LMU is committed to providing students access to quality student loans and participates in the Federal Direct Student Loan Program provided by the U.S. Department of Education. There are a variety of loans available to qualified graduate, professional, and law students.
Because loans must be repaid, it is important that students understand the terms and conditions associated with each loan program before deciding to borrow. Federal loans require students to complete entrance loan counseling and a master promissory note (MPN) prior to receiving loan funds.
Remember to never borrow more than you need, and to carefully review all documents that you receive from your lender, especially the disclosure statement that you will receive after your loan payments disburse.
Different types of student loans are available to qualified graduate and law students; select a loan program below for more information and steps to complete the application process.
Federal Direct Unsubsidized Loan
Federal student loans are available to most students regardless of income and provide a range of repayment options including income-based repayment plans and loan forgiveness benefits, which other education loans are not required to provide.To apply for a Federal Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA) form. To be eligible, you must be a U.S. citizen or permanent resident, be enrolled at least half-time, be enrolled in an eligible program, and mantain satisfactory academic progress .
Annual Federal Loan Limits
Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below on an annual basis.
*Non Degree Credential and Post-Baccalaureate Pre-Medical students may be eligible to receive a Direct Subsidized loan based on dependency.
program of study Federal Direct Loans Non-Degree Credential & Postbac Pre-medical up to $12,500 (subsidized/unsubsidized) Graduate Degree $20,500 (unsubsidized) Doctoral $20,500 (unsubsidized) Law $20,500 (unsubsidized)
Aggregate Federal Loan Limits
Based on academic level and federal dependency status, students may borrow up to the amounts listed in the table below for their entire academic careers.
dependency and program of study Direct subsidized Maximum direct subsidized and unsubsidized Dependent undergraduate $23,000 $31,000 Independent Undergraduate $23,000 $57,500 Graduate students $0 $138,500 Law students $0 $138,500
The Bipartisan Student Loan Certainty Act of 2013 sets the annual interest rate on Direct Unsubsidized Loans issued to graduate or professional students at the rate on high-yield 10-year Treasury notes plus 3.6%, but caps that rate at 9.5%. As a result, rates are expected to change annually. Students that borrow the Direct Unsubsidized Loan over multiple years will have a set of fixed-rate loans, each with a different interest rate.
- For the 2018-2019 academic year, the interest rate is fixed at 6% for the life of loans disbursed before July 1, 2018.
Direct Loans require origination fees that are deducted from each disbursement. The net disbursement is the gross loan amount, less origination fees.
- Origination fee is 1.066% (deducted from loan proceeds) for loans disbursed after October 1, 2017, but before October 1, 2018.
- Origination fees change annually based on the U.S. 10-year Treasury bill.
How will the loan funds be sent?
Provided that you have completed the online Direct Loan Entrance Counseling session and the electronic Master Promissory Note (MPN), the loan will be sent in two disbursements; first disbursement in the fall semester and the second disbursement in the spring. These funds arrive via Electronic Fund Transfer (EFT) and are applied directly to your LMU student account.
When do I begin repayment?
Repayment on this loan will begin after your grace period, 6 months after you graduate or cease to be enrolled at least half-time. You have 10 years to pay the loan back. Various repayment options are available and the loan period can be extended, if needed via consolidation. There is no prepayment penalty, so you can pay the loan earlier if you wish.
Federal Direct Graduate PLUS Loan
The U.S. Department of Education administers a loan program for students called the Federal Direct Graduate PLUS Loan. Graduate, professional, and law students in an eligible master’s degree or doctoral program can borrow a Direct PLUS Loan to help pay education expenses if enrolled at least half-time. The student must be creditworthy.
What are the eligibility requirements?
You must be enrolled at least half-time in a graduate or professional program (for example, a program that leads to a Master’s Degree or to a law or medical degree) at a school that participates in the William D. Ford Federal Direct Loan (Direct Loan) Program, and must meet all of the other general eligibility requirements for the Federal Student Aid programs. In addition, you must not have an adverse credit history (a credit check will be done).
What is considered to be an adverse credit history?
Credit history is a major factor in being approved for this loan. To qualify for a PLUS loan, you cannot have an adverse credit history. A credit history is a summary of your financial strength, including your history of paying bills and your ability to repay future loans. Your credit history may be considered adverse if you are experiencing any of the following credit conditions:
- Bankruptcy discharge within the past five years.
- Voluntary surrender of personal property to avoid repossession within the last five years.
- Repossession of collateral within the last five years.
- Foreclosure proceedings started.
- Foreclosure within the last five years.
- Conveying your real property that is subject to a mortgage (by deed) to your lender to avoid foreclosure (deed in lieu of foreclosure).
- Accounts currently 90 days or more delinquent.
- Unpaid collection accounts.
