Office of Student Financial Aid

Subsidized

• Based on need
• Available only to undergraduates enrolled at least half time
• The government pays the interest while you are in school at least half time
• No payments required while enrolled at least half-time. You will have a six-month grace period after you are no longer enrolled at least half-time. Interest is not charged on the Subsidized loan during the grace period.

Unsubsidized

• Qualify regardless of income
• Available to undergraduate and graduate students
• Interest is charged from the time the loan is paid out (disbursed)
• No payments required while enrolled at least half-time. You will have a six-month grace period after you are no longer enrolled at least half-time. Interest is charged on the Unsubsidized loan during the grace period.

You can have both kinds of loans at the same time. Subsidized loans are the better option since interest won’t start accruing until you leave school.

Submit a FAFSA (Free Application for Federal Student Aid). Based on your financial information disclosed in the FAFSA, we determine if you’re eligible for federal loans. If you qualify, we list the type and amount of loans on your financial aid offer. We post aid packages to myUT in mid-March for new students and mid-April for continuing students.

The U.S. Department of Education sets borrowing limits, interest rates and repayment terms.

See current interest rates and fees

Federal Direct Subsidized Loan ― Maximum annual amount you can borrow

• Freshmen: $3,500
• Sophomores: $4,500
• Juniors and Seniors: $5,500

Federal Direct Unsubsidized Loan ― Maximum annual amount you can borrow

• Dependent undergraduates: $2,000
• Independent freshmen and sophomores: $6,000
• Independent juniors and seniors: $7,000
• Graduate/professional (including medical) students: $20,500
• Medical students: Additional Unsubsidized loans for Years 1 and 2 $20,000, Years 3 and 4 $26,667

The maximum amount of unsubsidized loans may be increased if you are a dependent student whose parents do not pass the required credit check for the PLUS Loan. If that happens, you may apply for additional loans up to:

• Freshmen and Sophomores: $4,000
• Juniors and Seniors: $5,000

Lifetime Limits

There are maximum amounts of Federal Direct Loans you can borrow in your lifetime.

Sometimes you don’t have an option. You may need to take out loans to pay for college.

But consider carefully how much debt you want to take on. Only borrow what you need.

Think about your future career and salary. How much will you be able to afford in payments?

Here are some tools to help you plan:

• Loan Simulator ― Estimate your federal student loan payments using actual or estimated loan information under each available repayment plan.
• Creating a budget — Once you have a better idea of your expenses, you’ll know how much you need to borrow.
• Financial Literacy — UToledo has some great tools to educate yourself about money management.

Loans must be accepted and originated (processed) 5 days before the end of the semester for which you are enrolled. NOTE: We use the University’s end-of-semester date as listed on the academic calendar. To accept your Federal Direct Loans:

• Go to myUT → Student tab → My Financial Aid Dashboard → Award Offer. Then follow the directions to accept, decline or reduce loans.
• To reduce or decline an award you previously accepted or accept all or a portion of an award you previously declined, you must submit a loan change request.
  Go to the Student tab → My Financial Aid Dashboard → Loan Change Request Form
• First-time borrowers must sign their master promissory note and complete entrance counseling before we pay out your loan funds. See below for more information on those steps.

A master promissory note is a legal document that explains the loan’s terms and conditions. It outlines your interest rate, repayment options, grace period, deferment and cancellation opportunities. Read it carefully. First-time borrowers must sign the note online, promising to repay your loans, along with interest and fees.

We will not release your loan funds until you sign the promissory note.

First-time borrowers must complete online loan counseling. This helpful session:

• Educates you about loans
• Explains repayment options
• Outlines your loan’s terms and conditions, along with your rights and responsibilities

After you finish, a notice is sent to UToledo.

We will remind you in myUT to complete counseling.

Go to the Student tab → My Financial Aid Dashboard

We can’t release your funds until entrance counseling is completed.

Your loan funds are disbursed — or paid — directly into your myUT student account.

You may wonder why the full amount of your loan isn’t shown on your student account. Remember that federal loans have origination or loan fees that are deducted from the amount borrowed. So, the actual loan amount applied to your student account will be less than the amount listed on your award package. (See interest and fees above.)

