Federal Direct Loans
Federal Direct Loans for students and parents: SDSU participates in the Federal Direct Student Loan (Direct Loan) Program, which provides long-term, low-interest loans borrowed directly from the U.S. Department of Education for you and your parents, if you are a dependent student.
Loans may be included as part of your financial aid award and provide you with the opportunity to borrow funds to meet your educational expenses.
Types of Federal Direct Loans at SDSU
Your SDSU award may include:
- Subsidized—No interest or payments while you are enrolled at least half time (undergraduate students only).
- Unsubsidized—Interest charged while you are enrolled.
- Graduate PLUS—For graduate students after all other loans are awarded.
- Parent PLUS—A loan parents may borrow to help with your educational expenses.
Your eligibility
To find out if you are eligible for a loan, check your financial aid award on my.SDSU.
Repaying your loan(s)
For Federal Direct Loans, there are several different repayment options that can help you to manage your debt. To learn about repayment plans and loan calculators, as well as how to consolidate multiple loans into one monthly payment, see Repaying Your Loans.
Cohort Default Rates
Federal student loan borrowers generally have to begin repaying their loans six months after graduating, leaving school, or dropping below half-time enrollment. If borrowers make no payments for any period of 270 days, or roughly 9 months, they will default on their student loans.
The U.S. Department of Education (ED) tracks the number and percentage of federal student loan borrowers who default on their student loans within three years of entering repayment. This is the Cohort Default Rate (CDR), commonly referred to as "three-year" CDRs.
ED releases official cohort default rates for each school that is eligible to participate in the federal student loan program once per year. The current rates (FY 2021) were released in September 2024 and the FY 2022 rates should be released in August 2025. The national cohort default rate average and SDSU's cohort default rate is currently 0% due to the moratorium on student loan payments and interest charges that was in effect until August 31, 2023.
SDSU's Most Recent Official Cohort Default Rates
Fiscal Year SDSU Rate National Rate
Fiscal Year 2021: 0% 0%
Fiscal Year 2020: 0% 0%
Fiscal Year 2019: 1.1% 2.3%
Fiscal Year 2018: 2.2% 7.3%
What Happens If I Default on a Student Loan
Defaulting on a loan makes you ineligible for additional financial aid, negatively impacts your credit, and can have drastic impacts on your life. Consequences may include the following:
- The entire unpaid balance of your loan and any interest you owe becomes immediately due.
- Your loans may be turned over to a collection agency.
- You can be sued for the entire amount of your loan.
- You will be liable for the costs associated with collecting your loan, including costs and attorney fees.
- Your wages may be garnished.
- Your federal and state income tax refunds may be taken for treasury offset.
- The federal government may withhold part of your Social Security benefit payments.
- Your defaulted loans will appear on your credit history for up to 7 years after the default claim is paid.
- It make take years to reestablish a good credit record.
- You may not be able to purchase or sell assets, such as real estate.
- You will not receive additional federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments.
- You can no longer receive deferment or forbearance, and you lose eligibility for other loan repayment benefits, such as the ability to choose a specific repayment plan.
- Subsidized interest benefits will be denied.
- You may not be able to renew a professional licenses.
- You may be prohibited from enlisting in the Armed Forces.
- You will still owe the full amount of your loan.