Student Loans

Traditional Undergraduate Students

Loans are money you borrow that must be repaid with interest. Along with scholarships, grants, and work study, they are a vital form of financial assistance that can offset your cost of attendance.

Cal Lutheran participates in multiple federal and private loan programs for students and their families. Eligibility for federal loans require a FAFSA to be completed each year.

For the 2026-2027 year, in order to receive the full annual federal loan amount, students must be full-time. If you enroll in less than 12-credits (full-time), there will be a scheduled reduction of your loan.

Loan Options

Loan	Borrower	Interest Rate*	Year Max**	Lifetime Max	Credit Check?	Repayment Grace Period	Fee?***
Federal Direct Subsidized and Unsubsidized Loan	Student	6.39%	Up to $12,500 (Seniors)	$57,500	No	6 months	Yes
Federal Direct Parent PLUS Loan	Parent	8.94%	Varies	Varies	Yes	60 days	Yes
Private Student Loan	Student, Parent	Varies by lender	Up to COA	None	Yes	None	Yes

*Fixed interest rate; current percentage reflects 2025-26; changes each year
**Total amount of financial aid, including loans, cannot exceed Cost of Attendance (COA), as determined by Cal Lutheran each year.
***Fees are subtracted from the disbursed monies each term and are typically calculated as a % of the amount disbursed.

Información en Español

Federal Direct Subsidized and Unsubsidized Loan

Overview

Priority Deadline: July 1

Federal Direct Subsidized and Unsubsidized Loans are available to students who complete the FAFSA, submit all required documentation, and are enrolled at least half-time. Students who apply for the FAFSA are automatically considered for both Subsidized and Unsubsidized loans. While repayment on both loan types may be deferred until six months after a student leaves school or drops below half-time enrollment, interest accrues differently.

Unsubsidized loans begin accruing interest immediately, whereas Subsidized loans — awarded based on financial need — have their interest covered by the federal government while the student remains enrolled atleast half-time. With fixed interest rates and no credit check required, Federal Direct Subsidized and Unsubsidized Loans are an excellent financing option for eligible FAFSA applicants.

Key Information

Starting in the 2026-2027 academic year, students must be enrolled atleast full-time in order to receive the full annual federal loan limits. If you plan on dropping below full-time status, please contact our office to discuss the how this will impact your annual federal loan limits.

Subsidized or Direct Subsidized Loan

Unsubsidized or Direct Unsubsidized Loan

For Unsubsidized Direct Loans, students are charged interest from the time the loan is disbursed until it is paid in full. Borrowers may choose to pay the interest while they are in school, or defer payments until the end of their grace period. Any accrued interest will be capitalized and added to the principal amount of the loan at repayment, increasing the amount that must be repaid. If students choose to pay the interest as it accumulates, the long term cost of the loan will be less.

Loan Repayment

Repayment on Direct Loans begins six months after a student graduates, withdraws, leaves school, or drops below half-time status.

Academic year	First Disbursement	Loan Type	Interest Rate
2026-27	On or after July 1, 2026 and before July 1, 2027	Undergraduate Direct Loan: Subsidized & Unsubsidized	TBD
2025-26	On or after July 1, 2025 and before July 1, 2026	Undergraduate Direct Loan: Subsidized & Unsubsidized	6.39%

View Loan Repayment Simulator

Additional Unsubsidized Loan

The Additional Unsubsidized Direct Loan is available to students whose parents are denied the Direct Parent PLUS Loan by the Department of Education during the application process. Additional Unsubsidized Direct Loan amounts are as follows:

Class	Credit Requirements	Amount
1st Year	0–29 credits	$4,000
2nd Year	30–59 credits	$4,000
3rd Year and Beyond	60–89 credits	$5,000

Loan Limits

The maximum loan amount for which a student may receive in the Direct Subsidized and Unsubsidized Loan program is determined by the student’s grade level and financial need. Grade level is determined based on the number of credits a student has completed.

Cal Lutheran reviews aggregate loan limits prior to awarding loans for the academic year. Students can check the amount of loans they have taken out during their academic careers at studentaid.gov.

