Loans

How to Apply

First, the student must complete the Free Application for Federal Student Aid (FAFSA) and meet the eligibility requirements. Then, the student must follow the steps below.

New Students/First Time Borrowers at Notre Dame

1. Go to studentaid.gov and log in using your FSA user ID.
2. Choose the option Complete Counseling (Select Entrance Counseling).
3. Choose the option Complete Master Promissory Note (MPN) (Select Subsidized/Unsubsidized for the loan type).

Information Needed for the Master Promissory Note Process

• Permanent Address and Phone Number
• E-mail Address (optional, but recommended to receive e-mail confirmation of your E-MPN submission)
• Full Legal Name and Social Security Number
• Driver's License Number (if applicable)
• Two References (complete name, addresses, and telephone numbers)
  • References must have known you for at least three years.
  • One reference should be a parent or legal guardian if available.
  • The references must be two different people at different addresses within the United States.

For help with studentaid.gov, you may call 1-800-557-7394.

Returning Students

There are no steps required to renew Federal Direct Subsidized or Unsubsidized loans for students who received this type of loan at Notre Dame during the previous academic year.

What Happens Next

The Office of Financial Aid will receive confirmation of the completed loan application steps above and will process the loan(s) for the maximum eligibility unless you request otherwise. You will be notified by email when the loan(s) are processed and when the funds disburse.

Loan Cancellation Policy

View cancellation policies for new and current students.

Subsidized vs. Unsubsidized Loans

Your Federal Direct Loan award may be Subsidized, Unsubsidized or a combination of the two.

Subsidized 

• This loan is only available to undergraduate students. 
• This loan is awarded for the academic year and is based on your financial need, dependency status and academic grade level.
• Financial need is determined by your cost of attendance your Estimated Family Contribution (EFC) from the FAFSA and any other aid you will receive.
• The federal government subsidizes or pays the interest on the loan while you are enrolled at least half-time, in an eligible period of deferment, and during grace periods (The subsidy during grace periods is not available for loans first disbursed on or after July 1, 2012, and before July 1, 2014).

Unsubsidized 

• This loan is awarded based on your cost of attendance minus any other aid you will receive, your dependency status and your academic grade level.
• You are responsible for the interest on this loan from the time the loan is disbursed until it is paid in full. The federal government DOES NOT subsidize the interest on this loan.
• You may choose to defer the interest during enrollment and deferment periods, but it will be capitalized (added to the principal amount).

Loan Limits for Each Year

In addition to the information below, please note that a new provision is in place that affects first-time borrowers:

• Once the borrower has received Direct Subsidized Loans for a period that is 150% of the published length of the borrower's current education program, the borrower is no longer eligible for Direct Subsidized Loans.
• A first-time borrower who loses eligibility for additional subsidized loans loses interest subsidy on subsidized loans received on or after July 1, 2013 if the borrower did not complete the program AND continues enrollment in the program OR enrolls in another program of the same of shorter length.
• Subsidized Loan Time Limitation

For students enrolled as regular students in eligible programs, annual Federal Direct Loan limits are as follows:

Dependent Undergraduate Students

Independent Undergraduate Students & Dependent Undergraduate Students Whose Parents  Cannot Borrow PLUS

Students Pursuing Teacher Certification

Graduate & Pharmacy Students

Cumulative Total Loan Limits

Federal regulations set aggregate, or total, loan limits in addition to the annual loan limits. You cannot borrow more than the aggregate loan limit for all subsidized and unsubsidized loans at all schools.

Aggregate Loan Limits

The Federal Parent PLUS loan provides federal funds to help parents of dependent undergraduate students pay educational expenses. Parents can borrow up to the difference between Notre Dame's estimated cost of attendance and other aid or resources expected to be received. 

Example: Estimated Cost of Attendance minus Other Aid/Resources = Maximum Loan Amount

How Much Should I Borrow?

Use the financial aid calculator to determine how much you need to borrow. You may wish to include other non-billed costs, such as living expenses, in the amount you request. Also, note the loan fees below and remember to account for them in the amount you request. 

Selecting a Loan Period

Choose based on enrollment plans:

Eligibility

A parent applying for a Federal Parent PLUS loan must be the biological or adoptive parent of a dependent undergraduate student. Step-parents whose information is included on the FAFSA are also eligible to apply for the loan.

Parents must have an acceptable credit history or be able to apply with an eligible co-signer. The parent who is applying for the PLUS loan should make sure that their full legal name and correct SSN are linked to their Dept. of Ed. FSA ID and FAFSA (if their information was included).

Students must complete the Free Application for Federal Student Aid (FAFSA) and meet all other eligibility requirements.

