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.
Federal Direct Loans for Undergraduate Students
Students who file a FAFSA form 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 undergraduate students is fixed at:
| Academic Year | Rate |
|---|---|
| 2026-2027 | 6.52% for loans first disbursed on or after 7/1/2026 and before 7/1/2027 |
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 StudentAid.gov.
The following charts outline the annual and aggregate amounts that undergraduate students may borrow from the Federal Direct Loan Program (subsidized and unsubsidized combined):
| Grade Level | 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, a loan fee is deducted from the gross loan amount before any loan proceeds are sent to Xavier University. The current loan fee is 1.057%.
Federal Student Loan Acceptance and Disbursement
When a student is eligible for a Federal Direct Loan, the loan eligibility will appear as part of the student’s aid offer in the Student Hub. The aid offer shows the type of loan, the amount offered per semester, and the total loan amount for the academic year.
Students are not required to borrow the loans offered. A student who does not wish to borrow the full amount offered may reduce or decline the loan(s). To reduce or decline a loan, the student must email xufinaid@xavier.edu with their request. Federal student loans generally cannot be increased after they are offered, although rare, case-by-case exceptions may apply.
Federal student loans will be disbursed to the student's bursar account once all requirements are complete, including Loan Entrance Counseling and a valid Master Promissory Note. Disbursements typically occur at the beginning of the second week of each term. Students are notified of loan disbursements through their Xavier email account. Loans may be adjusted or cancelled prior to disbursement or within 14 days after the loan is disbursed.
Federal regulations limit when loans can be originated:
- A federal student loan cannot be originated for a term that has ended unless the student is registered for a subsequent term within the same academic year.
- Once an academic year has ended, or the student has otherwise ceased enrollment for the academic year, a federal student loan cannot be originated for that academic year.
Estimating Federal Student Loan Repayment
A dependent undergraduate student who borrows the maximum amount allowed each year for four years will borrow a total of $27,000 in the Federal Direct Loan Program. Using the Standard Repayment Plan, which is a fixed repayment over a ten-year period, the borrower will have a monthly payment of approximately $300/month beginning six months after graduation. The estimated total amount that the student will pay over the ten years is $36,800. Loan Simulator is available to help estimate repayment of federal student loans for different repayment plans and loan amounts.
Federal Direct PLUS Loan for Parents
Parents of dependent undergraduate students may borrow a Direct PLUS Loan to help cover educational expenses not met by other financial aid. Eligible borrowers include biological and adoptive parents and, in some circumstances, stepparents.
- Fixed interest rate of 9.07%
- Loan fee of 4.228%
- Annual borrowing limit of $20,000 per dependent student*
- Aggregate borrowing limit of $65,000 per dependent student*
*Limited exceptions to these borrowing limits may apply. Visit StudentAid.gov for additional information.
Repayment and Deferment
Repayment of the loan principal and interest begins 60 days after the loan is fully disbursed. Parents may request a deferment while the student is enrolled at least half-time and for six months after the student graduates, leaves school, or drops below half-time enrollment.
How to Apply
To apply for a Direct PLUS loan, a parent must:
- Complete a PLUS Loan Application at StudentAid.gov.
- Sign a PLUS Master Promissory Note (MPN) online at StudentAid.gov.
The U.S. Department of Education will notify the parent if they are approved or denied. Credit approvals are valid for 180 days, and a loan disbursement must be made before the credit approval expires. To help ensure the credit check remains valid through disbursement, parents should complete the PLUS application after May 1.
The Office of Student Financial Services begins processing loan applications in May for summer periods of enrollment and in June for fall periods of enrollment. Once the loan is processed, the student will receive an email directing them to review their financial aid offer online.
If a PLUS Loan Is Denied
If a parent is denied, the student may become eligible for additional Direct Unsubsidized Loan funding:
- Up to $4,000 annually for freshman and sophomore students
- Up to $5,000 annually for junior and senior students
Alternatively, the parent may obtain a creditworthy endorser and continue the PLUS Loan process.
Private Loans
Students who need additional financial assistance may consider private loans. However, we strongly encourage utilizing federal loan options first, as they generally offer more favorable terms and borrower protections. Private loans are commercial loans that usually require a credit check and a creditworthy cosigner. The interest rates may be fixed or variable.
Xavier maintains a preferred lender list featuring several lenders selected based on their fees, interest rates, terms, and customer service. Current and prospective lenders are reviewed annually. Please note that Xavier will process a private loan from any lender that a student chooses. Additional information is available on the FastChoice website.
Students apply for private loans directly on the lender's website. The loan amount cannot exceed the cost of attendance minus other financial aid. After a loan has been approved, the lender will notify Xavier and request loan certification. A staff member in the Office of Student Financial Services will certify the loan once the student has registered for classes. Loan funds will disburse directly to the student’s bursar account at the beginning of the second week of the term.
It typically takes 2-3 weeks for the loan application and school certification process. To ensure your loan appears on your fall billing statement, we recommend submitting your application by mid-June.
Nurse Education Assistance Loan Program (NEALP)
The Nurse Education Assistance Loan Program (NEALP) provides financial assistance to Ohio residents pursuing degrees that lead to careers in nursing or nursing education. Eligible students must be enrolled at least half-time, or accepted for enrollment, in an approved Ohio nurse education program. Funding is awarded based on FAFSA results and a NEALP application, with priority given to applicants demonstrating the greatest financial need. Award amounts vary annually depending on the number of eligible applicants and available funding and are typically announced by the first week of September. Applications are accepted from January 1 through July 15 each year. Visit the NEALP website for complete eligibility requirements and program details.The Nurse Education Assistance Loan Program Information for Future Nurses
The annual loan amount for the 2026-2027 academic year is $1,650/year. Loans may be granted for a maximum of 15 quarters or 10 semesters or the equivalent. A recipient who serves as a full-time nurse in Ohio for five years will qualify for 100% NEALP cancellation.The Nurse Education Assistance Loan Program Information for Future Nurse Instructors
The annual loan amount for the 2026-2027 academic year is $5,000 - $6,000/year. Loans may be granted for a maximum of 15 quarters or 10 semesters or the equivalent. After graduation, the recipient must serve as a nurse faculty member in Ohio for a minimum of four years to qualify for 100% NEALP cancellation.