Loan Entrance Counseling
Federal Direct Loan Entrance Counseling
The federal government requires all first time student loan borrowers at California State University, San Bernardino to complete loan counseling before receiving a Federal Direct Loan. Graduate students who request a Graduate PLUS Loan are required by the federal government to complete the Direct Loan Entrance Counseling before receiving a Federal Direct Graduate PLUS Loan disbursement.
For both loan programs, students may satisfy this requirement by either completing the U.S. Department of Education's Online Entrance Counseling or by contacting the Office of Financial Aid & Scholarships and requesting an in-person Direct Loan Entrance Counseling session.
If a student chooses to complete the online loan entrance counseling, he/she MUST:
- Ensure completion of the Entrance Counseling requirement if borrowing a Direct Subsidized and/or Unsubsidized Loan, or complete the PLUS Loan Entrance Counseling if borrowing a Graduate PLUS Loan.
- Go to the Student Aid website and log in using student's FSA ID Username and FSA ID Password.
- Click Complete Entrance Counseling at the bottom of the web page and follow instructions.
A Federal Direct Loan cannot be processed and disbursed until the Office of Financial Aid and Scholarships receives electronic confirmation of this requirement.
The U.S. Department of Education's Online Entrance Counseling can be found at the Student Aid website.
If unable to complete an online entrance counseling session, contact the Office of Financial Aid and Scholarships at 909-537-5227 to schedule an in-person entrance counseling session.
Loan Exit Counseling
Federal Direct Loan Exit Counseling
The federal government requires that all departing students who received Federal Direct Loans MUST complete a Direct Loan Exit Counseling. This requirement is for all students who:
- Are graduating from California State University, San Bernardino
- Leave school or drop to a less than half-time status
- Are transferring out of California State University, San Bernardino.
If student chooses to complete the online loan exit counseling session, he/she MUST:
- Be prepared by having two references that reside at two different U.S. addresses who will know the student's whereabouts for at least three years. A student should have his/her complete physical addresses and phone numbers, his/her Driver's License information, and his/her Employer information (if available/known),
- Go to the Student Aid website and log in using the student's FSA ID Username and FSA ID Password.
- Click Complete Exit Counseling at the bottom of the web page and follow instructions.
- Select California State University, San Bernardino as the institution to receive confirmation of the Exit Counseling completion.
After successful completing of the Exit Counseling, the Office of Financial Aid and Scholarships will receive electronic confirmation of this requirement.
A student can view his/her completed Exit Counseling requirement via the National Student Loan Data System (NSLDS)
If a student is unable to complete the online exit counseling, he/she may contact the Office of Financial Aid and Scholarships at 909-537-5227 to schedule an in-person exit counseling session.
PERKINS LOAN BORROWERS: Students who have borrowed through the Federal Perkins Loan Program are also required to complete an Exit Counseling Session, but should contact Student Financial Services at 909-537-5162 for instructions. The U.S. Department of Education's Direct Loan Exit Counseling does NOT satisfy the Exit Counseling for the Federal Perkins Loan.
Federal Direct Loan Promissory Note
On-line Information and Instruction
In order to obtain a Federal Direct Loan, you must have a valid Master Promissory Note on file with the Loan Origination Center.
Completing the new Electronic Master Promissory Note (E-MPN) is easy and fast!
Electronic Master Promissory Note (E-MPN)
- To use the E-MPN, students must have a U.S. Department of Education issued FSA ID.
- Establish an FSA ID Username and FSA ID Password online via the Federal Student Aid website.
- Once an FSA ID Username and Password has been established, follow the steps below to complete the E-MPN process.
Step 1: To avoid delays, carefully follow the steps below. Students must complete the entire process because their information cannot be saved. If students stop midway through the process, they will be timed out after 30 minutes of inactivity.
Step 2: In addition to completing the electronic MPN, students must have a Free Application for Federal Student Aid (FAFSA) on file with CSUSB for the academic year they wish to apply for a loan. To complete the FAFSA, visit the Free Application for Federal Student Aid website.
Step 3: Have the following nearby:
- FSA ID Username and Password, and
- Reference information for two different people who will always know student's whereabouts
- Permanent Address
- Phone Number
Step 4: Go to the Student Aid website, log in and click Complete Master Promissory Note at the bottom of the web page.
Paper Master Promissory Note (MPN)
The student can complete a paper Master Promissory Note (MPN); however, we strongly encourage student borrowers to use the on-line promissory note process. To request a paper MPN be mailed to the student, he/she must contact the Office of Financial Aid and Scholarships at 909-537-5227. The student can pick up the form after 24 hours of making the request or can have the form mailed to him/her.
Note: New borrowers at California State University San Bernardino must complete the entrance loan counseling.