Dependent Undergraduate Students

Class	Credit Requirements	Annual Maximum
1st Year	0–29 credits	$5,500 ($3,500 subsidized)
2nd Year	30–59 credits	$6,500 ($4,500 subsidized)
3rd Year and Beyond	60–89 credits	$7,500 ($5,500 subsidized)
Aggregate (Total) Limit		$31,000 ($23,000 subsidized)

Independent Undergraduate Students

Class	Credit Requirements	Annual Maximum
1st Year	0–29 credits	$9,500 ($3,500 subsidized)
2nd Year	30–59 credits	$10,500 ($4,500 subsidized)
3rd Year and Beyond	60–90+ credits	$12,500 ($5,500 subsidized)
Aggregate (Total) Limit	90+ credits	$57,500 ($23,000 subsidized)

Students enrolling mid-year in an academic program, may be eligible to receive the full amount of Direct Loan funds up to the annual loan limits as specified by the federal government.

Please Note: this may result in receipt of loan funds at a higher amount in a single term due to a mid-year start date. If you later intend to enroll for all terms in an academic year, your loan funds will be equally distributed over the terms you are enrolled in. If you have questions about how this will impact any future awards, please contact the Office of Financial Aid.

Origination Fees

All Direct Subsidized and Unsubsidized Loans are subject to federal origination fees which are subtracted from the loan at the time of disbursement.

First Disbursement	Loan Fee	Fee on a Loan Amount Of
On or after October 1, 2020 and before October 1, 2026	1.057%	$58.14 on a $5,500 loan

Please Note: When calculating your final balance, if utilizing a direct subsidized or unsubsubsidized loan, please make sure to account for the federal origination fee.

How to Apply

As of July 1, 2026 there are new loan limits for all federal federal loans. If this is your first time borrowing loans, be sure to review the loan limits when calculating your cost of attendance.

All application steps must be completed at least 30 business days prior to the start of a term which the student wishes to receive aid for. This includes the following:

Step 1: Filing a FAFSA

Step 2: Complete Any Missing Document Requests

Step 3: Accept Your Loans

Once your loan eligibility for the aid year has been determined, you will need to manually accept your loans through your MyCLU Self-Service Financial Aid portal. Accepting the loan through the portal, will allow you to accept the full amounts of your loan eligibility for the academic year. If you are looking to accept less that the full amount, please submit a Loan Change Request Form to indicate how much of the loan you are wishing to accept for the semester/aid year.

Step 4: Complete Necessary Loan Items

All loans require processing time before the funds will be ready to disburse. Students may receive loan funds for a term only if they are currently enrolled in that term at least half time and loan funds disburse prior to end of that term. If completion of required steps occurs after the 10 business days prior to the end of the term, the Office of Financial Aid cannot guarantee that loan(s) will be processed before the end of the eligible timeframe.

Loan Disclosure

Please note that the borrower has the right to cancel a portion of or the entirety of their loan within 14 days of either the first day of class or the disbursement of the funds to the student’s account, whichever is later. After which time it is the borrower’s responsibility to return any unwanted funds to the lender or federal loan servicer. To request a cancellation, please complete and submit a Loan Change Request Form within the appropriate timeframe.

Creating an FSA Account

Steps involving StudentAid.gov will require a Department of Education FSA ID. Learn how to create an FSA ID

Required: Loan Counseling

Loan counseling is a required means of helping you understand your rights and responsibilities regarding your loan.

Entrance Counseling

Entrance counseling must be completed before the first disbursement of a loan. If you do not complete your Loan Entrance Counseling, your loan will not be able to be processed.

You can complete loan entrance counseling online at the StudentAid.gov website.

Exit Counseling

Exit counseling must be completed before graduation or dropping below half-time enrollment.

You may complete your exit counseling online at the StudentAid.gov website. You will need your Social Security number, FSA ID, and the name and addresses of your nearest relative and two personal references to complete the session. When you have finished your exit counseling, remember to print your completion certificate.

If you need to get a Separation Form signed for Financial Aid, bring your completion certificate into the Financial Aid Office and our Front Desk representative will be able to sign off.

Back to all loan options

Federal Direct Parent PLUS Loan

Upcoming Changes to Parent PLUS Loans

The One Big Beautiful Bill Act (OBBBA) makes significant changes to Parent PLUS Loan limits.

What is changing?

There are new loan limits for the Parent PLUS Loan program:

$20,000 per dependent student, per year (annual limit).
$65,000 per dependent student, in total (aggregate limit).

