What is a Federal Direct Student
Federal Direct Student loans are one form of federal student
aid. 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
$20,500 is the maximum annual amount you are eligible to
borrow in the form of a Federal Direct Unsubsidized Loan as a
graduate/law student. NOTE: the federal government has
eliminated subsidized Federal Direct Student loans for graduate/law
What are the details of the
Federal Direct Unsubsidized Loan?
Federal Direct Unsubsidized Student Loan payments are deferred
until after graduation, but interest on the loan accrues and is
capitalized on the loan while you are enrolled in school and/or in
deferment. Loan repayment must begin six months after you cease to
be enrolled at least half-time (including leaves of absence or
maintaining matriculation periods). To keep unsubsidized loan
interest from accruing and being capitalized on your loan, you may
decide (at your option) to pay the interest while enrolled in
school. The interest rate for Federal Direct Unsubsidized
Loans for all students is 6.8%.
Are there any other federal loans
available to graduate students?
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 2012-2013 school year will be included in your
St. John’s award package. Students often elect to limit the
Grad PLUS amount borrowed to the difference between annual direct
costs and other financial aid received. Direct costs are
those paid directly to St. John’s and include tuition and fees, and
for resident students, room and board. Indirect costs consist
of all other expenses that relate to attendance at St.
John’s. Your entire estimated cost of attendance which
includes an estimate of both direct and indirect costs is available
on your UIS account. The interest rate on Federal Direct
Graduate PLUS Loans is 7.9%. Please note the interest is set by the
U.S. Department of Education and is subject to change on an annual
What fees, if any, are associated
with these loans?
For Stafford Loans, an origination fee of 1.0% of the total loan is
assessed and is automatically deducted by the federal
government. For Graduate PLUS loans, an origination fee
of 4.0% is assessed and is automatically deducted.
Since origination fees are deducted before the federal government
disburses loans to St. John’s, the amount credited to the student’s
account will be less than the loan amount borrowed.
Origination fees are determined by the U.S. Department of Education
and are subject to change on a annual basis.
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 the loan. 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 award
- 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 account. All program
terms and conditions are subject to Congressional
- 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 at
Step 2: First time Direct Loan borrowers
at St. John’s University must complete a Federal Student Loan
Entrance Counseling Session in accordance with federal
regulations. Go to
and click on Entrance Counseling.
Step 3: First time Direct Loan borrowers
at St. John’s University 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.
Where can I learn more about the
various federal student loan programs?
For more information on loans and debt management, please visit the