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. To be considered for a federal student loan, applicants must meet the following criteria:

• File a Free Application for Federal Student Aid (FAFSA)
• Be enrolled in a degree-seeking program
• Be enrolled in six or more units per quarter
• Be a U.S. citizen or eligible non-citizen
• Meet Satisfactory Academic Progress (SAP) for maintaining financial aid
• Not be in default on a prior federal student loan or exceed annual and lifetime borrowing limits
   

Direct Loan Disbursements: Loans are awarded in three equal disbursements over the fall, winter, and spring quarters. For example, if a borrower requests $3,500 for a loan period that includes three quarters the loan disbursements would be:

• Fall $1167
• Winter $1167
• Spring $1166

For students that plan to attend one or two quarters: Submit a Change in Aid form to report changes to your enrollment. Financial aid staff will update your MyAwards account in order for you to review pro-rated loan eligibility. Funds will be disbursed equally across the quarters of attendance.

Loan Servicer: Visit studentaid.gov for loan servicer information on all Federal loans.

Please see general eligibility requirements for federal student aid for more details.

The following chart shows the annual and aggregate loan limits for subsidized and unsubsidized loans:

Direct Stafford Loan Maximums

Aggregate Stafford Loan Limits

Federal Direct Subsidized Loan

• Available to undergraduate students with financial need
• The U.S. Department of Education pays the interest on a Direct Subsidized loan
  • while you are in school at least half-time,
  • for the first six months after you leave school (referred to as a grace period), and
  • during a period of deferment (a postponement of loan payments).
• Interest rate and loan fees for the year are determined annually on July 1
• Payments do not begin until 6 months after you graduate, drop out, or fall below half-time status
• Loan servicer will be assigned by the U.S. Department of Education
• Does not require a credit check
• Processing fee deducted from each disbursement
• 2025-26 loan offers can be accepted or declined in MyAwards beginning July 14, 2025. Requirements can be completed after the loan has been accepted.
• 2025-26 Loan Agreement for a Subsidized/Unsubsidized Loan (MPN) and Entrance Counseling files will be uploaded starting July 15, 2025. Keep confirmation(s) for your records.  

• Available to undergraduate students regardless of financial need
• Interest rate and loan fees for the year are determined annually on July 1
• Interest begins accruing immediately after the first payment applies to the student account
• The student can choose to pay the interest while enrolled or upon entering repayment
• Payments do not begin until 6 months after you graduate, drop out, or fall below half-time status
• Loan servicer will be assigned by the U.S. Department of Education
• Does not require a credit check
• Processing fee deducted from each disbursement
• 2025-26 loan offers can be accepted or declined in MyAwards beginning July 14, 2025. Requirements can be completed after the loan has been accepted.
• 2025-26 Loan Agreement for a Subsidized/Unsubsidized Loan (MPN) and Entrance Counseling files will be uploaded starting July 15, 2025. Keep confirmation(s) for your records.

Federal Perkins Loan

The Federal Perkins loan program ended on September 30, 2017. No new loan offers can be made after this date.

• Loan does not accrue interest for students enrolled half-time or more
• 5% annual interest rate
• 9 month grace period
• Does not require a credit check
• No processing fees
• Limited availability
• Under federal law, the authority for schools to make new Perkins Loans ended on September 30, 2017. As a result, students can no longer receive Perkins Loans. 

UC Davis offers university-based loans that have interest rates at 5% which accrue once the borrower ceases to be enrolled at least half-time. These loans are made on the basis of financial need. Review the promissory note and disclosures statements for additional information about deferment periods and repayment schedules.

Minimum award: $100

Maximum award: $4,000

Loan Servicer: Heartland ECSI 

• Awarded to qualifying students that demonstrate financial need and file an educational expense appeal. 
• Funds are awarded to assist with additional living expenses, child care, and first-time computer purchase.
• Limited funding may also be available for summer
• Interest rate: 5%
• Processing fee: N/A
• Deferment period: 6 months
• Does not require a credit check
• 2025-26 loan offers can be accepted or declined in MyAwards beginning July 14, 2025. Requirements can be completed after the loan has been accepted.
   

Attention 2025-26 University Loan borrowers: The Truth in Lending and Right to Cancel requirement access will be available after July 15, 2025. 

The California DREAM Loan Program provides eligible AB540 students with the option to borrow a California DREAM Loan to assist with the cost of attending UC Davis. The California DREAM Loan is based on a student's financial need.  

Loan Details: 

Minimum award: $200

Maximum award: $4,000

Total Aggregate Maximum: $20,000

Loan Servicer: Heartland ECSI 

Eligibility Requirements:

To qualify for the California DREAM Loan, students must:

• Have an approved AB540 residency determination from the Registrar's Office
• File the California Dream Act Application (CADAA) for the current academic year
• Be enrolled in at least six (6) units
• Demonstrates financial need (no credit check required)

How to Apply and Accept:

• Accept the Dream Loan through your MyAwards portal
• Receive an e-mail from webmaster@ecsi.net with instructions and your Heartland ECSI PIN for completing necessary loan requirements online
• Complete the loan requirements:
  • Supplemental Loan Information through MyAwards
  • Truth in Lending documents, entrance counseling and e-sign the promissory note through Heartland ECSI. 

2025-26 loan offers can be accepted or declined in MyAwards beginning July 14, 2025. Requirements can be completed after the loan has been accepted.  

Attention 2025-26 Dream Loan borrowers: The Truth in Lending and Right to Cancel requirement access will be available after July 15, 2025. 

Interest Rates:  

Interest rates vary annually and are aligned with the Federal Direct Subsidized Loan Interest Rate:

• 2024-2025: 6.53%
• 2023-2024: 5.50%
• 2022-2023: 4.99%
• 2021-2022: 3.73%
• 2020-2021: 2.75%

Borrower is not responsible for paying the interest if:

• Enrolled at least half-time at an eligible school, OR
• Within six (6) months of having been enrolled at least half-time, OR
• During a period of deferment

Repayment:

Repayment begins 6 months after you graduate, leave school, or drop below half-time enrollment. 

• Standard repayment: up to 10 years with a minimum of $50 monthly payment 
  • You can repay your loan without penalty at any time. The faster you pay your loan, the less interest you pay over time.
• Deferment: You may quality to postpone your monthly payments in which no interest accrues if you are:
  • Unemployed (maximum 3 years)
  • In-School
  • Experiencing Economic Hardship or
  • Are in Active duty in the U.S. Armed Forces
• Forbearance: If you are not eligible for deferment, you may be eligible to postpone or reduce your monthly payments (with interest accrual) under forbearance if you are:
  • Experiencing financial hardship
  • Experiencing a prolonged illness
• Death and Disability Cancellation: The loan is canceled due to student death or becoming permanently and totally disabled. 
• Additional Cancellation: For additional cancellation request eligibility, review pages 5 and 6 of your Promissory Note. 

To apply for a deferment, forbearance, or cancellation, contact Heartland ECSI at (888) 549-3274

Exit Requirements

When you leave UC Davis, you must complete the Loan Exit Counseling. You should expect to receive an email notification with instructions on how to complete this requirement.