Loan Information for Students and Parents
Undergraduate Loan Information
Graduate / Professional Programs
Private Loan Information
For detailed loan information, please see this U.S. Department of Education publication.
Undergraduates
Federal Direct Stafford Loan
The Federal Direct Loan Program allows you to borrow directly from the federal government, through the University, to pay college costs. There is a government loan fee of 2.5% removed from the total Stafford loan amount upon disbursement (payment to your student account)
Students who demonstrate financial need may qualify for a subsidized Stafford Loan; others may qualify for an unsubsidized loan. The interest rate on the Federal Direct Stafford Loan is a fixed rate. The interest rate for loans disbursed on or after July 1, 2012 is:
- Federal Direct Stafford Loan (subsidized)
- Only available to undergraduate students - 6.8%
- Federal Direct Stafford Loan (unsubsidized)
- All students - 6.8%
Understanding Capitalized Interest:
Capitalized interest is interest that accrues on your initial loan amount while you are still enrolled. The chart below demonstrates an example of the difference between paying your loan monthly interest payments vs. deferring interest payments until after you graduate.
$3,500 loan: 6.8% Interest: 4 years in school: |
Capitalize Interest: |
Interest Paid in school: |
| Amount Borrowed: | $3,500 | $3,500 |
| Monthly Interest Payment (while in school): | $0 | $19.84 |
| Interest to Capitalize: | $952 | $0 |
| Principle Balance at Repayment: | $4,452 | $3,500 |
| Estimated Monthly Payment (once in repayment): | $50 | $50 |
| Total Payments: | $5,950 | $5,302 |
| Total Interest Paid: | $2,450 | $1,802 |
| Total Savings: | N/A | $648 |
Additional information about the Federal Direct Stafford loan can be found on the U.S. Department of Education's William D. Ford Federal Direct Loan Program page at: unsubsidzed://www2.ed.gov/offices/OSFAP/DirectLoan/student.html.
Federal Perkins Loan
Federal Perkins Loans are subsidized, fixed 5% interest loans that are reserved for students who demonstrate high financial need.
Federal Direct PLUS Loan (Parent Loan)
The Federal Direct PLUS Loan is an unsubsidized credit-based loan for the parents of dependent students. The interest rate on the Federal Direct PLUS Loan is fixed at 7.9%. There is a government loan fee of 4% removed from the total PLUS loan amount upon disbursement (payment to your student account).
Additional information about the Federal Direct PLUS Loan can be found at: http://www2.ed.gov/offices/OSFAP/DirectLoan/parent.html.
Beginning July 1st parents can start applying for the Parent PLUS loan for 2012-13 at www.StudentLoans.gov. Please allow 2-3 business days for Pacific to process your completed loan application.
Understanding the difference between subsidized and unsubsidized student loans
Subsidized Loans are a type of loan in which the interest associated with the loan is paid by the government while the student is enrolled in school (in-school deferment) at least half-time. The student does not have a responsibility to repay interest paid by the government.
Unsubsidized Loans are a type of loan in which the student is responsible for the interest that accrues on the loan while in school. Depending on the loan the student may have the option to defer payment of accrued interest until after graduation (i.e. not pay until after graduation).
Private (Alternative) Loans
Lenders offer a variety of private education loans to assist students and families in meeting college costs. Before you consider a private educational loan (often called an "alternative" loan), we recommend you determine your eligibility for federal student loans, which generally have better terms; find more information about federal student loans at www.federalstudentaid.ed.gov.
Just like any other student loan, borrowers should consider a number of factors before applying for a private educational loan.
- Private educational loans are usually higher interest programs with interest that accrues while the student is in school.
- Students (or co-borrower) must have a good credit history to obtain private educational loans.
- Students (or co-borrower) must be a U.S. citizen or permanent resident.
- Most lenders require that you be enrolled at least half time in a degree-seeking program (dependent on the lender) Pacific will certify your loan up to the cost of attendance less other aid.
- You will be required to complete a Self Certification Form to provide financial aid information to your lender. The Self Certification Form will be provided to you by your lender.
- Your lender is required to provide the borrower with three additional Truth-in-lending statements at specific points in the application process. As a result, we are recommending that you apply at least three weeks prior to the date you need the funds and comply quickly to information requests from your lender.
Pacific recommends borrowers compare and research various private educational loan programs carefully before selecting a lender and to borrow as little as possible. We provide the following websites to assist you in choosing a lender; you are welcome to use any lender you like for your private educational loan:
- Private Loan Marketplace -
Details and links can be found at:
http://california.privateloanmarketplace.com/pacific - Private Loan Options -
http://www.studentlendinganalytics.com/alternative_
loan_options.html
Student Loan Code of Conduct
Pacific has developed a Code of Conduct in compliance with federal regulations. The Financial Aid Office staff members comply with the Code of Conduct. Click here for more information
Graduates / Professional Programs
Graduate Students
All Graduate Students who are interested in applying for loans should complete an on-line FAFSA at http://www.fafsa.gov. Graduate students may be eligible for unsubsidized Federal Direct Stafford loans, Grad PLUS loans and Private (Alternative) loans. Graduate students must be enrolled in at least four (4) units to be considered for financial aid assistance.
Students cannot be considered for aid until the FAFSA application is completed.
Direct Grad PLUS Loans for Graduate and Professional Students
Graduate and professional degree students can borrow a credit-based Direct Grad PLUS Loan to help cover education expenses. The interest rate on the Federal Direct Grad PLUS Loan is 7.9%. There is a government loan fee of 4% removed from the total Grad PLUS loan amount upon disbursement (payment to your student account).
The terms and conditions applicable to PLUS Loans for parents also apply to Grad PLUS Loans for graduate and professional students.
Pharmacy
Financial Aid information for Professional Pharmacy (Pharm D.) can be found here