Some students will need to borrow a student loan to help pay their bill at Our Lady of the Lake University. We offer four loan programs at the Lake and you should always borrow from these programs in order. The first program that all students should borrow from is the Federal Direct Loan Program. After you have reached the maximum annual loan limits with this program, you should look to the Parent Plus loan if you are a dependent student, or the Grad Direct Plus loan if you are a graduate or professional student. If these programs do not work out for you, you next step would be to try and qualify for a private loan.

Our Lady of the Lake University automatically awards each student a Federal Direct loan. The student has the right to accept or cancel the loan if they do not need this loan. The Federal Direct loan is a fixed, low interest rate loan that the student will pay back once they graduate from college. There is no credit check for this loan. A student, for the most part, is guaranteed the loan as long as they have never defaulted on another student loan from other colleges.

There are two types of Federal Direct loans, subsidized and unsubsidized. The federal government pays the interest on a subsidized Direct loan for the student while attending school or while the loan is in a deferment status. The student must pay the interest on an unsubsidized Direct loan while attending school and during periods of deferment. The financial aid office always considers you for a subsidized Direct loan first before awarding an unsubsidized Direct loan. 

In order to qualify for a Federal Direct loan, you must meet the following criteria:

1. Must be enrolled at least half-time. Half-time for undergraduate students is 6 hours. Half-time for graduate/professional students is 3 hours.
2. Must maintain satisfactory academic progress
3. Must be a U.S. citizen or eligible non-citizen

There are limits as to how much a student can borrow from the Federal Direct Loan Program.  A student's dependency status and degree program determines these annual loan limits and you can find these amounts listed on the Our Lady of the Lake financial aid data form.

First time borrowers must also complete entrance counseling before they can recieve their student loan.  Please visit our website to learn more information about the financial aid counseling requirements.

Once you have completed your Direct Loan entrance counseling, and you have completed your Master Promissory Note, your loan money will come electronically to Our Lady of the Lake University. If you owe a balance to the university, your loan money will be applied toward that balance. If you do not owe a balance to the university, or your loan money is greater than the balance you owe the university, you will be given a loan credit balance refund. This refund is intended for educational purposes only.

Before you decide to leave the university, all students that have loans must complete Federal Direct Loan exit interview counseling. Regulations require the university to counsel our students on what to expect when going into student loan repayment. We want to make sure you understand your rights and responsibilities if you have trouble making payments on this student loan. If you do not complete Federal Direct loan exit interview counseling when you leave the Lake, you will not be able to request a transcript from the Registrar's office.

You will not go into repayment on the Federal Direct loans you borrow from the Lake as long as you keep attending school at least half time. If you graduate, or otherwise stop attending school at least half time,  you will be required to start repayment after a six month grace period. You have several choices to repay your loan and and we will provide these choices to you during your exit counseling session.

If you graduate from college and do not find a job right away,  or you are having trouble making your student loan payments, you can postpone repayment of your student loans by requesting a deferment or forbearance.

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