It is important to keep in mind that a loan is borrowed money and MUST be repaid at a specified time in the future, under the terms specified in the promissory note that the student signs. The student should be certain that all rights and responsibilities relative to any loan funds are understood before signing the promissory note. Failure to pay a student loan will adversely impact future credit ratings since all defaults are reported to national credit bureaus.
After the student graduates, leaves school, or drops below half time enrollment, the student has a six-month grace period before he/she begins repayment. The lender will send the student information about repayment and the student will be notified of the date repayment begins.
The Direct Loan program offers four repayment plans to choose from, but the terms differ slightly. Direct PLUS Loan borrowers may choose only from the first three options given here. More detailed information on repayment options are provided during entrance and exit counseling or the student may contact the Direct Loan Servicing Center for additional information.
These are the four repayment options:
- The Standard Repayment Plan requires fixed monthly payments (at least $50) over a fixed period of time (up to 10 years). The length of the repayment period depends on the loan amount. This plan usually results in the lowest total interest paid because the monthly payment is higher and the repayment period is shorter than under the other plans.
- The Extended Repayment Plan allows loan repayment to be extended over a period from generally 12 to 30 years, depending on the total amount borrowed. Borrowers still pay a fixed amount each month (at least $50), but usually the monthly payments will be less than under the Standard Repayment Plan.
- The Graduated Repayment Plan allows payments to be low at first and typically increases every two years. Graduated Repayment may be helpful if a borrower's income starts out low but increases steadily. Monthly payments must be at least half, but may not be more than one-and-a-half, of what the borrower would pay under Standard Repayment. As in the Extended Repayment Plan, the repayment period will vary between 12 to 30 years, depending on the total amount borrowed.
- The Income Contingent Repayment Plan bases monthly payments on the borrower's adjusted gross income (AGI) and the total amount of the borrower's Direct Loans. As the borrower's income rises or falls each year, the borrower's repayment amounts will be adjusted accordingly. The borrower's required monthly payments will not exceed 20% of his/her discretionary income. The repayment period for this plan will not exceed 25 years. After 25 years, any unpaid amount will be discharged, but the borrower will be required to pay taxes on the amount discharged. (Remember, this plan is not an option for Direct PLUS Loan borrowers.)
If, because of exceptional circumstances, the borrower cannot repay his/her loans using one of the repayment plans described, he/she may be able to work out an alternative repayment plan with the Direct Loan Servicing Center. Such a plan would be provided only on a case-by-case basis.
- If the borrower has student loans other than Direct Loans, he/she may want to apply for a Direct Consolidation Loan. Consolidation means making only one monthly payment to cover all loans. There may be several advantages if the borrower consolidates. Because the interest rate will be the same as for Direct Loans, the borrower may be able to pay less interest than paying on his/her current loans. The borrower may be able to reduce his/her monthly payments. A borrower can also choose the repayment plan that best suits his/her financial circumstances.
- For additional information regarding loan consolidation, visit Direct Loan Consolidation. on the Student Aid website.
- The Higher Education Act (HEA) provides for a loan consolidation program under both the Federal Family Education Loan (FFEL) Programs and the Direct Loan Program. Under these programs, a borrower's loans are paid off and a new consolidation loan is created. These programs simplify loan repayment by combining several types of Federal education loans (that may have different terms and repayment schedules or may have been made by different lenders) into one new loan. The interest rate may be lower than on one or more of the underlying loans. In addition, the monthly payment amount on a consolidation loan is usually lower and the amount of time to repay may be extended beyond what was available in the separate loan programs. These features should result in more manageable debt, and make borrowers less prone to default.
Students with Prior Loan Defaults
Loan default is failure to repay a loan according to the terms agreed to when the borrower signed his/her promissory note. The consequences of default are severe. The school, the lender or agency that holds the loan, the state, and the federal government may all take action to recover the money, including notifying national credit bureaus of the borrower's default. If a borrower returns to school, he/she not entitled to receive additional federal student aid. In many cases, default can be avoided by ensuring the lender has the most recent information of the borrower on file, this includes current address, phone number, and/or email address.
It is the policy of CSUSB to use its discretion in allowing students, who have had a prior default, to borrow any additional federal, state or institutional loans.
Penalty for Delinquent Loans
Students who have a delinquent CSUSB Emergency Student Loan, Rotary Student Loan or Major Emergency Loan assigned to a collection agency are not eligible to receive the following loans:
- CSUSB Emergency Student Loan
- Rotary Loan
- Major Emergency Loan
- Federal Perkins Loan
- Federal Subsidized Direct Loan
- Federal Unsubsidized Direct Loan
- Federal Parent Loan for Undergraduate Students
Safeguard eligibility - by always repaying loans.