On this page:
Who Can (Not) Apply? | How Much Can I Borrow? | Annual Limits for US Gov't Loans | Annual Limits for US Gov't Loans - Undergraduate/Dependent | Annual Limits for US Gov't Loans - Undergraduate/Independent | Annual Limits for US Gov't Loans - Graduate/Professional | How Do I Apply for a Direct Loan? | How Do I Apply for a GRAD PLUS Loan? | How Do I Apply for a Parent PLUS Loan? | How Do I Track the Progress of My US Gov't Loan $$? | How Do I Receive My US Gov't Loan $$? | How Do I Defer My Existing US Gov't Loans?
US students attending McGill may apply for the following loans through the William D. Ford Federal Direct Loan Program:
-
Direct Loan - Undergraduate (subsidized/unsubsidized)
-
Parent PLUS Loan - Dependent Undergraduate
-
Direct Loan - Graduate & Professional Students (unsubsidized)
-
Grad PLUS Loan - Graduate & Professional Students
NB: US grant funding (Pell) is not available to students attending foreign schools.
Who Can Apply?
- US citizens or permanent residents who are registered full time in a degree program
Who Can NOT Apply?
- Students registered in certificate, diploma, or Continuing Education programs
- Nursing students: ALL programs as of 2012/13 academic year
How Much Can I Borrow?
In broad terms, the amount of US loan money a student can borrow is determined by 2 factors:
- Annual limits for US government loans
- Cost of Attendance
Annual Limits for US Government Loans
For all students (undergraduate and graduate/professional) the US Direct Loan Program has limits to the amounts it will lend to a borrower. These limits vary according to a student’s:
- Cost of Attendance (student cannot borrow more than this amount)
- Grade Level
- Status (dependent or independent)
- Loan type
o Need-based (subsidized)
o Non-need based (unsubsidized and PLUS)
Annual Limits for US Government Loans – UNDERGRADUATE/DEPENDENT
An undergraduate’s “dependent” status is determined by information on their FAFSA. The student can borrow up to the cost of attendance or up to the specified loan limit (whichever comes first). The loan is divided into 2 amounts:
- Base amount
o Subsidized and/or unsubsidized as determined by the “Loan Amount Calculation” - Unsubsidized amount
If the parent of a dependent undergraduate is denied a PLUS loan, the student is eligible for an additional loan amount that:
- Is always unsubsidized
- Increases the annual loan limit
Table 1: Annual Limits for US Government Loans ($US) - UNDERGRADUATE/DEPENDENT
| Grade Level | Base Amount Sub/Unsub | Unsubsidized Amount | ANNUAL LOAN LIMIT | Additional Amount Unsub IF PLUS Loan Denied | LOAN LIMIT IF PLUS Denied |
|---|---|---|---|---|---|
| First Year -Freshman | $3,500 | $2,000 | $5,500 | $4,000 | $9,500 |
| Second Year - Sophomore | $4,500 | $2,000 | $6,500 | $4,000 | $10,500 |
| Third Year - Junior | $5,500 | $2,000 | $7,500 | $5,000 | $12,500 |
| Fourth Year - Senior | $5,500 | $2,000 | $7,500 | $5,000 | $12,500 |
Annual Limits for US Government Loans – UNDERGRADUATE/INDEPENDENT
An undergraduate’s “independent” status is determined by information on their FAFSA. The student can borrow up to the cost of attendance or up to the specified loan limit (whichever comes first). The loan is divided into 2 amounts:
- Base amount
o Subsidized and/or unsubsidized as determined by the “Loan Amount Calculation” - Unsubsidized amount
Table 2: Annual Limits for US Government Loans ($US) - UNDERGRADUATE/INDEPENDENT
| Grade Level | Base Amount Sub/Unsub | Unsubsidized Amount | ANNUAL LOAN LIMIT |
|---|---|---|---|
| First Year - Freshman | $3,500 | $6,000 | $9,500 |
| Second Year - Sophomore | $4,500 | $6,000 | $10,500 |
| Third Year - Junior | $5,500 | $7,000 | $12,500 |
| Fourth Year - Senior | $5,500 | $7,000 | $12,500 |
Annual Limits for US Government Loans – GRADUATE/ PROFESSIONAL
A Graduate/Professional student can borrow up to the cost of attendance or up to the specified loan limit (whichever comes first). The annual loan limit is $20,500. As of the 2012-2013 year, subsidized loans are no longer available for graduate/professional students. The loan amount previously available as a subsidized loan is included in the $20,500 limit.
Table 3: Annual Limits for US Government Loans ($US) - Graduate/Professional Students
| Grade Level | Unsubsidized Amount | ANNUAL LOAN LIMIT |
|---|---|---|
| Graduate/Professional | $20,500 | $20,500 |
How Do I Apply for a Direct Loan?
NB: the steps below must be completed each academic year!
