UCSB participates in the Federal Direct Loan program. Funds for Direct Loans are provided by the U.S. government directly to students. These loans have low fixed interest rates and a variety of deferment and flexible repayment options. Direct Subsidized and Unsubsidized loans do not require a credit check and/or collateral.
Some students may be offered institutional loans as an option, such as the UCSB Loan or CA Dream Loan. Please click below to learn more about each type of loan available for our students and parents.
Low-interest federal loans with subsidized and unsubsidized options for students.
Federal loans for parents of dependent students to help cover educational gaps.
For continuing borrowers only, a federal credit-based loan for grad students.
State loans for eligible undocumented AB 540 students at UC or CSU.
University-funded loans to help UCSB students meet remaining financial need.
Credit-based loans from private lenders with varying interest rates and terms.
Responsible Borrowing
As with any loan, and any type of consumer debt, it is very important to be aware of how much you borrow and only accept loan amounts that you need. Our office encourages students to budget their money wisely in order to avoid over-borrowing or the use of high interest loans and credit cards. In an effort to help students track their financial aid, income, and expenses we have developed two budget calculators. Our office provides the budgeting tools, as well as links to financial literacy resources, in the Tools & Resources section of our website.
Another resource is the Financial Awareness Counseling offered by the U.S. Department of Education, which all borrowers are encouraged to complete to help assist them in managing finances and debt.
Whether using federal or private student loans, students and parents should be aware of the details of their loan(s), including when repayment starts, how to make your payments, repayment plan options, and what to do if you have trouble making payments. We strongly encourage students to use the Loan Simulator tool available through the Federal Student Aid website to help manage their student loan related debt.
As a reminder, private loans have different repayment options and requirements than federal loans. Borrowers of private loans should contact their loan holders for relevant repayment information.
Deferment and Forbearance
If you are unable to make your loan payments, you may want to consider deferment or forbearance. Visit the following websites for deferment or forbearance information related to specific types of loans:
Student Loans Consolidation
Federal Student Loans
A Direct Consolidation Loan allows you to consolidate multiple federal education loans into one loan at no cost to you. If you have multiple student loans you may be able to combine them into one loan with a fixed interest rate based on the average of the interest rates on the loans being consolidated. Learn more about loan consolidation. Once the consolidation is complete, you will have a single monthly payment on the new Direct Consolidation Loan instead of multiple monthly payments on the loans you consolidated. Complete the free application for federal loan consolidation.
Private Student Loans
U.S. News & World Report has published an in-depth guide that breaks down private student loan consolidation, how they work, and what students should know before considering them. Read more.