JHU Student Financial Services | Returning Undergraduates

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Student Loans
Federal Direct • Federal Perkins • Hackerman

Federal Direct Student Loan (same as Federal Stafford Loan or Guaranteed Student Loan): Johns Hopkins University uses the Federal Direct Student Loan program, rather than the Federal Stafford Loan program, for federal student loans. Through this program, the U.S. Department of Education makes student loans, through Hopkins, directly to the student for educational expenses. Direct Student Loans have a fixed interest rate of 6% to 6.8% (see below). The maximum amount per year is $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors. A 1% origination fee is deducted from the proceeds of the loan. The Direct Loan is either subsidized or unsubsidized. (Top)

• The subsidized Direct Student Loan is need-based, so the family contribution is used to determine eligibility. The federal government subsidizes the loan by paying the interest while the student is in school, during the six-month grace period after leaving school, and during deferment periods. The interest rate for 2008-2009 for subsidized loans for undergraduates is 6%.

• The unsubsidized Direct Student Loan is not based on financial need, although borrowers must complete the Free Application for Federal Student Aid (FAFSA) to obtain the loan. The interest is not subsidized by the government and must be paid on an ongoing basis or deferred while the student is in school and capitalized once repayment of principal begins. Loan principal and capitalized interest repayment begins six months after completion of studies. The interest rate for 2008-2009 for unsubsidized loans is 6.8%.

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. 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.

Additional information regarding Federal Direct Loans:

• Required Reading for New Direct Loan Borrowers!

• Check the Status of a William Ford Direct Loan

• Estimate monthly payments on student loans

• Deferments & Forbearances

• Consolidating your Loans

• Access your student loan history on-line through the National Student Loan Database

• Contact the U.S. Department of Education's Student Loan Ombudsman to informally resolve loan disputes and problems.

Federal Perkins Loan: This federal loan is available to students who demonstrate exceptional financial need. The Federal Perkins Loan program is administered by Hopkins, therefore, the money borrowed is paid back to Hopkins. The rate of interest is 5%. Interest does not accrue until the loan goes into repayment. Repayment begins nine months after completion of studies and can extend up to 10 years. Deferment and repayment information is sent to all borrowers by the Student Loan Office. The loan proceeds are credited to your account 10 days prior to the start of the semester if a promissory note has been signed. (Top)

Additional information regarding Perkins Loans:

• Perkins Addendum

• Perkins info from prom note folder

• Access your student loan history on-line through the National Student Loan Database

Hackerman Loan: The Hackerman Loan is a revolving fund, available through the generous gift of Mr. Willard Hackerman. It is an interest-free loan offered by the Office of Student Financial Services to Whiting School of Engineering students who demonstrate eligibility. Funds are limited. Borrowers are expected to repay the loan over a period of eight years after completion of studies. (Top)

Program Components and Loan Characteristics
Description	A loan for eligible undergraduate students enrolled at least half-time in the Whiting School of Engineering at the Johns Hopkins University. Offered at the discretion of the Office of Student Financial Services.
Loan Limits	Annual amounts vary, based on total loan fund availability. Renewable.
Interest Charged	NONE
Fees Charged	Student Loan Office
Repayment	Repayment begins following a 6-month grace period after graduation. Repayment term is 8 years (32 equal quarterly installments

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