Loans
William D. Ford Direct Loan Program
The University participates in the William D. Ford Federal Direct Loan Program, in which borrowers obtain loan funds directly from the U.S. Department of Education.
Please review our Frequently Asked Questions for additional information.
Stafford Loan Program - Students who file a FAFSA and enroll at least half-time may qualify for a Stafford Loan, which is a long-term, low-interest loan.
Students who demonstrate need, according to the federal need analysis formula, may qualify for a subsidized Stafford Loan. Students who do not qualify for a subsidized Stafford Loan may be eligible for an unsubsidized Stafford Loan.
Unsubsidized Stafford loans currently have a fixed interest rate of 6.8 percent. Beginning on July 1, 2008, the interest rates for Subsidized Stafford Loans will be lowered in small increments over the next few years (for undergraduates only). The interest rates are as follows:
| 2008-2009 | 6.0% for loans first disbursed after 7/1/2008 |
| 2009-2010 | 5.6% for loans first disbursed after 7/1/2009 |
| 2010-2011 | 4.5% for loans first disbursed after 7/1/2010 |
| 2011-2012 | 3.4% for loans first disbursed after 7/1/2011 |
| 2012-2013 | 6.8% for loans first disbursed after 7/1/2012 |
Repayment of the principal for both subsidized and unsubsidized Stafford Loans begins six months after the borrower ceases to be enrolled at least half-time.
The following charts outline the annual and aggregate amounts students may borrow from the Federal Stafford Loan Program (subsidized and unsubsidized combined):
Undergraduate Students:
| Year | Dependent Students | Independent Students |
| Freshman | $5,500 | $9,500 |
| Sophomore | $6,500 | $10,500 |
| Junior | $7,500 | $12,500 |
| Senior | $7,500 | $12,500 |
| Total Undergraduate | $31,000 | $57,500 |
Please note: With both subsidized and unsubsidized Stafford loans, an origination fee is deducted from the gross loan amount before any loan proceeds are sent to Xavier University. For loans with a first disbursement after July 1, 2010 there will be a 1% origination fee and .5% up-front rebate. To retain the rebate, the borrower’s first 12 monthly payments must be made on time. Otherwise, a charge for the initial rebate will be added to the outstanding loan principal.
Visit our Stafford loan process page for detailed information about applying for a Stafford Loan.
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 webpage for additional information. To sign the Perkins Loan Promissory Note, please go to http://www.ecsi.net/prom2a/.
Federal Parent Loan for Undergraduate Students (PLUS) - Parents of dependent undergraduate students may borrow a PLUS loan on behalf of their child. PLUS loans have a fixed interest rate of 7.9 percent. Repayment of principal and interest begins no later than 60 days after the final annual disbursement of the loan. Use our convenient online Parent Application to apply for the PLUS loan. A PLUS Master Promissory Note must also be completed online at www.studentloans.gov.
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 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 FastAlt 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 Financial Aid 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.