Who qualifies for the limited exception to these limits?

For currently enrolled students:

The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND
Either:
- The parent borrower must have had a Parent PLUS Loan disbursed for that same program before July 1, 2026 OR
- The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026

If the above requirements are met, the new Parent PLUS Loan limits do not apply while the student is completing their program, for up to 3 years, provided the student remains continuously enrolled (i.e., does not withdraw or otherwise cease enrollment outside of scheduled breaks or non-required terms, such as summer).

Loan Repayment

For new Parent Plus Loan disbursed on or after July 1, 2026, borrowers will only be eligible for a tiered standard repayment plan that offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance.
This applies to parent borrowers with existing Parent PLUS Loans who borrow a new loan on or after July 1, 2026, as well, since the law requires that all Parent PLUS Loans be repaid under the same repayment plan.

Overview

Priority Deadline: July 1

This Federal Direct Parent PLUS Loan is available to credit-worthy parents of undergraduate dependent students regardless of income. This loan program allows parents to borrow the difference between the cost of education and the financial assistance the student is scheduled to receive. Effective July 1, 2026, all parents (combined) may borrow up to $20,000 per year per dependent student and a $65,000 aggregate limit per dependent student (includes amounts forgiven, repaid, or discharged) unless they qualify for the limited exception.

Key Information

Credit Check Requirement for Parent PLUS Loan

To meet the federally defined credit worthiness requirements, an applicant cannot be 90 days or more delinquent on the repayment of any debt, the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write off of a Title IV debt during the last five years.

If the parent receives a denied credit decision on their PLUS Loan application, there are a few options. Parents can add a credit-worthy endorser, appeal the credit decision, or request the Additional Unsubsidized Direct Loan for the student. For more details on options and steps, please see this link.

Parent PLUS Loan Repayment

Interest begins to accrue after the first disbursement, and payment of principal and interest begins 60 days after the final disbursement. Parents can apply for an in-school deferment for as long as their student is enrolled at least half-time.

ACADEMIC YEAR	FIRST DISBURSEMENT	LOAN TYPE	INTEREST RATE
2026-2027	On or after July 1, 2026 and before July 1, 2027	Parent PLUS Loan	TBD
2025-26	On or after July 1, 2025 and before July 1, 2026	Parent PLUS Loan	8.94%

STUDENTAID.GOV LOAN SIMULATOR

For Parent PLUS Loans taken out on or after July 1, 2026, the only repayment plan option available will be a new tiered standard repayment plan. The tiered standard repayment plan offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance.
This applies to parent borrowers with existing Parent PLUS Loans who borrow a new loan on or after July 1, 2026, as well, because the law requires that all Parent PLUS Loans be repaid under the same repayment plan.

Origination Fee

All Direct Parent PLUS Loans are subject to federal origination fees which are subtracted from the loan at the time of disbursement.

First Disbursement: On or after October 1, 2020 and before October 1, 2026
Loan Fee: 4.228%
Fee on a Loan Amount Of: $422.80 on a $10,000 loan

Please Note: When calculating your final balance, if utilizing a Direct Parent PLUS loan, please make sure to account for the federal origination fee.

Annual Loan Amount

When completing the online Direct Parent PLUS loan application, the parent will be presented with the option to either:

Specify a loan amount

Borrow the maximum Direct PLUS Loan amount for which I am eligible
- If the parent selects to borrow the maximum, please be advised the Office of Financial Aid will increase the loan amount up to the maximum amount based on the student’s eligibility.

Please Note: If you do not indicate an amount on your Parent PLUS Loan application, we will be unable to process the loan.

Loan Amount Changes & Adjustments

How to Apply

If a parent has not yet taken out a Direct Parent PLUS Loan for their student prior to July 1, 2026, they must adhere to the new borrowing guidelines determined by the Department of Education. If a parent has already taken out a Parent PLUS Loan for their student prior to July 1, 2026, they may continue to borrow using the old guidelines for up to three (3) academic years or until their dependent student completes their program, whichever is less.

