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Federal
Loan Programs (Top)
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Federal
Perkins Loan
The Federal
Perkins Loan program is available to students who demonstrate substantial
financial need. No separate application is required. The maximum
annual loan amount is $6,000 (usually, the award does not exceed
$3,000), with a cumulative total amount not to exceed $40,000 including
undergraduate borrowing amounts. The interest rate for the Perkins
Loan is fixed at 5 percent. Interest does not accrue until the loan
goes into repayment. Repayment begins nine months after completion
of studies or the student drops below half-time status. Deferment,
cancellation, and repayment information is sent to all borrowers.
Federal
Direct Student Loan (also known as Federal Stafford Loan)
Hopkins participates
in the Federal Direct Student Loan Program. Eligibility is determined
by review of your FAFSA data and federal tax return. The U.S. Department
of Education makes these loans, through Hopkins, directly to the
student for educational expenses.
The interest subsidized Direct Loan is available to students
who demonstrate financial need. The maximum subsidized loan for
a graduate student is $8,500 per academic year. The aggregate loan
limit (undergraduate combined with graduate) is $138,500 (subsidized
and unsubsidized). An origination fee of 1% is deducted from the
gross amount of the loan. The interest rate is fixed at 6.8 percent.
The federal government pays the interest on the loan as long as
the student is enrolled at least half-time, and for a six-month
grace period after leaving school. Flexible repayment options are
available, including longer repayment periods as well as income-sensitive
payment schedules.
Students who do not qualify for the need-based subsidized Direct
Student Loan may borrow from the unsubsidized Direct Student
Loan program. Graduate students may borrow up to a maximum total
of $20,500 per academic year. This total includes both subsidized
and unsubsidized loans. (For example, graduate students who obtain
the maximum subsidized loan of $8,500 have the option to borrow
up to $12,000 unsubsidized per academic year). Interest accrues
immediately on the unsubsidized loan, and must either be paid during
the in-school and grace periods or capitalized. All other terms
of the loan are the same as for the subsidized program.
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Students
are not required to complete a separate loan application from a bank or
other lender. If you are offered a Direct Student Loan as a part of your
aid package and you accept it and you are a first-time borrower at Johns Hopkins, you will receive instructions to sign a master promissory note
online. The website is http://www.dlenote.ed.gov.
On this site, be sure to click on the appropriate link for the Federal Direct Student Loan. You will see several links on the lefhand side of the page. The link called "MPN for Student Loans or Parent PLUS Loans Find out here" is an information only page. To sign your MPN for your student loan, click on the link that says "Complete New MPN for Student Loans". DO NOT click on the link that says "Complete New MPN for Parent PLUS Loans". Once you are on the Complete New MPN for Student Loans page, be sure to select the correct loan type. If you have a subsidized only, unsubsidized only, or combined subsidized/unsubsidized Federal Direct Student Loan, click on the Subsidized/Unsubsidized button. Once you are on the Complete New MPN for Student Loans page, click on the "Proceed to PIN Site Registration" EVEN IF YOU ALREADY HAVE A PIN. This takes you to the authentication site for you to enter your personal information and PIN before continuing to the page to actually sign the MPN. If you also have a Graduate PLUS Loan in addition to the Federal Direct subsidized/unsubsidized loan, you will need to repeat the process again and sign a separate MPN for your Graduate PLUS Loan.
For assistance with signing the Direct Loan Electronic Master Promissory Note, call Applicant Services at 800-557-7394. The master promissory note is valid for 10 years of consecutive borrowing at JHU. The loan proceeds will be credited to your student
account 10 days prior to the start of the semester. Students who signed
a Direct Loan master promissory note in a previous year are not required
to sign a new note.
The Direct Student Loan Program simplifies the application process for
students and provides quicker access to loan funds. The loan repayment
allows more options for repaying the loan through extended, graduated,
and income contingent plans. Loan repayment information will be sent with
the promissory note and at the time of repayment. Loan repayment information
as well as interactive calculators are available on the web at http://www.ed.gov/offices/OSFAP/DirectLoan
Additional information regarding Federal Direct Loans:
Federal
Direct Graduate PLUS Loan
Federal Direct Graduate PLUS loans are federally guaranteed loans available to graduate students who have exhausted their eligibility for subsidized and unsubsidized Federal Direct Student Loans. There is no financial need requirement to receive these loans. You do not need to contact a lender; these loans are made directly with the U.S. Department of Education.
Student Eligibility:
- Must be enrolled as a regularly admitted student in a graduate program (provisionally admitted students are not eligible)
- Must be enrolled at least half-time (at least 2 courses in the term for which the loan is certified)
- Must be a U.S. citizen or permanent resident
- Must be registered for Selective Service (males only)
- Must not be in default on a student loan
Credit Review:
- A credit review is required; however, there is no “debt to income” review.