Application Process (Must be Completed Annually)

1. Go to studentaid.gov and log in using the parent's FSA ID.
2. Choose option: Request a Direct PLUS Loan (this process will indicate whether you are approved or denied) and select the amount and loan period requested.
3. If approved, you will need to choose option: Complete Master Promissory Note (only for first time PLUS borrowers at Notre Dame and borrowers who require an endorser).
4. If informed by Department of Education to complete PLUS Counseling, choose Complete Counseling, then choose PLUS Counseling.
5. If approved, complete the Parent Plus Request Form and submit it to our office. 

For help with studentaid.gov, call 800-557-7394.

Deadline

The priority deadline to complete the steps listed above is June 5, 2019.

What Happens Next

The student will receive an email when the Office of Financial Aid processes the loan.

Note: If the Parent PLUS loan is denied, the student will be eligible for an additional unsubsidized loan. A revision will be made to the student’s financial aid package upon confirmation of the denial.

Disbursement Process

• When the loan is scheduled to disburse, the Department of Education will send the funds to Notre Dame electronically.
• The funds will disburse through the student's Notre Dame account and the student will be notified by email.
• After tuition and other charges on the account are paid, any remaining balance will be issued to the student or parent via a check (depending upon how the parent completed the application), and will be mailed to the address on record with the University.

Repayment Terms

Repayment begins within 60 days after the final disbursement of each loan. You may be able to postpone principal payments while your student is in school (up to four years). Contact the Direct Loan Servicer for repayment and forbearance options. The maximum repayment period is 10 years, and the minimum monthly payment is $50.

Learn More

For more information about PLUS loans, visit the Federal Student Aid website.

The program allows a graduate student to borrow on his/her own behalf up to the cost of attendance, minus any other financial aid received. Loan funds come directly from the U.S. government. 

Example: Estimated Cost of Attendance minus Other Aid/Resources = Maximum Loan Amount

How Much Should I Borrow?

Use the financial aid calculator to determine how much you need to borrow. You may wish to include other non-billed costs, such as living expenses, in the amount you request. Also, note the loan fees below and remember to account for them in the amount you request. 

Selecting a Loan Period

Choose based on enrollment plans:

Eligibility

• You must be a Graduate or Pharmacy student enrolled at least half-time in a degree granting program.
• You must complete the FAFSA.
• You must first apply for your maximum loan eligibility in Federal Direct Subsidized and Unsubsidized Loans before the Graduate PLUS can be awarded.
• Parents of graduate students will not be eligible to borrow the loan. The student will be the borrower.
• Graduate PLUS Loan borrowers are subject to a basic credit check.

Application Process (Must be Completed Annually)

1. Go to studentaid.gov and log in using the student's FSA ID.
2. Choose option: Request a Direct PLUS Loan (this process will indicate whether you are approved or denied) and select the amount and loan period requested.
3. If approved, you will need to choose option: Complete Master Promissory Note (only for first time PLUS borrowers at Notre Dame and borrowers who require an cosigner).
4. If informed by Department of Education to complete PLUS Counseling, choose Complete Counseling, then choose PLUS Counseling.

For help with studentaid.gov, call 1-800-557-7394.

What Happens Next

The student will receive an email when the Office of Financial Aid processes the loan.

Note: If the Grad PLUS loan is denied, the student will be eligible for an additional unsubsidized loan. A revision will be made to the student’s financial aid package upon confirmation of the denial.

Disbursement Process

• When the loan is scheduled to disburse, the Department of Education will send the funds to Notre Dame electronically.
• The funds will disburse through the student's Notre Dame account and the student will be notified by email.
• After tuition and other charges on the account are paid, any remaining balance will be issued to the student via a check and will be mailed to the address on record with the University.

Annual Loan Limit

A student may borrow the difference between the cost of attendance for the program and all other aid the student will receive.

Repayment Terms

Repayment begins within 60 days after the final disbursement of each loan during the academic year. The standard repayment period is 10 years, and the minimum monthly payment is $50. Principal and interest payments may be deferred if you meet deferment requirements. 

Your Federal Direct Grad PLUS will be automatically deferred if you're enrolled at least half-time in a degree seeking program. You may be eligible to defer payments if you are unemployed, experiencing economic hardship or otherwise unable to make any scheduled payment.

Contact the Direct Loan Servicer for repayment and forbearance options.

Loan Cancellation Policy

View cancellation policies for new and current students.

Learn More

For more information about PLUS loans, visit the Federal Student Aid website.

The purpose of an alternative loan is to supplement a student's financial aid package. Alternative loans are not federally endorsed or guaranteed, but they generally must be certified by the office of financial aid at Notre Dame. An alternative loan cannot exceed your cost of attendance (financial aid budget) minus all other financial aid.

