Graduate/Law Loan Information

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?

*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.