Loan Programs

Federal Direct Subsidized and Unsubsidized Loans are low-interest loans lent to students by the U.S. Department of Education (ED). To qualify, the student must complete the Free Application for Federal Student Aid (FAFSA), meet the federal student aid eligibility requirements, and enroll at least half-time in a degree-seeking program. Borrowers go into repayment six months after they graduate, leave school, or drop below half-time enrollment. Direct Subsidized Loans are only available to undergraduate students who demonstrate financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while the student is in school at least half-time, for the first six months after the student leaves school, and during periods of deferment. Borrowers are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. In addition to interest, ED charges a 1.057% loan origination fee on Federal Direct Subsidized and Unsubsidized Loans. The fee is proportionately deducted from each loan disbursement.

The LMU Financial Aid Offer will include the maximum amount a student can borrow in Federal Direct Subsidized and Unsubsidized Loans. Students are encouraged to make a budget and borrow conservatively. Students wishing to borrow must accept their loans via the Self-Service Menu by selecting "Webadvisor for Students" and then "Financial Aid" in their MyLMU account. In addition, students are required to complete a Master Promissory Note (MPN) and loan entrance counseling. For additional information on subsidized and unsubsidized loans, including repayment options, visit Federal Student Aid.

Parents of dependent students can borrow Federal Direct Parent PLUS Loans from the U.S. Department of Education (ED) to pay their child’s educational expenses. The parent borrower must be the biological or adoptive parent (or, in some cases, the stepparent) of the dependent undergraduate student, not have an adverse credit history, and meet the basic eligibility requirements for federal student aid. To qualify, the student must complete the FAFSA, meet federal student aid eligibility requirements, and enroll at least half-time in a degree-seeking program. The parent PLUS loan is unsubsidized, so the borrower is responsible for paying the interest during all periods. In addition to interest, ED charges a 4.228% loan origination fee on Federal Direct PLUS Loans. The fee is proportionately deducted from each loan disbursement.

If approved, the parent may borrow up to the student’s cost of attendance (COA) minus the other financial assistance (OFA) the student receives. Repayment on a parent PLUS loan begins immediately after the last disbursement is received. During the application process, the parent may request a deferment while the student (the loan was obtained for) is enrolled at least half-time and for six months beginning on the date the student ceases to be enrolled at least half-time. 

To borrow a parent PLUS loan, the parent must apply on the Federal Student Aid website. If approved, the parent must also complete a Master Promissory Note (MPN). The credit decision will be sent to the school. Once our office receives the approval, we will set up the parent PLUS loan and change the loan status from estimated to offered. The student will receive a revised financial aid offer notification to their LMU email account. The student must log into their MyLMU account and accept the loan through the Self-Service Menu by selecting "Webadvisor for Students" and then "Financial Aid." If a parent is denied credit, the parent may obtain an endorser or appeal the decision. If a parent is denied credit but does not obtain an endorser or appeal the decision, the student may be eligible for an additional unsubsidized loan.

Federal Direct Grad PLUS Loans are loans made by the U.S. Department of Education (ED) to graduate and professional students. To qualify, the student must complete the FAFSA, meet the federal student aid eligibility requirements, not have an adverse credit history, and enroll at least half-time in a graduate or professional degree program. The grad PLUS loan is unsubsidized, so the borrower is responsible for paying the interest during all periods. In addition to interest, ED charges a 4.228% loan origination fee on Federal Direct PLUS Loans. The fee is proportionately deducted from each loan disbursement.

If approved, the student may borrow up to the cost of attendance (COA) minus the other financial assistance (OFA) the student receives. Repayment on a grad PLUS loan begins six months after the student graduates, leaves school, or drops below half-time enrollment. 

To borrow a grad PLUS loan, the student must accept the loan/credit check authorization through their MyLMU Self Service Menu by selecting "Webadvisor for Students" and then "Financial Aid." The student must also complete a Master Promissory Note (MPN) and loan entrance counseling. The credit decision will be sent to the school. If a student is denied credit, the student may obtain an endorser or appeal the decision. For additional loan information, including repayment options, visit Federal Student Aid.

Private lending institutions offer private student loans not guaranteed by the federal government. These funds are often utilized by students who may not be eligible for federal financial aid or may need to bridge the gap between their cost of attendance and other financial assistance. Eligibility for private student loans is credit-based. Students without established credit may need a co-signer. Eligibility requirements and loan terms vary by lender. The amount borrowed cannot exceed the cost of attendance minus other financial assistance. Once a student is approved for a private student loan, the lender will send a certification request to the school. Please allow 5-10 business days for certification. Once certified, the private student loan will be added to the student’s financial aid offer. Please note that private student loans will not subtract from the balance in the Account Summary screen of MyLMU until the funds are disbursed. If the private loan is included in the financial aid offer, it will be used as a resource to complete registration, even if it is not subtracted from the balance in MyLMU. Private student loans are disbursed on the same schedule as federal financial aid. For a comparison of federal versus private student loans, go to studentaid.gov.