Additional Loan Information

 

1. How do I apply for a Federal Direct Loan?

2. When will I receive my Federal Direct Loan?

3. How was the amount of my Federal Direct Loan determined?

4. How do I apply for a Federal Graduate (PLUS) Loan?

5. When will I receive my Federal Graduate (PLUS) Loan?

6. How do I apply for an Alternative (Private) Loan?

7. When will I receive my Alternative (Private) Loan?

8. I am a teacher; is it possible to get my loans forgiven and/or canceled?




Q. When will I receive my Federal Direct Loan? (back to top)

After you have been awarded a Federal Direct Loan, confirm that you have completed the necessary requirements (see below) online via PROWL/MYAID.

In general, loan funds disburse via electronic fund transfer to your Student Account 10-14 business days from the date that these requirements are completed. If more than 14 business days have passed since successfully completing these requirements, please contact us at finaid@lmu.edu, or (310) 338-2753.

Federal Direct Loan Requirements

1) Accept and/or Decline your Federal Direct Loan offer:

You are required to accept and/or decline the Federal Direct Loans that were offered to you online via PROWL. If you fail to accept your loan, the award offer will be canceled. All grants/scholarships will be automatically accepted on your behalf.

2) Complete Loan Entrance Counseling:

Entrance Loan Counseling is a federal and institutional requirement that explains your rights and responsibilities as a student loan borrower. You can complete this requirement by visiting https://studentloans.gov/myDirectLoan/index.action . Allow 5-10 business days for our records to be updated.

3) Complete a Master Promissory Note (MPN) online:

You must complete a Direct Loan Master Promissory Note (MPN) with the U.S. Department of Education. Please allow 5-10 business days for our records to be updated.



Q. How was the amount of my Federal Direct Direct Loan determined?
(back to top)

There are two types of Federal Direct Loans— the Subsidized Direct Loan and Unsubsidized Direct Loan.

The Subsidized Direct Loan is awarded on the basis of demonstrated financial need, less other aid received up to the annual loan borrowing limit established by the federal government for your program of study (see below).

The Unsubsidized Direct Loan award is not limited to your demonstrated financial need, and will be offered to eligible students not to exceed the annual loan borrowing limits below and not to exceed the estimated cost of attendance less other financial aid received.

A graduate student must be enrolled at least half-time, as determined by his/her program level, in order to receive federal financial aid.

Annual Federal Direct Loan borrowing limit*:

Master’s Degree and First Year Doctoral Students

Full-time

(per semester)

Half-time

(per semester)

SUBSIDIZED

Total (Subsidized & Unsubsidized)

6 units

3 units

$8,500

$20,500

Non-Degree Credential Only

Full-time

(per semester)

Half-time

(per semester)

SUBSIDIZED

Total (Subsidized & Unsubsidized)

12 units

6 units

$5,500

$12,500

Second Year Doctoral Students completing Dissertation

Full-time

(per semester)

Half-time

(per semester)

SUBSIDIZED

Total (Subsidized & Unsubsidized)

2 units

-

$8,500

$20,500


* Established by the federal government



Q. When will I receive my Federal Direct Graduate (PLUS) Loan?
(back to top)

Once you have completed a Graduate PLUS Loan Master Promissory Note (MPN) and been found creditworthy, completed Loan Entrance Counseling and submitted an LMU Graduate PLUS Loan Application, your loan funds will be electronically transferred to your LMU Student Account.

If more than 10 days have passed since you completed the initial requirements and you are enrolled at least half-time for the term, please contact the Financial Aid Office at finaid@lmu.edu, or (310) 338-2753 if your loan funds have not yet disbursed.



Q. When will I receive my Alternative (Private) Loan? (back to top)

Alternative loans should be your last resort for funding due to their higher interest rates and lower repayment benefits. We strongly encourage you to make sure that you have exhausted your federal loan eligibility before applying for an alternative loan. You may apply for an alternative loan by selecting a lender and completing a Master Promissory Note (MPN) with the lender of your choice.
A list of alternative loan lenders can also be found here.

Once you have completed a Master Promissory Note (MPN) with the lender of your choice and the lender approves your loan, the loan funds will be electronically transferred to LMU for certification and disbursement.

Loan funds typically arrive 7-10 business day after the initial requirements have been completed. If more than 10 days have passed since you completed the initial requirements, please contact the Financial Aid Office at finaid@lmu.edu, or (310) 338-2753.

 

Federal Perkins Loan Cancelation
You may qualify for cancelation (discharge) of up to 100% of a Federal Perkins Loan if you have served full time in a public or nonprofit elementary or secondary school system as a

-teacher in a school serving students from low-income families; or

-Special-education teacher, including teachers of infants, toddlers, children, or youth with disabilities; or

-teacher in the fields of mathematics, science, foreign languages, or bilingual education, or in any other field of expertise determined by a state education agency to have a shortage of qualified teachers in that state.

For more information or to obtain an application, contact the office that administers the Federal Perkins Loan program at the school that holds your loan or click here for more information.

Federal Teacher Loan Forgiveness (TLF)
TLF is a federal program to assist teachers in repayment of Federal Direct Loans. Eligible loan borrowers must have been employed as teachers for five years, in a qualified teaching service area. Click here for more information or to obtain an application.

 

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