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 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 on Self Service via WebAdvisor for Students. 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 Loan Program
Under the Federal Direct 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 Loan Program. If you wish to decline this loan offer you can do on Self Service via WebAdvisor. If you wish to borrow a lower amount, notify the financial aid office in writing via regular mail or email at email@example.com.
- This program requires that you electronically complete and sign a Master Promissory Note (MPN). Students who borrowed through the Direct Loan Program during the previous academic year are not required to sign another MPN. If you have not previously borrowed funds through the Direct Loan Program at Loyola, you must complete an Electronic MPN and complete the Federal Direct 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.
NOTE: All processing procedures related to the Federal Direct Loan and Federal PLUS Loan Programs must be completed before May 1, 2021 for the 2020-2021 academic year.