Your loan will be used to pay unpaid portions of your approved UToledo charges. If funds are left over, you’ll receive a refund. You can use those funds to pay for additional educational expenses.

If you expect a refund:

• Sign up for direct deposit. It’s the safest, fastest way to receive your funds.
  Go to myUT → Student tab → My Accounts → Direct Deposit Authorization
• Make sure your address is up to date in your student account if you prefer to receive a paper check.

Federal Loan Code of Conduct

You start paying back your Federal Direct Loans six months after you graduate or stop attending college at least half time.

You are required to complete online exit counseling for federal loans. You’ll learn about repayment options and debt management planning.

If you’re going to have trouble making payments, consider:

• Loan consolidation. This allows you to combine your federal loans into one loan with a single montly payment.
• Deferment/forbearance. Both allow you to temporarily postpone or reduce your federal student loan payments. If you defer, no interest accrues to your loan balance. If you are in forbearance, interest does accrue on your loan balance. Your loan provider can provide more details. Learn more about the UToledo deferment process.
• Choose a new Repayment Plan. There are several plans available to help lower your monthly payment.
• Student loan forgiveness programs. There are a variety of ways to have the government pay off all or a portion of your loans.

Our best advice if you can’t make payments: Get in touch with your loan servicer. Defaulting on loans can impact your credit and has a host of other financial implications.

Loan Servicing Centers for Borrowers 

Contact federal loan servicing centers for information on repayment.

Contact Federal Student Aid (FSA) Ombudsman Group of the U.S. Department of Education (ED) to help resolve disputes about your federal student loans. The Ombudsman Group is a neutral, informal and confidential resource. Contact the Ombudsman as a last resort after you have worked through our Financial Aid office and your Loan Servicer.

Only the parents of dependent undergraduates can apply. Grandparents ― even if they have been raising you — are not eligible unless they have legally adopted you.

To qualify for a Parent PLUS loan, the borrower must:

• Be your biological or adoptive parent; or your stepparent (if biological or adoptive parent was remarried at the time of application and provided information on the FAFSA)
• Be a U.S. citizen or eligible noncitizen
• Pass a credit check or a have a loan endorser with acceptable credit history. The loan endorser agrees to repay the loan if the borrower can’t or doesn’t.
• Not be in default on any federal education loan or owe an overpayment on a federal education grant

Students must:

• Be enrolled at least half-time (6 credit hours)
• Be enrolled in a degree-seeking program
• Maintain satisfactory academic progress

The U.S. Department of Education sets borrowing limits, interest rates and repayment terms. Each loan has a loan origination fee — a defined percentage of the entire loan amount. That loan fee is deducted from the total loan amount. That’s why the loan amount paid into your student account is lower than the loan amount you qualified for in your financial aid package. Interest is charged from the time the loan is disbursed, or paid to you.

See current interest rates and fees

Parents may borrow up to the amount of your cost of attendance, minus any other financial aid you receive. UToledo determines your cost of attendance. We take into account your tuition and fees and living expenses, along with other indirect expenses like books and transportation. Your annual cost of attendance is listed in your financial aid offer.

IMPORTANT: The application process for PLUS loans is different than for Federal Direct loans. With Direct loans, your FAFSA is your application. If you qualify, you just accept the loan in your financial aid package. Parent PLUS loans are different. Parents must apply separately.

1. Submit a FAFSA (Free Application for Federal Student Aid). We post aid offers to your myUT account in March for new students and April for continuing students.
   
   Step-by-step FAFSA guide
    
2. Submit an online application. (A paper version of the app is available from Rocket Solution Central if you are unable to complete online.)

• Visit studentaid.gov.
• Select Log In to Start. Your parent will need their FSA ID — the same one they used to fill out the FAFSA . They can create an FSA ID at this point if they don’t already have one. Do not use your student FSA ID!
• Follow the steps to complete the application and credit check. Be sure to select the amount that you would like to borrow. The amount that you indicate will be split equally between the semesters that have been indicated on the aid offer.
   

• The results of your credit check will be available immediately. If your credit is approved, you qualify for the loan and will be given instructions for completing a PLUS Master Promissory Note.
  
