The Office of Student Financial Services encourages students
to explore various grants and scholarship opportunities and to
evaluate loan options carefully. Borrow only what is really needed
and remember that loans must be repaid.
What is a Federal Direct Student
Federal Direct Student loans are one form of student aid
from the federal government. Under the Federal Direct Student loan
program students borrow money for school from the federal
How much can I
- $5,500 is the maximum annual amount a first
year student is eligible for, no more than $3,500 of which can be
- $6,500 is the maximum annual amount a second
year student is eligible for, no more than $4,500 of which can be
- $7,500 is the maximum annual amount a third or
fourth year student is eligible for, no more than $5,500 of which
can be subsidized.
- Independent students and students whose parent(s) are denied a
Federal PLUS Loan qualify for additional unsubsidized loans.
What is the difference between a
subsidized and an unsubsidized loan?
For the Federal Direct Subsidized Student Loan,
the federal government will pay the interest until you enter your
grace period; the time you are no longer enrolled
on at least a half-time basis. Repayment begins six months
after you cease to be enrolled at least half-time (including leaves
of absence). The interest rate for Federal Direct
Subsidized Loans for undergraduate students for which the first
disbursement is made on or after July 1, 2012 and before July 1,
2013 will be 3.4%.
For the Federal Direct Unsubsidized Student
Loan, the government will not pay interest while a student
is in school as it does for the subsidized loan. Interest accrues
and must be paid or capitalized during periods of enrollment in
school and/or deferment. The interest rate for Federal
Direct Unsubsidized Loans for all students disbursed on or after
July 1, 2012 will be 6.8%.
Are there any federal loans
available to parents?
The Federal Direct PLUS Loan (parent loan for undergraduate,
dependent students) is a loan from the U.S. Department of Education
for parents of undergraduate students who complete a FAFSA and meet
general eligibility requirements. The amount your parent will be
eligible to borrow for the 2012-2013 school year will be indicated
on your award letter. The interest rate on PLUS loans
is 7.9%. For information on how to apply for a Federal
Direct PLUS Loan, refer to the Federal Direct PLUS Loan Process at
What fees, if any, are associated
with these loans?
For Student Loans, an origination fee of 1.0% of the total loan
will be assessed will automatically be deducted. For PLUS loans, an
origination fee of 4.0% will be assessed and automatically
deducted. The net disbursement will reflect these fees;
therefore, the amount credited to the student’s account will be
less than the loan amount. This fee is determined by the U.S.
Department of Education.
How do I apply for a Federal
Direct Student loan?
Federal Direct Student Loan
Step 1: All students who wish to borrow a
Federal Direct Student Loan must first accept their loans.
Loans are accepted or declined on the student’s personal UIS
account by following the instructions below:
- Log in to UIS and click on the Financial Aid tab
- Click on My Award Information then Award by Aid Year
- Select the 2012-2013 aid year and submit
- Click on the Accept Award Offer tab
- Follow the on screen instructions to fully accept, partially
accept, or decline your loan awards
- St. John’s will begin processing 2012-2013 loans beginning May
- It is the policy of St. John's University to process
loans only after an admission deposit has been paid and the loans
have been accepted by the student on their UIS
- If you wish to reinstate a loan you have already declined or
modify a loan you have already accepted, please print, complete and
return a Student Loan Change Form available
Step 2: First time Direct Loan borrowers
only must complete a Federal Student Loan Entrance Counseling
Session in accordance with federal regulations. Sign in to:
click on “Complete Entrance Counseling”.
Step 3: First time Direct Loan borrowers
only must complete a Direct Loan Master Promissory Note (MPN) at
www.StudentLoans.gov. Borrowers will need their FAFSA
Personal Identification Number (PIN) in order to complete the
MPN. If you do not have a PIN or cannot recall it, you can
request your PIN at www.pin.ed.gov.
Important Note in both Step 2 and Step 3:
- Select “New York” as the School State and
“Saint John’s University” as the school name.
Step 4: Monitor the status of your loan
by checking your personal UIS account and your St. John’s e-mail
Where can I learn more about the
various federal student loan programs?
To learn more about the various federal student loan
programs and about debt management visit: