A federal student loan allows students and their parents to borrow money to help pay for college through loan programs supported by the federal government. These loans usually have low interest rates and offer attractive repayment terms, benefits and options. Generally, repayment of a federal loan does not begin until after the student leaves school. Federal student loans can be used to pay school expenses such as tuition and fees, housing, books, supplies, and transportation. Jacksonville State University participates in the Federal Direct Stafford Loan Program. (See more information on the Direct Stafford Loan Program below.)
The Annual Loan Limits (combined maximum for subsidized and unsubsidized) under the Federal Loan Programs:
The amount a student may borrow is limited to the cost of attendance set annually by JSU minus any other financial aid. You may contact our office for more information on the cost of attendance. A student who receives a loan must complete Entrance Counseling and a Master Promissory Note before disbursement of funds.
Federal Stafford Subsidized Loans provide low interest rates and are available to students who demonstrate financial need based on income and other information provided on the FAFSA. A credit check is not required to receive these loans. The federal government pays the interest on these loans until six months after the student is no longer enrolled in school at least half time.
Federal Stafford Unsubsidized Loans provide low interest rates and are available to all students regardless of financial need (although the FAFSA still must be filed). A credit check is not required to receive these loans. The student is responsible for the interest, which may be paid while the student is in school, or accrued and then added to the principal balance when the student enters repayment, which occurs six months after the student is no longer enrolled in school at least half time.
Direct Loans - Jacksonville State University participates in the Direct Loan Program. JSU's 2011 3 Year Cohort Default Rate is 11.4%. Visit these links for the required Entrance Interview, Master Promissory Note (MPN), and Exit Interview. For detailed instructions on how to complete the Entrance Interview and Master Promissory Note, please go to the FAQ & Hints tab.
Direct Loan Entrance Counseling - Students must complete the Entrance Counseling requirement before Direct Loan funds can be disbursed. Student loan entrance counseling provides details about what a student loan is, advice on how much you should borrow, and when you should expect to repay your loans. After you complete the requirement and submit your information, Direct Loans will notify our office electronically within 24-48 hours that you have completed the requirement.
E-sign Direct Loan MPN - All students receiving a Direct Loan must E-sign a Master Promissory Note (MPN) prior to disbursement. Your FAFSA PIN is required in order to E-sign.
Direct Loan Exit Interview - During the term that you expect to graduate and/or if you drop below half time enrollment, you will be asked to complete an Exit Interview if you have had a Stafford or Direct student loan while at JSU. If you received a FFELP Loan and a Direct Loan you will be required to complete an Exit Interview for both Stafford loan types. Your FAFSA PIN will be required to complete Direct Loan Exit Counseling. It is very important to notify your lender(s) of address changes so that you will receive your repayment information when your grace period ends.
Direct Loan Servicing - Direct Loan Servicing provides individual account information, account management, FAQ, and downloadable forms.
Direct Loan Consolidation - If you have received loans from multiple lenders, it may be advantageous to consolidate your multiple loans into a single payment.
Federal Parent PLUS Loans are low interest loans that parents can obtain to help pay the cost of education for their children. These loans are available for parents on behalf of the student once the FAFSA and the financial aid file have been completed. PLUS loans require a credit check and, in some instances, an eligible co-signer. Repayment of PLUS loans begins following the final disbursement for the year. Additional paperwork may be required. Parents must also complete a Master Promissory Note. Steps to apply are listed under the FAQ & Hints tab.
Federal Graduate Plus Loans are low interest loans that graduate students may obtain to help pay for their own education. PLUS loans require a credit check and, in some instances, an eligible co-signer. Repayment of PLUS loans begins following the final disbursement for the year. Graduate students may be able to defer repayment of their PLUS loans until after the student is no longer enrolled in school at least half time, although interest will continue to accrue. Additional paperwork may be required. Students must also complete a separate Entrance Counseling and Master Promissory Note. Steps to apply are listed under the FAQ & Hints tab.
Alternate/Private Loans are nonfederal loans issued by a lender such as a bank or credit union. Private student loans often have variable interest rates, require a credit check, and do not provide the benefits of federal student loans. A student must be enrolled in at least half time and be making Satisfactory Academic Progress. JSU highly recommends exhausting all federal eligibility before pursuing Alternative/Private Loans because they are generally more expensive than federal loans. Steps to apply are listed under the FAQ & Hints tab.