University of Toronto’s U.S. Direct Loans Default Prevention and Management Plan

University of Toronto’s U.S. Direct Loans Default Prevention and Management Plan

As a Title IV educational institution, the University of Toronto administers the William D. Ford Federal Direct Loan Program for its U.S. students at its three campuses – Mississauga, Scarborough and St. George. 

Activities related to the administration of the Direct Loan Program are centralized at the University Registrar’s Office on the St. George campus, and are carried out by the USA financial aid team. The team focuses on supporting U.S. students in undergraduate, graduate and professional programs in the entire process of applying for, and maintaining, their U.S. Direct Loans for each year of their studies at the University of Toronto. 

The following strategies form the University of Toronto’s U.S. Direct Loans Default Prevention and Management Plan. These strategies ensure that students and their parents, and the University of Toronto faculties and departments, are fully informed about and supported through the U.S. Direct Loans process. Supporting students in the U.S. Direct Loans process ensures that they maintain their eligibility for U.S. Direct Loans while they are registered at the University of Toronto. 


A detailed website about U.S. Direct Loans is available. Students who contact the University of Toronto via phone or email are directed to this website so that they can review the application steps as well as the policies and procedures related to U.S. Direct Loans. 

The website also contains information about: 

Application Support

A senior member of the USA financial aid team is designated to U.S. loans processing (including Alternative/Private Loans). This individual is available to respond to student/parent inquiries via phone, email or in-person at all stages of the U.S. Direct Loans process. 

Note that the Canadian Freedom of Information & Privacy Act regulates the information that can be shared with parents of students, or any other third-party. In cases when a parent makes inquiries on behalf of their dependants, they are provided general information only, with no information specific to their dependants’ application or registration files. 

Entrance Counseling

All U.S. Direct Loan borrowers are required by the U.S. federal government to complete entrance counselling through the Federal Student Aid website. Students are required to complete entrance counselling as part of the very first Direct Loan application they submit at the University of Toronto. 

The entrance counselling process allows students to learn and understand: 

  • How loans work 
  • How to manage their spending while in school 
  • How much they will need to repay, and when 
  • How to avoid loan defaults 

The date when the student completed entrance counselling is noted in the student file. 

Satisfactory Academic Progress

On a yearly basis, the University of Toronto confirms that students with current U.S. Direct Loans meet Satisfactory Academic Progress requirements. The requirements and process are also noted to the students in their notice of disbursement. 

Should students not meet Satisfactory Academic Progress requirements, the appeals process requires students to get in touch with their Faculty, College, or Campus Registrar’s Office for assistance in crafting and implementing a sound academic plan to get back into status. This ensures that other University of Toronto offices are involved in the process of restoring the student to satisfactory academic progress. 

Timely and Accurate Enrolment Reporting

As required by the U.S. federal government, the University of Toronto submits enrolment updates every 60 days to the National Student Loan Data Center (NSLDC) for all students with current and previous U.S. Direct Loans. Based on this reporting, the University of Toronto is able to determine which students are no longer in full-time studies, so that they can be contacted for exit counselling. 

Exit Counseling

Students who are no longer in full-time studies (drop to less than half-time studies, withdraw or graduate from their program) are required to undergo exit counseling. The University of Toronto communicates with students regarding this requirement, including follow-up email messages and letters as necessary. 

Students are asked to complete and submit a verification form to the University of Toronto to confirm that they have undergone the exit counseling process. This submitted form is retained in the student file.