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 government. 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.
How much can I borrow?
- $5,500 is the maximum annual amount a first year student is
eligible for, no more than $3,500 of which can be subsidized.
- $6,500 is the maximum annual amount a second year student is
eligible for, no more than $4,500 of which can be subsidized.
- $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
- 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, you will not be
charged interest until you begin repayment. 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 disbursed on or after July 1, 2011
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, 2011 will be
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. Your parent(s) should
evaluate whether or not there is a need to borrow in order to
assist in the financing of your education. The amount your
parent will be eligible to borrow for the 2011-2012 school year
will be indicated on your award letter. Parents often elect
to limit the amount which they borrow to the difference between
annual direct costs and other financial aid the student has
received. Direct costs are those paid directly to St. John’s
including tuition, fees, and room and board for resident
students. Indirect costs consist of all other expenses that
relate to attendance at St. John’s. Your entire estimated
cost of attendance is available on your UIS account. 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 www.stjohns.edu/financialaid.
What fees, if any, are associated with these
For Student Loans, an origination fee of 1.0% of the total loan
will be assessed and an up-front rebate of 0.5% will automatically
be awarded. For PLUS loans, an origination fee of 4.0% will be
assessed and an up-front rebate of 1.5% will automatically be
awarded. To keep this up-front rebate, the borrower must make
their first twelve payments on time once entering repayment. 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
How do I apply for a Federal Direct Student
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
- Click on My Award Information then Award by Aid Year
- Select the 2011-2012 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
Important Note: 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 online.
Step 2: First time Direct Loan borrowers
only must complete a Federal Student Loan Entrance Counseling
Session in accordance with federal regulations. Visit www.StudentLoans.gov and
click on “Complete Entrance Counseling”.
(When selecting a school during entrance counseling, the school
name is spelled “Saint John’s University” without using
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.
Where can I learn about the various federal
student loan programs?
For more loan information, please visit the following web
For more information on debt management, please visit the
*Important Notice: 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 account.