Loans for Undergraduates
What You Need to Know
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.
The University of Dayton adheres to the U.S. Department of Education's Student Loan Code of Conduct.
Types of Loans
For this program, we will review the results of your FAFSA and determine the amount and type of loan 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.
Before you receive your loan funds, you must complete the following federal requirements by logging into studentaid.gov with your FSA ID:
- New borrowers (one-time): Entrance Counseling and Master Promissory Note
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.
Before you receive your loan funds, you must complete the following federal requirements* by logging into studentaid.gov with your FSA ID:
- New borrowers (one-time): Master Promissory Note
*May require Credit Counseling if borrower obtained an endorser or successfully appealed.
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. Some private lenders also offer a parent loan option, which allows parents, family members or friends to help students cover education-related expenses so they can focus on their studies without having to worry about financing their education. 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. Before pursuing a private loan, you are encouraged to explore all options available to you by filing the FAFSA. Federal student loans available to you may be more favorable than those of private education loans.
To assist you in the search for additional financial resources, we provide you with a private loan comparison tool, FAST Choice. FAST Choice provides a historical list of lenders our students have used over the last three academic years. This information is updated on an annual basis. Additionally, FAST Choice can help you understand how to plan for successful repayment of your private loan.
The private loan process has many steps and it is important that you allow up to four weeks from the time of your application until the loan disbursement is sent to UD. This can impact the status of your student account, so be sure to plan ahead. During the application process, the lender will send you three separate disclosure statements, as well as a 'self-certification form'. The Cost of Attendance 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.
FAST Choice provides a historical list of lenders used by students and other borrowers at University of Dayton within the last three academic years. The university does not endorse any lender, nor do any of the lenders compensate University of Dayton to be on this list.
Lenders will typically not approve loans for balances owed from a prior academic year that is more than 180 days from your last attendance. Please contact our Office of Student Accounts to set up payment arrangements.
If your balance is within 180 days of last attendance, please use FAST Choice to locate a lender that can accommodate a past due balance loan.
