Before You Borrow

Know the Types of Loans You Are Borrowing

During the course of your years at school, you may borrow a combination of different types of loans that may require separate, simultaneous loan payments to different lenders upon graduation or leaving the university. It's important to know what type of loan you are borrowing and who your lender is. Federal student loans are available to most students regardless of income and provide a range of repayment options including income-based repayment plans and loan forgiveness benefits, which other education loans are not required to provide. MyAwards will show the types of loans you are being offered. We encourage you to think carefully about your future loan indebtedness before accepting loans. You are not obligated to accept any loan offered to you, and you can accept less or decline the aid offered in MyAwards.

Know the Difference Between Subsidized and Unsubsidized Loan

The interest on subsidized loans is paid by the U.S. Department of Education while you’re in school at least half-time in a degree-seeking program. The student is responsible for the interest on unsubsidized loans. More information about subsidized and unsubsidized loans is available on the Federal Student Aid website.

Know the Terms of Your Grace Period

The grace period is the amount of time you have after you graduate, withdraw, or drop below half-time, before you are required to begin repaying your loan. The grace period depends on the terms of the loan you are borrowing. Be sure to read the promissory note for the loan you are accepting so that you are aware of the grace period for that particular loan.

Learn About Loan Fees

You will be charged a loan fee when you borrow Federal Direct Loans. The loan fee is deducted proportionately from each scheduled disbursement of your loan. The Federal Student Aid website provides the most up to date information about interest rates and fees.

Requesting Additional Loans

You may request additional loan to meet your cost of attendance. You will need to submit a Change-in-Aid request on MyAwards to request additional loan funds.

Canceling Your Loans

At any time a borrower can decline all or part of the loan money by submitting a Change-in-Aid request in MyAwards.

Keep Track of Your Student Loans

It is important to track your loan history. National Student Loan Data System and MyLoans are tools that help you keep track of federal and UC Davis institutional loans.

Estimate Your Loan Payments

Consider your repayment amount before you borrow. Repayment schedules are often provided as a part of the documentation a borrower reviews before completing the loan process. Student Aid on the Web offers repayment plans and calculator that are available for Federal Direct Loans.