Update on US Direct Loans

There is good news regarding US Direct Loans eligibility and academic programs with internship/work placement components (whether optional or mandatory), and exchange and study abroad programs.

Programs with internship/work placement components:
Previously, as per US Department of Education instruction, students in U of T academic programs with optional or mandatory internships/externships, co-ops, practicums and other work placement components were not eligible for US Direct Loans. In late September, however, the US Department of Education advised Enrolment Services that students in these programs are now eligible to apply for US Direct Loans, starting with the 2017-18 academic year.

Sample Scenarios:
1) Student in first-year U of T Scarborough co-op program in 2017-18: eligible to apply for US Direct Loan funding in 2017-18 and subsequent years

2) Student started her U of T Scarborough co-op program in 2015-16, and was not eligible to receive US Direct Loan funding for 2015-16 or 2016-17, when she did a co-op work term. Student is now eligible to apply for US Direct Loan funding in 2017-18 and subsequent years.

Exchange/study abroad programs:
Previously, as per US Department of Education instruction, students in U of T academic programs that included an optional/mandatory exchange program requirement were not eligible for US Direct Loans. In late September, however, the US Department of Education clarified for Enrolment Services that if the exchange program is completed at another institution (outside the US) that is approved for the administration of US Direct Loans by the US Department of Education, students in these programs are eligible to apply for US Direct Loans starting with the 2017-18 academic year.

U of T Enrolment Services has updated the US Loans information on the Enrolment Services. If you are interested in applying for US Direct Loan funding for 2017-18, the application process is set out on the US Loans website at http://uoft.me/usloans. Please note that the final deadline to submit a completed 2017-18 U of T Direct Loans Application package (all steps complete) is January 22, 2018.


Back to Home