Federal Student Loans
Students who complete a Free Application for Federal Student Aid (FAFSA) will be automatically reviewed for eligibility in the William D. Ford Federal Direct Loan Program (Direct Loans). Under this program, the U.S. Department of Education is your lender.
If you are a current federal loan borrower and have questions, log into Federal Student Aid to contact your loan servicer.
Federal Loan Types
- Subsidized Loans are available to undergraduate students who demonstrate financial need. The U.S. Department of Education pays the interest on Subsidized Loans while students are enrolled in school at least half-time (6+ credits).
- Unsubsidized Loans are available to undergraduate and graduate students regardless of financial need. Students are responsible to pay the interest on Unsubsidized Loans, although interest can be deferred until after graduation. Any deferred interest is added to the principal, which makes the loan more expensive over time.
Direct Loan Interest Rates & Fees
How to Receive a Federal Direct Loan
First time loan borrowers need to complete the following items to be eligible to receive a Direct Loan:
- Free Application for Federal Student Aid (FAFSA)
- Annual Student Loan Acknowledgement (ASLA)
- Master Promissory Note (MPN)
- Entrance Counseling
Once you have completed this process, the MPN and Entrance Counseling should be valid for your career at USJ, up to 10 years. You must complete the FAFSA and ASLA every year you wish to receive federal student loans.
Maximum Annual Loan Limits
Dependent Undergraduate Students
Students who are required to provide parent information on the FAFSA have the following maximum annual loan limits:
- First Year: $5,500, of which no more than $3,500 is subsidized
- Second Year: $6,500, of which no more than $4,500 is subsidized
- Third Year & Beyond: $7,500, of which no more than $5,500 is subsidized
Dependent students whose parents are denied a PLUS Loan are eligible for independent loan limits (see below).
Independent Undergraduate Students
Students who are not required to provide parent information on the FAFSA, or dependent students whose parents were denied a PLUS Loan, have the following maximum annual loan limits:
- First Year: $9,500, of which no more than $3,500 is subsidized
- Second Year: $10,500, of which no more than $4,500 is subsidized
- Third Year and Beyond: $12,500, of which no more than $5,500 is subsidized
Students enrolled in a graduate or professional degree program can borrow up to $20,500 each academic year in a Direct Unsubsidized Loan.
Direct PLUS Loans are also available to cover the remainder of your educational costs, including living expenses.