(1) Complete a FAFSA form for the applicable academic year
• McGill’s federal code is G06677
(2) E-sign a Master Promissory Note (MPN)
(3) Go to Minerva > Financial Aid/Awards tab > Financial Aid Menu > Apply for US Direct Loans and complete an application for Direct Loans. You will be required to:
• Enter your Social Security Number
• Enter the name(s) and amount(s) of any non-McGill financial aid you have been awarded
• Choose the loan types for which you wish to apply
(4) First time student borrowers of Direct Loans must complete Entrance Counseling (otherwise loans are not disbursed)
(5) Complete all the above by JUNE 1st!
Once your US Direct Loan(s) has been processed, a letter confirming your loan amount(s) will be e-mailed to the address on your FAFSA. This letter can be used for immigration purposes. Further instructions will be sent to your McGill E-mail. You MUST ACCEPT any loan offers within 3 days on Minerva > Financial Aid/Awards tab > Financial Aid Menu > My Financial Aid & Awards in order for the money to be deposited into your student fee account.
(Late applications are processed on a rolling basis and therefore there is NO GUARANTEE that the funds will arrive by the student fee payment deadlines.)
How Do I Apply for a GRAD PLUS loan?
NB: Grad PLUS loans can be applied for only if a student has already applied for the maximum amount of unsubsidized Direct Loan for which they are eligible.
(1) Complete a FAFSA for the applicable academic year
• McGill’s federal code is G06677
(2) Complete a loan application to authorize a credit check and E-sign a Master Promissory Note (MPN)
(3) Go to Minerva > Financial Aid/Awards tab >Financial Aid Menu > Apply for US Direct Loans and complete an application for Direct Loans. You will be required to:
• Enter your Social Security Number
• Enter the name(s) and amount(s) of any non-McGill financial aid you have been awarded
• Choose the loan types for which you wish to apply
(4) First time student borrowers of GRAD PLUS loans must complete Entrance Counseling (otherwise loans are not disbursed)
(5) Complete all the above by JUNE 1st!
Once your US Direct Loan(s) has been processed, a letter confirming your loan amount(s) will be e-mailed to the address on your FAFSA. This letter can be used for immigration purposes. Further instructions will be sent to your McGill E-mail. You MUST ACCEPT any loan offers within 3 days on Minerva > Financial Aid/Awards tab > Financial Aid Menu > My Financial Aid & Awards in order for the money to be deposited into your student fee account.
(Late applications are processed on a rolling basis and therefore there is NO GUARANTEE that the funds will arrive by the student fee payment deadlines.)
How Do I Apply for a Parent PLUS loan?
Follow these steps to apply for a Parent PLUS loan:
(1) Complete a FAFSA for the applicable academic year
• McGill’s federal code is G06677
(2) Complete a loan application to authorize a credit check and E-sign a Master Promissory Note (MPN)
(3) Have your McGill student go to Minerva > Financial Aid/Awards tab > Financial Aid Menu > Apply for US Direct Loans and complete an application for Direct Loans. The student will be required to:
• Enter his/her Social Security Number
• Enter the name(s) and amount(s) of any non-McGill financial aid that has been awarded
• Choose the loan type(s) with the corresponding amount(s) for which you wish to apply -- include parent(s) first and last name(s)
NB: The student's loan(s) and the Parent PLUS loan(s) may be submitted concurrently.
(4) Complete all the above by JUNE 1st!
Once your US Direct Loan(s) has been processed, a letter confirming your loan amount(s) will be e-mailed to the address on your FAFSA. This letter can be used for immigration purposes. Further instructions will be sent to your McGill E-mail. The STUDENT MUST ACCEPT any loan offers within 3 days on Minerva > Financial Aid/Awards tab > Financial Aid Menu > My Financial Aid & Awards in order for the money to be deposited into your student fee account.
(Late applications are processed on a rolling basis and therefore there is NO GUARANTEE that the funds will arrive by the student fee payment deadlines.)
How Do I Track the Progress of My Current US Government Loan Application?
To verify the status of your current application:
- Go to Minerva > Financial Aid/Awards tab> Financial Aid Menu>My Financial Aid & Awards
- During peak periods (June/July) updates and processing can take several weeks
Once all application information is received and processed, the loan types and amounts are available on Minerva. For most students, the disbursement schedule is in 2 equal parts as follows:
- Fall term: disbursed late August
o Exception: freshman student borrowers - loans are disbursed early October - Winter term: all student loans are disbursed early January
- Exception: Med Students years 1,2, 3; PhD students years 1 to 5 inclusive, loans are disbursed:
o Late August
o Early January
o Late April
How do I Receive my US Government Loan $$?
All students receive their loan funds via electronic fund transfers to their McGill student fee account. You must first ACCEPT the loan on Minerva > Financial Aid/Awards tab> Financial Aid Menu>My Financial Aid & Awards. After you ACCEPT, the loan funds are then released to your student fee account (in $Canadian) on the scheduled disbursement dates.
(Late applicants receive their funds on a “rolling basis” at various points in the academic year. The process to accept the loan funds is the same as above.)
How Do I Defer My Existing US Government Loan(s)?
McGill’s Scholarships and Student Aid Office reports student registration via the National Student Loan Data Service (NSLDS) for US government loans. To defer an existing loan a student must be registered at least half-time. Verify the status of your loan(s) at NSLDS.