» Federal Loans

Step 1: Accept/Decline loans

• Once students have received an aid offer, students can accept/decline/reduce their student loans via the Student Center. Students should accept the Unsubsidized Direct Loan before accepting any Graduate PLUS loan, as that loan has more favorable terms.  Students wishing to accept an amount that is lower than the amount offered, should first click “Accept” and then "Reduce" and then enter the amount wanted. All loans will be split evenly over the standard terms in the student’s academic year (Fall/Spring for Main Campus students, Fall/Spring/Summer for Rinker Health Science students).

Step 2: Complete Loan Master Promissory Notes

• The Master Promissory Note (Loan Agreement) is completed online.  A separate MPN must be completed for each loan a student will be borrowing.  For the Unsubsidized Stafford loan choose Subsidized/Unsubsidized and for the Grad PLUS choose Graduate PLUS.

Step 3: Complete Loan Entrance Counseling

• Students who have not yet borrowed any Federal Loans for their graduate program at Chapman, must complete the Graduate Loan Entrance Counseling online. Federal Loan Entrance Counseling is a process set up to educate new students about loans and the Federal Direct Loans program. It consists of a short tutorial on the rights and responsibilities of a borrower followed by a brief multiple choice quiz. The process takes approximately 20-25 minutes.

Stafford Loans are Federal Loans available to students as a result of completing the FAFSA.

Federal Direct Unsubsidized Stafford Loan

• $20,500 annual limit. Pharm.D students have additional eligibility, and can receive up to $37,167 annually.
• Total aggregate limit (including any undergraduate borrowing) of $138,500 ($224,000 for Pharm.D).
• The maximum amount may be limited by the actual cost of attendance.
• Borrower pays all interest, which begins accruing upon first disbursement.
• The interest rate for 2024-25 is fixed at 8.08%.
• An origination fee is deducted from each disbursement, so the money disbursed is less that the amount borrowed. The borrower is responsible for paying the total amount borrowed. The fee for 2024-25 is 1.057%.
• Repayment starts 6 months after the student graduates, leaves school, or drops below half-time enrollment status.

The Graduate PLUS loan is a Federal loan to help fill the gap between the total cost of attendance and the combined amount of all other scholarships, grants, federal, and institutional aid.

• Borrowers must meet credit requirements for this loan*.
• The maximum amount is limited by the actual cost of attendance minus the combined amount of all other scholarships, grants, federal, and institutional aid.
• There is no aggregate maximum on this loan.
• Interest accrues while the student is in school and during grace periods and eligible deferment periods.
• The interest rate for 2024-25 is 9.08%.
• An origination fee is deducted from each disbursement, so the money disbursed is less that the amount borrowed. The borrower is responsible for paying the total amount borrowed. The fee for 2024-25 is 4.228%
• Repayment starts 6 months after the student graduates, leaves school, or drops below half-time status.

*Credit approval is based on federally mandated criteria, not a credit score. In order to qualify students must not have any of the following items on your credit report:

• Any current delinquency of 90 days or more
• Any of the following within the preceding 5 years of the date of the credit check: default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, open collection.
• Students who do not qualify for the loan based on credit may choose to document extenuating circumstances or obtain an endorser. Additional counseling is also required. 

The federal government requires that borrowers who have a break in enrollment, drop below half-time status, or graduate, complete Federal Loan Exit Counseling.  This requirement applies even if a student intends to return to Chapman University following a leave of absence. 

• Federal Loan Exit Counseling can be completed online. Students will need the name, address, and telephone number of next of kin, two references, and employer after graduation (if the student has one). Once completed, Chapman will receive an electronic notification that the requirement has been completed.

• Students can obtain information about their Federal Loans borrowed from the Student Aid website.

For the Federal Direct Unsubsidized and the Graduate PLUS Loan, repayment starts 6 months after the student graduates, leaves school, or drops below half-time status.

The Department of Education uses servicers to manage federal student loans. Servicers will be assigned once funds start disbursing, and servicers will typically reach out to students to let them know that they will be servicing the loans. Students will contact their servicer to set up payments plans, make payments, and ask questions.

Students can find general information about how to repay federal loans at the Federal Student Aid website.

Forgiveness of a student's loans means that the student is no longer required to pay some or all of their loan. A broad overview of forgiveness/cancellation/discharge of loans can be found at FSA.

Public Service Loan Forgiveness

Federal Direct Loan* borrowers who are employed by a government or not-for-profit organization may be able to receive loan forgiveness under the PSLF Program. The program forgives the remaining balance on your Direct Loans after the student has made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Learn more about the PSLF Program.

*On 10/6/21 the US Department of Education announced a temporary period during which borrowers may receive credity for payments that previously did not qualify. Learn more about this waiver.

Teacher Loan Forgiveness

Borrowers who teach full-time for five complete and consecutive academic years in a low-income elementary school, secondary school, or educational service agency, may qualify for some forgiveness on Direct Loans or FFEL Program Loans. Learn more about teacher forgiveness.