U.S.A. William D. Ford Federal Direct Loan Program
Citizens of the United States studying at the University of Ottawa can apply for Direct Stafford Loans and Direct PLUS Loans through the William D. Ford Federal Direct Loan Program (Direct Loans – DL). Please note that programs of instruction offered by telecommunications as a method of delivery are not eligible.
The U.S.A. William D. Ford Federal Direct Loan Program offers the following types of loans:
- Direct Subsidized Loan: awarded to students who demonstrate financial need. No interest is charged while you are in school at least half-time, during the grace period, and during deferment periods.
- Direct Unsubsidized Loan: awarded to students regardless of their financial need. Interest is charged during all periods, even during the time you are in school and during grace and deferment periods.
- Direct PLUS Loan: unsubsidized loan for the parents of dependent students. Graduate and professional students may also apply for PLUS Loans for their own expenses. Interest is charged during all periods.
How much can I borrow?
Yearly loan amounts are listed on page 30 in the U.S Department of Education resource publication, Funding Education Beyong High School: The Guide to Federal Student Aid
General Application Process
To be considered for a Direct Stafford loan you must:
- Complete a Free Application for Federal Student Aid (FAFSA). The University of Ottawa’s federal code is G06686. The information collected through this application will be used by the US Department of Education to calculate the Expected Family Contribution (EFC).
- Complete the appropriate Master Promissory Note(s)
- Complete the US Student Information Form and forward it to the following address:
University of Ottawa
Financial Aid and Awards Service
55 Laurier E. (3156)
Ottawa, ON K1N 6N5
- Students who are first time borrowers of Direct Stafford loans must complete the Entrance Counselling. Students who have already completed Entrance Counselling through the US Department of Education website will be considered to have completed this requirement.
- Once the Financial Aid and Awards Service has processed your application, a visa letter indicating your loan eligibility will be mailed to your U.S.A. mailing address.
Entrance and exit counseling:
- Students who are receiving a Direct Stafford Loan for the first time must participate to an online entrance student loan counseling session. You must go to the US Department of Education web site and select "Direct Loan Entrance Counseling”. Please note that the University of Ottawa Financial Aid and Awards Service will not process your loan until we receive confirmation that you successfully completed your entrance counseling session.
- At the end of your studies you must also access the same Web site and complete a “Direct Loan Exit Counseling” session.
Borrower's responsibilities and obligations
- You must maintain Satisfactory Academic Progress
- You must immediately inform Financial Aid and Awards Service of any changes, including course load reduction or withdrawal
Disbursement of funds:
Payments are usually disbursed in two or three instalments of equal amounts (September and January, and May if applicable). Funds will only be disbursed once you are registered. You will be paid through electronic transfer of funds to the University of Ottawa and the loan money will first be used to pay for your tuition fees. If any loan money remains, the balance will be deposited into your University of Ottawa student account.
For more detailed information about the various type of loans please visit the U.S. Department of Education's Direct Loan Program Web site.
This list of frequently asked questions should answer most of your questions!
Other useful resources and links
www.studentloans.gov : This site is your source for information from the U.S. Department of Education about how to manage your student loans.
Student Aid on the Web : This site is your source of free information from the U.S. Department of Education on preparing for and funding education beyond high school.
Funding Education Beyond High School: The Guide to Federal Student Aid is a comprehensive resource on student financial aid from the U.S. Department of Education. Grants, loans, and work-study are the three major forms of aid available through the Department's Federal Student Aid office. Funding Education Beyond High School: The Guide to Federal Student Aid tells you about the programs and how to apply for them.
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