Students who are using this method for payment must submit a Financial Aid Agreement Form. A Loan Agreement is a document between a borrower and lender that details a loan repayment schedule.A loan agreement is a formal written contract used whenever money is borrowed. A lien loan agreement is a contract between a lender and borrower that places a security interest on a borrower's personal property to secure a loan. A loan agreement is a legal document between a creditor who lends money to a borrower that is repaid with interest.