Federal Loans

Federal Loans

• Direct Loan Overview
• Entrance Counseling
• Federal Direct Stafford Loan 
• Maximum Federal Stafford Loan Amounts, Per Academic Year 
• Federal Direct PLUS Loan 
• Perkins Loan 
• Nursing Student Loan 
• Promissory Notes
• Enrollment Requirements
• Loan Guide

As a part of the Health Care and Education Affordability Reconciliation Act of 2010, Loyola University Chicago is now a participant in the William D. Ford Federal Direct Student Loan (Direct Loan) Program.

Direct Loans are low-interest loans for students and parents to help finance the cost of education at the post-secondary level. Under the Direct Loan Program, students will work with the Financial Aid Office to obtain Federal Stafford Loans, PLUS Loans and Graduate PLUS Loans from the U.S. Department of Education, rather than from private banks and credit unions.

Federal Direct Stafford Loan

The Federal Direct Stafford Loan program is available to all students. If financial need is demonstrated, the government will pay the interest on a student’s subsidized loan. Students who do not demonstrate financial need will be responsible for interest from the day the unsubsidized loan is disbursed. Both the subsidized and unsubsidized loans are eligible for payment deferment while the student is enrolled at least half-time.  Students borrowing Federal Direct Stafford Loans have the same terms and conditions and interest rates as loans borrowed under the FFEL Program and will be offered loan fee rebates, more repayment plan choices and additional loan forgiveness options

Maximum Federal Stafford Loan Amounts, per Academic Year   

Federal Stafford Loan Interest Rate as of 7/1/12(for new loans disbursed after 7/1)

• Undergraduate Subsidized = 6.8%
• Undergraduate Unsubsidized = 6.8%
• All Graduate = 6.8%

Lifetime Aggregate Limits

Federal Direct PLUS Loan

The Federal Direct PLUS Loan is a loan with a fixed interest rate of 7.9%available to parents of dependent undergraduate students enrolled at least half-time. Parent borrowers must not have an adverse credit history. Repayment of principal and interest begins within 60 days of the disbursement of the loan funds. Click here  for more information about applying for a Federal Direct PLUS Loan.

Perkins Loan

The Federal Perkins Loan is a campus-based program. Students with exceptional need are given priority for these funds. The current interest rate is 5%. Qualified students may borrow up to $2,000 annually, subject to availability of funds.

Nursing Student loan

Nursing student loans are available to full-time students demonstrating financial need who have been admitted to the Niehoff School of Nursing. The current interest rate is 5%. Qualified students may borrow up to $2,000 annually. Because of funding limitations, awards may be limited, subject to availability of funds.

Promissory Notes

Before students can receive loan assistance, they will need to sign a promissory note to promise to repay the funds when they graduate or are no longer enrolled for at least six semester hours (half-time) per term. The Master Promissory Note (MPN) is completed online at StudentLoans.gov. Students will only sign one MPN while they are enrolled at Loyola.

The MPN for the Federal Perkins Loan and Nursing Student Loan is submitted electronically, once the student's award has been finalized. To sign a MPN for a Federal Perkins Loan or a Nursing Student Loan, click here.
For all loans, funds will not be disbursed until the promissory note is signed.

Entrance Counseling

Before loan funds are disbursed, Federal Stafford and Federal Perkins Loan borrowers must complete the appropriate Entrance Loan Counseling Sessions. Federal Perkins Loan borrowers complete the counseling session while they are completing the online MPN. Federal Stafford Loan borrowers can access the online session here.

Enrollment Requirements

Half-time enrollment is required to receive federal loans. 

Generally, to be considered half-time a graduate student must be enrolled in at least 4 graduate semester hours or 3 graduate quarter hours (depending on the program).  Full-time enrollment is defined as 8 graduate semester hours or 6 graduate quarter hours (depending on the program).  However, a graduate student may be considered enrolled full-time in a term if any of the following conditions apply:

• Receiving Assistantship or Fellowship with at Tuition Award component;
• Enrolled in eligible Clerkship, Internship, or Practicum coursework (not all courses are eligible; typically these are classes requiring field/agency work); or
• Semester students enrolled in any of the following semester classes, previously approved as eligible by Registration and Records:  Master Study 605, Doctoral Study 610, Thesis 595, English 502, History 598, or any 600 level Dissertation Class.

Note: Students enrolled in Research are considered full-time in terms where their enrollment is at least 8 graduate semester hours.