Direct Loans for U.S. Students
Citizens of the United States studying at Carleton University are eligible to apply for student financial aid through the William D. Ford Federal Direct Loan Program (U.S. Direct Loans). Loans are available to students or their parents through Direct Loans.
Table of Contents
Types of Loans
| Loans | Who is Eligible | Additional Information |
|---|---|---|
| Subsidized Direct Loans | Awarded to students who demonstrate financial need | U.S. government subsidizes the interest, and borrowers are not charged interest while in school at least half time, during a grace period, or during deferment periods. |
| Unsubsidized Direct Loans | Awarded to students regardless of financial need | Borrowers are responsible for interest that accrues during all periods. During the study period, a borrower has the option to pay or have the interest capitalized. Loans may be awarded to both undergraduate and graduate students. |
| Direct PLUS Loans for Parents | Enables parents to borrow on behalf of their dependent undergraduate children | Undergraduate students must be enrolled in an eligible program at least half time. Borrowers are responsible for the interest that accrues during all periods. Only parents of dependent students can receive PLUS Loans. |
| Direct PLUS Loans for Graduates | Awarded to graduate and professional students enrolled at least half time. | Borrowers are responsible for the interest that accrues during all periods. |
How to Apply
To apply for Direct Loans, visit www.studentaid.gov and proceed with the following steps:
Step 1 – Free Application for Federal Student Aid (FAFSA)
When completing the FAFSA, ensure that you specify Carleton University as an institution you wish to attend. Carleton’s federal school code is: G08368
- Carleton’s federal school code is: G08368
Step 2 – Master Promissory Note (MPN)
Parents borrowing funds through a Direct PLUS loan for Parents must also complete and e-sign a Master Promissory Note (MPN).
Step 3 – Direct Loan Entrance Counseling
All first time borrowers must participate in a student on-line entrance counseling process. If this is your first student loan, please also complete the Direct Loan Entrance Counseling module.
Step 4 – Annual Student Loan Acknowledgement
The Annual Student Loan Acknowledgement is a tool for borrowers who take out federal student loans.
- If you have loans on file, you will learn important repayment terms and estimates, how much you have borrowed thus far, and what’s available for the remainder of your education.
- If you are a new borrower, you must acknowledge other information such as salary and debt estimates for your chosen program and information about how interest works.
Step 5 – Student Information Form
Notify the Awards & Financial Aid Office at Carleton University by completing the Student Information Form or email awards@carleton.ca to advise us that you have submitted your application for U.S student aid. We will then proceed with determining your eligibility and review disbursement of your Direct Loan funding with you.
Important Information
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As per the Higher Education Opportunity Act (HEOA) of 2008, the U.S. government requires institutions offering U.S. Direct Loans to disclose the following consumer information. If you require any further information about the content, please email awards@carleton.ca.
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All first time borrowers must participate in a student on-line entrance counseling process. If this is your first student loan, please also complete the Direct Loan Entrance Counseling module. This online session will explain the rights and obligations of the borrower as well as provide information on how to manage your student loans. Loan funds cannot be disbursed until the counseling session has been completed.
All graduating students, students dropping to part-time enrolment or withdrawing from studies, are required to complete Exit Counseling. This online Exit counseling session provides important information to prepare you to repay your federal student loans. Exit counselling provides important information to prepare you to repay your federal student loans. Completing exit counselling is mandatory for recipients of Direct Loan funding.
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Students studying on an official Carleton University exchange are considered to be Carleton students for the subsidized/unsubsidized/PLUS and alternative loans. This means that:
- You pay tuition and fees to Carleton University
- You apply for US loans following Carleton University’s procedures
- Your exchange school is not located within the continental United States
- All exchange schools must be Title IV approved to be eligible to get aid for the exchange. Any university that is not Title IV approved will jeopardize your aid while on exchange and future eligibility for aid.
If you intend to go on an official exchange as part of your program, you must be attending a Title IV eligible school. Please check the Federal School Code list (under Foreign Country) to ensure the partner/host university is eligible.
If your exchange institution is not Title IV eligible, you are not eligible for a U.S. student aid loan while you study abroad. Email awards@carleton.ca to discuss your financial options before you apply you travel abroad.
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The Higher Education Reconciliation Act (HERA) specifies that a program offered by a foreign school that uses telecommunications as a method of delivery is not eligible for student loan funds.
“Telecommunications” is defined as “the use of television, audio, or computer transmission, including open broadcast, closed circuit, cable, microwave, or satellite, audio conferencing, computer conferencing, or video cassettes or discs.”
Programs offered in whole or in part through telecommunications or distance learning are considered ineligible (at Carleton University this includes Video on Demand-VOD, CUTV, Tapes to You Service and Carleton University OnLine).
- Carleton University diploma and certificate programs are excluded from Title IV funding consideration.
- The Bachelor of Information Technology (BIT) is excluded from Title IV funding consideration.
- Dominican University College – College universitaire dominicain is affiliated with Carleton University. Students taking programs or courses at Dominican University College are not eligible for Title IV funding.
- Direct Loan program eligibility does not extend to graduate students undertaking a Dual Master’s Degree pathway, doctoral (Phd) students undertaking a cotutelle and US students undertaking an MBA in Shanghai.
- Carleton University and the University of Ottawa have developed a number of joint programs at the graduate level. Email awards@carleton.ca to see if your program may be eligible.
- Mature students who do not possess a secondary school completion credential or its equivalent are not eligible.
- Please see Admissions requirements for US students for more information.
All American students must carefully consider which courses they register in to comply with the legislation and to maintain their eligibility for student loan funding.
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Students in receipt of Direct Loan funding are required to maintain student academic progress.
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Information on tuition fee assessment and financial adjustments is available at carleton.ca/fees under Fee Payment – Fee Assessment.
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Changes to course load, including dropping a course or withdrawal, may result in ineligibility for all or part of your student loan funding. Please review the Return of Title IV Funds Policy and contact the Awards & Financial Aid Office immediately if you withdraw or reduce your course load.
Other Useful Resources and Links:
- The Student Guide is an annual federal publication that is available free of charge to students who are interested in financial aid.
- US Department of Education Title IV Programs Website
- The StudentAid.gov portal gives college students access to information on government services.