Student Loans and Student Loan Interest Rates Changes and Updates on 2020 2021 For International Students

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Since the Universities of Canada have a large and vibrant population of students from the United States, many loans and Lines of Credit (LoC) are available for U.S students.

Loan opportunities:

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William D. Ford Federal Direct Loan Program

The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan) Program.

There are many top universities in Canada such as the University of Toronto, The University of Western Ontario, McGill University, University of British Columbia, University of Alberta, University of Waterloo, University etc. participate in the US government Title IV program known as the William D. Ford Federal Direct Loan Program.

Eligibility criteria:

• U.S. citizens, or eligible non-U.S. citizens as defined by the U.S. Department of Education, may apply for the educational loan from the U.S. Federal Direct Loan Program if they are accepted in an eligible program at the University of Toronto.

• Students who have dual citizenship of the U.S and Canada, are eligible to apply for U.S federal loans as well as Canadian Provincial/Territorial financial aid loans. In that case, they have to determine and choose the best suited federal loan program for their financial aid needs.
• Students must set up a Canadian bank account, and enter their Canadian bank account information into the Direct Deposit section of their ACORN account.
• Students must also enter their Canadian mailing address in the Profile & Settings section of their ACORN account.

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Note- If a student can avail both the U.S. Direct Loans and Canadian Provincial/Territorial financial aid loans then the student will be restricted to obtaining loan funding from either U.S. or Canadian federal loans. That means a student cannot obtain both federal loans from the U.S. and Canada.

Eligible Programs: Programs providing degree studies at the University of Toronto are eligible for the U.S. Direct Loans.

Ineligible Programs/Institutions:

The U.S. Department of Education does not provide funding to students enrolled in:

• Certificate, diploma, non-degree programs
• Correspondence courses or programs
• Distance Education courses or programs
• Exchange and study abroad programs at U.S. institutions or institutions not eligible for Title IV or U.S. Direct Loans funding; see School Code Search on www.fafsa.ed.gov
• Online courses or hybrid online/in class courses within programs.  NOTE: A program with mandatory online or online/hybrid course(s) is ineligible for U.S. Direct Loans unless an equivalent in class version of the course is offered by the program.
• St. Michael’s College
• Trinity College
• Victoria College
• Toronto School of Theology (and its member institutions)
• Faculty of Medicine – Doctor of Medicine
• Faculty of Nursing – Bachelor of Nursing
• Faculty of Nursing – Master of Nursing
• OISE – Additional Qualification Courses as they do not lead towards a degree
• Residency Programs
• University of Toronto Mississauga – Art and Art History (Joint program with Sheridan College) – Major
• University of Toronto Mississauga – Art and Art History (Joint program with Sheridan College) – Specialist

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Ineligible Programs with Distance/Online Learning

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• Leslie Dan Faculty of Pharmacy – Doctor of Pharmacy (PharmD) Program
• OISE – Educational Leadership & Policy Program
• OISE – Languages & Literature Program
• OISE – Master of Education (MEd) – Educational Leadership and Policy Program (Coursework Only Program Option – Online/Hybrid (part-time) cohort-based stream)
• Rotman Global Executive MBA for Healthcare and the Life Sciences
• School of Continuing Studies and programs of instruction offered by telecommunications as a method of delivery.
• School of the Environment – Environmental Studies Collaborative Program
• School of the Environment – Environment & Health Collaborative Program
• School of Graduate Studies – Master of Social Work – Indigenous Trauma and Resiliency (ITR) Field of Study

Ineligible Programs with study components held in the United States of America

• Rotman-SDA Bocconi Global Executive MBA

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Ineligible Certificate Programs

• Certificate in Environmental Management
• Certificate in Renewable Energy
• Certificate in GIS for Environmental Management
• Certificate in Environmental Health

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Additional ineligible programs

• International Dentist Advanced Placement Program for Foreign-Trained Dentists (IDAPP)
• International Pharmacy Graduate Program (Canadian Pharmacy Skills) for individuals with foreign pharmacy degrees.
• National Committee on Accreditation at the Faculty of Law
• Research in the U.S. by doctorate students is at the discretion of Enrolment Services in accordance with U.S. regulations.

Students in ineligible programs should consider applying for Alternative or Private loans.

How to apply for the U.S. Direct Loans

The U.S. Department of Education’s office of Federal Student Aid provides more than $120 billion in financial aid to help pay for college or career school each year.

