Federal Student Loan Processing Procedures

All undergraduate students enrolled at least half-time who complete the FAFSA are automatically reviewed for eligibility under the William D. Ford Federal Direct Loan Program.

Federal Direct Loans include:

• Direct Subsidized Loans (awarded based on demonstrated financial need)
• Direct Unsubsidized Loans (not based on financial need)

Subsidized Loans do not accrue interest while a student is enrolled at least half-time. Unsubsidized Loans begin accruing interest immediately, including during in-school and grace periods.

Families who need funding beyond their federal student loan eligibility may also consider:

• Federal Direct Parent PLUS Loans
• Private Alternative Education Loans

Detailed interest rates, annual loan limits, and program terms are available on the William D. Ford Federal Direct Loan Program section of this website.

Eligibility and Loan Offers

Each year, eligible students are notified of their maximum Direct Loan eligibility through Self Service. Loyola’s Office of Financial Aid determines loan eligibility in accordance with federal annual and aggregate loan limits.

Students may:

• Accept the full loan amount offered
• Reduce the loan amount (by notifying the Financial Aid Office in writing at financialaid@loyola.edu)
• Decline the loan

Students offered both Direct Subsidized and Direct Unsubsidized Loans must accept their Subsidized Loan before accepting any Unsubsidized Loan funds.

Required Steps for Borrowing

To receive Federal Direct Loan funds, students must complete the following:

1. Master Promissory Note (MPN): Students must electronically complete and sign a Master Promissory Note (MPN).
   • Returning borrowers who previously completed an MPN for the Direct Loan Program at Loyola are not required to sign a new one.
   • First-time borrowers must complete an electronic MPN at StudentAid.gov.
2. Entrance Counseling: First-time Direct Loan borrowers must also complete Federal Direct Loan Entrance Counseling at StudentAid.gov. This requirement ensures students understand their rights and responsibilities as borrowers.

Disbursement of Funds

After the University receives confirmation that the MPN has been submitted and Entrance Counseling has been completed (if required), loan funds are credited electronically to the student's account.

Important Deadline: All processing requirements for Federal Direct Loans and Federal PLUS Loans must be completed at least 30 days prior to the end of the term of enrollment in which the loan is awarded.