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Loans
A "loan" is a form of financial aid. It is money that you borrow, which must be repaid often with interest. The most common kinds of loans are:
Federal Perkins Loan
This is a low-interest (presently 5 percent) federal loan made available through the College to matriculated students enrolled at least half-time (6 credits or the equivalent). Loans are awarded according to need and repayment begins nine months after graduation or termination of college attendance. The FAFSA is the application for a Federal Perkins Loan.
Federal Direct Stafford/Ford Loan Program (Subsidized and Unsubsidized)
This low-interest loan program helps students meet the cost of a college education. The Federal Direct Loan Program allows students to borrow money directly from the federal government. Students who are matriculated in degree-granting programs and are registered for at least 6 credits per semester are eligible. Students must begin repayment within 6 months after graduation or termination of college attendance and have a maximum of 10 years in which to repay the borrowed funds under the Standard Repayment Plan. There is also the Extended Repayment Plan that allows loan repayment to be extended to 25 years. Other options are the Graduated Repayment Plan in which payments are lower at first and increase every two years, and the Income Contingent Repayment Plan that bases annual payments upon the borrower’s Adjusted Gross Income (AGI) and the total amount of the Direct Loans. The annual interest rate will not exceed 6.8 percent. For loans disbursed prior to July 1, 2006 maximum interest rate is 8.2%. Federal regulations require the deduction of an origination fee from the face value of each loan.
Annual Loan Limits
|
Dependent Students (excluding students whose parents cannot borrow PLUS) |
Base Amount Sub/Unsub (no changes) |
Additional Unsubsidized Loan Amount |
|
|
Loans first disbursed before July 1, 2008 |
Loans first disbursed on or after July 1, 2008 |
||
|
1st year undergraduate |
$3,500 |
$0 |
$2,000 |
|
2nd year undergraduate |
$4,500 |
$0 |
$2,000 |
|
3rd year & beyond undergraduate |
$5,500 |
$0 |
$2,000 |
|
Independent Students (and dependent students whose parents cannot borrow PLUS) |
Base Amount Sub/Unsub (no changes) |
Additional Unsubsidized Loan Amount |
|
|
Loans first disbursed before July 1, 2008 |
Loans first disbursed on or after July 1, 2008 |
||
|
1st year undergraduate |
$3,500 |
$4,000 |
$6,000 |
|
2nd year undergraduate |
$4,500 |
$4,000 |
$6,000 |
|
3rd year & beyond undergraduate |
$5,500 |
$5,000 |
$7,000 |
Aggregate Loan Limits
|
|
Subsidized / Unsubsidized Aggregate |
|
|
Current |
Effective July 1, 2008 |
|
|
Dependent Students (excluding students whose parents cannot borrow PLUS) |
||
|
$23,000 |
$31,000 |
|
|
Independent Students (and dependent students whose parents cannot borrow PLUS) |
$46,000 (maximum $23,000 subsidized) |
$57,500 |
Federal PLUS (Parent Loan for Undergraduate Students)
This educational loan enables parents of dependent undergraduate matriculated students to borrow money in order to pay for their child’s education. Parents are limited in the amount that they can borrow by the “cost of their child’s education” minus any other financial aid that the student is receiving. The “cost of education” includes school related expenses as determined by The City University of New York. A credit check is performed. If the parent loan is denied, it is possible for a dependent student to borrow additional unsubsidized loans in their own name. There is an origination fee of 4 percent of the loan principal that will be deducted proportionately from each loan disbursement. The interest rate is variable and is adjusted each year but will never be higher than 9 percent.
Private (Alternative) Loans Click here to download the Private (Alternative) Loan Guidelines. Private (Alternative) Loan Certification Information and Guidelines Students should always consider Private Loans as a last resort. These loans typically have higher interest rates, more fees and less flexible repayment options than the federal loan programs. Private loans are usually available for students who are ineligible for federal financial aid or grants, or who have reached the federal student aggregated limits. Most Private Loans are based on credit worthiness and may require a co-signer. Private Loans are not insured against disability or economic hardships. BE ADVISED: Students are strongly encouraged to apply for grants through the Free Application for Federal Student Aid (FAFSA) on line at www.fafsa.ed.gov and Federal Direct Loans before pursuing a Private Loan. JOHN JAY COLLEGE DOES NOT HAVE A PREFERRED LENDER LIST AND CANNOT RECOMMEND ANY INSTITUTION. If you are applying for a Private Loan you must do the following: 1. File a Free Application for Federal Student Aid (FAFSA) on line www.fafsa.ed.gov. Please note: Financial Aid Estimator In order to better service students who have applied for a Private Loan it is critical that the Private (Alternative) Loan form is submitted to the Financial Aid Office.
2. Click here to download and fill out the Private (Alternative) Loan information form.
3. The Private (Alternative) Loan form must be returned to Jay Express Service Center Student Services located at 445 West 59th Street in the first floor.
In order to better service students who have applied for a Private Loan it is critical that the Private (Alternative) Loan form is submitted to the Financial Aid Office. It is the only way for us to know you are applying for a Private Loan!!!
Determine the cost of your education.