The type of Direct Loans:

The U.S Department of Education offers direct Loans through the William D. Ford Federal Direct Loan Program. There are three types of Direct Loans as mentioned below:

Loan type	Available to	Details and updates
Direct Subsidized Loans	Undergraduate students who have financial need	StudentAid.gov/sub-unsub
Direct Unsubsidized Loans	Undergraduate, Graduate and Professional degree students	StudentAid.gov/sub-unsub
Direct PLUS Loans	Graduate and Professional degree students and parents of dependent undergraduate students (you must not have an adverse credit history)	StudentAid.gov/plus

The University of Toronto is an approved institution for the administration of subsidized and unsubsidized U.S. Direct Loans and PLUS Direct Loans, according to the Higher Education Act, Title IV.

Now follow the below mentioned Application process step by step:

Step 1- Complete FAFSA:

• Complete the Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov
• The University of Toronto school code is G06688.
• Tips for ensuring proper processing by the U.S. Department of Education:
  • Use the name exactly as listed on the Social Security Card (student’s and parents’).
  • Use the IRS Data Retrieval Tool on FAFSA to transfer information from your U.S. tax returns to the FAFSA. This will help to minimize both data entry errors and verification requirements. 
  • Use the same mailing address in both the FAFSA and the Master Promissory Note.
  • Carefully review information on the summary page before submitting.
  • A link to the Student Aid Report (FAFSA that has already been processed by the U.S. Department of Education) is provided to the email address listed on the FAFSA within 48 hours. Review for any errors, or if any additional action is required. Corrections can be made at fafsa.ed.gov

Step 2: Complete the following U.S. Direct Loan documents at Studentloans.gov:

A) Entrance Counselling:

All students applying for U.S. Direct Loans who have not previously completed U.S. Direct Loan Entrance Counselling to attend your university must complete this one-time only step as part of the U.S. Direct Loan application process.

B) Master Promissory Note:

This is for those students who completed entrance counseling  for a previous year’s University’s application.

All students must complete the Direct Subsidized/Unsubsidized Loan Master Promissory Note for each year that a U.S. Direct Loan application is being submitted.

C) Direct PLUS Loan Application (if applicable i.e., graduate/professional students and parent borrowers only):

• Independent graduate students applying for a Direct PLUS Loan must have borrowed the maximum annual loan limit first from the U.S. Direct Loan.
• Students must use a U.S. address as the ‘Permanent Address’ in the PLUS Loan application.
  • A credit check will be conducted based on the information on the PLUS Loan application.
  • Credit Checks are valid for only 180 days. Invalid credit checks (older than 180 days) will delay future loan disbursements.

• Complete the Direct PLUS Loan Master Promissory Note, in addition to the Direct Subsidized/Unsubsidized Loan Master Promissory Note.

Step Three: Complete University of Toronto U.S. Direct Loan Application:

Notice of Assessments, Disbursements, important information and next step letters are also posted to the student’s U.S. Direct Loan Application Portal.

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For all students (undergraduate and graduate / professional), the US Direct Loan Program has annual as well as lifetime loan limits that vary based on:

• Grade level
• Status (dependent or independent)
• Loan type: need-based (subsidized) or non-need based (unsubsidized and PLUS)
• Cost of attendance (student cannot borrow more than this amount)

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An undergraduate’s “dependent” status is determined by information on their FAFSA.

The loan is divided into two amounts:

1. Base amount:

Subsidized and/or unsubsidized (determined by the loan calculation: cost of attendance minus estimated financial contribution and financial aid received)

2. Unsubsidized Amount:

• standard amount of $2000 (US) is available to all dependant undergraduate students.
• If the parent of a dependent undergraduate is denied a PLUS loan, the student is eligible for an additional unsubsidized loan amount that increases the annual loan limit.

Grade level	Base Amount Subsidized / Unsubsidized Direct laon	Unsubsidized Amount Direct Loan	Annual Direct Loan Limit	Additional Amount Unsubsidized Direct Loan if Parent PLUS Loan Denied	Direct Loan Limit if PLUS Loan Denied
First year	$3,500	$2000	$5,500	$4,000	$9,500
Second year	$4,500	$2000	$6,500	$4,000	$10,500
Third year	$5,500	$2000	$7,500	$5,000	$12,500
Fourth year	$5,500	$2000	$7,500	$5,000	$12,500

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An undergraduate’s “independent” status is determined by information on their FAFSA. The loan is decided into two amounts:

1. Base amount:

Subsidized and/or unsubsidized (determined by the loan calculation: cost of attendance minus estimated financial contribution and financial aid received).

