Federal Loans
Federal loans are awarded based on the information provided on the Free Application for Federal Student Aid (FAFSA)
Federal Perkins Loan
A Federal Perkins Loan is a low-interest, need-based loan. The interest rate is fixed at 5%. This campus-based program is administered by St. Thomas. We restrict this loan program primarily to freshmen due to limited funding and lower Federal Stafford Loan borrowing limits for freshmen. The annual limit is $4,000. The average Perkins Loan at St. Thomas is $2,000.
Federal Direct Loan
A Federal Direct Loan (subsidized and unsubsidized) is a low-interest loan made to students by the U.S. Department of Education. The interest rate for the Federal Direct Subsidized Loan is fixed at 6.0% for the 2008-2009 academic year. The Federal Direct Unsubsidized Loan has a fixed interest rate of 6.8%. Annual borrowing limits vary based on the student's year in school and FAFSA dependency status.
Freshman annual loan limit = $5,500 - no more than $3,500 will be subsidized
plus additional $4,000 unsubsidized if student is independent
Sophomore annual loan limit = $6,500 - no more than $4,500 will be subsidized
plus additional $4,000 unsubsidized if student is independent
Junior annual loan limit = $7,500 - no more than $5,500 will be subsidized
plus additional $5,000 unsubsidized if student is independent
Senior annual loan limit = $7,500 - no more than $5,500 will be subsidized
plus additional $5,000 unsubsidized if student is independent
The amount of your Federal Direct Loan that is subsidized depends upon the results of your FAFSA and other financial aid that you may be offered.
Federal Direct Subsidized Loans are need-based with interest paid by the federal government while the student is enrolled at least half-time (minimum of 6 credits).
Federal Direct Loans are based on the cost of attendance (as determined by St. Thomas) minus any other financial aid the student is receiving. Interest on unsubsidized loans accrues prior to repayment. The student has the option to make interest-only payments while they attend college or to defer payment (capitalization rules may apply).
The Federal Direct Loan Program has counseling requirements. If you are a first-time borrower at the University of St. Thomas, you will be required to complete Direct Loan entrance counseling online. Also, upon graduation or withdrawal from the university, you will be required to complete Direct Loan exit counseling. When it is time to complete either entrance or exit counseling, you will be notified by the Financial Aid Office.
Federal Direct Parent PLUS Loan
A Federal Direct Parent PLUS Loan is an excellent option for families who need to borrow beyond the Federal Direct Loan limits.
This low-interest loan can be used by parents to borrow on behalf of dependent undergraduates. A credit check is required and performed by the U.S. Department of Education. The interest rate is fixed at 7.9%.
Eligibility is limited to the cost of attendance (as determined by St. Thomas) minus any other financial aid the student is receiving.
To apply for a Federal Direct Parent PLUS Loan, please complete a Federal Direct Parent PLUS Application/Credit Authorization form and return it to the Financial Aid Office.
