Federal Direct Student Loan Program
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 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 Direct Stafford Loans and Federal Direct Graduate PLUS Loans from the U.S. Department of Education, rather than from private banks and credit unions. Direct Loans are recommended over private loans due to their fixed interest rates and repayment flexibility.
Federal Direct Unsubsidized Stafford Loan
Every law student is eligible for $20,500 in Federal Direct Stafford Loan, as long as they have not previously defaulted on a Federal Loan.
The fixed interest rate for Federal Direct Unsubsidized Stafford Loans disbursed after July 1, 2014 through June 30, 2015 is 6.21%. The fixed interest rate for Federal Direct Unsubsidized Stafford Loans disbursed after July 1, 2015 through June 30, 2016 is 5.84%. The unsubsidized loan is eligible for payment deferment while the student is enrolled at least half-time. Students borrowing the Federal Direct Stafford Loan will have more repayment plan choices, and additional loan forgiveness options.
Federal Direct Graduate PLUS Loan
The fixed interest rate for Federal Direct Graduate PLUS Loans disbursed on or after July 1, 2014 through June 30, 2015 is 7.21%. The fixed interest rate for Federal Direct Graduate PLUS Loans disbursed on or after July 1, 2015 through June 30, 2016 is 6.8%. The loan is available to students enrolled at least half-time. Borrowers must not have an adverse credit history. Repayment of principal and interest begins within 60 days of the last day of enrollment.
We strongly recommend obtaining a copy of your credit report now to determine if it contains errors or to see if you have any problematic accounts. This could seriously impact your ability to qualify for this loan.
Federal Work Study
Law students may qualify for positions in law school offices, library, as faculty research assistants, and with specified public agencies through a program subsidized by federal funding. Please note law students are not auto-packaged with a Federal Work Study allowance. Students interested must first secure a position, determine hours per week and hourly pay, and submit an appeal form to the University Financial Aid office. An approved appeal will reduce your eligibility for the Graduate PLUS loan if you have borrowed up to your cost of attendance.
More information on Federal Work Study.
Loan deferments for enrolling students
As an enrolled law student, you may be eligible to defer the repayment of educational loans you received for your prior studies. Loyola University submits enrollment data to the National Student Loan Clearinghouse to process deferments requiring academic certification. For some loans, you may be required to submit a deferment form. The Law Registrar’s Office at Loyola University Chicago certifies student enrollment status and processes deferment forms as early as the first week of classes.