Loans

Loans are funds that students or parents may borrow to help pay for educational expenses. Unlike grants or scholarships, loans must be repaid with interest over time.

Depending on whether you submit the Free Application for Federal Student Aid (FAFSA) or the California Dream Act Application (CADAA), you may be eligible for federal or state loan programs.

Learn more about the different types of loans below.

Federal Direct Loans

Federal Direct Loans are available to students who file the FAFSA. Depending on the loan type, either students or parents may apply.

How your enrollment affects your loan amount (2026–27 and later)

Federal student loans have annual maximums. Beginning with the 2026–27 academic year, the federal Schedule of Reductions (SOR) may lower the maximum amount you can borrow through Direct Subsidized and Direct Unsubsidized Loans if you are enrolled less than full time.

For undergraduate students, full time is at least 12 units per semester. SFSU recommends 15 units per semester to stay on track to graduate in four years. If you enroll full time, you may be eligible for up to your full annual loan limit. If you enroll less than full time, your maximum loan amount is reduced in proportion to your enrollment.

• Example: An undergraduate student enrolled in 6 units each semester — half of full time — could receive up to 50% of their annual loan maximum.

SOR and half-time enrollment are separate rules. SOR determines the maximum amount you may borrow for the academic year. Half-time enrollment determines whether a loan can be disbursed for a term. At SFSU, half time is 6 units for undergraduate students and 4 units for graduate students.

SFSU reviews your official enrollment at each disbursement. If your units change, your loan amount may be adjusted.

Subsidized Loan

A Subsidized Loan is a type of federal Direct Loan where no interest begins accruing before repayment begins. The U.S. Department of Education (ED) pays the interest while the student:

• Is enrolled at least half time
• Is within the 6-month grace period after graduating or leaving school
• Is in an approved deferment period

Eligibility: Undergraduate students only

Unsubsidized Loan

An Unsubsidized Loan is a type of federal Direct Loan where interest begins accruing as soon as the loan is disbursed.

Please note:

• Students are not required to make loan payments while enrolled at least half time. However, interest continues to accrue during this time.
• Students may choose to pay the interest while in school. If unpaid interest is postponed, it may be added to the loan balance later, increasing the total amount owed.

Eligibility: Undergraduate and graduate students

Graduate student loan limits for 2026–27 and later

• $20,500 annual Direct Unsubsidized Loan maximum
• $100,000 graduate aggregate limit
• $257,500 lifetime federal student loan maximum across applicable student loans

A graduate student’s annual maximum may be reduced under the Schedule of Reductions when the student is enrolled less than full time.

Federal Direct Loan Checklist 

Complete this checklist if you are a first-time borrower

1. Complete Entrance Counseling for Subsidized and Unsubsidized Loans

An online module that explains how Federal Direct Loans work, including loan types, interest, repayment options and how to avoid delinquency or default.

Complete Entrance Counseling

2. Sign a Master Promissory Note (MPN)

A legal document in which the student agrees to repay their loans, including any accrued interest or fees, to the U.S. Department of Education (ED). The MPN also explains the terms and conditions of the loans.

Complete an MPN

Parent PLUS Loan

A federal loan parents can use to help pay for their child’s educational expenses not covered by other financial aid. The Schedule of Reductions does not apply to Parent PLUS Loans.

For periods of enrollment beginning on or after July 1, 2026:

• The Parent PLUS annual maximum is $20,000 per dependent student.
• The Parent PLUS aggregate maximum is $65,000 per dependent student.

These limits are shared by all parents who borrow for the same student. Each parent does not receive a separate $20,000 annual limit or $65,000 aggregate limit.

The student must remain enrolled at least half time for a Parent PLUS Loan to disburse. The amount a parent can borrow may also be limited by the student’s cost of attendance and other financial aid.

Reaching the Parent PLUS annual or aggregate limit is not the same as being denied a Parent PLUS Loan because of adverse credit. Reaching a borrowing limit does not automatically make the student eligible for additional Direct Unsubsidized Loan amounts.

Eligibility: Parent of a dependent undergraduate student (as determined by the FAFSA)

Parent PLUS Loan Checklist

1. Apply for a Parent PLUS Loan

Complete the loan application, which requires a credit check.

Parent PLUS Loan Application

2. Sign a PLUS Master Promissory Note for Parents

A legal agreement in which the parent agrees to repay all Direct PLUS Loans received under the MPN. The Parent PLUS MPN is valid for 10 years unless a different parent applies for the loan.

Complete a PLUS MPN

Graduate PLUS Loan

Important change for 2026–27

Federal law has changed. New graduate students can no longer borrow Graduate PLUS Loans. A continuing graduate student may qualify during a limited transition period only if the student was enrolled in the same SFSU program by June 30, 2026, and received a Direct Loan disbursement for that program before July 1, 2026. Contact the Office of Student Financial Aid to confirm your eligibility before you apply.

Most graduate students should plan to use the Direct Unsubsidized Loan as their primary federal borrowing option.

A federal loan that helps eligible graduate students pay for educational expenses not covered by other financial aid.

Eligibility: Continuing graduate students who meet the federal transition requirements. New graduate borrowers starting in 2026–27 are generally not eligible.

Important: Before withdrawing from your program or changing credential levels, contact the Office of Student Financial Aid. These changes may permanently end your transition eligibility.

Graduate PLUS Loan Checklist

If you have confirmed that you are still eligible, complete these steps:

1. Apply for a Graduate PLUS Loan

Complete the loan application, which requires a credit check.

Graduate PLUS Loan Application

2. Complete Student Loan Entrance Counseling

Complete the online module explaining how Graduate PLUS Loans work, including interest, repayment options and tips for avoiding delinquency or default. 

Student Loan Entrance Counseling

3. Sign a Graduate PLUS Master Promissory Note

Complete the legal agreement in which you agree to repay all Direct PLUS Loans received under the MPN. The Graduate PLUS MPN is valid for 10 years unless the loan is endorsed by another borrower.

Graduate PLUS Master Promissory Note