Students who seek financial aid should be willing to accept educational loans to meet a portion of their educational costs. Student loans are a valuable resource available to assist you in meeting the cost of education and allow you to defray tuition costs over a longer period of time — typically 10 years.
The first step in determining your eligibility for a federal student loan is to file the FAFSA. The programs outlined in this section have proven to be excellent resources for our families. Loans, however, are optional and may be declined.
Federal Direct Loan
Federal Direct (Stafford) Loans, from the William D. Ford federal direct loan program, are low-interest loans for eligible student to help cover the cost of higher education. Eligible students borrow directly from the U.S. Department of Education.
For this program, we will review the results of your FAFSA and determine the amount and type of DL you can borrow based on your grade level, enrollment pattern and need. The following types of loans are available:
Direct Subsidized — Direct Subsidized Loans are for students with financial need. You are not charged interest on the subsidized portion of your loan while you're enrolled at least half-time and during periods of deferment.
Direct Unsubsidized — Although you must file the FAFSA to be eligible, you are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Interest accrues on an unsubsidized loan from the time it's first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount.
To learn more, download the Federal Direct Loan handout (.pdf).
Federal Perkins Loan
These campus-based funds are made available by the U.S. Department of Education and awarded by the University of Dayton to students who demonstrate the highest financial need. Eligibility is determined after careful review of the FAFSA and only on-time applicants are considered. Funds are limited and priority is given to dependent, upperclass, undergraduate students.
The University of Dayton serves as the lender and the student is the borrower (a co-signer is required only if the borrower is under 18 years of age). The fixed interest rate of 5 percent is subsidized (paid) by the government until repayment begins nine months after you graduate, leave school or drop below half-time status. The amount of each payment depends on the size of your debt and on the length of your repayment period (usually 10 years).
In order for your loan to be originated, you must first officially accept your loan offer by logging on to Porches or calling the office. We recommend you do this before the end of June so the loan appears on your first billing statement as anticipated aid.
You may also choose to reduce or decline your loan. Only those loans which have been accepted will be originated, beginning in early August, for the new academic year.
First-time borrowers of this program are required to complete an Entrance Interview and a Master Promissory Note and will be notified via e-mail once the loan has been certified. Please keep in mind that this loan is optional and may be declined with no penalty if you do not need these funds.
Federal PLUS Loan
The Federal Direct PLUS Loan is a program from which a parent or guardian of a dependent student can borrow annually as much as their student's cost of attendance minus any other financial aid received. A student whose parent is applying for a PLUS Loan must complete a FAFSA before we can certify the loan.
Eligibility for the PLUS loan is based upon a credit review of the borrower. Dependent students whose parents are denied the chance to borrow a PLUS loan will be eligible to receive additional Unsubsidized Direct Loan assistance and should contact the Office of Financial Aid.
To learn more, download the PLUS Loan handout (.pdf).
Private educational loans are in general low-interest, unsecured loans. The University of Dayton does not endorse any particular private educational loan program or lender.
Eligibility for most of these programs is based on the creditworthiness of the borrower, and we recommend students apply with a creditworthy cosigner in order to receive the most favorable loan terms. As with any loan, be sure to review all information carefully and contact the lender directly with any questions related to specific terms and conditions.
To assist you in the search for additional financial resources, we provide you with the names of some of the programs/lenders our students are currently using. Please be aware that the processing timeline - from application to disbursement - can take up to four weeks, so plan accordingly. During the application process, the lender will send you three separate disclosure statements, as well as a 'self-certification form'. The information you need to complete this form can be found on your award notification letter or via the 'Award Overview' tab of your financial aid information on Porches. Please review the information provided by the lender carefully and contact the lender directly with any questions related to a loan program's specific terms and conditions and how they apply to you.
Please contact a financial aid counselor if you would like help determining the amount needed to cover your expenses.