2012-13 Academic Year
All students at Loyola 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 student ceases enrollment as at least half-time. In recognition of the concern students have regarding the amount of loan debt they accumulate for their undergraduate education, Loyola limits the amount students are expected to borrow through student loan programs up to $6,500 per year or a total of $26,000 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 the Federal Direct Stafford Loan Program or 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 Loan 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 University.
- 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 email at financialaid@loyola.edu.
- 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, you must complete an Electronic MPN and complete the Federal Direct Stafford Loan Entrance Counseling requirement at www.StudentLoans.gov.
- 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 University.
- 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 email at financialaid@loyola.edu.
- 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, you must complete an electronic MPN.
- 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 $3,000 for the first year of undergraduate study, $2,500 for the second year, and $1,000 per year for the third and fourth years.
- Loyola's financial aid office determines your maximum eligibility to borrow funds through the Loyola Student Loan Program. If you with to decline this loan offer or borrow a lower amount, notify the financial aid office in writing via regular mail or email at financialaid@loyola.edu.
- This program requires that you electronically complete and sign a Master Promissory Note (MPN). Students who borrowed previously through the Loyola Student Loan Program are not required to sign another MPN. If you have not previously borrowed funds through the Loyola Student Loan Program, you must complete an electronic MPN. Also, all new and current Loyola Loan borrowers must complete the Truth-in-Lending documents associated with this program on an annual basis.
- Loyola will credit Loyola Student Loan awards directly to your student account after we receive confirmation that you have completed the electronic Loyola Student Loan MPN.
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.
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.
Application Process
Prior to applying for a Federal Direct PLUS Loan, the student must have filed the 2012-13 Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.
The PLUS Loan application process involves two steps:
- Completing the Federal Direct PLUS Loan Request for Supplemental Information;
- Completing the Federal Direct PLUS Loan Master Promissory Note (MPN). The PLUS Loan MPN allows parents to borrow for multiple years (up to 10 years) under one note for each child enrolled in college, provided you do not require an endorser.
To begin the process, "Sign In" to the federal loan website at www.StudentLoans.gov. You must have a Department of Education issued Personal Identification Number (PIN) to sign in. 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. You cannot use the student's PIN to complete this process.
- Complete the four-step PLUS Loan request process
Step 1 >Personal Information
Step 2 >Student and Loan Information
Step 3 >Review the Application
Step 4 >Credit Check and Submit
- Complete the four-step Master Promissory Note (MPN) process
Step 1 >Personal Information
Step 2 >Personal References
Step 3 >Terms and Conditions
Step 4 >Review and Sign
Using the information provided on the request form, the office of financial aid will originate and disburse the loan.
Credit Decision
If your loan is not credit-approved, you will be offered the opportunity to appeal the decision online by submitting additional information, or you can add a credit-worthy endorser to the loan.
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 Loyola's office of financial aid by phone 410-617-2576, 800-221-9107, fax 410-617-5149 or e-mail financialaid@loyola.edu.
Additional Unsubsidized Loan amounts: First-year $4000; Sophomore $4000; Junior $5000; Senior $5000.
If you have questions about the online process or your credit decision, contact the Federal Applicant Services at 800-557-7394.
NOTE: All processing procedures related to the Federal Direct Stafford Loan and Federal PLUS Loan Programs must be completed before May 1, 2013 for the 2012-2013 academic year.