Student and Parent Federal Loans

Federal Direct Student Loans are available to U.S citizens and permanent residents who are enrolled at least half-time (six credits/semester). Typically, Federal Direct Student Loans are included in your initial financial aid package and are available to all students, regardless of need. No cosigner or credit check is required. The student is the borrower and repayment begins six months following graduation, over a 10-year period.

Undergraduate students with financial need may qualify to have a portion of their Federal Direct Student Loan subsidized. This means the Federal Government will pay the interest on the loan while the student is enrolled and during the six-month grace period. The interest rate on Federal Direct Student Loans is "variable-fixed" in that it is rest by the federal government July 1st each year, for loans made for the upcoming academic year, but any loan taken out in that academic year has that fixed interest rate for the life of the loan.

For the 2024-2025 academic year, the interest rate on the Federal Direct Student Loan is 6.533% for undergraduates (8.083% for graduate students) and there is a 1.057% origination fee deducted from the loan amount by the federal government.

Maximum annual loan limits based on grade level for dependent undergraduate students are as follows:

• $3,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Freshmen (0-23 credits earned) = $5,500 TOTAL
• $4,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Sophomore (24-53 credits earned) = $6,500 TOTAL
• $5,500 Subsidized + $2,000 Unsubsidized Federal Direct Loan: Junior/Senior (54+ credits earned) = $7,500 TOTAL

Whether loan is Subsidized is based on financial need as determined by the FAFSA. If student as no financial need, total annual Unsubsidized Student Loan eligibility would be: $5,500 as a freshman, $6,500 as a sophomore, $7,500 as a junior or senior.

Maximum annual loan limits per grade level for independent undergraduate students or for dependent undergraduate students whose parents are denied on the Federal Direct PLUS Loan are as follows:

• Freshman: $3,500 Subsidized Federal Direct Student Loan + $6,000 Unsubsidized Federal Direct Student Loan = $9,500 TOTAL
• Sophomore: $4,500 Subsidized Federal Direct Student Loan + $6,000 Unsubsidized Federal Direct Student Loan = $10,500 TOTAL
• Junior & Senior: $5,500 Subsidized Federal Direct Student Loan + $7,000 Unsubsidized Federal Direct Student Loan = $12,500 TOTAL

To receive the Federal Direct Student Loan, first-time borrowers at Saint Joseph's University must do the following: 

1. Complete a Master Promissory Note (MPN) at http://studentaid.gov/
2. Complete an Entrance Counseling Session 

• Credit-worthy parents of dependent undergraduates can borrow up to the cost of attendance minus other financial aid received on an annual basis.
• The repayment period is 10 years (repayment can be deferred up to four years). 
• The interest rate is variable-fixed: fixed for the life of the loan but reset July 1 for the upcoming school year. For the 2024-2025 academic year, the interest rate on the Federal Direct Parent PLUS Loan is 9.083%.
• There is a 4.228% origination fee deducted from the loan amount by the federal government.
• Parents can apply for a Parent PLUS Loan at http://studentaid.gov/  If approved, the parent borrower must complete the Parent PLUS MPN (Master Promissory Note) at http://www.studentaid.gov/ (good for 10 years except in the case of an endorsed loan).

Learn more about interest rates and apply online