Student Financial Services


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.

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.

Undergraduate students who demonstrate need, according to the federal need analysis formula, may qualify for a subsidized Direct 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 Direct Loan may be eligible for an unsubsidized Direct Loan. Interest accumulates on the unsubsidized loan while the student is enrolled and throughout the repayment period.

The interest rate for subsidized and unsubsidized loans is fixed at:

2021-2022 3.73% for loans first disbursed on or after 7/1/2021 and before 7/1/2022

Repayment of the principal for both subsidized* and unsubsidized Direct 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 students may borrow from the Federal Direct 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 Direct Loans, an origination fee is deducted from the gross loan amount before any loan proceeds are sent to Xavier University. The current origination fee is 1.057%.

Federal Direct PLUS Loan for Parents

Parents of dependent undergraduate students may borrow a Direct 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 6.28% for loans first disbursed on or after July 1, 2021 and before July 1, 2022. There is a 4.228% loan fee. Repayment of principal and interest begins 60 days after the loan is fully disbursed. Deferment is available for parents who prefer to not make payments while the student is enrolled at least half-time and for six months after they graduate, leave school, or drop below half-time enrollment. Check with the loan servicer for information.

To apply*, a parent must submit a Direct PLUS Loan Application and sign a Master Promissory Note (MPN) online at The Office of Student Financial Services will process loan applications beginning in May for summer periods of enrollment and in June for fall periods of enrollment. Once processed, an email will be sent to the student directing them to check their award online. The Department of Education will notify the parent if they are approved or denied. The suggested deadline to submit a PLUS loan request is June 30th for the upcoming Fall semester. This should allow enough time for the loan to be originated (if approved) and for it to appear on the Fall billing statement.

If a parent is denied, there are two options for loan funding. The student may borrow an additional $4,000 (first year and sophomore students) or $5,000 (junior and senior students) from the Direct Unsubsidized Loan. Or, the parent can choose to have a credit-worthy individual endorse the PLUS loan. Instructions will be sent to the parent about obtaining an endorser for the PLUS loan. The Office of Student Financial Services will automatically award the additional Direct Unsubsidized Loan amount to the student's aid when a PLUS loan is denied and the parent will not be pursuing the PLUS loan. Students have the right to reduce or decline the additional unsubsidized Direct Loan.

*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 180 days. If approved, the loan must disburse before the credit check expires.

Private Loans

Various alternative loans are available for students who need additional financial assistance. We strongly recommend that students utilize federal loans before considering private loan options. Private 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 private loan list. They were selected on the basis of their loan fees, rates/terms, and customer service. Please note that Xavier will process a private loan from any lender that a student chooses. The amount requested cannot exceed the cost of attendance minus other financial aid sources. Additional Information on private loans and lenders is available online at the FastChoice website.

Students who decide to apply for an private 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 Services will certify the loan (if the student has enrolled for classes). Loan funds will disburse to the student's account 5-7 days before the start of classes.

It typically takes 2-3 weeks for the loan application and school certification process. The suggested deadline for students to submit an alternative loan for the Fall semester is June 30th, for the upcoming Fall semester. This should allow enough time for the loan to be certified (if approved) and to appear on the Fall billing statement.

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.

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.