The University participates in the William D. Ford Federal Direct Loan Program, in which borrowers obtain federal loan funds directly from the U.S. Department of Education.  Loans are borrowed money and must be repaid by the student.

Federal Loans

Direct Loan Program - Students who file a FAFSA and enroll at least half time may qualify for a Direct Loan, which is a long-term, low-interest loan.

As of July 1, 2012, the federal government ceased offering subsidized loans for graduate students.  All loans that disburse after July 1, 2012 will be unsubsidized.  'Unsubsidized' means that the borrower must pay the accrued monthly interest on the loan or the interest will be capitalized (added to the principal).

Effective July 1, 2015 unsubsidized Direct loans for graduate students have an interest rate fixed at 5.84 percent. Repayment of the principal for unsubsidized Stafford loans begins six months after the borrower ceases to be enrolled at least half time.

First-time borrowers must complete two requirements to accept federal Direct loans.  Loan Entrance Counseling provides information on the rights and responsibilities of the student borrower.  The master promissory note is the student's legal promise to repay the loan money borrowed.  Both items can be completed at

The following charts outline the annual and aggregate amounts graduate students may borrow from the Federal Direct Loan Program (subsidized and unsubsidized combined):

Graduate Students:



Teacher Certification Programs


Graduate Degree Programs


Lifetime Maximum Including Loans Borrowed as Undergraduate Students


Please note: With federal Direct loans, a 1.073% origination and guarantee fee is deducted from the gross loan amount before any loan proceeds are sent to Xavier University.

Graduate PLUS Loan

Graduate students who are enrolled at least half-time have the option of applying for a Graduate PLUS loan. The loan is credit-based. Effective July 1, 2015 Graduate PLUS loans have a fixed interest rate of 6.84%. Repayment begins 60 days after the second disbursement, unless the borrower requests that repayment be deferred until after graduation. Students should first apply for federal Direct loans before applying for the Graduate PLUS loan because the interest rate and fees are lower.

To apply for the Graduate PLUS loan students must complete the following:

There is a 4.292% origination and guarantee fee for all Graduate PLUS loans.

*For Summer periods of enrollment, students should complete the graduate PLUS application and master promissory note May 1st or afterwards. For Fall and Spring periods of enrollment, students should complete the PLUS application and MPN June 1st or afterwards.  A credit check will be done once a student applies; the credit is valid for 180 days.  If approved, the loan must disburse before the credit check expires.

Perkins Loans - The Perkins is a low-interest loan that may be offered to students with financial need whose FAFSA is received by the federal processor by February 15. Consult our FAFSA tips page for help in completing this application. There are no origination or guarantee fees with Perkins Loans. Repayment of principal and interest, which is fixed at 5%, begins nine months after the student leaves school or is no longer enrolled at least half time. Consult the Loan Collections site for information on repayment of Perkins Loans. To sign the Perkins Loan Promissory Note, please go to

Code of Conduct

Xavier University is committed to providing the best possible customer service to our students and their families. It is our goal to provide information and advice, in keeping with federal requirements, which is determined by consideration of the best interests of our students and their parents. To ensure that students and their families continue receiving impartial advice from the financial aid personnel, and to avoid the potential for, or appearance of, conflicts of interest regarding student loans, Xavier University shall abide by a Code of Conduct in its relationships with lenders, guarantors and servicers of education loans.

Alternative Loans

Various alternative loans are available for students who need additional financial assistance. We strongly recommend that students utilize federal loans before considering alternative loan options. Alternative loans are commercial loans which usually require a credit check and/or credit worthy co-signer. The interest rates are fixed or variable.

We have included several lenders on our alternative loan list. They were selected on the basis of their loan fees, rates/terms, and customer service. Please note that Xavier will process an alternative loan from any lender. The amount requested cannot exceed the cost of attendance minus other financial aid sources. Additional Information on alternative loans and lenders is available online at the FastChoice Solutions website.

Students who decide to apply for an alternative loan will do so directly on the lender's web site. The lender will notify us if the student has been approved. If a loan has been approved, a staff member in the Office of Student Financial Assistance will certify the loan (as long as the student has enrolled for classes). Loan funds will disburse to the student's account 5-7 days before the start of classes.

Home Equity Loans

Many financial institutions will lend money on the equity in the family's home. The interest on these loans is normally one and one-half to two points higher than the prime rate, and the interest is usually deductible on your tax return. Contact a financial institution for specific information and an application.