Graduate Loans

Graduate Loans

A "loan" is a form of financial aid.  It is money that you borrow, which must be repaid 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 (Unsubsidized)

The Budget Control Act of 2011 has eliminated Subsidized Student Loans for graduate students. Eligible graduate students can qualify for an annual maximum of $20,500 in unsubsidized loans.

Unsubsidized

The Direct Loan Program allows students to borrow money directly from the federal government to help students meet the cost of a graduate education. Students who are matriculated in degree-granting programs and are registered for at least 6 graduate credits per semester are eligible. Students may begin repayment while still attending school by paying the interest, with repayment of the principal deferred until after graduation or termination of attendance. Or, interest may be added to the principal, with repayment of the principal and interest deferred until after graduation or termination of attendance. The aggregate total that may be borrowed from this program is $138,500 including undergraduate loans.

Federal Graduate PLUS (Graduate Students Only)

The Graduate PLUS Loan, a low interest, federally backed student loan, guaranteed by the U.S. Government, like its undergraduate counterpart, can be used to pay for the total cost of education less any aid a student has already been awarded. Also like the undergraduate version, eligibility for the Graduate PLUS Loan is largely dependent on the borrower's credit rating and history, as opposed to the purely financial need-based Graduate Direct Loan. The annual interest rate is fixed at 7.9 percent. An origination fee is deducted from the loan amount.

Private (Alternative) Loans 

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.

These loans of last resort are private lender loans for students who may not be eligible for Federal Direct Student Loans, have reached the federal student aggregated limits or who are eligible and need additional funds to help meet additional educational expenses including tuition and housing. The amount that a student may borrow is limited to the “cost of attendance” as determined by federal approved standard budgets. All applicants are subject to credit review and/or may require a co-signer. Students who do not have eligible citizenship status for federal financial aid may borrow a Private Loan if they have a co-signer with eligible citizenship status. Interest is variable and these loans typically have more fees and less flexible repayment options than the federal loan programs. Private Loans are not insured against disability or economic hardships

Students who are considering a Private Loan should first speak to a financial aid counselor.

JOHN JAY COLLEGE DOES NOT HAVE A PREFERRED LENDER LIST AND CANNOT RECOMMEND ANY INSTITUTION. 

Application process: Students who wish to apply for an Alternative Loan must also submit a FAFSA application prior to application for the loan.

Financial Aid Estimator 
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