Student Loan Processing Procedures
2008-09 Academic Year

All students at Loyola College who apply for need-based financial aid are expected to meet their first level of financial need with subsidized student loan assistance.  Interest does not accrue nor does repayment begin on subsidized student loans until the completion of in-school and grace periods.  In recognition of the concern students have regarding the amount of loan debt they accumulate for their undergraduate education, Loyola College limits the amount students are expected to borrow up to through subsidized student loan programs to $6,000 per year or a total of $24,000 for four years.  Most students will borrow through a combination of federal and institutional loan programs to meet a portion of their educational expenses.

Students who do not demonstrate need according to the federal and institutional need analysis methodologies may consider borrowing funds through the unsubsidized version of federal and private alternative student loan programs. Interest begins to accrue on unsubsidized student loans immediately during in-school and grace periods.

Parents of students who are ineligible for need-based forms of financial aid or who need additional funds beyond their financial aid eligibility, may also consider borrowing through the Federal Direct Parent Loans for Undergraduate Students (PLUS) Program.

Your eligibility to borrow through the federal and institutional loan programs is listed in the Financial Aid section of WebAdvisor for Students. The maximum amount your parent may borrow through the Federal PLUS Program is also listed in this section. The specific terms of each loan program are described under the Financial Aid Programs section of this website. The individual processing procedures for each loan program are described below.

Federal Direct Stafford Loan Program

Under the Federal Direct Stafford Loan Program, loans are made directly by the federal government to students through Loyola College rather than through private lenders, guarantee agencies, and secondary markets.

1. Loyola’s Financial Aid Office determines your maximum eligibility to borrow funds through the subsidized and unsubsidized versions of the Direct Stafford Loan Program.  If you wish to decline this loan offer or borrow a lower amount, notify the Financial Aid Office in writing via regular mail or via e-mail at financialaid@loyola.edu.
    
2. This program requires that you electronically complete and sign a Master Promissory Note (MPN).  Students who borrowed through the Direct Stafford Loan Program during the previous academic year are not required to sign another MPN.  If you have not previously borrowed funds through the Direct Stafford Loan Program at Loyola College, you must complete an Electronic MPN at www.dlenote.ed.gov and complete the Federal Direct Stafford Loan Entrance Counseling requirement at www.dlssonline.com
    
3. Loyola will receive proceeds of Direct Loans electronically after we receive confirmation that an electronic master promissory note has been submitted to the Federal Direct Loan Servicing Center and Entrance Counseling has been completed. The Direct Loan proceeds are credited directly to your student account.

Federal Perkins Loan Program

The Federal Perkins Loan Program is a campus-based federal loan program.  Perkins Loans are funded by the federal government and administered by Loyola College.

1. Loyola’s Financial Aid Office determines your maximum eligibility to borrow funds through the Perkins Loan Program.  If you wish to decline this loan offer or borrow a lower amount, notify the Financial Aid Office in writing via regular mail or via e-mail at financialaid@loyola.edu.
    
2. This program requires that you electronically complete and sign a Master Promissory Note (MPN). 
   Students who borrowed previously through the Federal Perkins Loan Program are not required to sign
   another MPN. If you have not previously borrowed funds through the Federal Perkins Loan Program
   at Loyola College, you must complete an electronic MPN by clicking here.
    
3. Loyola will credit Perkins Loan awards directly to your student account after we receive confirmation that you have completed the electronic Perkins Loan MPN.

Loyola Student Loan Program

This institutional loan program allows students who demonstrate institutional need and who are enrolled for at least 12 credits per term to borrow up to $2,500 for the first year of undergraduate study, $1,500 for the second year, and $500 per year for the third and fourth years. 

Federal Direct PLUS Loan Program

This program allows parents of Undergraduate students who do not have an adverse credit history to borrow up to the full cost of attendance minus other financial aid. 

1. Loyola’s Financial Aid Office determines the maximum amount a parent may borrow through the Federal Direct PLUS Program.  This amount is listed with the student’s financial aid award in the Financial Aid section of WebAdvisor.  A parent may choose to borrow the maximum amount or decide to borrow a lower amount during the PLUS Loan application process.
    
2. Parents who wish to apply for a Federal Direct PLUS Loan must first complete the Federal Direct PLUS Loan Request form.  You may complete this form online via the Financial Aid Office web site at, www.loyola.edu/ugfinaid, under the tab link, Federal Direct PLUS Loan Program.  Using the information provided on this form, the Financial Aid Office will originate the loan and initiate a credit check through the Financial Servicer.  
   
   If your loan application is not approved, you will be contacted by the Federal Servicer (in writing) and given the option of appealing
   the credit decision or resubmitting the application with a credit-worthy endorser.  Questions concerning your credit decision
   should be directed to the Federal Servicer's Applicant Service at 800-557-7394.  If you do not wish to pursue either of these
   options, your son or daughter may apply for an unsubsidized Federal Direct Stafford Loan by contacting the Financial Aid Office
   at 410-617-2576, 800-221-9107, fax 410-617-5149 or email  financialaid@loyola.edu.
   
   
3. Federal Direct PLUS Loan Master Promissory Note can be completed online at https://dlenote.ed.gov.  
   
   You must have a Department of Education issued Personal Identification Number (PIN) before completing and signing
   the electronic MPN.  If you do not have a Federal PIN, or have lost your PIN, you may obtain one at the Federal PIN 
   web site, www.pin.ed.gov.
   

NOTE:  All processing procedures related to the Federal Direct Stafford Loan and Federal PLUS Loan Programs must be completed by May 1, 2009.

Questions concerning any of the application or processing procedures for the student and parent loan programs at Loyola College should be directed to the Office of Financial Aid 410-617-2576, 800-221-9107, by Fax 410-617-5149, or by e-mail at financialaid@loyola.edu.