  If your credit is denied, you will have the option to:
  • Obtain an endorser. The endorser needs to pass the credit check, agree to endorse the promissory note, and agree to repay the loan if your parent would fail to do so. You’ll receive information about this option with the results of your credit check.
  • Appeal the credit decision with the Department of Education.
  • Not pursue the loan and request an additional unsubsidized Federal Direct loan. Because your parent was denied a PLUS loan, you may be eligible to take out additional Federal Direct Unsubsidized Loans ($4,000 for freshmen and sophomores; $5,000 for juniors and above). To pursue this option, you must fill out a Loan Change Request:
    Go to myUT → Student Tab → My Financial Aid → Loan Change Request Form

Loans must be accepted and originated (processed) 5 days before the end of the semester for which you are enrolled. NOTE: We use the university’s end-of-semester date as listed on the academic calendar. You will know immediately when filling out the Parent PLUS loan application whether you qualified. UToledo then will need a few days to process your loan request. So plan accordingly.

If you want to reduce the amount of your loan or cancel it after you’ve applied, use our Parent PLUS Loan Change Form.

Sometimes you don’t have an option. You have to take out loans to pay for college.

But consider carefully how much debt you want to take on. Only borrow what you need.

If your parents are taking out a PLUS loan, they are responsible for repaying it. But some parents ask their students to repay them for the amount of the loan. In that case, think about your future career and salary. How much you will be able to afford in payments?

Here are some tools to help you plan:

• Loan Simulator ― Estimate your federal student loan payments using actual or estimated loan information under each available repayment plan.
• Creating a budget — Once you have a better idea of your expenses, you’ll know how much you need to borrow.
• Financial Literacy — UToledo has some great tools to educate yourself about money management.

A master promissory note is a legal document that explains the loan’s terms and conditions. It outlines your interest rate, repayment options, grace period, deferment and cancellation opportunities. Read it carefully. First-time borrowers must sign the note online, promising to repay your loans, along with interest and fees. We will not release your loan funds until you sign the promissory note.

Your loan funds are disbursed — or paid — directly into your myUT student account after you sign the promissory note and complete all your requirements. To see if you have any remaining requirements:

Go to myUT→ Student tab → My Financial Aid → My Financial Aid Dashboard

You may wonder why the full amount of your loan isn’t shown on your account. Remember that federal loans have origination or loan fees that are deducted from the amount borrowed. So the actual loan amount applied to your student account will be less than the amount listed on your award package. (See interest and fees above.)

Your loan will be used to pay unpaid portions of your approved UToledo charges. If funds are left over, we will mail a refund to the parent address listed on the PLUS Loan application.

Federal Loan Code of Conduct

The repayment period for a Parent PLUS Loan begins when the loan is fully disbursed. The first payment is due 60 days after the final disbursement. However, parents may defer PLUS loan repayment while you are enrolled at least half time.

Your parent is responsible for paying back the loan. They may not transfer payments to you, although they may make informal arrangements and ask you to repay them the amount of the loan.

Once your parent enters repayment, they may choose a Standard, Extended or Graduated Repayment Plan. Their Loan Servicer will send information about payment plans. If they are having difficulty making scheduled payments, contact the federal loan servicing center for information on repayment.

Contact Federal Student Aid (FSA) Ombudsman Group of the U.S. Department of Education (ED) to help resolve disputes about your federal student loans. The Ombudsman Group is a neutral, informal and confidential resource. Contact the Ombudsman as a last resort after you have worked through our Financial Aid office and your Loan Servicer.

To qualify for a Grad PLUS loan, you must:

• Be a U.S. citizen or eligible noncitizen
• Enrolled at least half-time in an approved graduate-level program
• Pass a credit check or a have a loan endorser with acceptable credit history. The loan endorser agrees to repay the loan if you can’t or don’t.
• Not be in default on any federal education loan or owe an overpayment on a federal education grant

The U.S. Department of Education sets borrowing limits, interest rates and repayment terms. Each loan has a loan origination fee — a specified percentage of the entire loan amount. That loan fee is deducted from the total amount you borrow. That’s why the loan amount in your myUT student account may appear less than the amount in your financial aid package. Interest is charged from the time the loan is disbursed, or paid to you.

See current interest rates and fees

You may borrow up to the amount of your Cost of Attendance, minus any other financial aid you receive. UToledo determines your cost of attendance. We take into account your tuition and fees and living expenses, along with other indirect expenses like books and transportation. Your annual cost of attendance is listed in your financial aid offer.

