Federal Loans

Some students will need to borrow a student loan to help pay their bill at Our Lady of the Lake University. OLLU automatically awards each student a federal direct loan. The student has the right to accept or cancel the loan if they do not need the loan.

In order to qualify for a Federal Direct Loan, you must meet the following criteria:
  • Must be enrolled at least half-time. Half-time for undergraduate students is 6 hours. Half-time for graduate/professional students is 3 hours.
  • Must maintain satisfactory academic progress
  • Must be a U.S. citizen or eligible non-citizen
Loan Amounts:

The amount of loan funds you can receive depends on your dependency status as determined by the FAFSA , and whether you are an undergraduate or graduate student. Please refer to the Financial Aid Data form for the maximum yearly amounts you are eligible to borrow.

FEDERAL DIRECT LOAN

All students, regardless of income, may be eligible for a Federal Direct Loan.

There are two types of Federal Direct loans:

Direct Subsidized Loan- This is a need based, low interest loan in which the interest is paid by the federal government as long as the borrower is in school at least half-time or in periods of deferment.

Direct Unsubsidized Loan- This loan is not a need based loan, and the borrower is charged interest from the time the loan is disbursed until it is paid in full. Students have the option to pay the interest quarterly or have the interest capitalized at repayment.

To apply for the Federal Direct Loan:
  • First-Time Borrowers  must  complete a loan entrance counseling before their loan proceeds can be disbursed at www.studentloans.gov.
  • Students must also complete an Electronic Master Promissory Note (eMPN) at www.studentloans.gov.

FEDERAL PARENT PLUS LOAN

A Federal Plus Loan allows a parent to borrow the total cost of undergraduate education for their student minus any other financial aid their student may be receiving. The interest rate on this program is fixed at  7.21% for the William D. Ford Direct Loan Program. Parents go into repayment after the loan is fully disbursed, although parents may choose to postpone repayment until after their student graduates. To qualify for this loan, a parent must not have adverse credit. Adverse credit is defined as having no more than two delinquencies on any debt longer than 90 days.

To apply for a Parent Plus loan:
  • Your parent will need their Department of Education PIN (the same PIN they used for the FAFSA).
  • Parent’s must complete a Parent PLUS Direct Loan Application at www.studentloans.gov.
  •  They will also need their and your social security number,  date of birth, driver's license number,  and two personal references (full name, address, and phone numbers).
  • If application is approved, parent must complete and submit an Electronic Master Promissory Note (eMPN) at www.studentloans.gov.

GRADUATE DIRECT PLUS LOAN

A Graduate Direct Plus Loan allows graduate/professional students to borrow up to their cost of attendance minus any other financial aid they receive. To qualify for this loan, a student must not have adverse credit. Adverse credit is defined as a borrower not having been delinquent on any two debts longer than 90 days.

To apply for a Grad Plus Direct Loan:
  • Student  must complete a GRAD PLUS  Loan Application at www.studentloans.gov.
  • First-Time Borrowers  must  complete a loan entrance counseling before their loan proceeds can be disbursed at www.studentloans.gov .
  • Students must also complete an Electronic Master Promissory Note (eMPN) for the GRAD Plus Loan at www.studentloans.gov.

The Financial Aid Office will be informed of the credit decision electronically. If the loan is approved, the Financial Aid Office will award the Grad Plus loan to you. If the loan is denied, you have the option of applying for a private student loan or by finding a Grad Plus loan endorser (co-borrower).


Federal Loan Counseling Requirements

Loan Entrance Counseling

Students who receive funding through Federal Direct loan program must complete loan entrance counseling before receiving the first loan disbursement. This quick and easy interactive counseling session provides useful tips and tools to help you develop a budget for managing your educational expenses and helps you understand your loan responsibilities. Click here to complete your entrance counseling.

Loan Exit Counseling

Prior to graduating, transferring, or dropping below half-time status, all federal loan recipients must complete loan exit counseling. The counseling session provides information regarding student loan management after college. Click here to complete your exit counseling.