About the Process

 

The Free Application for Federal Student Loans (FAFSA) is a confidential statement detailing information about your family’s financial circumstances. When you have completed the form, you submit it directly to the U.S. Department of Education. Using a formula mandated by Congress, the U.S. Department of Education makes an evaluation of your family’s strength and estimates the amount your family can contribute annually toward your educational expenses.  This financial statement is the first step in order to apply for all Federal Direct Stafford Loans.

The FAFSA is available each year beginning October 1st and should be completed as soon as possible, but not later than June 30, 2024 (D.O.E Deadline) as regards to the 2023-24 Academic Year. 

For complete information regarding federal loans including the application process and repayment, please refer to the Federal Student Aid Program with the Department of Education here.

Tel Aviv University does not participate in the U.S. Department of Education’s grant programs, which means The Lowy International School will not be eligible to award the:

• Federal Pell Grant,
• Federal Supplemental Educational Opportunity Grant (FSEOG),
• Iraq and Afghanistan Service Grant,
• Teacher Education Assistance for College and Higher Education (TEACH) Grant and
• Federal College Work-Study

 

Deadlines

• November 1, 2023 is the TAU Lowy International School deadline for FAFSA applications. (September 1, 2023 for TESOL and LLM Students)
• Processing of loans for the 2023-24 academic year will not begin until Summer 2023.

 

Loan Amounts & Aggregate Limit

• Please click here in order to see the maximum Stafford loan amounts and Aggregate Loan limits.

*Please note that the total Federal Loan Aggregate Limits do not include loans taken in the Graduate and Parent PLUS Loans.

 

Supplemental Loans

Many of our students do not require supplemental loans like the Graduate PLUS loan. However, eligible U.S. students may choose to apply for this type of loan once they have exhausted the Subsidized and Unsubsidized loans, pending approval by the Lowy International School North America Office. The Graduate PLUS Loan allows students to borrow the total cost of their graduate program needs, including tuition, room and board, supplies, lab expenses, and travel. This loan serves to supplement the Stafford loans in case they do not cover all expenses.

For additional information about Federal student loans please visit studentaid.gov for more information.

 

Interest Rates 

Please note:

• Interest rates are variable but will not exceed 8.25%. Rates are determined each July.
• To get an early estimate of your eligibility for Federal Student Financial Aid, click here.

Here are the interest rates for loans first disbursed on or after July 1, 2023, and before July 1, 2024.

 

*Subject to change Summer 2024

Loan Type	Borrower Type	Loan first disbursed on or after 7/1/23 and before 7/1/24
Direct Subsidized/ Unsubsidized Loans	Undergraduate	5.50%
Direct Unsubsidized Loans	Graduate and Professional Students	7.05%
Direct PLUS Loans	Parents of Undergraduate Students and Graduate/ Professional Students	8.05%

* All interest rates shown in the chart above are fixed rates that will not change for the life of the loan.

 

Have other questions about interest?

• Prior federal loans and financial aid history—if you already have federal student loans and would like to check the interest rate, servicer information, and other financial aid history go to the National Student Loan Data System.
• To find out how interest is calculated please visit Understanding interest rates and fees. 

 

Other than interest, is there a charge for this loan?

Most federal student loans have loan fees that are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

Loan Type	First Disbursement Date	Loan Fee
Direct Subsidized Loans and Direct Unsubsidized Loans	On or after 10/1/20 and before 10/1/24	1.057%
	On or after 10/1/19 and before 10/1/20	1.059%
Direct PLUS Loans	On or after 10/1/20 and before 10/1/24	4.228%
	On or after 10/1/19 and before 10/1/20	4.236%

*Loans first disbursed prior to Oct. 1, 2019, have different loan fees.

The loan fee will be proportionately deducted from each loan disbursement.

* Loan Fee Subject to Change by the Department of Education

 

Eligibility Requirements

To qualify according to U.S. Federal Aid guidelines, a student must:

• Be a U.S. citizen or U.S. permanent resident
• Have a valid Social Security Number
• Be enrolled in a full-degree program at The Lowy International School that is eligible for the Direct Loan program
• Be enrolled at least half-time (a minimum of six credits per semester)
• Meet Satisfactory Academic Progress
• Must not be in default on a federal student loan or owe payment on a federal student grant
• Be below the aggregate borrowing limit: See limits here.