IMPORTANT: The application process for PLUS loans is different than for Federal Direct loans. With Federal Direct loans, your FAFSA is your application. If you qualify, you just accept the loan in your financial aid package. Parent PLUS loans are different. After you fill out the FAFSA, you’re notified in your aid package that you qualify for a PLUS loan. Then you must apply separately.

1. Submit a FAFSA (Free Application for Federal Student Aid). If you qualify for a Parent PLUS loan, we will list the loan and how much you qualify to borrow in your financial aid offer. We post aid offers to your myUT account in March for new students and April for continuing students.
   
   Step-by-step FAFSA guide
    
2. Submit an online application. (A paper version of the app is available from Rocket Solution Central if you are unable to complete online.)

• Visit studentaid.gov.
• Follow the steps to complete the application and credit check. Be sure to select the amount that you would like to borrow. Refer to your aid offer for the maximum amount you are eligible to borrow. The amount that you indicate will be split equally between the semesters that have been indicated on the aid offer.
   

• The results of your credit check will be available immediately. If your credit is approved, you qualify for the loan and will be given instructions for completing a PLUS Master Promissory Note.
  
  If your credit is denied, you will have the option to:
  • Obtain an endorser. The endorser needs to pass the credit check, agree to endorse the promissory note, and agree to repay the loan if your parent would fail to do so. You’ll receive information about this option with the results of your credit check.
  • Appeal the credit decision with the Department of Education.

Loans must be accepted and originated (processed) 5 days before the end of the semester for which you are enrolled. NOTE: We use the university’s end-of-semester date as listed on the academic calendar. You will know immediately when filling out the Grad PLUS loan application whether you qualified. UToledo then will need a few days to process your loan request. So plan accordingly.

A master promissory note is a legal document that explains the loan’s terms and conditions. It outlines your interest rate, repayment options, grace period, deferment and cancellation opportunities. Read it carefully. First-time borrowers must sign the note online, promising to repay your loans, along with interest and fees. We will not release your loan funds until you sign the promissory note.

First-time borrowers must complete online loan counseling. This helpful session:

• Educates you about loans
• Explains repayment options
• Outlines your loan’s terms and conditions, along with your rights and responsibilities

After you finish, a notice is sent to UToledo. We can’t release your funds until entrance counseling is completed.

If you want to reduce the amount of your loan or cancel it after you’ve applied, you must complete a Loan Change Request.

Go to myUT → Student tab → My Financial Aid → Loan Change Request Form

Sometimes you don’t have an option. You have to take out loans to pay for college.

But consider carefully how much debt you want to take on. Only borrow what you need.

Think about your future career and salary. How much you will be able to afford in payments?

Here are some tools to help you plan:

• Loan Simulator ― Estimate your federal student loan payments using actual or estimated loan information under each available repayment plan.   
• Creating a budget — Once you have a better idea of your expenses, you’ll know how much you need to borrow.
• Financial Literacy — UToledo has some great tools to educate yourself about money management.

Your loan funds are disbursed — or paid — directly into your myUT student account after you sign the promissory note and complete all your requirements. To see if you have any remaining requirements:

Go to myUT → Student tab → My Financial Aid → My Financial Aid Dashboard

You may wonder why the full amount of your loan isn’t shown on your student account. Remember that federal loans have origination or loan fees that are deducted from the amount borrowed. So the actual loan amount applied to your student account will be less than the amount listed on your aid package. (See interest and fees above.)

Your loan will be used to pay unpaid portions of your approved UToledo charges. If funds are left over, you’ll receive a refund. You can use those funds to pay for additional educational expenses.

If you expect a refund:

• Sign up for direct deposit. It’s the safest, fastest way to receive your funds.
  
  Go to myUT → Student tab → My Accounts → Direct Deposit Authorization

• Make sure your address is up to date in your student account if you prefer to receive a paper check.

Federal Loan Code of Conduct

The repayment period for a Grad PLUS Loan begins when the loan is fully disbursed or paid out to you. The first payment is due 60 days after the final disbursement. You may defer repayment:

• while enrolled at least half time and
• for an additional six months after you cease to be enrolled at least half time

Once you enter repayment, you may choose a Standard, Extended or Graduated Repayment Plan. Your Loan Servicer will send you information about payment plans.

