Federal loans are a major form of self-help aid for students. As part of your Package letter, you may be offered a loan. Loans offered through the federal government are referred to as Direct Loans because eligible students borrow directly from the U.S. Department of Education. Borrowers must meet basic federal aid eligibility requirements, file a Free Application for Federal Student Aid (FAFSA) and must be enrolled at least half-time.
Loans must be repaid in full, including any interest and fees. Student loans have long repayment periods and generally repayment will not begin until you leave school. Interest rates vary, depending on the type of loan you borrow. The promissory note you sign will contain the exact terms of the loan you are borrowing. Keep your copy for reference.
St. John's University in accordance with federal regulation reports all loan borrowing, student enrollment status and changes in enrollment status to the National Student Loan Data System (NSLDS) via the National Student Clearinghouse. Information in NSLDS is accessible by authorized agencies, lenders and institutions.
In accordance with federal guidelines St. John’s University may not originate a loan for a period in the academic year in which a student is no longer enrolled.
Therefore, students enrolled for the academic year who are interested in borrowing a loan must complete the loan process within the academic year. Students who enroll for one semester in an academic year must complete the process within the period of enrollment for the semester.
By accepting a Federal Student Loan, you incur a binding obligation to repay the loan in full, including interest and any applicable fees. It is essential that when you plan for educational costs, you also plan for future repayment of any amounts you have borrowed. When making the decision whether or not to accept a loan, you should be aware of all the requirements, interest rates, repayment options, schedules and deferment options.
"Federal student loans are real loans, just like car loans or mortgage loans. You must repay a student loan even if your financial circumstances become difficult. Federal student loans usually can’t be written off in bankruptcy. They can’t be canceled because you didn’t get the education or job you expected, and they can’t be canceled because you didn’t complete your education (unless you couldn’t complete your education because your school closed)." - Federal Student Aid publication Your Federal Student Loans – Learn the Basics and Manage Your Debt
St. John’s University, Office of Student Financial Services, code of conduct for educational loans prohibits:
Phone 877-557-2575, Fax 606-396-4821
Via mail FSA Ombudsman Group P.O. Box 1843 Monticello, KY 42633