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.
Undergraduate students who demonstrate need, according to the federal need analysis formula, may qualify for a subsidized Stafford Loan. The federal government pays the interest on the subsidized loan while the student is enrolled at least half-time. Students who do not qualify for a subsidized Stafford Loan may be eligible for an unsubsidized Stafford Loan. Interest accumulates on the unsubsidized loan while the student is enrolled and throughout the repayment period.
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 | 3.4% for loans first disbursed after 7/1/2012** |
Unsubsidized Stafford loans have a fixed interest rate of 6.8 percent.
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.
*President Obama recently signed into law the Budget Control Act (BCA) of 2011 which affects the grace period for subsidized loans. Subsidized Stafford loans that first disburse on or after July 1, 2012 will no longer be subsidized during the grace period. Interest will accrue on subsidized loans once a student graduates. Students will still have a 6 month grace period before beginning repayment.
**On July 6, 2012, President Obama signed Public Law 112-141 that included a one-year extension of the 3.4 percent interest rate that has applied to Direct Subsidized Loans made to undergraduate students since July 1, 2011. With this action, the interest rate on any Direct Subsidized Loan first disbursed on or after July 1, 2012 and before July 1, 2013 will be 3.4 percent.
First-time borrowers must complete two requirements to accept federal Stafford 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 www.studentloans.gov.
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 disbursed after July 1, 2012 there will be a 1% origination fee.
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. The applicant must be the biological or adoptive parent; in some situations a stepparent may apply. PLUS loans have a fixed interest rate of 7.9 percent. There is a 4 percent origination & guarantee fee. Repayment of principal and interest begins 60 days after the final annual disbursement of the loan.
To apply*, a parent must submit a PLUS loan request and master promissory note (MPN) online at www.studentloans.gov. The Office of Student Financial Assistance will process requests beginning in May for Summer periods of enrollment and in June for Fall periods of enrollment. Once processed an updated award letter will be sent to the student. The Department of Education will notify the parent if they are approved or denied.
If a parent is denied there are two options for loan funding. The student may borrow an additional $4000 (first year and sophomore students) or $5000 (junior and senior students) from the unsubsidized Stafford loan program. Or, the parent can choose to have a credit-worthy individual endorse the PLUS loan. Instructions will be sent to the parent about endorsing a PLUS loan. Students who wish to borrow the additional unsubsidized loan must complete the Additional Unsubsidized Loan Request which is available at http://www.xavier.edu/financial-aid/forms.cfm.
*For Summer periods of enrollment, parents should complete the PLUS application and master promissory note May 1st or afterwards. For Fall and Spring periods of enrollment, parents should complete the PLUS application and MPN June 1st or afterwards. A credit check will be done once a parent applies; the credit is valid for 90 days. If approved, the loan must disburse before the credit check expires.
Borrowing From the Federal Plus Loan Program
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 can be 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 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 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.