Federal Direct Loan Program
US citizens may apply for financial assistance from the US Federal Direct Loan Program if they are accepted in a Bachelor degree program.
Ineligible programs and courses
The U.S. Department of Education does not provide funding to students enrolled in:
- Certificate, diploma, non-degree programs
- Study Abroad programs
- Online courses
The U.S. Department of Education is the lender; the loan is administered by a federal loan servicer which acts on behalf of the U.S. Department of Education.
How much can I borrow?
Booth University College is an approved institution for the administration of subsidized and unsubsidized US Direct Loans and PLUS Direct Loans, according to the Higher Education Act, Title IV. Yearly loan amounts are listed in the U.S Department of Education resource publication, 2017-18 Do You Need Money for College? The Guide to Federal Student Aid.
As a foreign institution, Booth University College is not an approved institution with respect to the administration of Pell grants.
Step one: complete a FAFSA
Go to the Federal Student Aid website to complete the Free Application for Federal Student Aid (FAFSA). Booth UC’s school code is G25772.
Tips for ensuring proper processing by the US Department of Education:
- Use the name exactly as listed on the Social Security Card (student’s and parents’).
- Use the IRS Data Retrieval Tool on FAFSA to transfer information from 2015 US tax returns to the FAFSA. This will help to minimize both data entry errors and verification requirements.
- Use the same mailing address in both the FAFSA and the Master Promissory Note.
- Carefully review information on the summary page before submitting.
- A link to the Student Aid Report (FAFSA that has already been processed by the US Department of Education) is provided to the email address listed on the FAFSA within 48 hours. Review for any errors, or if any additional action is required. Corrections can be made at fafsa.ed.gov.
Step two: complete the following US direct loan documents/processes at www.studentloans.gov:
A) Entrance counselling
All students applying for US Direct Loans who have not previously completed US Direct Loan Entrance Counselling to attend Booth UC must complete this one-time only step as part of the US Direct Loan application process.
If entrance counseling was completed for a previous year’s Booth UC application, proceed to B).
B) Master promissory note
All students must complete the Direct Subsidized/Unsubsidized Loan Master Promissory Note for each year that a US Direct Loan application is being submitted.
Tip: Use the same mailing address in both the FAFSA and the Master Promissory Note.
C) Direct PLUS Loan Application (i.e., graduate students and parent borrowers)
- Independent graduate students applying for a Direct PLUS Loan must have borrowed the maximum annual loan limit first from the US Direct Loan.
- A US address must be used as the ‘Permanent Address’ on the PLUS Loan application.
A credit check will be conducted based on the information on the PLUS Loan application. Applicants who pass the credit check will be considered for US Direct PLUS Loans. Applicants who fail the credit check can complete US Direct PLUS Counselling available online at www.studentloans.gov in order to be considered for US Direct PLUS Loans.
- Credit Checks are valid for only 180 days. Direct PLUS borrowers are responsible for monitoring and ensuring that their credit check is valid during the entire academic year. Invalid credit checks (older than 180 days) will delay future loan disbursements.
- Complete the Direct PLUS Loan Master Promissory Note, in addition to the Direct Subsidized/Unsubsidized Loan Master Promissory Note.
Step Three: Complete a Booth UC Application Form.
Borrower’s responsibilities and obligations
- Maintain Satisfactory Academic Progress each year in order to continue to be eligible for further funding. See Satisfactory Academic Progress section below.
- Immediately inform the Registrar’s Office of any academic, financial, marital status or personal information changes. Such changes may result in the student being ineligible for further funding, and being required to repay unearned loan funds. See Return of Title IV U.S. Direct Loan Funds section below.
Satisfactory academic progress (SAP)
Satisfactory Academic Progress is reviewed annually at the end of each academic year. To be eligible for further funding students with US Direct Loans must fulfill all three SAP Components:
- Grade Point Average (Qualitative)
- Pace (Quantitative)
- Time (Quantitative)
Complete information about these components, as well as the process students can follow if they do not meet SAP, can be found in Satisfactory Academic Progress Policy.
Return of Title IV U.S. Direct Loan Funds due to withdrawal
Students who withdraw may not keep the loan funds that have been disbursed to them for the academic year.
- Students “earn” aid through attendance based on the number of calendar days completed while in full-time studies, divided by the total number of calendar days in the period of study.
- Students who complete 60% or more of their period of study have “earned” 100% of their US Direct Loans, and will not be required to repay any unearned loan funds.
- Students who complete less than 60% of their period of study due to withdrawal or reduction of course load to part-time status (less than half-time) are required to repay the portion of their loan that they have not “earned”.
- Responsibility for repaying the portion of “unearned” or overpaid loan to the US Department of Education (DOE) is shared by the student and Booth UC.
- Return of Title IV US Direct Loan Funds Due to Withdrawal
Students must complete an Exit Counselling interview and begin repayment of their student loans when they are no longer registered in full-time studies (i.e., graduation, withdrawal, or course load reduction to less than half-time). Go to the Federal Student Aid website for more information.
National Student Loan Data Service
The NSLDS website is the central database for US government student aid. This site allows students to download all of their loan, grant and aid overpayment history. Booth UC reports enrolment status to NSLDS.
US loans consumer information
Go to the US Direct Loans Consumer Information sheet for a list of websites about U.S. financial aid and Booth UC.