2. Unsubsidized Amount:

Based on grad level (see chart below)

Year of study	Base Amount Subsidized / Unsubsidized Direct Loan	Unsubsidized Amount Direct Loan	Annual Direct Loan Limit
First year	$3,500	$6,000	$9,500
Second year	$4,500	$6,000	$10,500
Third year	$5,500	$7,000	$12,500
Fourth year	$5,500	$7,000	$12,500

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A graduate/professional student can borrow up to the cost of attendance or up to the specified loan limit (whichever comes first). The annual unsubsidized Direct Loan limit is $20,500.

Lifetime limits for US Direct Loans:

Grade Level / Status	Aggregate (Lifetime) Loan Limits
Dependent undergraduate student	US$31,000 (no more than US$23,000 may be subsidized)
Independent or dependent undergraduate whose parent is ineligible for PLUS funding	US$57,500 (no more than US$23,000 may be subsidized)
Graduate or Professional student	US$138,500 (no more than US$65,500 may be subsidized)

Disbursements of this student loan:

• Students in 8-month bachelors or masters programs receive two disbursements: one in the Fall and one at the start of Winter session.
• First year undergraduate students will receive the first disbursement of U.S Direct Loans 30 days after the start of their undergraduate program at the earliest.
• Students who pursue 12-month masters or PhD programs, will receive three disbursements: one after the start of the Fall, one after the start of Winter and one after the start of the Summer session.
• Applicants must register themselves as full-time or at least half-time in order to receive their loan payments.

Cancellation of loan application or disbursed funds:

Students who wish to cancel their loan application or cancel their loan (in its entirety or a portion) after disbursement must email to your university’s mail address.

Satisfactory Academic Progress (SAP)

To be eligible for further funding students with U.S. Direct Loans must fulfill all three SAP Components:

• Grade Point Average (Qualitative)
• Pace (Quantitative)
• Time (Quantitative)

Know everything about Satisfactory Academic Progress (SAP)

Alternative Loans/Private Loans:

Alternative or private loans offer another source of funding to U.S citizens.

How to apply:

1.  Apply directly to the lender of choice. Note that the 25 Canadian Universities are set up for processing with Sallie Mae Student Loans.
2. After approval, request that University certify the loan. Make the request by completing the form: Request for Alternative/Private Loan School Certification.
3. Submit certification request via an email attachment to your university mail address.

Note- Certification requests must be submitted via the students official utoronto email address. If any third party (including parents) submit the application request via email, the request will not be accepted.

Maximum Loan Amounts: Loan amounts requested in U.S. dollars must be less than the Cost of Attendance (Tuition + Living Expenses).

Disbursements:

•  University arranges equal disbursements at the beginning of each term after classes have begun.
• Loans will be disbursed in Canadian dollars to the student’s ACORN account, and will first pay any outstanding tuition fees. Any remaining amount after outstanding fees have been paid will be refunded to the student by the Student Accounts Office. 
• Students must set up a Canadian bank account, and enter their Canadian bank account information into the Direct Deposit section of their ACORN account.

Apart from that Assistance for U.S students: Tax information, 529 College Savings Plans, Veteran Affairs Post-9/11 GI Bill are also available to reduce the costs of higher education. In order to know more about these financial assistance, you need to visit the official website of University of Toronto.

• A 529 plan is a tax-advantaged savings plan designed to encourage saving for future education costs. There are two types of 529 plans: prepaid tuition plans and education savings plans.
• The following specific institutional details may be required to process the payment.

Mailing address:

Student Accounts Office at U of T

215 Huron Street, 3rd floor

Toronto, Ontario

M5S 1A2

Phone No: 416-978-2142

Federal School Code: G06688

• In order to get Veteran Affairs Post-9/11 GI Bill Benefits, Students must submit their request and the required confidential attachments (see below) via email to usa.financialaid@utoronto.ca.

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Line of Credit

Students also have the option of borrowing funds from Scotiabank through either the Scotia Professional Student Plan (SPSP) OR ScotiaLine for Students (ScotiaLine).

If you are interested in the lending products offered by Scotiabank should contact the Queen and McCaul Branch, Georgios Stathopoulos mail at georgios.stathopoulos@scotiabank.com to set up an appointment.