Undergraduate Loan Information

Federal Loans are a major form of self-help aid for students. Loans offered through the federal government are referred to as Direct Loans because eligible students and parents borrow directly from the U.S Department of Education. Borrowers must meet basic federal aid eligibility requirements and students must be enrolled at least half-time. To be considered for a federal loan a student must have a Free Application for Federal Student Aid on file. 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.

Federal Loan Processing Deadline

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.

Loan Proration 

Federal regulations require SJU to prorate Federal Direct Loans for undergraduate students when the student is enrolled in a program that is one academic year or more in length, but the student is in a remaining period of study that is shorter than the full academic year. This will mostly affect students that will graduate from their program of study at the end of the summer or fall semesters.

Loan Proration Formula: Number of credit hours divided by the number of credit hours in an academic year (24) multiplied by the annual Federal Direct Loan limit for the student’s grade level.


12  x 5500 =  2750


15 x 5500 =  3437.50


*Subsidized and unsubsidized loans are calculated separately in order to determine the maximum for each loan.



To Borrow or Not To Borrow

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.

As stated in the Federal Student Aid publication Your Federal Student Loans – Learn the Basics and Manage Your Debt:" REMEMBER: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)."

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.

How to Borrow Wisely:

  • St. John's Office of Student Financial Services encourages students to borrow responsibly and to use the federal loan repayment calculators to plan and manage their debt.
  • Learn more on how to be a responsible borrower, review the Federal Student Aid publication: Be a Responsible Borrower:Plan Ahead and Graduate with Less Debt.
  • Don't borrow without first looking into other methods of financing your education (scholarships and assistantships, for example). 
  • Look into local resources of financial aid from community organizations and civic groups. 
  • Repay your debt as soon as possible. The longer you owe, the more you owe. 

To help secure your financial future, regularly visit the National Student Loan Data System (NSLDS) to monitor the status of your loans and your repayment history and repay your loan on time.

Code of Conduct for Education Loans:

St. John’s University, Office of Student Financial Services, code of conduct for educational loans prohibits:

  • Revenue-sharing arrangements with any lender
  • Receiving gifts from a lender, a guarantor or loan servicer
  • Contracting arrangement providing financial benefit from any lender or affiliate of a lender
  • Directing borrowers to particular lenders, or refusing or delaying loan certifications
  • Offers from lenders of funds for private loans
  • Call center or financial aid staffing assistance from lenders
  • Advisory board compensation from lenders

Contact information for the FSA Student Loan Ombudsman:

Phone:  1-800-433-3243
Mail: FSA Ombudsman Group, Office of Federal Student Aid, P.O. Box 1854, Monticello, KY 42633