- Charge-offs/write-offs of federal student loans.
- Wage garnishment within the last five years.
- Defaulting on a loan, even if the claim has been paid.
- Lease or contract terminated by default.
- County/state/federal tax lien within the past five years.
What are my options if I have an adverse credit history?
You may still receive a Direct PLUS Loan if you obtain an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the loan if you do not repay it. If you believe extenuating circumstances exist, you may also appeal the credit decision at studentloans.gov
Can I decline Direct Loans and use only Direct PLUS Loans to pay for my education?
Yes. However, Direct Loans have some advantages over Direct PLUS Loans. Direct Loans have a lower interest rate than Direct PLUS Loans. In addition, Direct Subsidized/Unsubsidized Loans have a 6-month grace period after you leave school during which you are not required to make payments. There is no grace period for Direct PLUS Loans.
How much can I borrow?
The annual limit on a Federal Direct Graduate PLUS Loan is equal to LMU’s Estimated Cost of Attendance minus any other financial aid you receive. For example, if your cost of attendance is $10,000, and you receive $6,000 in other financial aid, you can borrow up to $4,000.
What is the interest rate?
The Bipartisan Student Loan Certainty Act of 2013 sets the annual interest rate on Direct PLUS Loans at the rate on high-yield 10-year Treasury notes plus 4.6%, but caps that rate at 10.5%. As a result, rates are expected to change annually. Students that borrow the Graduate PLUS Loan over multiple years will have a set of fixed-rate loans, each with a different interest rate.
- The Graduate PLUS Loan interest rate was 7% for loans disbursed before July 1, 2018.
What are the fees?
The Direct Graduate PLUS Loan program requires an origination fee be deducted from each disbursement. The net disbursement is the gross loan amount minus the origination fees.
- 4.264% for loans disbursed on or before October 1, 2018.
When do I begin repaying the loan?
You have the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or to begin repayment six months after you graduate or cease to be enrolled on at least a half-time basis.
How do I apply for a PLUS Loan?
- Step 1: Complete the Free Application for Federal Student Aid (FAFSA)
- In order to electronically sign your form, you will need an FSA ID. In the past, families and students used a federal PIN number. These PIN numbers have been replaced with the new FSA ID process. Even if you have an existing PIN number, you will need to follow these steps in order to Create an FSA ID.
- Step 2: Go to studentloans.gov. Sign in using your FSA ID.
- Step 3: Under the "Graduate/Professional Students" tab, Select "Apply for a PLUS Loan".
- Step 4: Select “Complete Loan Agreement (Master Promissory Note)” or MPN. In the MPN screen select “PLUS MPN for Graduate/Professional Students”. Complete this form.
My credit was not accepted. What are my options?
You may re-apply for a PLUS loan with a creditworthy endorser. Visit studentloans.gov for more information.
You may appeal the adverse credit decision if you believe extenuating circumstances may exist. Visit studentloans.gov for more information
Questions related to your PLUS loan credit decision, the endorser process or obligations, or the studentloans.gov website can be directed to the US Department of Education's Applicant Services Department at 1 (800) 557-7394. Direct PLUS Loan Disclosures
Private Alternative Loan
Private Alternative Loans can help bridge the gap between the actual cost of education and the limited amount the government allows students to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.
When deciding which loan to borrow, it is important to remember that Federal Education Loans are less expensive than Private Alternative Loans and offer better terms. Students should exhaust their eligibility for federal student loans before resorting to private student loans.
Important: All loan borrowers at LMU are required to complete the Free Application for Federal Student Aid (FAFSA). Although you may be approved by your lender to borrow an alternative (private) loan before submitting a FAFSA, LMU will not certify or disburse any loan funds until a FAFSA is completed. LMU does not prefer, recommend, promote, endorse or suggest any lenders. LMU will process loans from any eligible lender that a student selects.
What is an Alternative Loan?
This loan is a private loan in the student's name. A creditworthy co-signer is highly recommended to keep the loan fees and interest rate to a minimum. The student and co-borrower must be U.S. Citizen or Permanent Resident. International students are welcome to apply for this loan; however a creditworthy U.S. Citizen or Permanent Resident cosigner is required. Although most lenders provide these loans based on at least half-time enrollment, there are a few lenders who will provide this loan to students enrolled less than half-time.
How much am I eligible to apply for?
You may borrow up to the LMU cost of education minus any other financial aid received. However some lenders have a limit to the amount that you can borrow to help with loan indebtedness.
What is the interest rate on this loan?
The interest rate on this loan varies by lender and can depend on the creditworthiness of the student and their co-signer.
What is a co-signer?
A co-signer is an individual who promises to repay the loan if the student borrower fails to do so. Here are a few tips to keep in mind when requesting a co-signer:
• Review the reasons for needing the loan with your potential co-signer.