- A co-borrower/endorser option is offered if the borrower’s credit is denied.
- Credit checks are valid for 120 days. For this reason, we advise that borrowers wait until summer before applying for loans for the upcoming year. Our loan processing begins in June.
Borrowing Eligibility:
- Borrowers apply for the Graduate PLUS for each academic year that they wish to borrow. Multi-year loans may be consolidated.
- The loan amount may not exceed the cost of attendance for the academic year less any financial aid the student is eligible to receive. Students must be considered for their full eligibility under the subsidizedn and unsubsidized Federal Direct Student Loan before a Graduate PLUS loan will be certified.
- Borrowers are encouraged to apply for the amount needed for the academic year (not semester by semester).
Loan Terms and Disbursement:
- The interest rate for Federal Direct Parent PLUS loans is fixed at 7.9%.
- The origination/default fee for the Federal Direct Graduate PLUS loan is 2.5%. This fee is deducted from each disbursement of the loan.
- Disbursements are scheduled at the beginning of each semester and are deposited directly in the student’s account.
Repayment:
- In school deferment is available for Federal Direct Graduate PLUS borrowers. Interest will accrue while the loan is in deferment.
- If in school deferment is not requested, repayment begins 60 days after the loan is fully disbursed. Fully disbursed means that all installments (fall and spring) have been paid. Interest begins accruing after the first disbursement.
- There is no pre-payment penalty.
- Consolidation options and extended or graduated repayment plans are available.
To apply for a Federal Direct Graduate PLUS Loan:
- Federal Direct Graduate PLUS borrowers must complete the Free Application for Federal Student Aid (FAFSA) and must be considered for subsidized and unsubsidized Federal Direct Student Loans before a Federal Direct Graduate PLUS loan will be certified.
- Complete and return either the Federal Direct Graduate PLUS request form, available on our website: http://www.jhu.edu/finaid/elecserv/GradPLUS.pdf
- New PLUS borrowers will need to sign a promissory note online on the Direct Lending website:http://dlenote.ed.gov
The borrower will be contacted by JHU and the Direct Loan Servicing Center once the loan has been processed.
Federal
Parent PLUS with a private lender. If a borrower has a Graduate PLUS from a previous year at JHU with a private lender and wants to continue with that private lender, JHU will continue to process those loans with private lenders. The borrower should contact the lender directly to apply for the 2008-2009 academic year.
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Supplemental
Loans (Top)
Private loans are available to assist students in financing
educational costs (as defined by Johns Hopkins University) less any financial aid. For most of these loans, the student is the borrower with the parent as a cosigner. Interest rates generally are variable.
Private banks also offer loan programs for educational costs. For most of these loans, the student is the borrower with the parent as a cosigner. Interest rates generally are variable. Johns Hopkins University recommends that students exhaust their eligibility for federal loans before considering private loan programs. If you are uncertain about your eligibility for federal loans, please contact the financial aid office prior to initiating a private loan application.
For state or private loans, the borrowing limit is the total cost of education for the academic year (as defined by Johns Hopkins University) less any financial aid.
As a service to students and their families, Johns Hopkins University makes available this link to the Simple Tuition website which assists in comparing private loans and in identifying potential lenders. The Simple Tuition website is one of many tools that may be helpful when selecting a private loan lender. The University does not endorse or recommend any lender, nor does the University have any financial interest in any lending institution. Students and their families have the right to select the educational loan provider of their choice. Additional information on factors to consider when securing a private loan is available below.
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Information on current
market interest rates is available at : http://www.bankrate.com.
Questions to ask a Private Lender (Top)
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What is your lowest interest rate and fee combination and how can I get it? Is the rate only for a limited period or is it for the life of the loan?
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For variable rate loans, is there a limit on how high the variable rate can go? How often is the interest rate adjusted, and how is it determined?
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What interest rate can I get on a fixed-rate loan?
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How long will I be repaying the loan? Is there any penalty for paying it off early?
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When do I have to start making payments? How long can I defer payments while I'm in school? If I go to graduate school and defer payments, how much will I owe when I do start making them?
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Will I lose my discount for paying on time if I have only one late payment or if I ask for a change in the payment schedule?
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What proportion of your borrowers get the discounts you offer? Are your discounts guaranteed or are they subject to change later?
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Would you allow me to defer or reduce my payments temporarily because of economic hardship? Under what circumstances and for how long?
-- From the Project on Student Debt (see website below)
Consumer Information on Student
Loans (Top)
For more information on comparing lender benefits, see the following website:
http://projectonstudentdebt.org/loandiscounts.vp.html
For questions to ask when considering a private loan, see the following website:
http://projectonstudentdebt.org/private_loan_questions.vp.html
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