How much should I borrow?
Before you borrow a student loan, we encourage you to think
carefully about your expenses and your resources, and borrow only
what you really need. Remember loans must be repaid.
Does St. John’s recommend a specific
lender?
St. John’s University does not recommend any lenders.
We encourage families to evaluate lenders based on service,
stability, and borrower benefits.
St. John’s does recommend New York State Higher Education
Services Corporation (NYSHESC) as a guarantor and we utilize what
is called a guarantor flow process.
NYSHESC has been chosen as a recommended guarantor for the
following reasons:
- Provides students with approximately 100 lenders to choose
from
- Access to student and parent loan status via the web 24/7
- Demonstrated commitment to the use of technology to securely
process student and parent loan data efficiently and
timely
- Provides financial literacy and counseling programs
- Provides bilingual information on their website.
- Processes loans for all students (NY State Residents and
Non-Residents)
Please note: students can select a guarantor other than
NYSHESC and any lender that participates in the federal student
loan programs.
St. Johns will automatically send Federal Stafford Loan
certification information to NYSHESC for students who indicate an
interest in loans since this is our preferred process.
Students who do not want their information sent to NYSHESC should
send an email to loans@stjohns.edu and use
“DECLINE HESC” for the subject line.
What loan options are available and who is
eligible?
Federal Stafford Loan
- Low-interest loan available to students enrolled for a minimum
of six (6) credits per semester.
- As with all federal student aid, students must file a FAFSA and
meet basic eligibility requirements.
- Loans are made by a lender and are guaranteed by the federal
government depending on the need of the student, as calculated by
the Department of Education.
- Loans are either subsidized meaning that the government pays
the interest during the enrollment period, or unsubsidized, where
the student is responsible for the interest that accrues. The
interest is capitalized prior to repayment, meaning that it is
added to the balance. Students who wish to pay the interest before
it is capitalized should contact their lender.
What is the interest rate?
- *Fixed interest rate of 6.80% for
Federal Subsidized and Federal Unsubsidized Stafford Loans first
disbursed on or after July 1, 2007.
Are there any fees deducted?
- *Up to a 1% federal default fee
charged by the guarantor, deducted from the loan proceeds prior to
disbursement.
- *Up to a 1.0% origination fee
charged by the lender and deducted from the loan proceeds prior to
disbursement for loans disbursed on or after July 1, 2008.
I am a First-Time Borrower, How Do I
Apply?
- Once the FAFSA is filed, students will receive a Financial Aid
Award Letter indicating the amount of their student loan
eligibility.
- Beginning in late June, students will receive instructions in
the mail from New York State Higher Education Services Corporation
(NYSHESC) explaining how to visit www.hesc.org to electronically
sign (e-sign) their Federal Stafford Loan Master Promissory Note
(MPN). This is the quickest way to have a Federal Stafford
Loan processed. Although the preferred method for signing the MPN
is electronically, if the student wishes to receive a paper MPN,
you may request one by calling NYSHESC at 1(888) 697-4372. The
paper MPN must be signed and returned to NYSHESC. Student who
do no want to receive a Federal Stafford Loan should not fill out a
MPN.
YOU MUST COMPLETE AN ENTRANCE INTERVIEW BEFORE YOU CAN RECEIVE
YOUR LOAN FUNDS. VISIT WWW.MAPPING-YOUR-FUTURE.ORG TO
FULLFILL THIS REQUIREMENT.
How much can I borrow per year?
| *Stafford | $ 8,500 |
| Additional Unsubsidized Stafford | $12,000 |
*Subsidized/Unsubsidized based upon financial need as determined
by the FAFSA.
I am a continuing student borrower.
Do I need to do anything to apply for a Federal Stafford
Loan?
- If you have previously borrowed a Federal Stafford Loan at St.
John’s University and indicate an interest in loans, your loan (s)
will automatically be processed for the amounts indicated on UIS
under “My Awards”.
Federal Graduate/Professional PLUS
Loan
- Available to graduate and professional students enrolled for a
minimum of six (6) credits per semester.
- Loans are made by a lender and are guaranteed by the federal
government.
- Is not dependent on the student’s income or assets; however, a
credit check is required.
- Does not require collateral or cosigners
- In-school deferment processed automatically by most
lenders
- Students can request forbearance to align payments with Federal
Stafford Loans.
- Can be prepaid at any time without penalty.
What is the interest rate?
- *Fixed interest rate of 8.50% for
loans disbursed on or after July 1, 2007.
Are there any fees deducted?
- *2% origination fee charged by the
lender, deducted from the loan proceeds prior to disbursement.
- *Up to a 1% federal default
fee-charged by the guarantor, deducted from the loan proceeds prior
to disbursement.
Who is eligible to apply and how much can
be borrowed?
- To be eligible for a Federal
Graduate/Professional PLUS Loan, the student is required to
file a Free Application for Federal Student Aid (FAFSA) form for
2008-2009.
- Once the FAFSA is filed, students will receive a Financial Aid
Award Letter with the maximum Federal Grad PLUS Loan eligibility
indicated (Cost of attendance less other financial aid).
How Do I Apply?
- Visit www.HESC.org.
- Click “Students, Families, and Counselors”
- Click “Complete the e-MPN”
- Scroll down the page and Click “Go” next to Grad PLUS Loan. A credit check will be
performed and the PLUS MPN will be signed.
- Please note that NYSHESC has approximately 100 lenders parents
can select from.
- Students can choose to use a guarantor other than NYSHESC and
any lender that participates in the federal student loan
programs. To exercise this option, students should contact
their chosen lender directly.
- Select St. John’s University, school
code 00282300
What happens when a Federal Stafford or
Federal Grad PLUS Loan is approved?
- Once the loan is approved, the student and St. John’s are
notified and a temporary credit is posted to the students
account.
- At disbursement, the loan funds are sent to St. John’s via
Electronic Funds Transfer (EFT) and credited to the students
account.
Private Loans
Various private agencies and/or different lenders offer
private loan options for students. St. John’s recommends that
students review their opportunities for borrowing through the
conventional federal loan programs first (Federal Stafford &
Federal Grad PLUS Loan), and beyond these, to evaluate private loan
options carefully. Currently, the Federal Grad PLUS Loan
interest rate is fixed, where private loan interest rates are
usually variable.
- Apply directly with the lender
- Maximum eligibility is your Cost of Attendance, which includes
tuition, fees, and living expenses minus the financial aid you are
receiving.
- St. John’s will only deduct private loans
from the student’s bill when they are “approved”, meaning that
credit is acceptable, promissory note has been signed, and any
documentation required by the lender has been
submitted.
- These loans must be certified by the school and the funds must
be sent directly to St. John’s to receive credit.
- Students must demonstrate that they have explored all federal
loan options before St. John’s certifies the loan.
Direct to Consumer Loans
St. John’s does not encourage students to apply for Direct
To Consumer Loans because the terms tend to be less favorable than
private loans certified by the school, and because they are not
automatically deducted from your bill. Direct To Consumer
Loans are counted as financial assistance.
* Note: The approved interest rate and fee information is
accurate at the time of publishing, and is subject to change based
upon federal regulations or lender policy. The assumption is that
fees will be deducted by the lender and guarantor. If the
student selects a lender and/guarantor that does not charge a fee,
the dollar amount received by the school will be higher.