Federal
Federal Direct Loan
The Ford Federal Direct Loan program provides low-interest loans for undergraduate students to help pay for their educational expenses.
- FAFSA required
- Must be enrolled at least half-time
- 6.39% interest rate for 2025-2026: Subsidized and Unsubsidized Loans | Federal Student Aid
- 6.39% interest rate for 2026-2027: Subsidized and Unsubsidized Loans | Federal Student Aid
- 1.057% origination fee for loans with a first disbursement date disbursed on or after July 1, 2025, and before July 1, 2026
- Subsidized and Unsubsidized
- Subsidization ceases when a student completes 150% of the units required for their degree
- 6-month grace period before repayment
- Must complete Entrance Counseling & a Master Promissory Note (MPN)
NOTE: If your parent is denied a Federal Direct PLUS Loan, you are eligible to borrow a limited amount of additional unsubsidized Federal Direct Loan.
IMPORTANT: When considering borrowing a federal student loan, you should also understand repayment options.
Aggregate Loan Limits
- Dependent: $31,000 (no more than $23,000 may be subsidized)
- Independent: $57,500 (no more than $23,000 may be subsidized)
Annual Loan Limits
| Dependent Students (Except Students Whose Parents Cannot Borrow a Federal Direct PLUS Loan) | Maximum Subsidized Amount | Additional Unsubsidized Amount | Maximum Combined Subsidized and Unsubsidized Eligibility |
| First Year | $3,500 | $2,000 | $5,500 |
| Second Year | $4,500 | $2,000 | $6,500 |
| Third Year and Beyond | $5,500 | $2,000 | $7,500 |
| Independent Students and Dependent Students Whose Parents Cannot Borrow a Federal Direct PLUS Loan | Maximum Subsidized Amount | Additional Unsubsidized Amount | Maximum Combined Subsidized and Unsubsidized Eligibility |
| First Year | $3,500 | $6,000 | $9,500 |
| Second Year | $4,500 | $6,000 | $10,500 |
| Third Year and Beyond | $5,500 | $7,000 | $12,500 |
Private Loans
Private student loans may provide other sources of funding for students who have exhausted or who are ineligible for federal student loans.
Private student loan lenders have their own application and repayment terms, you should review all terms and disclosures before applying for one of these credit-based loan alternatives. As you consider your borrowing options, you should keep in mind that federal student loans are required by law to provide a range of flexible repayment options, including income-based repayment plans, and loan forgiveness benefits, which private loans are not required to provide. Also, federal Direct loans are available to students regardless of income.
Santa Clara University does not promote nor endorse any particular private student loan lender.
IMPORTANT: You should first consider Federal loan funding and then, if additional funding is needed, apply for a private student loan.
What are the differences between federal and private student loans?
Federal student loans are made by the government, with terms and conditions that are set by law, and include many benefits (such as fixed interest rates and income-driven repayment plans) not typically offered with private loans.
In contrast, private loans are made by private organizations such banks, credit unions, and state-based or state-affiliated organizations, and have terms and conditions that are set by the lender. Private student loans are generally more expensive than federal student loans. A summary providing the differences between Federal and Private loans can be found here.
How to Choose a Private Loan
If you decide to pursue a private student loan, it’s smart to compare several options to find what best fits your needs.
You can use the ELM Select tool to view and compare private loan terms from lenders most commonly used by Santa Clara undergraduate students:
Elm Select for Undergraduate Students
Questions to Ask When Evaluating a Private Loan Lender
- What is the interest rate? Is it fixed or variable? Is there a cap?
- Are there any fees? When are they charged?
- Is there a grace period before repayment starts?
- What will my monthly payment be?
- What is the total repayment cost over the life of the loan?
- Are there prepayment penalties?
- Are deferment or forbearance options available if needed?
Right To Cancel a Private Loan
Private Education Loan Lenders are required by law to provide borrowers with a "Right to Cancel" period before any funds can be disbursed to the school.
The “Right to Cancel” period begins after:
- The lender receives the Private Education Loan Application Self-Certification Form and the loan certification form the school, and
- All other required documents have been submitted to the lender by the borrower.
The timing of disbursement may vary depending on your lender’s policies. Please contact your lender directly to confirm the specific date your loan funds will be released to Santa Clara University.