimates for how much you would pay monthly and overall.  Features of the tool include:

• Personalized scenarios to reflect your goals and needs​
• Comparisons of different repayment plans​
• Advice to lower your monthly payment or pay off your loan faster​

Repayment Plans

To make your payments more affordable, repayment plans can give you more time to repay your loans or can be based on your income. 

Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time—for free.  

To compare plans you may be eligible for and view estimates for how much you would pay monthly or over the life of the loan, please log in to your account on studentaid.gov 

If you do not make a payment on time or you miss a payment, your loan is considered delinquent.  You need to bring your account current to take your loans out of delinquency.  If not, loan servicers report all delinquencies of at least 90 days to the three major credit bureaus. 

• If your federal student loan is delinquent, check out the Student Loan Debt Collection Assistant, which the U.S. Department of Education developed in partnership with the Consumer Financial Protection Bureau. The tool provides information about how to access the full range of special repayment options available to you.

To default means you failed to make monthly payments for 270 days.  Some consequences of defaulting include, losing eligibility for additional student aid, negative credit, federal and state tax refunds withheld, loan debt increase due to additional fees (court, collection, late fees, etc.), wage garnishment, etc. 

Take the necessary steps to avoid defaulting on your student loans by: 

• Understanding your loan agreement - Master Promissory Note 
• Managing your borrowing - Don't borrow more than you need or expect to be able to repay 
• Tracking your loans online - Find information about all of your federal student loans from the U.S. Department of Education by logging in to "My Federal Student Aid."
• Keeping good records - Organize all your loan documents 
• Notifying your loan servicer - Always maintain contact with your loan servicer of any income / school changes 

Additional information on avoiding default is available on the Federal Student Aid website. 

Loan Forgiveness 

Loan forgiveness is the cancellation of all or some portion of your remaining federal student loan balance. If your loan is forgiven, you are no longer responsible for repaying that remaining portion of the loan. Student borrowers are encouraged to research all loan forgiveness and loan assumption programs prior to going into repayment.  

Resources may be federal, state, or private. Some non-profit employer programs and service organizations may, like the Peace Corps, Teach America, etc. may also assist with loan repayment.  The following list provides examples of some of the larger loan forgiveness programs. 

• Public Service Loan Forgiveness Program 
• Teacher Loan Forgiveness Program 

Loan Cancellation and Discharge 

Loan Cancellation is the release of a borrower from the obligation to repay all or a designated portion of principal and interest on a student loan.  Types of cancellation currently include: 

• Perkins Loan Cancellation 

Loan Discharge is the release of a borrower from the obligation to repay the loan borrowed.  Types of in Discharge include: 

• Total and Permanent Disability 
• Death
• Bankruptcy (in rare cases) 
• Closed School  
• False Certification of Student Eligibility 
• Unpaid Refund 

Additional information on federal student loan forgiveness, cancellation or discharge, is available on the Federal Student Aid website. 

The Higher Education Opportunity Act of August 14, 2008 includes provisions that campuses participating in Title IV programs publish a code of conduct which describes prohibited practices related to loan programs.  

To avoid any conflict of interest in the area of student lending, all staff members of the Cal Poly Pomona Office of Financial Aid & Scholarships adhere to the guidelines outlined in the CSU Code of Conduct.   

The CSU Code of Conduct prohibits the following: 

• Revenue sharing arrangements with any lender. 
• The solicitation or acceptance of gifts from a lender, guarantor or servicer by anyone with responsibilities with respect to loans at the institution. 
• Receipt of any fees, payments or other financial benefits (including a stock purchase option) by anyone with responsibilities with respect to loans from a lender as compensation for any type of consulting arrangement or contract to provide services to a lender or on behalf of a lender relating to education loans. 
• The assignment of a first-time borrower’s loan to a particular lender or refusing to certify or otherwise delay certification of any loan regardless of the lender or guaranty agency the borrower selects. 
• The acceptance of any funds to be used for private education loans in exchange for the institution providing concessions to the private lender. 
• Requesting or accepting assistance with call center staffing or financial aid office staffing from any lender.
• Any employee with responsibilities with respect to financial assistance at the institution who serves on an advisory board or commission of a lender or guarantor may not accept anything of value from the lender or guarantor except reimbursement for the reasonable expenses of serving on the board or commission. 

For detailed information please refer to the Student Lending Code of Conduct (PDF) that applies to all CSU campuses.