U.S Student Loans
U.S. Consumer Disclosure Information
Government Loans for US Students
Students who are citizens or permanent residents of the US may apply for Stafford and PLUS loans through the William D. Ford Federal Direct Loan Program. This program includes Stafford and PLUS (parent and Grad) loans only. Students attending foreign schools are not eligible for grants from the US government.
Education/Correspondence Courses: Students must be registered in a degree program. Students registered in Continuing Education certificate and diploma programs are not eligible. The Higher Education Action of 1965 (as amended) specifies that a program offered by a foreign school through any use of a telecommunications course, correspondence course, or direct assessment program is not an eligible program. As such, any student taking even one distance education course at the University of Guelph is not eligible for funding through the Direct Loan Program.
How Much Can I Borrow?
Stafford loans are need-based (subsidized) and non-need based (unsubsidized) and are subject to annual limits. The maximum amount you can borrow each year depends on your grade level and on whether you are a dependent student or an independent student.
The loan calculation includes information from your FAFSA, information about other financial aid you are receiving (reported by you to University of Guelph - US Loans and the cost of attendance (tuition and living expenses) which is set by the school. The loan calculation determines whether the base amount of the loan is subsidized or unsubsidized. The remainder of the Stafford loan is always unsubsidized. If a parent is denied a PLUS loan, additional unsubsidized amount may be borrowed.
Annual Loan Limits for Dependent Undergraduates
| Grade Level | Base Amount | Unsubsidized Loan | Total | Additional Unsub Loan IF PLUS Loan Denied | Total IF PLUS denied |
|---|---|---|---|---|---|
| First Year | $3,500 | $2,000 | $5,500 | $4,000 | $9,500 |
| Second Year | $4,500 | $2,000 | $6,500 | $4,000 | $10,500 |
| Third Year | $5,500 | $2,000 | $7,500 | $5,000 | $12,500 |
| Fourth Year | $5,500 | $2,000 | $7,500 | $5,000 | $12,500 |
Independent undergraduates may borrow the same base amounts plus both amounts of the additional unsubsidized Stafford loan.
Annual Loan Limits for Independent Undergraduates
| Grade Level | Base Amount | Additional Unsubsidized Loan | Total |
|---|---|---|---|
| First Year | $3,500 | $6,000 | $9,500 |
| Second Year | $4,500 | $6,000 | $10,500 |
| Third Year | $5,500 | $7,000 | $12,500 |
| Fourth Year | $5,500 | $7,000 | $12,500 |
Loss of Subsidized Loan Eligibility for Graduate/Professional Students
The Budget Control Act (BCA) of 2011 (Pub. L. 112-25) was signed into law on August 2, 2011. This Act makes changes to the William D. Ford Direct Loan (Direct Loan) Program, as discussed below.
- Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans.
- Under the new regulation, borrowers will start owing interest immediately on loans issued after July 1, though they will have the option of deferring payments until they finish school.
- The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.
- The annual loan limit for graduate and professional students remains unchanged, but this amount will now bw limited to Direct Unsubsidized Loans, as shown in the following chart:
Annual Loan Limits for Graduate and Professional Students
| Loans for Loan Period | Subsidized Loan Maximum | Unsubsidized Loan Maximum |
|---|---|---|
| Beginning before July 1, 2012 | $8,500 | $20,500, less any subsidized amount received |
| Beginning on or after July 1, 2012 | $0 | $20,500 |
How Do I Apply for a Stafford Loan?
- Complete a FAFSA for current academic year. University of Guelph's federal code is G06683
- E-sign a Master Promissory Note (MPN)
- Email to advise us how much Stafford loan you wish to borrow and of any financial aid/scholarships you are receiving. All funds and requests should be given in US dollars
- Students who are first time borrowers of Stafford loans must complete Entrance Counselling
How Will I Get the Loan Funds?
Funds will be disbursed electronically to the students’ University of Guelph webadvisor account in early September. The second disbursement of funds for students will be made in January. Graduate students will receive their funds in 3 disbursements - September, January and May. Once your tuition and fees are paid, any remaining funds will be refunded to students that are to be used for your books and living expenses.
How Do I Get a PLUS Loan?
Parents and Graduate students/students in professional programs who wish to borrow funds through the PLUS (parent PLUS and Grad PLUS) program must complete 3 steps (4 steps for first time borrowers of Grad PLUS):
- Complete a FAFSA for current academic year. University of Guelph's federal code is G06683
- E-sign a Master Promissory Note (MPN)
- Email to advise us how much Stafford loan you wish to borrow and of any financial aid/scholarships you are receiving. All funds and requests should be given in US dollars
- Students who are first time borrowers of Stafford loans must complete Entrance Counselling
How Are PLUS Loans Disbursed?
Funds will be disbursed electronically to the students’ University of Guelph webadvisor account in early September. The second disbursement of funds for students will be made in January. Graduate students will receive their funds in 3 disbursements - September, January and May. Once your tuition and fees are paid, any remaining funds will be refunded to students that are to be used for your books and living expenses.
Satisfactory Academic Progress
Students are required to maintain satisfactory academic standing in their program of study as established by the University to continue to be eligible for their US loans. Failure to do so may result in suspension of further financial aid. Satisfactory academic progress is measured in accordance with the University's published academic standards required for graduation.
Exit Counselling
When you leave your studies (graduation, withdrawal or course load reduction to less than half-time) you must complete the Exit Counselling interview at Exit Counselling and begin repayment of your student loans.
Withdrawal of Study and US Government Loan Repayment
Title IV funds are awarded to a student under the assumption that the student will attend the University of Guelph for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the originally approved Title IV loan funds. If a recipient of Title IV loan funds withdraws from the University of Guelph after beginning attendance, a recalculation of the amount of Title IV loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned. If the amount disbursed to the student is less than the amount determined and for which the student is eligible, the student is eligible to receive a Post-withdrawal disbursement. The student is responsible for the return of ineligible Title IV funds and failure to returns funds as required will result in the loss of eligibility for student aid. Additional information is available at the US Student Aid website.
Deadline to Apply
All parts of the application process (FAFSA, completion of the MPN(s), and the email to be sent to us) should be completed by July 15, 2013.