Loans are a major form of self-help aid for students. As part of your award letter, you may be offered a loan. A loan 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.
Please note that the Budget Control Act of 2011 eliminated the in-school interest subsidy for graduate and professional students. Effective July 1, 2012 Federal Direct Subsidized loans will no longer exist on the graduate and professional level.
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’tbe 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:
Via on-line assistance: studentaid.gov/repay-loans/disputes/prepare
Phone 877-557-2575, Fax 606-396-4821
Via mail FSA Ombudsman Group P.O. Box 1843 Monticello, KY 42633
The Office of Student Financial Services encourages students to explore various grants and scholarship opportunities and to evaluate loan options carefully.
Federal Direct Student loans are one form of student “self help” financial aid. Through the Federal Direct Student loan program students borrow money for school from the federal government.
$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 students.
THREE SIMPLE STEPS:
Important Note for Both Step 2 and Step 3:
*Your loans will be credited to your account only after the completion of all three steps.
Important Reminder: Borrow only what is needed.Remember, loans must be repaid.
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 Federal Direct Graduate PLUS Loan is a federal loan available to graduate students. The maximum amount you will be eligible to borrow for the 2015-2016 school year is included in your St. John’s financial aid award information. Many students decide 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 calculated annually by the Federal Government based on the 10-year Treasury note index.
The interest rate for all federal student and federal PLUS loans disbursed on or after July 1, 2015 will be calculated annually by the federal government based on the 10-year Treasury note index.
For Federal Direct Student Loans, an origination fee of the total loan is assessed and deducted prior to loan disbursement. For Graduate PLUS loans, an origination fee is assessed and deducted prior to loan disbursement. Origination fees are determined by the U.S. Department of Education and are subject to change on a annual basis.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.
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.
To learn more about various federal loan programs, debt management and to view sample repayment plans please visit:
Applications for Federal Direct PLUS Loans for graduate and professional students are processed online through the U.S .Department of Education student loan website at www.StudentLoans.gov.
Step 1:Personal Information: Personal information of student borrower.
Step 2: Student & Loan Info:
Step 3: Review Application
Step 4: Credit Check & Submit: Authorize the review of credit history and submit the application.
Please note: Effective March 29, 2015 your credit check is valid for 180 days; therefore, you should not apply for a loan before May 1st.
Additional Step for New Direct PLUS Loan Borrowers:
All new Direct PLUS Loan borrowers must complete a separate PLUS Loan for Graduate or Professional Students Entrance Interview at www.StudentLoans.gov.
The interest rate for all federal PLUS loans disbursed on or after July 1, 2015 will be calculated annually by the federal government based on the 10-year Treasury note index.
An origination fee of the total loan is assessed and deducted prior to loan disbursement. Origination fees are determined by the U.S. Department of Education.Since the origination fee is deducted before the federal government disburses the loan to St. John’s, the amount credited to the student’s account will be less than the loan amount borrowed.
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 http://www.stjohns.edu/services/financial