Federal Loans
The University of California, Berkeley participates in the William D. Ford Federal Loan Program, which allows students enrolled at least half-time (6 units) to borrow money directly from the federal government at a fixed interest rate (6.8% for Direct Loans; 7.9% for the Grad PLUS Loan).
These Federal Loans are not processed through a bank; therefore, bank loan applications are not required. A Free Application for Federal Student Aid (FAFSA) must be filed each year that a student intends to borrow a loan. The loans must be paid back beginning six months after graduation or dropping below half-time attendance. The standard repayment term for the loans is 10 years.
Federal Direct Unsubsidized Student Loans are non-need based loans. All students who meet general eligibility requirements may qualify for Federal Direct Unsubsidized Loans. Interest accrues from the date of the first loan disbursement. The interest that accrues is not compounded or capitalized during periods of enrollment; the accrued interest is only capitalized just prior to entering repayment.
- Fees: 1.0% fee taken at disbursement
- Rate: 6.8% fixed interest rate
Additionally, health professional students, namely students in the MBA/MPH program, are eligible for unsubsidized loans up to $33,000.
Federal Direct Grad PLUS Loans are non-need based loans. Grad PLUS Loans are credit-based loans which require a credit check. To be eligible for a Grad PLUS loan you must meet the other general eligibility requirements for the Federal Student Aid Programs, and must not have an adverse credit history (i.e., currently no more than 90 days late on any debt and no bankruptcies or tax liens within the past 5 years; no defaults or adverse actions on any prior education debt). Students can borrow a Grad PLUS Loan up to the remaining total cost of education each year, minus any other expected financial aid.
- Fees: 4.0% fee taken at disbursement
- Rate: 7.9% fixed interest rate