Loans

CDIP offers a subsidized educational loan of up to $30,000 with a potential for loan cancellation. Whether you're a brand-new CDIP scholar or you already have your doctorate, the information here will guide you when it comes to your loan.

Loan Program Details

Participants in this program may borrow up to $10,000 per year up to a total of $30,000 within a five-year period while they are enrolled full-time in a doctoral program at an approved, accredited institution. Participants will sign a promissory note specifying the terms and conditions of the loan.

  1. The interest rate for funds borrowed is 5 percent per annum.
  2. Participants must repay the loan over a 15-year period, commencing one year after receiving the doctoral degree. Repayment begins immediately after withdrawal from full-time doctoral study.
  3. The minimum repayment required for a $30,000 loan is approximately $237 per month to amortize the 5 percent per annum loan over a 15-year period.
  4. If a participant applies for and is hired to a full-time instructional faculty position at the CSU after completion of his or her doctorate, the loan will be cancelled at a rate of 20 percent of the original loan amount, plus interest, for each year of full-time teaching in the CSU. Amounts cancelled (or "forgiven"), including foregone interest, are reported as income accrued, and federal income and Social Security taxes are withheld on that amount.
  5. The Chancellor's Doctoral Incentive Program does not restrict participants from receiving other financial aid or earning income.

While the purpose of  CDIP is to strengthen the pool of applicants for CSU instructional faculty positions, receiving a CDIP loan does not in any way guarantee employment at a CSU.


If You're a New CDIP Scholar

New 2018-2019 CDIP Scholars need to complete the following steps to begin program participation.

What You Need To Do to Confirm Your Participation as a CDIP Scholar

The deadline for the following forms was August 18, 2018.

  1. Mail the Demographic Information Form
  2. Mail the Acknowledgements Regarding My Loan and What Happens If I Default
  3. Mail the Private Education Loan Applicant Self-Certification
  4. Submit a professional headshot (optional)
  5. Submit the Photography Release Form (optional)

What You Need To Do If Requesting Funds

  1. Submit your 2018 Loan Request Form Online (Deadline has passed)
  2. Mail your completed and signed Loan Packet - October 27, 2018:
If You’re a Continuing CDIP Scholar

As a continuing CDIP Scholar, you are required to update your academic status annually (even if you are not
borrowing money). While in the program, you will fall into one of two participant status categories: continuing eligible to borrow or continuing ineligible to borrow.

CONTINUING ELIGIBLE TO BORROW

Scholars who are in good standing and have remaining loan funds may withdraw up to $10,000 a year (maximum
of $30,000 over the course of the program). The amount withdrawn will be split by the number of terms in the
scholars’ academic year: 2 disbursements for a semester system or 3 disbursements for a quarter system.

What You Need To Do to Continue Participation:

Forms must reach our office by the date indicated below:

  1. Submit your Graduate Student Status Report Online (once a year) - (Deadline has passed)
  2. Student Enrollment Verification Form (each term) - October 27, 2018
  3. What I Need To Do If Requesting Funds

  4. Submit your 2018 Loan Request Form Online (Deadline has passed)

    Mail your completed and signed Loan Packet - October 27, 2018:

CONTINUING INELIGIBLE TO BORROW

Scholars who have withdrawn the full $30,000 (maximum allowed) are ineligible to borrow more funds. Scholars still must submit the following:

What You Need To Do to Continue Participation:

  1. Submit your Graduate Student Status Report Online (once a year) - (Deadline has passed)
  2. Student Enrollment Verification Form See annual deadlines below.

 

Fall

Winter

Spring

Quarter

October 27

March 1

April 30

Semester

October 27

 

March 1

You Have a Doctoral Degree — Now What?

CDIP Scholars need to submit evidence of their degree to the CDIP office within one month of receipt of the degree. A copy of the diploma or transcript that verifies the degree with the official date is acceptable. The separation date will be recorded to reflect a one-year grace period. Billing will begin one year from the date of the degree if the scholar borrowed funds. Scholars need to send a copy of the diploma or transcripts with degree completion date via email or by regular mail.

You Have a Degree and a Postdoc

Scholars are eligible for “school deferment” if they begin a post-doctoral appointment. Deferment due to a post-doc appointment is granted annually for a maximum of three years. After the third year, you will enter into billing. To begin the review process of your post-doc deferment, you must submit the following:

  • Evidence of degree completion with date of completion (transcripts or diploma)
  • Copy of your offer letter

You will need to provide copies of these documents as soon as they become available.

