Federal Loans

Federal Direct Loan

A federal loan funded by the U.S. Government. A loan must be repaid with interest.
Eligibility Requirements Go to financial aid web page Financial Aid Eligibility Requirements for general and program-related requirements.
Aid Awarded Subsidized: (Only undergraduate students qualify for subsidized loan.) If an undergraduate student has financial need and meets all eligibility requirements, a subsidized loan may be awarded.
Unsubsidized: (Both undergraduate and graduate students qualify for unsubsidized loan.)
If a student has unmet need or unmet cost (including replacement of the expected family contribution) after subtracting grant assistance, subsidized loan, and other sources of aid, and the student meets all eligibility requirements, an unsubsidized loan may be awarded.
Annual Award Amount for an Academic Year A student's academic year loan amount depends on grade level, dependency status, student budget (i.e., cost), and unmet financial need after subtracting grant assistance and other sources of aid.
Grade Level --
Undergraduate
Dependent Independent
1st Year –
Less than 30 completed
credits
$5,500 -Up to $3,500
may qualify as
subsidized loans.
$9,500 -Up to $3,500
may qualify as
subsidized loans.
2nd Year –
31-59 completed credits
$6,500 -Up to $4,500
may qualify as
subsidized loans.
$10,500 -Up to $4,500
may qualify as
subsidized loans.
3rd Year and beyond –
60 or more completed
credits
$7,500 -Up to $5,500
may qualify as
subsidized loans.
$10,500 -Up to $5,500
may qualify as
subsidized loans.
Aggregate Borrowing
Limit for undergraduate
program(s)
$31,000 -No more than
$23,000 of this amount
may be in subsidized
loans.
$57,500 -No more than
$23,000 of this amount
may be in subsidized
loans.


Grade Level – Graduate
& Professional
                        Independent
Graduate Program

$20,500

Note: As of July 2012,
there is no eligibility for
subsidized loan

Aggregate Borrowing
Limit for graduate &
professional program(s)

$138,500

No more than
$65.500 of this amount
may be in subsidized
loans.



Direct Loan is awarded in two disbursements for each payment period in an academic year.
Interest Rate Subsidized
  • 3.86% fixed rate for loans disbursed between July 1, 2013 and June30, 2014.
  • Interest is subsidized by the federal government during in-school period, and subsequent educational or deferment periods.

Unsubsidized

  • 3.86% fixed rate for loans disbursed between July 1, 2013 and June 30, 2014.
  • Interest begins to accrue after first disbursement. It may be paid quarterly while in school or capitalized and added to the principal (amount borrowed) at the beginning of the repayment period.
Fees 1.072% origination fee
Complete Entrance Loan
Counseling and a
Master Promissory Note
(MPN) prior to
Disbursement
A first-time SLU borrower must complete Entrance Loan Counseling and a Master Promissory Note (MPN) prior to the disbursement of a loan. The first disbursement will be delayed for 30 days from the start of the semester.
Direct Loan is awarded in two equal disbursements in an academic year, i.e., each semester.
Enrollment Reporting
and
Exit Loan Counseling
A student’s enrollment status is reported to the National Student Loan Data System (NSLDS) throughout her/his attendance at SLU. When a student graduates, withdraws, or drops to less than half-time enrollment, SLU will notify the student to complete Exit Loan Counseling. The U.S. Department of Education’s loan servicer will contact the borrower during the grace period to make arrangements for loan repayment.
Repayment Repayment begins six months after graduation or withdrawal from the School. It may be deferred for continued pursuit of education or other approved deferment. There are a choice of repayment plans, including standard, graduated, and income-based options. A standard repayment is up to ten years, but under other options the term may be extended. Loans may be consolidated.
Additional Information --
Borrower’s Rights and
Responsibilities, Loan
Repayment, Postponing
Repayment, and Loan
Default

Additional information on a Borrower’s Rights and Responsibilities, Loan Repayment, and Loan Consolidation is available in the U.S. Department of Education’s publication Funding Education Beyond High School.

At Federal Student Aid there is information on repayment plans with calculators, postponing repayment by qualifying for a deferment or forbearance, and consequences of defaulting on a loan.

 

Federal Direct GRAD
PLUS Loan

A federal graduate student loan funded by the U.S. Government. A loan must be repaid with interest.
Eligibility Requirements
Aid Awarded Up to the Cost of Attendance after subtracting all other sources of assistance
Annual Award Amount for an Academic Year Up to the Cost of Attendance after subtracting all other sources of assistance
Interest Rate 6.41% fixed rate
Fees 4.288% origination fee
Disbursement Master promissory note must be signed and loan approved. PLUS loan is awarded in two disbursements for each semester in an academic year.
Repayment Repayment begins six months after graduation or withdrawal from the School. It may be deferred for continued pursuit of education or other approved deferment. There are a choice of repayment plans, including standard, graduated, and income-based options. A standard repayment is up to ten years, but under other options the term may be extended. Loans may be consolidated.

 

Federal Direct PLUS
Loan

A federal parent loan funded by the U.S. Government. A loan must be repaid with interest. This loan is for parents of dependent undergraduate students.
Eligibility Requirements
  • Student must be dependent and undergraduate student that meets the general eligibility requirements and is enrolled at least half-time.
  • The parent borrower must be a U.S. citizen or permanent resident.
  • The parent must have a satisfactory credit history (income to debt ratio is not considered).
  • If parent applies and is denied a PLUS loan, the dependent student may apply for additional unsubsidized Direct Loan.
Aid Awarded Dependent student’s parent must request loan. PLUS Loan will be added to student aid package when approval is received.
Annual Award Amount
for an Academic Year
Up to the Cost of Attendance after subtracting all other sources of assistance
Interest Rate 6.41% fixed rate
Fees 4.288% origination fee
Disbursement Master promissory note must be signed and loan approved. PLUS loan is awarded in two disbursements for each semester in an academic year.
Repayment The repayment period for a PLUS loan begins on the date the loan is fully disbursed. Payment can be deferred while the student is enrolled at least half-time, and for an additional six months after the student ceases to be enrolled half-time. Interest accrues and will be capitalized if not paid by the parent during deferment. Standard 10-year repayment for loans totaling under $30,000. Extends up to 25 years over $30,000.