Stafford Loan Process

In order to process loans more efficiently, Xavier University electronically processes loan applications. 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 federal direct subsidized loan. Subsidized means that the government pays the interest on the loan while the student is enrolled at least half-time, and for a period of six months after the student ceases to be enrolled at least half-time.

Students who do not qualify for a federal direct subsidized loan may be eligible for a federal direct unsubsidized loan. Unsubsidized means that the borrower must pay the accrued monthly interest on the loan, or the interest will be capitalized (added to the principal). Repayment of principal, for both subsidized and unsubsidized Stafford loans, begins six months after the borrower ceases to be enrolled at least half-time.
 

Lender

Xavier participates in the William D. Ford Direct Loan Program. All federal loans are processed through the Department of Education.

If You Are a New Stafford Loan Borrower

Your maximum loan eligibility will be indicated on the Financial Aid Award. Your loan will automatically be certified by the office of financial aid once all requested documents are submitted (i.e. tax returns and verification worksheet if your application is selected for verification). Your certified loan will be electronically transmitted to the Department of Education. To accept the loan, you must complete the Master Promissory Note on-line or in paper form. The MPN may be completed online at www.studentloans.gov. (If you do not wish to accept the loan please notify the financial aid office. Do not complete the Master Promissory Note.)

Federal regulations require that all first-time student loan borrowers complete Entrance Interview loan counseling before receiving the proceeds of their student loans. The Entrance Interview explains the borrowers rights and responsibilities including the consequences of defaults on loans. All first-time borrowers must complete their entrance interview loan counseling via the web at www.studentloans.gov.

Your loan money will be electronically transmitted to Xavier University in accordance with the disbursement dates provided by the University. Once Xavier insures that you have completed a Loan Entrance Interview, are registered at least half-time, and are meeting all other eligibility requirements, your loan funds will be disbursed to your university account.

Before the Department of Education sends loan disbursements to Xavier University, a maximum of 1% in fees will be deducted from the gross student loan amount. Before disbursement, an up-front rebate repayment incentive of .5% will be applied. The remaining net loan amount will be evenly divided among the number of semesters for which the student plans to borrow. To retain this 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.
 

If you are a Previous Stafford Loan Borrower:

Your maximum loan eligibility will be indicated on your Financial Aid Award. Your loan will automatically be certified by the office of financial aid once all requested documents are submitted (i.e. tax returns and verification worksheet if your application is selected for verification). Your certified loan will be electronically transmitted to the Department of Education. You must have a Master Promissory Note on file with the Department of Education. You can verify that one has been completed at www.studentloans.gov. If you do not wish to accept the loan or you want to reduce the amount accepted please notify the financial aid office.

Your loan money will be electronically transmitted to Xavier University in accordance with the disbursement dates provided by the University. Once Xavier insures that you have completed a Loan Entrance Interview, are registered at least half-time, and are meeting all other eligibility requirements, your loan funds will be disbursed to your university account.

Before the Department of Education sends loan disbursements to Xavier University, a maximum of 1% in fees will be deducted from the gross student loan amount. Before disbursement, an up-front rebate repayment incentive of .5% will be applied. The remaining net loan amount will be evenly divided among the number of semesters for which the student plans to borrow. To retain this 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.
 

Listed below are the rates and fees for loans disbursed on or after 7/01/10*

*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.