You Have a Degree and an Instructional Appointment at a CSU Campus

Scholars are eligible for loan cancellation if they hold an instructional appointment after earning their doctorate. In order to begin the review for loan cancellation, scholars must submit the following:

  • Evidence of degree completion with date of completion (transcripts or diploma)
  • Copy of contract or offer letter

NOTE: The program does not provide retroactive cancellation of any kind.

Once the CDIP office receives the required documents, the Manager for Data Analysis and Reporting will review for loan cancellation eligibility.

You may e-mail the verification evidence of your degree and contracts to Rocio Hidalgo at
rhidalgo@calstate.edu or mail to:
CSU Office of the Chancellor
401 Golden Shore
Long Beach, CA 90802
Attention: CDIP/Elizabeth Sanchez

Loan Cancellation

Upon completion of the doctorate, loan cancellation is available to CDIP scholars with loans in good standing who obtain instructional faculty appointments within the CSU.

Individuals who teach full-time during an academic year earn 20% cancellation of the original loan amount. Individuals who teach at least half-time during an academic year earn 10% cancellation of the original loan amount. The cancelled loan amount, including forgone interest, is reported as imputed income and subject to Federal income tax withholding.  

Loan cancellation is not automatic nor retroactive; CDIP scholars are responsible for contacting the CDIP office at the start of each academic year to register for loan cancellation. Loan cancellation is not provided for any payments due in the time between the end of the post-doctoral grace period and appointment as a CSU instructional faculty member.

Loan Repayment

Change to Personal Information

Please advise the CDIP office of any change to your mailing address, email or phone numbers. These changes should be emailed to Elizabeth Sanchez. Please list your old information as well as your new changes.

You should also contact us immediately when (1) you have completed your degree and (2) if you have accepted an offer of employment in a CSU instructional faculty position. See You Have Your Doctoral Degree - Now What?

If you fail to keep the program informed, or do not respond to mailings, you may go into repayment without realizing it. This may have negative consequences for your credit and may result in late charges and additional interest accruing on your account. If you have any billing questions, please contact Heartland ECSI at (800) 334-8609.

Loan Cancellation Statement

Download the Loan Cancellation Statement (.pdf) for your records. It provides information regarding the eventual Federal tax obligations that ensue when you have earned the doctoral degree and teach at a CSU campus. When you are ready to benefit from the cancellation provisions of the program, there are significant tax implications that effect (increase) your reported annual income and (reduce) your monthly take-home pay.
The Loan Cancellation Models (.pdf) provide a typical schedule for full-time and part-time cancellation over 5 years.

15-Year Payback Plan Schedule

Download the 15-Year Payback Plan Schedule (.pdf) for your records. This is a typical payback plan for your reference. The sooner you pay back your loan, the less interest you will pay. The numbers may vary depending on individual account activity. Based on this plan, a minimum monthly payment of $237.24 is required to pay back a $30,000 loan at 5% APR, in 15 years.

Loan FAQ

If I have been admitted to the program but am unable to begin my doctoral studies in the first year, may I borrow money in the following year?

After admission to the CDIP, you must begin your doctoral studies as a full-time student before the 2017/2018 academic year ends. If you must delay the onset of your studies to the following year, it will be necessary to reapply to the program.

Do I have to pay for tuition before I receive a check?

It is the responsibility of the student to pay for required fees and tuition at the time of enrollment at the doctoral institution. The program issues funds only after obtaining certification from your university of your enrollment as a full-time doctoral student.

Am I required to borrow each year?

No, you are not. You can remain in the program without borrowing as long as you are enrolled full-time, update your status (using the online GSSR Form) and send in your Student Enrollment Verification Forms each term.

What qualifies for enrollment verification?

The Student Enrollment Verification Form must be completed by the campus registrar's office and must include the university stamp/seal.

How will funds be disbursed during the year?

Funds are disbursed according to the academic calendar of your doctoral institution. For campuses on the semester term, funds are disbursed for Fall and Spring semesters. If you borrow $10,000 for the 2017/2018 fiscal year, you will receive $5,000 per semester. For campuses on the quarter system, you will receive $3,333 for the first two quarters and $3,334 for the third quarter.

When can I expect my first check?

