College of Law

Direct Loans

Direct Loans are federally guaranteed, low interest rate loans that are available to eligible students as determined by the FAFSA. Because the loans are guaranteed, application for the loan is not based on credit history or income.

Loan repayment begins after you graduate or drop below half-time status. Your loan servicer offers several repayment options.

The Direct Subsidized Loan

The Budget Control Act of 2011 eliminated the need-based, in-school interest subsidy for graduate and professional students beginning July 1, 2012. Therefore, the Direct Subsidized Loan is no longer available to graduate/professional students.

The Direct Unsubsidized Loan

  • Not based on need.
  • Interest begins accumulating at time of disbursement.
  • Fixed interest rate.
  • Students can pay interest while in school. If you defer payments, the interest will be capitalized to the principle of the loan. 
  • Repayment begins six months after you are no longer enrolled at least half time.  The six months is known as your grace period.
  • Requires entrance counseling prior to the first disbursement of funds to the student’s account.

Loan Limits

Professional degree students may be eligible to borrow up to $20,500 per academic year from the Direct Loan program. Loan amounts may be reduced if you receive other assistance i.e. scholarships, tuition, waivers.

The total, aggregate Direct Loan limit for professional degree students is $138,500. The total loan limit includes all Direct Loans borrowed as an undergraduate and/or graduate student.

Exit Interview

If you graduate or drop below half-time, you must complete a Direct Loan Exit Interview.

Direct Loan Process

  1. Accept, decline and /or reduce your Direct Loan online through Self-Serve.
  2. Complete your Direct Loan Master Promissory Note (MPN) (if you have not completed one at The University of Toledo in the past 10 years) and your loan entrance counseling if needed.
  3. Enroll and attend classes for at least 6 credit hours at the graduate level/law in a degree-seeking program (can not be provisional or special student status).
Last Updated: 7/3/19