Loans
Federal Direct Student Loan Program
Application Procedures
The Financial Aid Office, based upon the information provided on the Free Application for Federal Student Aid (FAFSA), will determine the student’s Direct Student Loan eligibility. Instructions for applying for this loan are on the Financial Aid Office website www.sjfc.edu/financialaid.The student must sign an electronic master promissory note at www.studentloans.gov. The student’s FAFSA PIN will be needed to complete the e-sign process.
An online loan counseling session may be required. Loan entrance counseling can be completed at www.studentloans.gov. For the school year funds may not be disbursed earlier than ten days prior to the start of classes.
Selection of Recipients and Allocation of Awards
To be eligible for a Direct Student Loan, a student must be: (1) a U.S. citizen or permanent resident alien; and (2) admitted as a matriculated student, student at an approved college, university, or other post-secondary institution, anywhere in the United States or in a foreign country, and (3) be attending at least half-time.
Loan Schedule
A dependent undergraduate student may borrow up to $5,500 for the first year of study, $6,500 for the second year, and up to $7,500 for the remaining two years in subsidized and unsubsidized loans, to a maximum of $31,000. Additional loan funds are available to borrowers who are independent of parent by Department of Education Standards or whose parents have received a PLUS loan denial ($4,000 for first and second year students, $5,000 for third and fourth year students). The loans have a fixed rate of 6.8 percent). Up to a 1 percent origination fee will be deducted from the loan proceeds prior to disbursement. A 0.5 percent fee rebate is offered to all borrowers in anticipation of on-time payment for any loans disbursed prior to July 1, 2012.
Rights and Responsibilities of Recipients
A student may borrow at a relatively low interest rate with no repayment as long as he or she remains enrolled at least half-time and for six months after he or she ceases to be at least a half-time student. Payment of principal may further be deferred during study under a graduate fellowship program approved by the U.S. Commissioner of Education, during rehab training, during up to three years of active U.S. armed forces service, during up to three years as a full-time Peace Corps or VISTA or similar national program volunteer, if you are teaching in a designated shortage area, during economic hardship, or during up to 24 months of unsuccessful search for full-time employment.
Effective October 1, 1992, students without demonstrated financial need may borrow under the unsubsidized Direct Student Loan program. Unlike the subsidized Direct Student Loan, in which the federal government pays the interest on the loan while the student is in school at least half-time, with the unsubsidized loan, the student is responsible for paying the interest that accrues while in school or deferring the interest until the start of repayment.
Federal loan repayment options, loan consolidation, deferment and forbearance information can be found at: www.sjfc.edu/campus-services/financial-aid/loan-repayment.dot.
Federal Perkins Loans
A Federal Perkins Loan is a low-interest (5 percent) loan for matriculated students with financial need. St. John Fisher College is the lender. The loan is made with government funds and the College contributes a share. Because funds under this program are limited, the awards typically range from $200 to $1,000 a year. Federal Perkins Loans carry a 5 percent interest rate beginning nine months after a student ceases half-time enrollment. This loan is repaid to the College. The Financial Aide Office determines eligibility based on a student's financial need. Entrance counseling and a Master Promissory Note must be completed at: www.ecsi.net/promz2.
Federal Direct Parent Plus Loans
Parents of a dependent undergraduate student may apply for this federal loan. Instructions for applying for this loan are available on the Financial Aid Office website www.sjfc.edu/financialaid. The parent must complete the PLUS Loan Request (credit check), and first-time borrowers must sign an electronic master promissory note at www.studentloans.gov. Loans may be made up to a maximum of the cost of attendance minus any financial aid received per year for each financially dependent student. The loan has fixed interest rate of 7.9 percent. Repayment usually begins 60 days after the final loan disbursement is received. A 4 percent fee is charged. A 1.5 percent fee rebate is given to those who have a loan period disbursing prior to July 1, 2012.
Private Student Loan Programs
Private student loans are unique because the student can borrow this additional loan. However, students who have not established a credit history will be asked to apply with a co-signer. Although interest accrues while the student is in school, the payments on the loan may be deferred until the student ceases enrollment. The private student loan may provide enough funds to enable the student to attend and pay for the college of their choice. The annual loan limits are the cost of attendance minus other financial aid. Private student loans frequently have a higher interest rate (usually variable), so the student may want to consider this option only after exhausting all other financial aid options such as government loans and scholarships.
Federal College Work-Study Program (FWS)
The Federal College Work-Study Program provides on-campus jobs for students with financial need. Positions are posted on the Career Center’s website and are available on a first-come, first-served basis. It is the student’s responsibility to find an employment position. Students earn at least the current federal minimum wage, but the amount might be higher depending on the type of work and skills required. Students are paid every two weeks for hours worked. Because they receive direct payment, FWS wages are not credited to a student’s semester bill.