A loan is aid that must be repaid. Total aid awarded in loans, grants, and scholarships may not exceed a student's total Cost of Attendance. If eligible, the Federal Direct Unsubsidized Loan will be included in the financial aid award package. Students who require additional funds may apply for a Federal Direct Graduate PLUS Loan or a Private Educational Loan. For a quick comparison between these two types of loans, please view this Federal Student Loan vs Private Student Loan comparison chart.
Federal Direct Unsubsidized Stafford Loan
Graduate students may borrow up to a maximum of $20,500 per academic year in a Federal Direct Unsubsidized Stafford Loan. The Federal Direct Unsubsidized Stafford Loan accrues interest while the student is enrolled, and the student may choose to pay the interest monthly or have it capitalized until repayment. The Federal Direct Unsubsidized Stafford Loan maximum for PsyD (Doctorate in Psychology) students is $33,000 per academic year. Students who apply for financial aid will automatically be considered for this loan.
NOTE: The maximum loan limit per academic year is $20,500 ($33,000 for PsyD students).
Federal Direct Loan funds, minus the origination fee, are disbursed through the school at the beginning of each term. For detailed information regarding the Federal Direct Unsubsidized Stafford Loan, including current interest rates and fees, visit the Federal Student Aid website.
If you accepted a Federal Direct Unsubsidized Stafford loan and this is your first loan at Pepperdine GSEP, you are required to complete both the Loan Entrance Counseling and a Direct Loan Master Promissory Note (MPN) at studentloans.gov. This is a federal requirement and must be completed before the Financial Aid Office can process your loan.
Federal Direct Graduate PLUS Loan
The Federal Direct Graduate PLUS Loan is an option for students who need additional funding beyond what is available through the Federal Stafford Loan program. The Federal Direct Graduate PLUS Loan is a federally-guaranteed loan that requires credit approval from the U.S. Department of Education. It is generally available to students who do not have adverse credit. The Federal Direct Graduate PLUS Loan may be borrowed for up to a student's Cost of Attendance minus other financial aid that has been awarded.
For detailed information regarding this loan, including the current interest rate, please visit the Federal Student Aid website. In order to begin the application process, please visit Student Loans and use your FSA ID to access the website. Once logged in, select "Request a PLUS Loan" from the menu options so that you can complete both the credit check and PLUS Master Promissory Note (MPN).
Private Educational Loans
Private Education Loans, also known as Alternative Education Loans, are available to students who require additional financial assistance. These loans are offered by financial institutions, such as banks or credit unions, and are available to students with good credit or with a creditworthy cosigner. Many private lenders offer loans with both variable and fixed interest rates. With a variable-rate loan, rates can rise or fall depending on the economy. They often have a lower beginning rate than the fixed-rate loan, and monthly payment amounts change when the interest rate changes. With a fixed-rate loan, the interest rate stays the same for the life of the loan. Fixed-rate loans often have higher rates than the variable-rate loans and have set monthly payment amounts.
When choosing a private loan, students should compare the loan terms offered by several programs in order to choose the best fit. Interest rates, fees, loan repayment schedules, and the financial stability of the lender are primary factors to consider.
For additional information regarding private loans and comparisons, please visit FASTChoice. FASTChoice helps you determine which loan is right for you by providing detailed information for various loans, as well as the terms and benefits offered by different lenders.
Your loan servicer, or lender, is the company that handles your federal student loan. Your loan servicer will assist you with repayment plans, loan consolidation, as well as overall management of your student loans. To view information about all of the federal student loans you have received and to find contact information for your loan servicer, visit the National Student Loan Data System (NSLDS). You will need your Federal Student Aid PIN to access your information.
Here is a list of phone numbers for the Federal Loan Servicers:
- Cornerstone: 800.663.1662
- EdFinancial Services: 855.337.6884
- FedLoan Servicing (PHEAA): 800.699.2908
- Granite State Management and Resources (GSMR): 888.556.0022
- Great Lakes Educational Loan Services: 800.236.4300
- MOHELA: 888.866.4352
- Nelnet: 888.486.4722
- OSLA Servicing: 866.264.9762
- Sallie Mae: 800.722.1300
To check your loan history and details of all loans borrowed for your undergraduate or graduate education, please visit the National Student Loan Data System (NSLDS).
After you leave school and start to repay your student loans, it's important to stay in touch with your loan servicer, especially if you are having difficulty making payments, because there may be alternative repayment options available to you. If you need contact information for your lender, please log in to the National Student Loan Data System (NSLDS).
Defaulting on a student loan is serious. The default is reported to all national credit bureaus. This could mean that you would not be able to obtain a credit card, mortgage, or a car loan. Your name will also be given to the Internal Revenue Service (IRS) who may take your State and Federal Income Tax Refund. You will lose your rights to deferments and forbearances. Finally, legal action may be taken against you, and the interest rate you pay on your loan may increase, and your wages may be garnished. In addition, you will not be eligible for financial aid at any school until your default status has been resolved satisfactorily.