If you have not done so already, we advise you to consider other financial aid and/or federal loans first. For more information, visit the U.S. Department of Education.

Financial Aid Options

Alternative loans should be a last resort, used only when all other resources have been explored.

You may wish to consider an alternative or private student loan if:

• Your enrollment circumstances prevent you from being considered for Federal Direct Subsidized/Unsubsidized, Parent PLUS or Grad PLUS loans.
• You are not eligible for federal student aid because of your citizenship status (such as F-1 or work visa holders). 

Unusual Circumstances

Students may be looking for a private student loan in the following situations. It is the student's responsibility to inform the lender of the special circumstances and confirm if eligible:

• The loan is for a balance from a prior semester.
• The student is not meeting Satisfactory Academic Progress (SAP) requirements.
• The student is enrolled less than half-time.
• The student is not enrolled in a degree-seeking program.

Research Loan Lenders & Products

You are encouraged to research the loan product that is best for you by visiting lender websites and contacting the lender's customer service department with questions. Since private loans are not federally endorsed, each lender's loan program varies on interest rates, fees, the amount you may borrow (minimum and maximum) and repayment terms.

When considering private student loans, we recommend using an unbiased source to compare products, such as ELMSelect.

Questions to Ask Your Alternative Student Loan Lender

As with all borrowing, students and parents must carefully consider the terms of an alternative student loan before borrowing. Questions to ask an alternative student loan lender might include:

• What are the fees associated with the loan?
• If the interest rate is variable on the loan, how high can it go, and how often will it be adjusted?
• How is the interest rate calculated?
• What rate can I get on a fixed-rate loan?
• What are the terms of repayment?
• How much will my payments be if I borrow $x?
• Do I need a co-signer?
• Are there any enrollment requirements to receive the loan?

Note: Notre Dame of Maryland does not endorse any specific lender or group of lenders. The application for an alternative student loan is made directly through the lending institution. As a part of this process, the office of financial aid will certify enrollment and other information for the borrower.

How to Apply

Unlike Direct loans, alternative loans are based on creditworthiness. The first step in applying is a credit check through the lender. Students are encouraged to apply with a co-signer to improve their chances of being approved.

Follow These Steps to Apply for a Private Student Loan

1. Select the lender of your choice and contact them either online or by phone to begin the pre-approval process. We require that you initiate the process by seeking pre-approval.
2. Your lender will perform a credit review. If approved, your lender will require you to complete a promissory note and other necessary forms, including the Self-Certification Form.
3. Your lender will send us an electronic request for a certification.
4. Once we receive the request for certification from your lender, we will certify your loan within 3-4 weeks. You may check WebAdvisor for the status of your loan.
5. Once the certification is completed, your lender will prepare funds for disbursement.
6. The loan will be in hold status until half-time enrollment has begun. Once the student has begun 6 credits for the semester (or 5 credits for PHR students), the loan funds will be released.
7. The funds will then be applied to your Notre Dame account to cover all expenses. If applicable, a refund check will be issued if there is a credit balance.

If you have exhausted all other federal loan options, your Parent PLUS, Grad PLUS, or private student loan may require a co-signer (or endorser) to secure the loan. Keep these tips in mind when choosing a co-signer or endorser for your loan.

1. Select an individual with whom you are close and who is financially stable. 

Many people will ask their immediate family members. Some people will ask extended family members or close friends who are supportive of their higher education goals.

2. Review the reasons for needing the loan. 

Talk with the potential co-signer about your academic plans. Review the cost of your program and other sources of financial aid, such as scholarships and grants.

3. Review the loan amount. 

Does the amount seem too high or too low? Remember that borrowing less, whenever possible, is always a good decision.

4. Make sure the potential co-signer understands what is expected of him/her. 

Is this a one-time request, or will you need a co-signer in the future? Review the estimated monthly payments and your plans to make them on time. 

5. Discuss when payments will start. 

For PLUS Loans, the first payment is due 60 days after the loan is fully disbursed unless you ask for a deferral while the student is enrolled at least half-time or up to six months after the student ceases to be at least half-time. For Graduate PLUS Loans, you may postpone payments on your loan until you graduate or drop below half-time status. Many private student loans begin repayment six months after leaving school. 

6. Complete the loan application together. 

Co-signers may feel more comfortable if they participate in the application process and provide their information directly to the lender.

7. Talk about the potential of a co-signer release, if applicable. 

Some private student loans still offer co-signer release options. For instance, some co-signers may be released from the financial responsibility of a loan if the borrower has successfully completed school and made 12-48 consecutive on-time payments.