Types of Aid Available-LOANS
All students are required to make a "self-investment" in their education. Student loans play a significant role in financing the education of Cal Maritime students. Perkins, Federal Direct Stafford Loans, and Parent Loans for Undergraduate Students (PLUS) are the best loans that students and their families can receive because they are federally regulated.
Always remember that they are loans that must be repaid. Failure to repay these loans can result in loan default, resulting in many years without the use of credit. To see how borrowing loans will impact you after you graduate, calculate your estimate monthly payment by using this loan calculator.
Federal Direct Subsidized Stafford Loan
Subsidized Loans are government insured, long-term, low-interest loans for eligible undergraduate students. The federal government pays the interest on the loan while the student remains enrolled in college at least half-time or more. Repayment begins six months after graduation or separation. The standard repayment period is 10 years, however students can take longer, if needed. Loans for the 2017-18 award year had an interest rate during repayment of 4.45%.
An undergraduate student may borrow up to $3,500 for the first year of study, up to $4,500 for the second year, and up to $5,500 for the third through fifth years.
Federal Direct Unsubsidized Stafford Loan
Unsubsidized loans are long-term, low-interest loans for eligible undergraduate and graduate students who generally do not qualify for other need-based financial assistance or students who need loan assistance beyond the maximums provided by the subsidized loan program. Students can pay the interest while in school, or defer payments until the loan goes into repayment. Repayment on the loan begins six months after graduation or separation. The standard repayment period is 10 years, however students can take longer, if needed. Loans for the 2017-18 award year had an interest rate of 4.45%.
Aggregate Federal Loan Limits: The combined total of the Stafford Loan and Unsubsidized Stafford loan may not exceed regular Stafford loan limits ($31,000 for undergraduates, $57,500 for independent undergraduates, and $138,500 for combined undergraduate/graduate loan debt).
Federal Perkins Loan
The Federal Perkins Loan is awarded on the basis of financial need as determined by the EFC, the amount of funds the Financial Aid Office has to award and the FAFSA's completed by the March 2nd priority date. This loan has a fixed 5% interest rate. No interest accrues while you are in school and during a 9-month grace period after you either leave school, or cease to be enrolled at least half-time. The amount of the loan is adjusted annually depending upon the Perkins Loan funds available for disbursement. At this juncture 2017-2018 is the last year that the Perkins Loan will be available to students.
Federal PLUS Loan
PLUS loans are government-insured, long-term, low-interest loans for eligible parents of dependent, undergraduate students who generally do not qualify for other financial assistance. Parents may borrow up to the total cost of their dependent student's education minus any other aid for which the students are eligible. Please make sure to start this process well before the Fall payment is due in early August. It usually takes a minimum of seven business days to complete the credit check and Promissory Note needed to secure the loan.
PLUS loans borrowed for the 2017-18 year had an interest rate of 7.00%. Repayment begins 60 days after the funds are fully disbursed (usually towards the middle of Spring term), and the repayment term is 10 years. Parents have the option of deferring repayment on Parent PLUS loans while the student is in-school and for a six-month grace period after the student graduates or drops below full-time enrollment.
To qualify for a PLUS loan, parents must be a U.S. citizen or an eligible non-citizen, have a valid social security number and pass a credit check. The PLUS loan application can be found here.
For the credit check, parents generally must not have any outstanding tax liens, unpaid judgments, delinquent or defaulted loans, extensive credit card debt, bankruptcy, foreclosure or wage garnishment within the past five years. Parents who cannot pass the credit check may still be able to receive a PLUS loan if they know someone who can pass the credit check and is willing to co-sign their loan.
Dependent students whose parents have been denied a PLUS loan may be eligible to apply for additional Unsubsidized Loan.
Federal PLUS Loan Process
Complete and submit the Federal Direct Parent PLUS Loan request form. We will transmit your request to the U.S. Department of Education.
• If the Loan Amount Requested is left blank we will process the loan for the maximum amount for which the student is eligible.
• If the parent-borrower is an eligible non-citizen, they must submit a clear copy of both sides of his/her eligible non-citizen documents to the Financial Aid Office along with the 2017-2018 Federal Direct PLUS Loan Information & Request Form.
• If this is the first time the parent has applied for a PLUS loan, we will notify the student via their Cal Maritime email address that the parent must complete an electronic Master Promissory Note (MPN) online at https://studentloans.gov.
• After final approval, the Department of Education will transmit the PLUS funds electronically to the school. PLUS funds are applied towards any outstanding charges on student's account. Leftover funds in excess of charges will be mailed to the parent-borrower. Funds begin disbursing prior to the start of each semester and weekly thereafter.
• In the case of a PLUS loan denial, the Direct Loan Servicing Center will notify the parent borrower and explain why the credit history was denied. The Direct Loan Servicing center will also provide the name and address of the credit bureau that supplied the credit data. The parent-borrower has the following options: o Appeal the decision with the COD Applicant Services at 1-800-557-7394 o Reapply for the loan with an endorser (co-signer) o Student may contact the Financial Aid Office for additional student options.
In addition to the federal loan program, many lenders offer alternative educational loans. If you will be applying for a private loan, be sure to read the terms of the loan, and students will need to complete a FAFSA to determine their eligibility for federal loans.
Federal Student Loans are required by law to provide a range of flexible repayment options, including but not limited to, income-based repayment and income contingent repayment plans, and loan forgiveness benefits which other student loans are not required to do.
Federal loans are available to students regardless of income.
Historical Lenders for Cal Maritime Academy Students
Discover Student Loans – Discover Undergraduate and Graduate Student Loan
Sallie Mae– Smart Option Student Loan
Wells Fargo – Collegiate Loan
Please contact the lender, directly, to confirm current terms and conditions of their loan programs.
We have provided you with a list of historical lenders. This is not a preferred list as the student has the ability to choose any lender he or she prefers.
For more information regarding Federal and Private loans please contact the Financial Aid Office.