Participants in this program may borrow up to $10,000 per year 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.
- The interest rate for funds borrowed is 5 percent per annum.
- Participants must repay the loan over a 15-year period, commencing one year after completion of, or withdrawal from, full-time doctoral study.
- 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.
- If a participant applies for and is hired in a CSU full-time instructional faculty position 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.
- The California State University does not in any way guarantee employment to loan recipients.
- The Chancellor's Doctoral Incentive Program does not restrict participants from receiving other financial aid or earning income.