U.S. Direct Loans

The University of Waterloo is listed as an eligible international institution with the U.S. Department of Education. You may receive a Direct Subsidized Loan or Direct Unsubsidized Loan for your undergraduate education. Direct Unsubsidized Loans and Direct PLUS Loans are available to graduate students. Your parent also might be able to borrow on your behalf; through the Direct PLUS Loan for parents. International schools do not participate in the US Department of Education’s grant programs, so you will not be able to obtain a Federal Pell Grant to get your degree at the University of Waterloo. More information can be found on the US Department of Education page Aid for International Study.

Ineligible programs and courses

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

Any course which does not include an in-person component is ineligible for U.S. Federal loan funding including
- All distance education courses
- All distance education programs
All co-op programs as they include a mandatory online component.
Certificate, diploma, non-degree, and post-degree programs

Please contact Student Awards & Financial Aid office to confirm if your program is eligible for US Direct Loan funding.

Step 1: Complete the Free Application for Federal Student Aid (FAFSA)

Before you apply for your Direct Student/Plus loans you must complete the online Free Application for Federal Student Aid (FAFSA).

For further instructions, visit the FAFSA Tutorial: 7 Easy Steps to completing FAFSA.

Step 2: Apply for Direct Student/ Plus Loans

Complete the application for your Direct Student/Plus Loan.

Sign your Master Promissory Note and complete your Entrance Counselling and and Annual Student Loan Acknowledgement Form. To access this site you will require the PIN that you used when you completed your Free Application for Federal Student Aid.

Step 3: Contact Student Awards & Financial Aid

Email the Student Awards & Financial Aid Office once you have completed your FASFA, Entrance counselling and Master Promissory Note.

We will send you a UWaterloo consent form and once received back, we will determine eligibility and provide an assessment to you.

Step 4: Issuing Funds

Once your direct loan is approved the funding will be disbursed in two equal instalments (three equal instalments for graduate students) early fall and early winter. The disbursement will be sent by the U.S. Department of Education to the University of Waterloo using an electronic funds transfer. The disbursement will be applied directly to the student fee account.

All loan amounts issued are in U.S. dollars. The U.S. exchange rate is effective the day the funds are posted to your account.

Once the student account has been paid in full, you may request a refund of any excess funds with the Student Financial Services department.

Other Important information

Satisfactory Academic Progress
Federal Aid students enrolled at the University of Waterloo are required to meet satisfactory student academic progress (SAP) requirements.
The academic progress of students is evaluated on a term-by-term basis prior to the disbursement of Federal Aid to determine eligibility for continued aid and after each term funded by US student aid. If a student who has applied but has not before received U.S. Direct Loans and has not met SAP in the previous year, the student is notified via email once the U.S. Direct Loan application has been reviewed.

Withdraws and Refunds
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.

Consumer Information
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 University of Waterloo Consumer Information (PDF).

Exit Counselling

The U.S. Department of Education requires all U.S. citizens receiving direct loans to participate in exit counselling shortly before they graduate, withdraw or cease to be enrolled in at least half-time. Information on repayment of your student loans is available on the Repayment Information section of the Federal Student Aid website.