Entrance Counseling

Borrowing money for school is a serious, long-term, financial obligation. We want to insure that all borrowers learn how to handle their finances so that they are in a position to repay their loan debts after they leave Loyola. The Department of Education mandates that all first time Federal Stafford Loan and Federal Grad PLUS borrowers complete an "entrance counseling" session before receiving their first loan. Loan proceeds can not be credited to students' accounts until they fufill this requirement

 Students have two options for completing this requirement:

  • For the 2009-2010 academic year: If you have Internet access, you may complete the requirements on-line at Mapping Your Future. If you participated in multiple federal loan programs, be sure to select the option combines requirements for both programs.
  • Students can also complete this requirement at the Office of Scholarships and Financial Aid (Room 110 Marquette Hall) during the week.
  • NEW FOR 2010-2011 : We anticipate that President Obama's proposal to change federal student loan programs will be approved by Congress.  If approved, all future federal Stafford, PLUS and Grad PLUS loans will be processed through the Federal Direct Loan Program. 
    • Students will have the option to complete the Entrance Counseling Process online OR in  person at our office. PLEASE NOTE: We are currently updating our computing systems to connect with the Direct Loan Program. While we encourage you to become comfortable with the web site, please do not complete the actual online Entrance Counseling at this time.

 

Any questions should be addressed to us. We attempt to answer all e-mail queries received during the week within 24 hours. Students can also call our office between 8:30-4:45 p.m. during the week and ask to speak to the staff members responsible for their files if they have any questions or concerns about this information.

Enrollment and Academic Requirements

Students must be enrolled on "at least a half-time basis" each semester in order to participate in the Federal Stafford Loan Program. This means:

  • Undergraduate Students - must enroll for a minimum of 6 credits each semester
  • Graduate and Professional Students - must enroll for a minimum of 5 credits each semester

Students must also maintain "satisfactory academic progress" towards completing their degree requirements.

Effect of Accepting Loans on Eligibility for Other Financial Aid

We will automatically calculate your eligibility for Federal Stafford Loans and include them in your original financial aid award. You must officially "accept" your Stafford loan by completing a financial aid response form and submitting it to our office.
If you accept your Stafford loan, you must also choose the lender that you would like to utilize. You must transmit your choice to us by completing a "Choosing Your Lender Form."

You can always choose to either reduce the amount of the Stafford loan in your package OR totally reject the loan. However, we will not be able to increase your institutional, federal or state grant eligibility to compensate for your choice not to borrow.

Subsidized vs. Unsubsidized Federal Stafford Loan

For all unsubsidized Stafford loans first disbursed on or after July 1, 2006, the interest rate is fixed at 6.8 percent. The interest rate for subsidized Stafford loans first disbursed to undergraduate students on or after July 1, 2009 will be fixed at 5.6 percent. This change from a variable to a fixed interest rate does not affect a borrower's variable interest rate on loans made before July 1, 2006.

The interest rate for subsidized Stafford loans for graduate and professional students is fixed at 6.8%.

Interest Rate Reductions

Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students will be reduced. The applicable interest rates for loans made during this period are as follows: 
 
 

1st Disbursement Made on or after

And made before

 Interest Rate

July 1, 2008

July 1, 2009

6.0 percent

July 1, 2009

July 1, 2010

5.6 percent

July 1, 2010

July 1, 2011

4.5 percent

July 1, 2011

July 1, 2012

3.4 percent

These changes apply to subsidized Stafford loans to undergraduate students first disbursed on or after July 1 of each year through June 30 of the next year. This change does not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same. These reduced interest rates apply only to subsidized loans; any unsubsidized Stafford Loan for the same undergraduate borrower would continue to be made at the current fixed interest rate of 6.8 percent.

On unsubsidized Stafford Loans, the student is responsible for the interest while he or she is still in school. Students may, if they wish, defer paying the interest by capitalizing it, which adds it to the principal of the loan, thereby increasing the size of the loan. The Cost of Interest Capitalization Calculator computes an estimate of the accrued interest and the new loan balance at the end of the deferment period. It also presents the impact of capitalization on the total amount paid over the lifetime of the loan.

The Project on Student Debt is an initiative of the Institute for College Access & Success, a nonprofit independent research and policy organization dedicated to making college more available and affordable to people of all backgrounds.

Their student debt report for the class of 2007 finds that the average student loan debt for graduating seniors climbed by eight percent in one year, while starting salaries rose by only four percent. Student debt levels vary enormously by state, with some Midwestern and New England states facing the highest debts.

Please carefully consider your finances as you begin your enrollment at Loyola University New Orleans. Try to borrow the minimum amount possible so that you do not face an excessive debt burden upon graduation. Check our pages on Money Management for Undergraduates and Money Management for Graduate amd Professional Students

Average Indebtedness of Loyola University New Orleans Graduates

Calculators:

There are a number of online calculators that will help you understand how much you will ultimately have to pay when you borrow under these loan programs. Check these sites for more information:

How Much Will You Save if You Utilize a Monthly Payment Plan in Combination with Borrowing?

Reasonable Educational Debt by Major

    Based on academic major and repayment period, these calculators determine the average annual starting salary for the field and give the maximum manageable debt load and maximum manageable monthly payment.

    Exit Counseling Requirements

    Students who have borrowed under the Federal Stafford Loan Program must complete an "Exit Loan Counseling" session during their final semester. Effective July 1, 2008, students who have borrowed under the Federal Grad PLUS Loan must also complete an "Exit Counseling" session. The U.S. Department of Education wants to insure that students review the terms of their loan and understand their rights and responsibilities under this program as they enter repayment.

    Students who plan to withdraw from Loyola University New Orleans before they complete their degree program should contact their assigned financial aid counselor as part of the process of officially withdrawing from the university. At that time, we will with the student their rights and responsibilities as they enter repayment and answer any questions about their obligation to repay any funds borrowed through the program.

This booklet covers what you should consider when you're planning on borrowing money to pay for your education; such as, what types of federal student loans are available, how much to borrow, tips on repaying your loan successfully, the difference between private and federal student loans, the consequences of default, and other helpful hints on how to manage your debt.

Updated November 17, 2009