Loans

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.

William D. Ford Federal Direct Loan Program

The Direct Loan Program allows students to borrow money directly from the federal government.  Students must be matriculated in a degree-granting program and registered for at least six equated credits for each term a loan is requested.  New borrowers have to complete entrance counseling and a Master Promissory Note at www.studentloans.gov.

This low-interest loan program helps students meet the cost of a college education.  The interest rate varies depending on the loan type and the first disbursement date of the loan.  Direct Loans have an origination fee that is a percentage of the total loan amount.  Current interest rates and origination fees can be found at https://studentaid.ed.gov/sa/types/loans/interest-rates.

Students must complete exit counseling at www.studentloans.gov before they graduate, withdraw, or drop below half-time (6 credits) enrollment.  Borrowers receive a six month grace period before Direct Loan repayments begin.  The repayment term ranges from up to 10 years to up to 25 years (up to 30 years for a consolidation loan) depending on your repayment plan.  Repayment plans can be found at https://studentaid.ed.gov/sa/repay-loans/understand/plans.

Loan Limits

Annual Limits for Sub/Unsub Loans
Subsidized
Total (subsidized & unsubsidized)
Dependent Undergraduates (excluding dependent students whose parents can’t get PLUS)
First Year $3,500 $5,500
Second Year $4,500 $6,500
Third Year and Beyond $5,500 $7,500
Independent Undergraduates & Dependent Students whose parents can’t get PLUS 
First Year $3,500 $9,500
Second Year $4,500 $10,500
Third Year and Beyond $5,500 $12,500

*Note: All undergraduate annual loan amounts are subject to proration.

Aggregate Limits for Sub/Unsub Loans
Subsidized
Total (subsidized & unsubsidized)
Dependent Undergraduates (excluding dependent students whose parents can’t get PLUS)
  $23,000 $31,000
Independent Undergraduates & Dependent Students whose parents can’t get PLUS
  $23,000 $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 

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 
Determine the cost of your education.