Step 1: Complete FAFSA & Parent PLUS Loan Application

Once a FAFSA application has been fully submitted by both the student and any necessary contributors, the parent contributor must complete an online Parent PLUS Application

The parent will need to use the same FAFSA ID they used to sign the FAFSA to log in
- Please note, if a parent who is not listed on the FAFSA is completing the Parent PLUS Loan Application, they must create a FSA ID. Our office will then need to confirm borrower relationship via email.
Within the application, the parent will need to request a specific dollar amount and loan period.
- Please note, if the specific anount is left blank, we will be unable to process your application
  - If you specify the amount that you would like and want it to cover a specific balance, take into consideration the origination fee percentage that is taken out by the Department of Education prior to disbursement.
- If this is your first time borrowing a Parent PLUS Loan, the maximum amount available for the academic year is $20,000.
In order to submit the application, the parent will need to authorize a credit check with the Department of Education
- Please note, if your parent has a freeze on their credit history, the application will not be processed, as a credit check must be run in order to determine eligibility.

If Your Parent Receives a Denied Credit Decision

Option 1: Add a credit-worthy endorser

Find a credit worthy endorser and provide them with your PLUS loan reference number
The endorser must request an FSA ID with the Department of Education. They will then use that FSA ID to sign into www.Studentaid.gov
Have the endorser complete an endorser addendum
Complete a new PLUS MPN to include your endorser

Option 2: Appeal the credit decision

Submit an appeal due to extentuating circumstances or incorrect information
Your parent must include a statement along with documentation to support their claim. Visit https://studentaid.gov/appeal-credit/demo to get started,
The Department of Education will notify you of their final decision
If approved, our office will be notified

Option 3: Request an additional unsubsidized loan

Once the denied Parent Plus loan is processed by the Financial Aid Office, an additional Unsubsidized Loan will be added to the aid offer and the student will be sent a revised aid offer notification email via their Cal Lutheran email address
The student must accept the Additional Unsubsidized Loan in their MyCLU Financial Aid Self-Service

Additional Requirement When Pursuing Options 1 and 2:

Direct Parent PLUS loan applicants who successfully appeal their credit decision or obtain an endorser will be required to complete PLUS Credit Counseling.

Complete online Plus Credit Counseling:
- This will need to be completed before your loan can disburse. Please note this counseling must be completed in one sitting as there is no ‘save progress’ function.
- For questions about whether you need to complete this counseling or not please contact the Student Loan Support Center at 800-557-7394.

Step 2: Complete Necessary Parent PLUS Loan Items

Step 3: Monitor Your MyCLU Account

Loan Disclosure

Creating an FSA Account

Steps involving StudentAid.gov will require a Department of Education FSA ID. Learn how to create an FSA ID

Required ONLY if the parent is denied (if approved, PLUS Loan Credit Counseling is not required):

PLUS Loan Credit Counseling

PLUS Loan Credit Counseling is required of a Federal Direct Graduate PLUS or Federal Direct Parent PLUS borrower if the U.S. Department of Education has informed you that you have an adverse credit history and you have:

Obtained an approved endorser or
Documented to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history.

Visit StudentAid.gov to complete PLUS Loan Credit Counseling.

Note: PLUS Loan Credit Counseling is NOT required for borrowers with an approved credit check or for borrowers who are not using an endorser.

Back to all loan options

Private Student Loan

Overview

Private student loans (also referred to as education or alternative loans) are offered and serviced by third-party lenders to help bridge the gap between college costs and traditional financial aid. These loans may be used to cover current-term expenses, past-due balances from a prior term or academic year, and costs for students enrolled less than half time. A credit check is required, and eligibility is based on the borrower’s and/or co-signer’s credit rather than financial need. Interest rates vary by lender and market conditions. Private student loans may not exceed the Cost of Attendance minus other accepted financial aid, including scholarships, grants, work-study, and federal loans.

California Lutheran University will certify private student loans only for students who are meeting Satisfactory Academic Progress (SAP), and students are generally encouraged to exhaust all federal loan options before borrowing private loans.

Federal vs. Private Loans

If you are deciding between a federal student loan and a private student loan, carefully compare the pros and cons of each.

Completing the FAFSA may make you eligible for federal loans or other Title IV aid, which often offer more favorable terms than private student loans. In general, students should use their federal loan options before considering private student loans.

For guidance, review this comparison diagram from Federal Student Aid to help determine which loan type best fits your needs.

