Stephanie this may sound simplistic, but believe me, we've all probably done it sometime, but make sure your presser foot is lowered. It won't SEEM like it's lowered b/c the quilting foot doesn't "press" down the same way an ordinary foot would, but that would cause those loops. If it's not that, it's tension, but those loops aren't usually as big. I'm guessing it's the presser foot.
Florence