Upon receipt of all completed loan documents in the Chancellor's Office, documents are processed and a check request is sent to our accounting department. This process requires an approximate 3-week turnaround time from the date documents are received by our office. Due to limited staffing, we do not return phone calls regarding the tracking of paperwork received.

Will the check be sent to the university or to me?

Checks are mailed to you directly at the address listed on your Student Enrollment Verification Form. This form is required for each check disbursement. It is the participant's responsibility to submit the required paperwork within the first month of the current term.

Can I receive a disbursement for being enrolled fulltime in the summer?

Yes, however you cannot exceed the $10,000/year.

I've received my first check, how do I get my next disbursement?

EACH semester or quarter, it is the responsibility of the student to submit a current CSU Student Enrollment Verification Form completed by the university verifying enrollment. The university can use their official verification enrollment form however the CSU Student Enrollment Verification Form must be completed by the student and attached. You will not be reminded for subsequent terms.

How does loan cancellation work?

After you obtain the doctoral degree, if you secure an instructional faculty position at a CSU campus, your loan balance will be cancelled in increments of 20% of the original loan balance for each year of full-time teaching, or 10% for part-time teaching, subsequent to earning the degree. The yearly interest due on the loan is also cancelled. All participants in the program need to know that cancellations of CDIP loan principal and interest are considered "additional income" for tax purposes and thus subject to tax reporting and withholding. Download the Loan Cancellation Statement (.pdf) for your records.

How do I pay back the loan if I cannot find a job in the CSU?

If you are not in a CSU teaching position, repayment will begin one year from the date of your doctorate degree with no interest accruing during that year. In case of severe economic hardship, a recipient may request one 6-month deferment of loan repayment. This deferment does not in any way reduce the amounts due and interest continues to accrue during the deferment. Download the 15-Year Payback Plan Schedule (.pdf) for your records.

Is there a maximum number of years I can take to complete my PhD program?

You have 10 years to complete your doctoral degree. If you have not received your degree in 10 years, repayment of your loan will begin.

Is there a penalty to pay off the loan early?

There is no penalty if the total amount of the loan is paid prior to the billing date, at which time interest begins to accrue.

Where do I send my forms?

CSU, Office of the Chancellor
401 Golden Shore
Long Beach, CA 90802
Attention: CDIP/Elizabeth Sanchez

Loan Cancellation

Q: What loans are eligible for cancellation?
A: CDIP only provides loan cancellation for amounts borrowed through CDIP; cancellation is not available for other student loans.

Q: Only loans in good standing are eligible for cancellation. What is considered good standing?
A: The CDIP loan is in good standing when it is current and no payments are past due.

Q: Can I get loan cancellation for teaching before completing my doctorate?
A: No. Loan cancellation is only provided for post-doctoral teaching.

Q: Can I get loan cancellation for non-instructional faculty employment within the CSU?
A: No. Loan cancellation is only provided to CDIP scholars employed in instructional faculty (tenured/tenure-track and lecturer) positions.  

Q: Can I get loan cancellation for instructional faculty employment outside the CSU?
A: No. Loan cancellation is only provided for teaching in the CSU.

Q: How do you define full-time teaching?
A: At semester campuses, full-time teaching is defined as teaching at least 24 weighted teaching units (WTUs) in an academic year. At quarter campuses, full-time teaching is defined as teaching at least 36 WTUs in an academic year.

Q: How do you define part-time teaching?
A: At semester campuses, part-time teaching is defined as teaching at least 12 WTUs in an academic year. At quarter campuses, part-time teaching is defined as teaching at least 18 WTUs.

Q: Does teaching during summer or other special sessions count?
A: Teaching in summer or other special sessions can be used to supplement WTUs earned in the regular academic year.

Q: Can I get loan cancellation if I teach less than part-time?
A: No. Individuals must teach at least part-time to earn loan cancellation.

Q: What are the tax implications of loan cancellation?
A: The CSU is required to report the cancelled loan principal and foregone interest as imputed income and required to withhold Federal taxes on such income. The current withholding rate as of the 2018 tax year is 29.65% (22% for Federal income, 6.2% for Social Security, and 1.45% for Medicare). Forgone interest is not calculated on remaining loan balances below $10,000, or during the one-year grace period immediately following completion of the doctorate (or post-doc employment). The program is not authorized to provide any advice on taxation. Questions about taxes should be directed to a tax professional.