Graduate students in Argyros Forum at Chapman University
Graduate Financial Aid

» Federal Loans

Chapman University participates in the Federal Direct Loan Program where funding comes directly from the Federal Government. Federal loans provide the option to cover tuition and fees as well as living expenses associated with completing a graduate degree. Federal loans typically have better interest rates, and more flexible repayment options than private alternative loans.

Federal loan incentives include loan deferment, forbearance, or loan discharge in certain cases, and offer a variety of repayment plans. There is no penalty for early re-payment and loans are also eligible for loan consolidation.

Note: Students will be given the option to pay the interest on these loans while in school. Interest accrued while in school will be capitalized at the time of repayment, so any interest paid before repayment starts will lower the total amount of interest paid over the life of the loan.


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+ - Steps to Receive 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 Portal at my.chapman.edu and access the Student Center. If two different loans are offered, students can accept either or both and for the amount they wish to borrow. Students should accept any Subsidized or Unsubsidized Direct Loan before accepting any Graduate PLUS loan, as those loans have more favorable terms.  Students wishing to accept an amount that is lower than the amount offered, should first click “Accept” and then edit the amount. 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.  New students must create a login if accessing this for the first time.  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.

+ - Federal Direct Unsubsidized/Subsidized Stafford Loan

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 are eligible for an additional $16,667.
  • 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 2019-20 is fixed at 6.08%.
  • 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 2019-20 is 1.062% if the first disbursment is made before 10/1/19, and 1.059% if made on or after 10/1/19.
  • Repayment starts 6 months after the student graduates, leaves school, or drops below half-time enrollment status.

Teaching Credential Students Only

  • Students in the Teaching Credential Program are considered 5th-year undergraduates, and may be eligible to receive Federal Direct Stafford Loan
  • Subject to undergraduate loan limits
    • Students are eligible for up to $5,500 in need-based Subsidized Stafford Loan*. The government pays the interest while the student is enrolled at least half-time, and during the grace period. The interest rate on the Subsidized Loan is 4.529% for 2019-20, with an origination fee of 1.062%.
    • Students are also eligible for Unsubsidized Stafford Loans. Dependent students are eligible for $2,500, and independent students are eligible for $7,000.

*Subsidized Direct Loan eligibility is limited to a maximum of 150% of the student’s current academic program length. Once a borrower has received Subsidized Direct Loan for 150% of the length of their program, the borrower’s future Subsidized loan eligibility will end. A student who continues the program beyond that point will lose all subsidies on previously received Subsidized Direct Loans and would be required to pay all accumulated interest.

+ - Federal Direct Graduate PLUS Loan

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 current interest rate for 2019-20 is 7.079%
  • 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 2019-20 is 4.248% if the first disbursment is made before 10/1/19, and 4.236% if made on or after 10/1/19.
  • 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. More information can be found on the Federal Student Aid website.

+ - Federal Loan Exit Counseling

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 a list of all Federal Loans borrowed from the National Student Loan Data System.

 

+ - Loan Repayment

For the Federal Direct Unsubsidized, Subsidized, 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.

Students can access a list of all federal loans borrowed at the National Student Loan Data System.

FAFSA

Completing a FAFSA is the first step in applying for federal loans. The 2019-20 and 2020-21 applications are available online now. Chapman University's school code is 001164.