Loans

Federal Vs. Private Loans

Students considering students loans need to be aware of the differences between federal student loans and private student loans:

  • Federal Student loan are required by law to provide a range of flexible repayment option including, but not limited to, income-based and income-Contingent repayment plan we well as loan forgiveness that private lenders are not required to provide
  • Federal direct loans are available to most student regardless of income. Other qualification criteria do apply for additional information please visit http://studentaid.ed.gov/eligibility
  • Private student loan lenders can offer variable interest rates that can increase of decrease over time, depending on market conditions
  • The interest rate on a private loan may depend on the borrower’s and/or co-signers credit rating
  • The interest rate on a private loan may depend on the borrower’s credit rating
  • Private student loans have a range of interest rates and fees and student should determine the interest rate of and any fees associated with, the private student loan included in their financial aid award package before accepting the loan. Student should contact the lender of the private loan or their FEMBA financial aid office if they have questions about a private student loan.

UCLA participates in the Direct Loan Program, in which all federal loans will only be lent by the federal government (Department of Education).

Federal Stafford Loan
Limit: Up to $20,500 (U.S. Citizens and Permanent Residents only)

  1. Student must file a separate Federal Stafford Loan Master Promissory Note (MPN) on http://studentloans.gov after submitting the Electronic Financial Aid Notification (eFAN)
  2. With a Federal Stafford loan you may receive up to $20,500 per academic school year
  3. Interest rate is 5.41%
  4. 1.051% origination fee for loans disbursed before Dec. 1, 2013, 1.072% for loans disbursed on/after Dec. 1, 2013
  5. 6 month grace period after graduation, 10 year payback on disbursed loans
  6. No credit check
  7. Must be a U.S. Citizen or Permanent Resident and meet FAFSA criteria
  8. Federal Stafford loan is disbursed in equal installments in Fall, Winter and Spring quarters

Federal Graduate PLUS Loan

Limit: Up to the Cost of Attendance (Tuitions fees + Cost of Living Budget) 

  1. Student must file a separate Federal Graduate PLUS Loan Master Promissory Note (MPN) with on http://studentloans.gov after submitting the Electronic Financial Aid Notification (eFAN)
  2. Up and above the $20,500 borrowed with a Federal Stafford loan
  3. You must borrow the maximum with a Federal Stafford loan first before borrowing a Federal Graduate PLUS loan
  4. Interest rate is 6.41%
  5. 4.204% origination fee for loans disbursed before December 1, 2013, 4.288% for loans disbursed on/after
    December 1, 2013
  6. No grace period, 10 year payback
  7. *Credit Check Required*
  8. Must be a U.S. Citizen or Permanent Resident and meet FAFSA criteria
  9. Federal Graduate PLUS loan is disbursed in equal installments in Fall, Winter and Spring quarters

Private Student Loans

Some student may find it necessary to finance a portion of their education through private loan resources. UCLA has a preferred private loan lender list for MBA students. You may go to http://www.fao.ucla.edu Publications Preferred Private loan lender list prepared by UC Office of the President. You will see a list of private student loan lenders. You may substitute a private loan instead of the Graduate Plus loan if you wish.

For admitted students on H1-B work visas who are not US citizens and not permanent residents, Anderson has partnered with Eli Lilly Federal Credit Union to offer an International Graduate Student Loan. For details, visit the website here: http://www.uclaanderson.studentchoice.org/.

Please refer to the document below regarding preferred lenders:

University of California Code of Conduct - Preferred Lenders

Your credit history is important. If you are borrowing a Federal Graduate PLUS Loan, your credit will be checked before your loan is approved. Before applying for any loan, loan borrowers are required to examine your credit report. Negative items in your credit history can result in your being denied for your Federal Graduate PLUS Loan. You can request your credit report from any and/or all of the three major credit reporting companies:

Equifax

(800) 997-2493
http://www.equifax.com

Experian

(888) 397-3742
http://www.experian.com

TransUnion

(800) 888-4213
http://www.transunion.com

You can request a free copy of your credit report online at: http://www.AnnualCreditReport.com once every 12 months from each credit reporting company.