U.S.A. William D. Ford Federal Direct Loan Program
Who Can Apply?
Citizens of the United States studying in degree programs at the University of Toronto can apply for financial assistance from the USA Federal Direct Loan Program. The U.S. Department of Education is your lender; your loan is administered by a federal loan servicer who acts on behalf of the U.S. Department of Education.
The U.S. Department of Education does not provide funding to students enrolled in Doctor of Medicine, Bachelor of Nursing, certificate, diploma, non-degree, Study Abroad programs, co-op work terms, practicums, School of Continuing Studies and programs of instruction offered by telecommunications as a method of delivery. Exchange programs and research in the United States by doctorate students is at the discretion of Enrolment Services in accordance with U.S. regulations.
How Much Can I Borrow?
The University of Toronto is eligible for subsidized, unsubsidized, PLUS Direct Loans, Higher Education Act, Title IV. Yearly loan amounts are listed in the U.S Department of Education resource publication, Funding Education Beyond High School: The Guide to Federal Student Aid . As a foreign school the University of Toronto is not eligible to participate in Pell grants, Perkins or Health Professions loans.
How To Apply–four easy steps
- –complete your Free Application for Federal Student Aid (FAFSA) .
- School Code G06688
- Your FAFSA application will be reviewed only after you complete Steps Two, Three and Four
Step Two go to: www.studentloans.gov
- –complete the appropriate Master Promissory Note(s)
- –request credit check required for PLUS
- –complete Entrance Counselling (applies to all first time students applying for Direct Loans who have not previously completed the US Direct Loan Entrance Counselling while at the University of Toronto.)
- Print and complete–
- Program/Personal Information
- Statement of Educational Purpose/Certification Statement on Refunds and Defaults
- Request for Loan Amount
- Request from Parent for PLUS Loan Amount (if your parent is applying for a PLUS loan and you are a dependent, undergraduate)
- Request for Graduate/Professional Loan Amount (you must have borrowed the maximum yearly limit first from the Direct Loan)
- Mail or email the forms listed in Step Three to Enrolment Services, University of Toronto, 172 St. George Street, Toronto, Ontario, M5R 0A3
A letter indicating your loan eligibility will be mailed to your U.S.A. mailing address if your application is processed before the end of August. Information on study permit/student visa is available from the Centre for International Experience .
Payment of Loan Funds
Payment is made by direct deposit to your financial account at the University of Toronto in two or three disbursements after the start of the fall, winter and summer terms.
Before you can receive your first loan payment you must
- –be in good academic standing
- –have paid or deferred your tuition fees and be registered full-time or at least half-time
- –recommended you obtain a Canadian bank account and set up Direct Deposit.
Your outstanding tuition fees will be deducted and any surplus remaining will be refunded to you in Canadian funds by Student Accounts.
Service Charges and Exchange Rate
Service charges are levied on unpaid student accounts beginning November 15. Service charges cannot be waived on the basis of fluctuations in exchange rates, returned, cancelled or dishonoured cheques (checks), or on the basis of loans issued in multiple instalments.
You are responsible to fund any shortfall in exchange rate conversion. The exchange rate is the one used by the University of Toronto on the date of each transaction to or from U.S. currency.
To ensure funding will be available after the start of classes, completed applications must be received by:
- –May 31 returning students
- –June 15 new students
- –Final application deadline 12 weeks prior to your current study end period
Borrower’s Responsibilities and Obligations
- –maintain Satisfactory Academic Progress
- –immediately inform Enrolment Services of any changes, including course load reduction or withdrawal
Satisfactory Academic Progress
In order to receive funding from the Federal Direct Loan program, you must maintain satisfactory academic progress. Satisfactory academic progress is measured at the end of each academic year in accordance with the University’s published academic standards required for graduation. Undergraduate program completion may not exceed 150% of the published length of time to complete.
Students who fail to maintain satisfactory academic progress will be advised in writing or by email using the address on ROSI (Repository of Student Information) of their ineligibility for further aid. Students may appeal this restriction.
Appeals will be considered for unusual or extraordinary situations. Examples include:
- family difficulties
- medical problems
- death in a family
- interpersonal relationship problems
- financial difficulties
Signed appeals must be submitted to Enrolment Services with supporting documentation and an academic plan of action for academic recovery. An appeal committee will review the situation and the student will receive written notification of their decision. Students who successfully appeal will be placed on Financial Aid Probation and have aid issued for the subsequent payment period. If satisfactory academic progress is not met at the end of the Financial Aid Probation period an academic plan must be approved with your Registrar’s co-signature.
Withdrawal/Reduction in Course Load
Your Federal Direct Loan is awarded on the basis that you will attend school full-time for the entire period for which the load was calculated.
If you withdraw from the University of Toronto or reduce your course load to less than half-time you must:
- notify Enrolment Services immediately
- have your loan award recalculated to determine your “earned” entitlement. “Unearned” funds must be returned to the U.S. Department of Education under the Higher Education Reconciliation Act of 2005 (HERA). For more information refer to www.studentloans.gov
- repay the University of Toronto the amount of funds returned to the U.S. government by the University including service charges and exchange rate differences
- repay unearned funding through your loan servicer
- choose a repayment plan with your loan servicer
The amount of assistance earned is calculated on a pro-rated basis. For example, if a student attends 40% of the payment period, 40% of the assistance is considered earned. Once a student completes more than 60% of the payment period, all assistance is earned. For specific refund calculations contact Enrolment Services, 172 St. George Street, Toronto, Ontario M5R 0A3, or email firstname.lastname@example.org.
You must complete the Exit Counselling interview and begin repayment of your student loans when you leave your studies (graduation, withdrawal or course load reduction to less than half-time) .
National Student Loan Data Service
The NSLDS is the central database for U.S. government student aid. This site allows you to download all your loan, grant and aid overpayment history. The University of Toronto reports enrolment status to NSLDS. Private/alternative loans are not included.
Educational In-School Deferment
You may request deferment of repayment of U.S. student loans using the paper based In-School Deferment Request form. Submit your signed form to Enrolment Services for completion.
Alternative Loans/Private Loans
You must apply directly to the lender of choice to obtain approval. These loans provide an alternative source of funding to the Federal Direct Loans. Information is available from Sallie Mae or a lender of your choice. Complete the Request for Alternative/Private Loan School Certification to have the University of Toronto certify your loan. Payment can be issued in a single or multiple disbursement(s).
American Opportunity Credit & Lifetime Tax Credit
Contact: If you have any questions, please contact: e. email@example.com