 

Application & Renewal:

First-Time Borrowers

November 1, 2023, is the deadline for FAFSA applications. (See different FAFSA Deadline above for TESOL and L.L.M)

• STEP 1 – You will need to gather some personal paperwork as well as the appropriate IRS tax forms. We strongly recommend that you do your taxes prior to filing your FAFSA and utilize the Data Retrieval Tool. For more information, please click here.
• STEP 2 – File the FAFSA (Free Application for Federal Student Aid). The information you report is used to determine your eligibility for Direct Subsidized, Unsubsidized, and PLUS loans.
• STEP 3 – Select the correct Federal School Code for Tel Aviv University Lowy International School: G08373
• STEP 4 – Complete the MPN (Master Promissory Note). Your loans cannot be approved, disbursed, or adjusted until you complete this step. Note that TAU is currently set up for electronic transmission (e-MPN).
• STEP 5 – Complete the mandatory Loan Entrance Counseling. It is a 20-minute process and is required of all borrowers.

After all steps are completed, The Lowy International School will review the results and inform you about your loan eligibility via email by sending you a loan package from finaid@telavivuniv.org.

 

Returning Borrowers

If you have borrowed Stafford loans at the Lowy International School before and wish to continue receiving federal aid, you must complete the following steps:

• STEP 1 – You must file a Renewal FAFSA before the start of each academic year.
• STEP 2 – Select the correct Federal School Code for Tel Aviv University: G08373
• STEP 3 – You must re-submit your MPN.
• STEP 4 – Complete the mandatory Loan Entrance Counseling. It is a 20-minute process and is required of all borrowers.

 

Disbursement

In most cases, your loan will be disbursed in two installments to Tel Aviv University. The first disbursement will pay half of your Tuition and Dorm Fee (and Ulpan if it is included in your Cost of Attendance and any remaining funds will be sent to you). If you have an outstanding balance with Tel Aviv University at the time of the second disbursement, your loan funds will be used to pay your debt first. A re-imbursement for the remainder, if any, will be sent to your bank account via wire transfer. If you wish to receive your funds via wire transfer please complete either the ACH Request Form for US Banks or the Wire Transfer Request Form for international banks and submit it to finaid@telavivuniv.org. 

 TAU 2023/24 Disbursal Schedule:

• 1st Disbursal – Mid September (TESOL)
• 1st Disbursal – Early October (L.L.M)
• 1st Disbursal – Early November (for programs that start in October)
• 2nd Disbursal – Early April (for all programs)

 

Canceling Your Loan

Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying the school.  After your loan money is disbursed, there are two ways to cancel all or part of your loan: A) Within 14 days after the date the school notifies you that it has credited loan money to your or your dependent student’s account at the school, or by the first day of the school’s payment period, whichever is later (the school can tell you the first day of the payment period), you may tell the school that you want to cancel all or part of the loan money that was credited. The school will return the cancelled loan amount. B) Within 120 days of the date the school disbursed your loan money (by crediting the loan money to you or your dependent student’s account at the school, by paying it directly to you, or both), you may return all or part of your loan. Contact the Direct Loan Servicing Center for guidance on how and where to return your loan money.

 

Refund Policy

Students who have paid tuition for the semester, and have a negative balance, will receive a refund, dependent upon the date of official withdrawal. The date will determine the amount of money to be refunded to the Department of Education.

The federal government mandates that students who withdraw from all classes on or before the 60 percent point in the term may only keep the financial aid they have “earned” up to the time of withdrawal. Students who withdraw will have their tuition charges adjusted and may have to refund financial aid dollars to the appropriate Title IV student aid sources, as required by federal law.

To determine the amount of aid the student has earned up to the time of withdrawal, the University will divide the number of calendar days the student attended classes by the total number of calendar days in the semester (less any scheduled breaks of five days or more). The resulting percentage is then multiplied by the total federal funds that were disbursed (either to the student’s university account or to the student directly by check or direct deposit) for the semester. This calculation determines the amount of aid earned by the student, which he or she may keep. 

The unearned amount (total aid disbursed less the earned amount) must be returned to the federal government by the University or the student. The university will notify and provide instructions to students who are required to return funds to the government.

Funds that are returned to the federal government are used to reduce outstanding balances in individual federal programs. Financial aid returned by the school must be allocated in the following order:

1. Federal Direct Unsubsidized Stafford Loan
2. Federal Direct Subsidized Stafford Loan

Students whose circumstances require that they withdraw from all classes are mandated to contact the Financial Services Team prior to withdrawal.

Please note:

• All students must meet the satisfactory academic progress policy to receive federal loan aid as well as tuition assistance through Tel Aviv University International School. See guidelines here.