Loans

If you apply for financial aid by filing the FAFSA, you may be offered loans as part of your financial aid offer. A loan is money you borrow and must pay back with interest. Some loans are need-based; others are available to any enrolled student.

Borrowing can be costly. We recommend you consider borrowing only if you have exhausted all other options and only borrow what you need. Make a budget for yourself to keep your debt within manageable limits.

All federal loans (Federal Direct Loans including PLUS) students receive are reported on the National Student Loan Data System. The information is accessible to guaranty agencies, lenders and authorized users at schools. You can access your information using your Department of Education FSA ID at the Federal Student Aid website.

The Federal Direct Subsidized Loan is only offered to undergraduate students who demonstrate financial need as determined by the FAFSA. The Federal Direct Subsidized Loan does not charge interest to the student as long as he/she is enrolled at least half-time (6 credits). Interest accrues from the start of the 6-month grace period and throughout the repayment period.

Federal Direct Unsubsidized Loans are made to eligible undergraduate, graduate and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan. You are responsible for paying all interest on the loan.

Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. You either may choose to pay the accumulated interest while you are in school, or to have the unpaid, interest capitalized, i.e., added to the principal balance of the loan.

NOTE: If your loan interest is capitalized, it will increase the amount you have to repay.

Overview

Private or “alternative” student loans should typically be considered only after eligibility for all federal student loans have been determined. Although terms can vary depending upon the product, with most private, alternative loans:
 

• The student, who must be at least 18 years of age, is the primary borrower.
• Most undergraduate students will need a credit-worthy cosigner (note-even if loan does not require a cosigner, the interest rate is often much higher without one, particularly if the student does not have an established credit history). Many products offer a cosigner release option once the student has graduated and successfully made a certain number of on-time payments.
• The student can borrow on a yearly basis up to the “total cost of attendance” minus the other financial aid he/she is receiving.
  Are generally disbursed directly to the University via EFT after the drop/add period ends each semester.
• Can be deferred while the student is in school and for the first six months following completion of his/her program, but loans are “unsubsidized” (interest is accruing during this period).
• Offer both variable and fixed rate options.
• Are based on either the prime rate or LIBOR rate plus an add-on.
• Are zero origination fee loans (i.e.-no fee is deducted from the amount you borrow) but there are one or two exceptions to this.
• Interest rates vary depending upon the credit-worthiness of the student borrower and/or cosigner.
• Preferred lender policy

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; however, as a service to our students and families, Saint Joseph’s University provides a historical list of lenders our students have successfully borrowed with over the past several years. Visit elmselect.com to learn more about private education loans and to compare various loan products.

Application Process

1. Apply online for the full year amount needed at the individual lender’s website or go to elmselect.com to compare products and apply for one (it is not recommended to apply for multiple loans since a credit check is run on the student and the borrower).

2. Once an application is processed and approved by the lender, Saint Joseph’s University receives electronic notification and will “certify” the loan with the lender directly. Once a loan is certified, it will appear on the Tuition & Aid tab of The Nest where the student’s other financial aid is listed.

3. Funds will be disbursed to the University shortly after the drop/add period ends each semester.

Federal Truth in Lending regulations mandate all new private loan application will require additional certifications (Title X of the Higher Education Opportunity Act). This 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, typically after the drop/add period ends each semester. Please contact Office of Financial Aid if you have questions.