| A total of 415 undergraduate students completed their degree programs between July 1,2005 and June 30, 2006. 255 of these students borrowed under the Federal Stafford Loan, Federal Perkins Loan or through a private credit based loan program. The average loan debt for these graduates was $19,625 . |
Loyola University will be working with a number of banks and lending agencies to provide a streamlined application process for both Federal Stafford and Federal PLUS loans. Participating lenders have a history of providing excellent service to families during the lifetime of the loan.
On February 8, 2006, President Bush signed The Deficit Reduction Act of 2005 into law. This legislation makes a number of changes in the federal student loan program including:
PLUS loans are available to parents of dependent undergraduate students. Families do not need to complete the FAFSA to apply for a PLUS loan.
Because we are now in an era where interest rates are rising, many experts argue that the change from a variable to a fixed rate of interest will ultimately benefit the borrower.
Although the basic terms of the loan are the same, lenders offer a variety of services to families. We would urge everyone who is borrowing for the first time visit each lender's Internet site and find the "right match" for their needs. Unless noted, beginning April 1, 2004, one half of 1% of the principal amount of the Stafford loan will be deducted as a guarantee fee. All Stafford loans guaranteed beginning November 1, 2004 will have a 1% guarantee fee deducted from
Students can choose to use any lender.
Loyola University New Orleans works with a number of major lenders to provide a streamlined electronic application process for Federal Stafford and PLUS Loans. If you are interested in participating in this streamlined process, we will electronically certify your loan eligibility with one of the following participating lenders . You will be able to complete their Master Promissory Note online. Students without Internet access can call 1-888-272-5543 and request their lender mail a pre-printed paper MPN to their address. Students must complete a MPN before funds can be disbursed. Funds will be disbursed via an electronic funds transfer from the lender to the student's account with the Student Finance Office .
We encourage families to visit each lender's web site to check on the benefits that they offer. If you have the free Adobe Acrobat software on your computer, you can also review a shorter Lender Comparison Chart . Copies of this chart are also available in our office. This is a starting point to help families identify some of the major terms and benefits of the loan programs each lender offers. Wachovia printed this chart as a complimentary service to our families. We would like to thank them as well as the rest of the lenders listed for their ongoing help in providing printed educational materials for our families.
NOTE: Since this chart was printed, Sallie Mae announced that it will pay the 1- percent Federal Default Fee required under law on Stafford loans disbursed by its internal lending brands and guaranteed by USA Funds. In addition, their press release of March 5, 2007, also lists other lenders who will cover the fee when their loans are guaranteed by USA Funds and serviced by Sallie Mae
Families who are interested in utilizing other lenders should check with their financial aid counselors to see if we currently have electronic arrangements with them to process loans. Upon request, we have incorporated several smaller lenders into our electronic process.
We will assume that students who borrowed during the 2006-2007 academic year will continue to borrow from the same lender. Students who wish to change lenders must notify our office in writing(finaid@loyno.edu).
All students must return a Financial Aid Response Form and official "accept" the Stafford Loan as part of their financial aid package. This form gives permission to the Office of Scholarships and Financial Aid to electronically transmit application data to the student's lender.
Students who choose to use other Stafford lenders will need to submit their Master Promissory Note as well as a School Certification Form to our office. Loans from other lenders may be disbursed via an electronic funds transfer OR by paper check (depending on the lender).
Law students have a separate lender list that includes lenders who will accept electronic loan transmissions from our office and who offer additional private loan programs. Participating lenders include:
If you have a federal loan, you have the right to cancel the loan within a 30 day period. However, if you choose to cancel, the loan will be removed from your tuition account, and as a result, you may owe the university.
Parents who are comfortable working on the Internet can initiate an online loan application at https://opennet.salliemae.com/apploansummary/?school_id=00201600&loanprogram=PLUS&AlternateLogin=Y.
We understand that some parents are not comfortable working on the Internet. Upon request, we will be happy to mail a traditional paper application packet to any interested borrower. These applications should be returned directly to the Office of Scholarships and Financial Aid for further processing.
We will be mailing information to parents of continuing students who borrowed under the PLUS Program during the 2006-2007 academic year and completed a Master Promissory Note. These parents will be able to complete a shorter institutional application if they want to participate in the program during the 2007-2008 academic year.
Revised: April 26, 2007