• Make sure that your potential co-signer understands what is expected of him/her.
• Discuss when payments will begin.
• Complete the loan application together.
When will I receive the money?
In general, alternative loan funds will be disbursed electronically to your student account, equally over the terms of enrollment (50% in the fall semester and 50% in the spring semester).
When do I pay the loan back?
Rules for repayment vary from lender to lender. Some lenders may defer repayment during periods of enrollment, but it is best to verify repayment terms directly with your lender. Please note that private loans are not eligible for Federal Direct Consolidation, Federal Income-Based Repayment plans, or Federal Economic Hardship Deferments.
How to Apply for an Alternative (Private) Loan
Please Note: The Financial Aid Office encourages all students to exhaust all university, state and federal financial aid programs prior to applying for a private loan.
All loan borrowers at LMU are required to complete the Free Application for Federal Student Aid (FAFSA). Although you may be approved by your lender to borrow an alternative (private) loan before submitting a FAFSA, LMU will not certify or disburse any loan funds until a FAFSA is completed.
Select a lender from those provided on our lender list or choose your own and complete that lender’s application process.
LMU will not be notified of your lender's credit decision until you complete the application process, including the federally mandated 'change of heart' period. This process takes an average of 14 business days.
Students are required to meet with a financial aid counselor for a loan entrance counseling session prior to receiving an alternative loan. Alternative Loan Counseling is an opportunity for the student borrower and the counselor to ensure that all forms of federal assistance have been considered, as well as to gather information about the terms and conditions of your private loan. Alternative Loan Counseling helps promote responsible borrowing among students considering private financing options. Please contact our office in-person or by phone during business hours to complete the counseling. Appointments are not required.
Please Note: LMU will not certify your private loan with your lender until Alternative Loan Counseling is complete. The counseling session will post as a “missing requirement” on your PROWL account as soon as we are notified by your private lender that your loan has been approved. Therefore, students in the process of applying for an alternative loan are encouraged to monitor their PROWL account closely for updates.
Scholarships are awarded based on merit and do not need to be repaid. Eligibility for scholarships can be based on academic merit, leadership and/or talent.
Use this section to explore scholarship opportunities available to graduate students enrolled at LMU:
Although you may be familiar with the financial aid application process, the Financial Aid Office continues to invite you to email us.
Cal Grant Teaching Credential Program (TCP)
If you were awarded a Cal Grant A or B as an undergraduate, you may be eligible to renew your Cal Grant up to 1 additional year while enrolled in a teaching credential program.
- Received at least one payment in the Cal Grant A or B program as an undergraduate.
- Have received a bachelor's degree, or completed all required coursework for their bachelor's degree.
- Are accepted and enrolled in a professional teacher preparation program at a California Commission on Teacher Credentialing approved institution within 15 months of the end of the term for which the recipient last received a Cal Grant payment.
- Have not received or submitted an application for an initial Teaching Credential, such as a Preliminary or Clear Credential.
- Maintain financial need for a Cal Grant renewal.
- Enrollment in 12-18 units in coursework required by the State for the credential is required to receive a full Call Grant award. The Cal Grant award will be prorated for three-quarter time (9-11) and half-time (6-8) enrollment. Students enrolled less than half-time are not eligible.
How to Apply
Federal TEACH Grant
The TEACH Grant Program provides grants of up to $4,000 a year to students who are completing or plan to complete course work needed to begin a career in teaching. It provides grants to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families.
To be considered for a Federal TEACH Grant, students must initiate the process of completing an Agreement to Serve (ATS) and TEACH Grant Counseling. Recipients of a TEACH Grant must agree to the following:
- Serve as a full-time highly qualified teacher at a school serving low income students in a high-need field.
- Serve for at least four academic years within eight years of completing the program of study for which you received a TEACH Grant.
If you receive a TEACH Grant but do not complete the required four years of teaching service within eight years after you complete (or otherwise cease to be enrolled in) the program for which you received the grant, all TEACH Grant funds you received will be converted to a Direct Unsubsidized Loan that you must repay with interest.
- Complete the Free Application for Federal Student Aid (FAFSA)
- Be a U.S. citizen or eligible non-citizen.
- Complete the U.S. Department of Education’s Federal TEACH Grant Initial and Subsequent Counseling session electronically.
- Complete the U.S. Department of Education Federal Agreement to Serve (ATS) electronically.
- Have and maintain a minimum 3.25 GPA.
Undergraduate students: Must have formally declared a minor in the School of Education in Elementary, Secondary, Bilingual or Special Education. Students are allowed to declare a minor after achieving junior standing therefore LMU does not award the TEACH Grant to freshman or sophomore level students. Students interested in a career in teaching should visit the School of Education, Center for Undergraduate Teaching Preparation.
