Loans

An education loan is a form of financial aid that must be repaid, with interest. Education loans come in three major categories: student loans, parent loans, and alternative loans (also called private student loans).

The ultimate responsibility of financing an education lies with the student. Students who finance their education with student loans must understand that with the acceptance of the loan comes the responsibility of prompt and full repayment.

The University stresses this responsibility not only because loan repayment is ethically correct, but also because loan default could eventually lead to loss of financial aid to future students.

Federal Direct Unsubsidized Loans

The Federal Direct Unsubsidized Loan is a student loan that is available to Graduate, graduate, and pharmacy students. Loan funds come directly from the U.S. government.

To Apply for the Federal Direct Unsubsidized Loan

First, the student must complete the Free Application for Federal Student Aid (FAFSA) and meet the eligibility requirements. Then, the student must follow the steps below.

Returning Students

New Students/First Time Borrowers at Notre Dame: 

Go to studentloans.gov and log in using your FAFSA pin number, then:
Step 1: Choose the option Complete Entrance Counseling.
Step 2: Choose the option Complete Master Promissory Note (MPN).

Unsubsidized Loans

The Unsubsidized Loan is awarded based on your Cost of Attendance minus any other aid you will receive, your dependency status and your academic grade level.

You are responsible for the interest on this loan from the time the loan is disbursed until it is paid in full. The federal government DOES NOT subsidize the interest on this loan.

You may choose to defer the interest during enrollment and deferment periods, but it will be capitalized (added to the principal amount).

Interest Rates

For 2014–15, the interest rates on all Federal Direct Loans is 4.66% for unergraduate students, and 6.21% for graduate students.

Fees

For 2014–15 loans a 1.072 origination fee will be charged by the U.S. Department of Education.

Loan Limits for Each Year

For students enrolled as regular students in eligible programs, annual Federal Direct Loan limits are as follows:

Graduate and Pharmacy Students

Cumulative Total Loan Limits

Federal regulations set aggregate, or total, loan limits in addition to the annual loan limits. You cannot borrow more than the aggregate loan limit for all subsidized and unsubsidized loans at all schools.

Aggregate Loan Limits

Effective July 1, 2008

Perkins Loan

The Perkins loan is a federally regulated student loan that colleges and universities receive from the U.S. Department of Education. Funding is limited and is generally awarded to first year students with very high financial need. The average award is $1,000 per year.

The interest rate on Perkins loans is fixed at 5%.

Perkins loans have a nine month grace period after the student graduates or ceases half-time enrollment before repayment begins.

Alternative and Private

Alternative or private loans are nonfederal loans offered by some banks and credit unions.

The purpose of an alternative loan is to supplement a student's financial aid package. Alternative loans are not federally endorsed or guaranteed, but they generally must be certified by the office of financial aid at Notre Dame. An alternative loan cannot exceed your cost of attendance (financial aid budget) minus all other financial aid.

Note: Notre Dame of Maryland does not endorse any specific lender or group of lenders. The application for an alternative student loan is made directly through the lending institution. As a part of this process, the office of financial aid will certify enrollment and other information for the borrower.