If you are having difficulty making your scheduled payments, you should contact your federal servicer for information on repayment.

Contact Federal Student Aid (FSA) Ombudsman Group of the U.S. Department of Education (ED) to help resolve disputes about your federal student loans. The Ombudsman Group is a neutral, informal and confidential resource. Contact the Ombudsman as a last resort after you have worked through our Financial Aid office and your Loan Servicer.

International students are limited in the types of financial aid they qualify for. You may not apply for loans administered by the U.S. government. But you may be eligible to borrow money from private lenders such as banks. Many will allow international students to borrow money as long as they have an eligible co-borrower who is a U.S. citizen or permanent resident. Some lenders also offer private educational loans for parents or sponsors of eligible international students.

A co-signer is a co-borrower who signs all the paperwork alongside you. It’s usually someone who has a better credit history than you do. Some lenders require a co-signer for students. And even if it isn’t required, it’s a good idea to apply for a private loan with a co-signer who has good credit. You’ll have a better shot at being approved and will often get a better interest rate or reduced fees.

You may need loans to pay for college. But consider carefully how much debt you want to take on. Only borrow what you need.

Think about your future career and salary and how much you will be able to afford in payments.

Here are some tools to help you plan:

• Loan Simulator ― Estimate your federal student loan payments using actual or estimated loan information under each available repayment plan.   
• Creating a budget — Once you have a better idea of your expenses, you’ll know how much you need to borrow.
• Financial Literacy — UToledo has some great tools to educate yourself about money management.

These vary by lender. Interest rates may be fixed or variable (they can increase or decrease over time). Often, your interest rate will depend on how good your credit is. The better it is, the lower the interest rate. Make sure you know what you’re getting into and what the interest rates and fees are before signing the dotted line.

Explore loan programs with FASTChoice.

FASTChoice is a loan comparison tool. It compares lenders that have been providing service to UToledo students for years. Use the "Filter" feature on FASTChoice to search for loans that best fit your needs.

• Competitive rates and terms
• An easy online application process
• Sends funds via Electronic Funds Transfer (EFT)
• History of good customer service.

Review UToledo’s Historical Lender List — a list of providers our students have used in the past.

Our Alternative Loan Worksheet can be used in conjunction with these tools. It lists helpful questions to ask as you compare loans.

The University of Toledo will process an alternative loan from any lender you choose. We do not endorse any specific private lender or lending program. Review lender information carefully. Check with multiple lenders for loan options.

1. Choose a lender and visit their website to apply. Most lenders offer several different types of alternative loans (undergraduate, graduate, medical, law and parent/sponsor loans). Be careful to apply for the correct loan.
   
   
2. Your lender will ask you how you want to apply your loans. Do you want to use the funds for fall and spring semester? Or summer, fall and spring? Or some other combination?
   
   Choose which semesters you want to apply your loan. Review the chart below and give the corresponding loan period dates to your loan provider. Your loan will then be divided equally for that time period.
   
   Example: You want your $6,000 loan to be divided equally for summer, fall and spring. You would tell your provider that the loan period is for 5/15/2023 to 5/03/2024. You will then receive $2,000 for each of the three semesters.
   
   

   Loan Periods for 2024 - 2025

   05/13/2024 - 05/02/2025 Summer, Fall and Spring

   08/26/2024 - 05/02/2025 Fall and Spring

   05/13/2024 - 08/02/2024 Summer Only

   08/26/2024 - 12/13/2024 Fall Only

   01/13/2025 - 05/02/2025 Spring Only

3. Once credit is approved, sign the promissory note and any other documents your lender requires and return to the lender. The University of Toledo then receives an electronic loan certification request. UToledo will determine eligibility (for instance, verifying your enrollment, etc.) and submit the electronic loan certification to the lender.
   
   
4. Carefully review all terms and conditions of the alternative loan before accepting the loan. Compare fees and interest rates, and keep in mind that some lenders may require payments while in school.

Private loan funds will be disbursed or paid to your student account once you complete all the eligibility requirements and funds have been received from the lender. To check for outstanding requirements:

Go to myUT → Student tab → My Account → Check Eligibility Status