US Federal Direct Loans: Distance Education and Online Courses
Distance education and online courses are NOT ELIGIBLE for participation in the U.S. Federal Direct Loan Program.
If you have distance education and/or online course(s) on your SFU record, you are not eligible for any U.S. Federal Direct Loan funding (now or in the future) towards the same program or credential at SFU, per the U.S. Department of Education.
If you (or a department on your behalf) add distance education and/or online course(s) after your current loan has been disbursed, you are required to pay back the disbursement (as per the terms and conditions of your Master Promissory Note) and can receive no further funding through the U.S. Federal Direct Loan Program.
How do I know I am registered in a distance education or online course at SFU?
Distance education courses will look like this on your transcript. You should also check the (Enrollment Activity) “View my Study List” screen in the Student Information System:
Online courses will look like this on your transcript. You should also check the (Enrollment Activity) “View my Study List” screen in the Student Information System:
The COVID-19 temporary exemption to the distance education and online course restriction was effective for the period from March 1, 2020 to June 30, 2023 ONLY.
Due to COVID-19, the U.S. government approved an amendment that waived the prohibition against distance education and online courses for students receiving U.S. Direct Loans for study at eligible non-U.S. institutions of higher education. This includes courses offered during remote learning.
The waiver applies for the period March 1, 2020, up to and including June 30, 2023 ONLY.
What this means to you:
There is no impact on your eligibility for U.S. Federal Direct Loans (U.S. government student loan funding), now or in the future, if you were required to complete your Spring 2020 term remotely.
There is no impact on your eligibility for U.S. Federal Direct Loans (U.S. government student loan funding), now or in the future, due to registration in distance education or online courses at SFU during the following terms: Summer 2020, Fall 2020, Spring 2021, Summer 2021, Fall 2021, Spring 2022, Summer 2022, Fall 2022 and Spring 2023.
As of Summer 2023, students registering in any distance education and/or online course(s) will lose U.S. Federal Direct Loan eligibility for the current term of registration and the remainder of their degree if this course remains as part of their graduation requirements.
FAQ about US Direct Loans and Distance Education
1. What if I pay for distance education or online course(s) from my own funds (i.e., not use U.S. Federal Direct Loan funds to pay for the courses), can I still receive my U.S. Federal Direct Loan for the semester?
No. Even if you are paying for distance education and/or online courses from your own funds, you are not eligible for U.S. Federal Direct Loan funding (now or in the future) while working towards the same program or credential at SFU.
2. What if I take a distance education or online course(s) in a semester that I am not receiving U.S. Federal Direct Loan funding, can I get future U.S. Federal Direct Loan funding?
No. Even if you are taking distance education or online course(s) during a term that you are not receiving U.S. Federal Direct Loan funding you will not be eligible for U.S. Federal Direct Loan funding in future terms while working towards the same program or credential at SFU.
3. What are the consequences to my U.S. Federal Direct Loans if I choose to take a distance education or online course(s) as part of my program or credential at SFU?
If you choose to enroll in any distance education or online courses, your program or credential at SFU will be considered to have an ineligible component. You will no longer be eligible to receive any current or future U.S. Federal Direct Loan funds while working towards the same program or credential at SFU.
4. What happens if I (or a department on my behalf) register for a distance education or online course(s) after my current loan is disbursed?
If your enrollment shows that you (or a department on your behalf) have added any distance education or online course(s) after your current loan is disbursed, you are no longer eligible for this disbursement. You will be required to pay back the disbursement (as per the terms and conditions of your Master Promissory Note). Any subsequent pending disbursements in your loan period will be cancelled. In addition, you will no longer be eligible to receive any future U.S. Federal Direct Loan funds while working towards the same program or credential at SFU.
5. What are my options for funding if I can no longer receive US Direct Loan funds in the future because of an ineligible course component?
You may consider Private Loans. For more information, visit our Private Loans page.
6. If I become ineligible for future U.S. Federal Direct Loan funding, how will this impact my repayment of U.S. Federal Aid?
If you become ineligible to receive U.S. Federal Direct Loan funding, it is possible that you can still receive a deferment. For more information, visit our Deferring Repayment page.