Key Information

Processing Timeline

Loan Application: You select a lender, apply for the loan, and the lender makes a credit decision.
Cal Lutheran Private Loan Request Form: You complete & submit the required electronic Private Loan Request Form to the Cal Lutheran Financial Aid Office.
School Certification: The school confirms your cost of attendance, other financial aid, and approved loan amount.
Final Disclosure: The lender issues a final disclosure, which includes a three business day right to cancel.
Disbursement: Funds are typically sent directly to Cal Lutheran about 10 days after certification and applied to your student account.

How to Apply

Step 1: Select a Loan Lender

Eligibility for a private student loan is based on the student's and co-signer's (if required) credit history. Most loan lenders allow students to determine if they would like to have a fixed or variable interest rate and when their repayment will begin.

Lender Search Tool

Cal Lutheran is an impartial party and cannot recommend any particular lender. However, through careful consideration of many factors, including borrower benefits, Cal Lutheran provides a Lender Search Tool containing a list of lenders that are currently participating in private student loan lending. Students are in no way restricted to this list of lenders when borrowing a private student loan. Lenders within the tool are displayed in random order.
Use our lender search tool to compare the following details across various lenders:

Interest rates
Fees and default or late payment costs
Repayment terms
Cost estimates
Eligibility

UNDERGRADUATE

PROFESSIONALS

GRADUATE

Step 2: Apply for a Loan From Your Chosen Lender

Once you have determined which lender you want to borrow a private student loan from, the next step is to complete a loan application with that lender.

Most private student loan lenders have an online application you may use to apply.

Only complete the Self-Certification Form if prompted to do so by your lender. Most lenders have this form already built-in to their online loan application.

Self- Certification Form Information

The Title X of the Higher Education Opportunity Act (HEOA) requires that a series of three loan disclosures be provided to Alternative Loan borrowers throughout the application process and that the borrower also complete an Alternative Loan Self-Certification Form prior to the loan being disbursed.

If prompted by your lender, download the Alternative Loan Self-Certification Form.

The purpose of the disclosures is to:

Present the terms/cost of the loan in a clear and consistent manner.
Allow for comparison shopping and re-evaluation of borrowing an alternative loan during the application process.
Present lower cost federal options that should be exhausted prior to considering an alternative loan.
Reduce overall borrower indebtedness.

The student is required to complete the Alternative Loan Self-Certification Form and return it to the Loan Lender. The Loan Lender will not disburse any loan funds until the student’s completed form has been received.

Below are instructions on how to obtain information that is required to complete the Alternative Loan Self-Certification Form.

Cost of Attendance & Estimated Financial Assistance (Section 2 of the form)

Part A: Cost of Attendance (COA)

For Traditional Undergraduate students, please refer to Undergraduate Estimated Cost of Attendance for specific amounts.
For Professionals or Graduate students, the COA is variable based on the number of units the student is registered in per term and the number of terms he or she attends CLU in an academic year. Contact the Financial Aid Office to find out more about specific COAs.

Part B: Estimated Financial Assistance (EFA)

Please follow these steps to determine your EFA:

Accept or Reject Financial Aid through your MyCLU Self-Service portal.
Add together all accepted aid (in scholarships, grants, Federal Work Study, Federal Stafford Loans, and Parent PLUS Loan) for the academic year.
Use the total amount as your Estimated Financial Aid (EFA) amount. Your EFA should not include the current Alternative Loan that you are applying for.

Part C: Difference Between COA and EFA

The difference between the Cost of Attendance and Estimated Financial Assistance is the maximum amount of Alternative Loan that a student is eligible to apply for.

Step 3: Submit a Cal Lutheran Private Loan Request Form

Once you know the loan amount you are approved for by your lender, the final step is to complete the online Cal Lutheran Private Loan Request Form. Please allow 2-4 weeks for the loan to be certified by the Financial Aid Office.

The Private Loan Request Form is required for Cal Lutheran to certify your loan application.

Select the appropriate academic year:

2025-2026 Private Loan Request Form
- This includes Fall 2025, Spring 2026 and Summer 2026
2026-2027 Private Loan Request Form
- This includes Fall 2026, Spring 2027 and Summer 2027

Application Timeline

In order to ensuer your Private Loan is fully processed by the time fees are due, you want to make sure all application steps (both for your private loan lender and Cal Lutheran) are completed atleast 30 business days prior to the start of the term. This includes: