(Please note that the terms and conditions on federal loans
may vary subject to Congressional action.)
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
evaluate loan options carefully, borrow only what is really needed
and remember that loans must be repaid.
How much can I borrow?
$20,500 is the maximum annual amount a graduate student is eligible
to borrow in the form of a Stafford Loan, no more than $8,500 of
which can be subsidized.
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 graduate students is 6.8%.
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 is 6.8%.
Are there any other federal loans available to graduate
The Federal Direct Graduate PLUS Loan is a federal loan available
to graduate students. The maximum amount you will be eligible
to borrow for the 2011-2012 school year will be indicated on your
St. John’s award letter. Students often elect to limit the
amount which they borrow to the difference between annual direct
costs and other financial aid which you have 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 Federal
Direct Graduate PLUS Loans is 7.9%. Click here
for information on the GRADPLUS process.
What fees, if any, are associated with these loans?
For Stafford 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 Graduate 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
Where can I learn about the various federal
student loan programs?
For more information, please visit the following websites:
How do I apply for a Federal Direct
Federal Direct Stafford Loan Process
Step 1: All students who wish to
borrow a Federal Direct Stafford 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 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 here.
Step 2: First time Direct Loan
borrowers only must complete a Federal Student Loan Entrance
Counseling Session in accordance with federal regulations. Go
here and click on
Entrance Counseling. (When selecting a school during entrance
counseling, search for “Saint John’s University” without using
Step 3: First time Direct Loan
borrowers only must complete a Direct Loan Master Promissory Note
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 here.