Financial Aid

Federal Student Loans – Graduate Students

At Southern California University of Health Sciences (SCU), we encourage you to make informed borrowing decisions and only borrow what is necessary to successfully complete your program.

Federal student loans are provided by the U.S. Department of Education and serve as the federal funding source for graduate students. These loans offer standardized terms and borrower protections.

Understanding Federal Student Loan Options

Graduate students are eligible for Direct Unsubsidized Loans

  • Available to most graduate students and most programs
  • Not based on financial need
  • Interest accrues from the time the loan is disbursed

Federal Student Loan Features

Federal loans offer:

  • Fixed interest rates set by federal law
  • Standardized loan terms
  • Access to federal repayment programs
  • Borrower protections

However, federal loans have defined annual and lifetime borrowing limits, which may not cover your full cost of attendance.

Additional funding sources, including private student loans, may be needed.

Federal Loan Limits and Planning

Federal loan limits for graduate and professional students are established by federal law.

Current guidance includes:

  • Graduate Programs
    • $10,250 per term (3 terms per academic year)
    • $30,750 annual limit
    • $100,000 lifetime limit
  • Professional Programs (only Doctor of Chiropractic & Doctor of Psychology)
    • $25,000 per term (3 terms per academic year)
    • $75,000 annual limit
    • $200,000 lifetime limit

What this means for you:

  • Federal loans may not cover your full cost of attendance
  • You should estimate your total cost early and compare it to these limits
  • You may need to plan for additional funding sources, such as private loans, scholarships, or cash payment plans

How to Evaluate Federal Loans

When considering federal loans, focus on:

Factor What to Consider
Interest Rate Fixed rate set annually by federal law
Fees Origination fees are deducted at disbursement
Borrowing Limits Annual and lifetime caps
Repayment Options Federal repayment plans
Deferment/Forbearance Available under qualifying conditions
Loan Forgiveness May be available under federal programs

Questions to Ask When Considering Federal Loans

Loan Terms

  • What is the current interest rate?
  • What fees are associated with the loan?
  • When does interest begin to accrue?
  • What are my annual and lifetime borrowing limits?

Repayment Options

  • When does repayment begin?
  • What repayment plans are available?
  • What will my estimated monthly payment be?
  • How will repayment options change under new federal rules?

Other Considerations

  • How will this borrowing impact my total debt at graduation?
  • How does my expected income align with my projected loan balance?
  • Will I need additional funding beyond federal loans?

Application and Funding Process

Federal student loans follow a structured process coordinated between you, the U.S. Department of Education, and SCU:

  1. Create Your FSA ID
  • Create your Federal Student Aid (FSA) ID at studentaid.gov
  • This serves as your login for all federal student aid systems
  • You will use this ID to complete your FAFSA and loan requirements
  1. Complete the FAFSA
  • Submit the Free Application for Federal Student Aid (FAFSA) at studentaid.gov
  • SCU’s school code: 001229
  • FAFSA must be completed each academic year
  • Timing: It may take 5–7 business days for SCU to receive your FAFSA after submission
  1. Monitor Your Financial Aid Portal and Submit Documents
  • Once your FAFSA is received, SCU will review your file
  • Additional documentation may be required
  • Important: Monitor your portal regularly for required document and submit all requested items promptly to avoid delays
  1. Review and Accept Your Financial Aid Offer
  • Once your file is complete, SCU will issue your financial aid offer
  • You will:
    • Review your eligibility
    • Accept, decline, or reduce your loan amount through the portal
  • Borrow only what you need.
  1. Complete Federal Loan Requirements – To receive federal student loans, you must complete the following (Both are completed at studentaid.gov):
  • Entrance Counseling: a federally required online module that ensures students understand loan types, interest accrual and capitalization, repayment plans and timelines, and borrower rights and responsibilities.
  • Master Promissory Note (MPN): is a legal contract between the student and the U.S. Department of Education agreeing to repay the loan and any accrued interest/fees.
  1. Disbursement
  • Federal loan funds are sent directly to SCU
  • Funds are applied to your student account
  • Any remaining Title IV credit balance is issued according to institutional policies and procedures
  • Timing Note: Financial aid is typically disbursed at the beginning of each term, once enrollment is verified

Timing Matters

Federal loan processing includes multiple required steps.

Plan ahead. We recommend completing your FAFSA and loan requirements well in advance of your tuition due date to avoid delays.

Federal Loan Exit Counseling – Current Students Only

All federal student loan borrowers who are graduating, withdrawing, or dropping below half-time enrollment at SCU are required to complete Exit Counseling.

This federal requirement helps you understand your rights and responsibilities and prepare for loan repayment decisions.

How to Complete Exit Counseling

  1. Go to: https://studentaid.gov/app/counselingInstructions.action?counselingType=exit
  2. Click “Log In” and sign in with your FSA ID and password (same as FAFSA)
  3. Select Southern California University of Health Sciences under Add Schools to Notify

Allow approximately 20 minutes to complete the session and be prepared to provide two references.

Once completed, SCU will receive electronic confirmation.

Important: Exit Counseling is required and should be completed  within 30 days prior to graduation, withdrawal or falling below half time.

Access Your Loan Information

View your federal loan history at:
https://studentaid.gov/h/manage-loans

Repayment Responsibilities

You are responsible for repaying your loans even if you do not receive a bill.

Failure to repay may result in:

  • Credit damage
  • Loss of federal aid eligibility
  • Wage garnishment or tax refund withholding
  • Legal action

If needed, you may apply for deferment or forbearance through your loan servicer (not automatic). Stay in contact with your servicer and keep copies of all correspondence.

How SCU Supports You

SCU’s Office of Financial Aid is available to help you:

  • Understand your federal loan eligibility
  • Estimate your total borrowing
  • Compare federal and private funding options
  • Model repayment scenarios based on your program and expected earnings

We strongly encourage you to speak with a Financial Aid Counselor before finalizing your borrowing decisions.

Connect with a Financial Aid Counselor