Graduate students: Your educational program must be designed to prepare you individual to teach as a highly qualified teacher in a high-need field and lead to a master’s degree.
IMPORTANT: If you do not complete your service obligation, all TEACH Grant funds you received will be converted to a Direct Unsubsidized Loan. You must then repay this loan to the U.S. Department of Education, with interest charged from the date the TEACH Grant was disbursed (paid to you or on your behalf).
Over 3,500 students are employed at LMU and work on and off campus in a variety of jobs. In most cases, students must apply for financial aid by completing the Free Application for Federal Financial Aid (FAFSA) in order to receive an award to allow them to work on campus. This work award is considered a form of financial aid. The following information is a summary of the different work awards and their requirements.
Federal Work-Study (FWS)
FWS is a need based federal funded work award which allows recipients to work on-campus during the academic year and earn up to the amount of their award. Federal work-study is offered up to $3,200 for the academic year. Students apply to work during the summer by completing the Summer Financial Aid application which is made available in the spring. Pay rates range from $8.00 to $12.00 per hour depending on the skill level required for the position. It is the student's responsibility to locate a position on campus. On average, students work 14 hours per week but are not allowed to work more than 20 hours per week. Note: As graduate students are not eligible for most subsidized federal financial aid, they are therefore not required to complete federal verification if selected. However, if a graduate student is selected for federal verification and requests federal work-study, the student must submit required documents to complete verification.
LMU Work is a LMU funded award which allows recipients to work on-campus during the academic year and earn the amount of their award. To be considered students must have completed the FAFSA and not qualify for Federal Work-Study. Awards are offered for up to $2,000 per year, as funding permits.
How to Find a Job to earn your Work Award
Recipients can look for positions through Student Employment Services. Their website can also give you more information about working at LMU as a student.
Transfer Work is a LMU funded award for students. The work is directly funded by the employer’s department budget and allows recipients to work on-campus during the academic year and earn the amount of their award. If you were not awarded Federal Work-Study or Loyola Work, you may contact a prospective LMU employer directly to determine if their department budget has funding to hire you. If hired, the employer will notify you directly by email.
Benefits of Working on Campus
- Working on campus allows you to earn money to assist with educational expenses.
- Working reduces the need for student loans.
- Working on campus provides flexible hours, as employers understand that school comes first and will work around your class and study schedules.
- Many jobs are office positions which will provide you with work experience which you can include on your resume.
Responsibilities of Working on Campus
- Notify the Financial Aid Office of enrollment changes that may affect your eligibility for a work award.
- Maintain satisfactory academic progress.
- Keep track of your hours so that you do not earn more than your work award. Your employer will be responsible for 100% of any wages earned in excess of your work award.
- Notify your supervisor of changes to your work award.
- Report ready to work at the scheduled time.
- Dress appropriately for the work place.
- Complete duties and not conduct personal business while at work.
- Work with a cooperative and positive attitude.
- Notify the supervisor as soon as possible of any changes in work schedule and of projects and exams which may interfere with the work schedule.
- Submit the completed time-card/time-sheet and/or complete and submit electronic time-sheet to supervisor on time.
- Adhere to any confidentiality/security agreements set forth by employer.
- Notify each supervisor if employed in more than one position on campus.
- Notify supervisor of any job-related accident.
What happens once I have earned my Work-Study allocation?
Students are responsible for ensuring that they do not earn over their work-study allocation. A collaborative effort should be made by both the student and the employer to track earnings. Students and employers can monitor their remaining work eligibility on their MyTime account. Click on the “banks” tab below to review how much you have been offered and how much remains for use. Students may not work beyond their work study allocation. When a student finds they are getting close to earning their total work study allocation, they should contact their supervisor to ensure they are aware. However, once the full work study allocation is earned, the student must stop working unless arrangements can be made directly through the supervisor.
Tax and FAFSA Implications
Earnings from work are considered taxable income. You will need to determine whether you are required to file a federal or state tax return based on your total earnings from all sources in 2013. For more information regarding federal taxes, visit www.irs.gov/individuals/students. For California state tax information, visit www.ftb.ca.gov/individuals or the Web site for your state of residency. For more information on working at LMU visit Career Development Services.
Graduate Assistantships are available to Graduate Students. Assistants are not eligible to receive over-time pay. Contact the Graduate Admissions Office for additional information or questions on current openings. Applications and Assistantship description can be found here.
MBA Research Assistantships
MBA students can apply for 8 positions to work with MBA faculty for a maximum of 20 hours per week. Download an MBA Research Assistantship Application, or contact the MBA Office for more information.
Teaching and Lab Assistantships
Students interested in an assistantship position should contact their school or department as limited positions are available each year.