Loans

Federal Subsidized Stafford Loans

Loans from this program are awarded to students with financial need. This loan is "subsidized" because the federal government pays the interest while the student is in school and during the grace period (the first six months after leaving school or dropping to less than half time enrollment status).

Federal Unsubsidized Stafford Loans
The Unsubsidized Loan is not based on financial need and is available to all eligible students, regardless of income. This loan is "unsubsidized" because the student is responsible for paying all interest due. There is no federal interest subsidy for the loan. Interest accrues immediately upon disbursement. Borrowers may elect to pay accrued interest on a monthly or quarterly basis or have it added back to the principal balance in a process called capitalization.

Alternative Loan Programs

Alternative loans are funds available to you when you are not eligible for financial aid or need additional funds to meet educational expenses. Your eligibility is determined by the cost of attendance minus other financial aid or the annual loan maximum amount as determined by the lender.
Because Alternative loans are not guaranteed by the federal government, they must be insured privately. This extra cost is passed on to the borrower in the form of higher fees and interest rates. In addition, the lender will look at your credit history as well as other factors to determine if they will lend to you. You may be denied by one lender and approved by another because of the different ways the lender interprets your information.

More Information

Student loans at UC Merced are administered by the Office of Financial Aid and Scholarships.  Please click here for additional information on applying for student loans.