To help students afford the cost of a Saint Joseph´s University education, we are pleased to be able to offer several financing options. The options available include need- and non-need-based loans. Students and families are encouraged to review the options to determine which is best suited for their specific needs.
Descriptions of need- and non-need-based federal, state, and alternative loan programs (below) help determine the amount of additional financing a student might require.
It is not Saint Joseph´s University´s practice to recommend a specific lender. Each student/parent has the right to select a lender of their choice. It is your responsibility to inform the Office of Financial Assistance of your choice.
*Important Federal Direct Loan Changes to Take Effect July 1, 2012:
1. The Consolidated Appropriates Act, 2012 which was signed into law on December 23, 2011, affects the grace period for Federal Direct Stafford Loans which are first disbursed on or after July 1, 2012 and before July 1, 2014. Federal Direct Stafford Loans will still begin repayment 6 months after graduation or dropping below half time, however interest will accrue on the Federal Direct Subsidized loans during this time.
2. Due to the Budget Control Act (BCA) of 2011, Direct Loan borrower repayment incentives have been terminated on all Federal Direct Loans, including Parent PLUS and Graduate PLUS Loans. There will no longer be a rebate given on the loan fees.
Federal Perkins Loan
This federally funded program is administered by the University and has a fixed interest rate of five percent. Perkins loans are awarded based on the student’s need and availability of federal funds allocated to Saint Joseph’s University. Repayment must be completed within 10 years and begins nine months after graduation or when enrollment drops below half time.
Federal Direct Subsidized and Direct Unsubsidized Stafford Loans Direct Lending Stafford Master Promissory Note (Log into Manage my Direct Loan) The information that students submit on their Free Application for Federal Student Aid (FAFSA) determines their eligibility for one or a combination of these programs. The Direct Stafford Loan requires no credit or income requirement and is a low- or no-interest loan while the student is enrolled. The interest rate is fixed at 6.8 percent for Direct subsidized loans and 6.8 percent for Direct unsubsidized loans. Students may borrow a maximum of $5,500 for their first year under all programs. Sophomores may borrow $6,500 per year, while juniors, seniors, and fifth-year undergraduates may borrow up to $7,500 per year. The total aggregate amount an undergraduate may borrow is $31,000. Federal Direct Subsidized Stafford Loan recipients have their interest paid by the federal government while they are in school. Repayment of principal and interest begins six months after the student graduates or ceases to be enrolled for at least six credits a semester. Federal Direct Unsubsidized Stafford Loans accrue interest while students are in school. The student has the option to pay the interest on their loan while they are in school. Repayment of principal and interest begins six months after the student graduates or ceases to be enrolled for at least six credits. There is no pre-payment penalty for advanced or accelerated repayment. *Please see information at top of page regarding loan changes
Additional Federal Direct Unsubsidized Stafford Loan
Dependent students whose parents are unable to obtain a PLUS Loan due to credit problems may borrow an additional amount of the Direct Unsubsidized Stafford Loan. The additional Direct Unsubsidized Stafford Loan is also available to independent undergraduates. The annual maximum amounts available are: Freshmen $4,000, Sophomores $4,000, Juniors $5,000, and Seniors $5,000. *Please see information at top of page regarding loan changes
Federal Direct Parent Loan for Undergraduate Students (PLUS) Direct Lending Parent PLUS Master Promissory Note (log into Manage my Direct Loan) Credit-worthy parents of dependent undergraduate students may borrow funds through this program. Parents may borrow the difference between the student's total cost of education and all other aid the student is receiving. The interest rate is fixed at 7.9 percent. *Please see information at top of page regarding loan changes
The Higher Education Amendments of 1986 stipulate that institutions must conduct entrance and exit counseling for all students borrowing under the Stafford Loan or Perkins Loan programs.
Direct Lending Stafford Entrance Counseling needs to be completed prior to the crediting of the student’s first disbursement. This counseling is intended to give student loan borrowers pertinent information about the terms and conditions of the loan, the borrower’s responsibilities, and the importance of meeting repayment obligations. During counseling, students will also receive sample repayment tables that can be used to estimate monthly payments and information on when loan repayment begins.
Prior to graduation or upon withdrawal from the University, student borrowers will be provided with Direct Lending Stafford Exit Counseling information. The counseling is provided to prepare the student loan borrower for repayment. Information provided will include repayment options, deferment options, loan consolidation, consequences of default, and communication with the lender and/or loan services.
Private Alternative Loans - As of February 14, 2010, regulations mandate all new private loan application will require additional certifications (Title X of the Higher Education Opportunity Act). This new regulation mandates self-certification and a waiting period that may lengthen the process (the average processing time is 3-6 weeks). Once the loan is approved and a final self-certification is received by the lender, funds will be disbursed to the school after an 8 day waiting period. Please apply early if you are choosing this option.
This program allows students, 18 year of age, together with a creditworthy cosigner to borrow up to the full cost of education less financial aid. Students may defer repayment during enrollment.
Private alternative education loans are typically the most expensive borrowing option, therefore, should only be considered after eligibility for all federal student and parent loan options have been determined.