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Federal Direct Stafford/Other Loan Process

Completing the Federal Direct Stafford Loan Master Promissory Note (MPN) & Applying for Other Federal and Private Educational Loans

Below is a description of the federal and private loans that may be available for you to borrow. Below these descriptions is a summary of suggested private lenders you may want to review. Due to recent legislation all federal loans must be borrowed from the Federal Direct Loan Program. Private non-federal loans may be borrowed from a bank or credit union offering these type of programs. For ease of loan application, direct URLs for suggested lenders have been provided at the bottom of this page.  These are suggestions only and the true decision as to a lender is at the sole discretion of the borrower.

Federal Direct Stafford Loan

There are two types of Stafford-subsidized and unsubsidized. The government pays the interest on the need-based Subsidized Direct Stafford Loan while the student is in school and during the post-graduation six-month grace period. Also available to most students is the non-need based Unsubsidized Direct Stafford Loan. Unlike the Subsidized Direct Stafford Loan, the student is responsible for the interest on the Unsubsidized Direct Stafford Loan, which begins to accrue at the time of disbursement. The interest may be deferred until repayment. No payments are required on the Direct Stafford Loan while a student is enrolled on at least a half-time basis. There is a 1.072% fee charged to the borrower at the time of disbursement. This fee will be 1.073% as of 12/1/14.

For all unsubsidized Direct Stafford loans first disbursed on or after July 1, 2006 and before July 1, 2013, the interest rate is fixed at 6.8 percent. For Federal Direct Stafford Loans disbursed between July 1, 2014 and June 30, 2015, the interest rate is based on the 10-year Treasury Note. Interest rates are as follows:

Level First Disbursement of Loan   Interest Rate
  Made on or after And made before  
Undergraduate July 1, 2014 July 1, 2015 4.66 percent
Graduate July 2, 2014 July 1, 2015 6.21 percent

These changes apply to Federal subsidized and unsubsidized Direct Stafford loans first disbursed on or after July 1, 2014 through June 30, 2015. This interest rate is tied to the 10-year Treasury Note, but is considered "variable-fixed," meaning that rates change each year based on the market, but once a loan is given an interest rate, it is locked in for the life of the loan. This change does not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same. To complete the Direct Lending Master Promissory Note (MPN), please follow these instructions:

  • Go to the Student Loans Web site.
  • Under the Manage My Direct Loan menu box, click Sign In and complete login with your confidential information and federal PIN. then click Complete Master Promissory Note.
  • Follow the steps given and select Thomas Jefferson University when school name is requested.

To complete the MPN, you must have the following information available to reference:

  • Your federal PIN # (used to file your FAFSA online). If you do not have a federal PIN #, please apply for one here.
  • Two references, living at different addresses (one reference can be a parent).
  • Driver's license number.

Federal Direct PLUS Loan

This is a non-need, credit based federal loans for parents to borrow on behalf of dependent undergraduate students only. Beginning March 2010, for the 2010-2011 academic year and beyond, all PLUS Loans must be applied for through the Federal Direct Loan Program. For loans disbursed between 7/1/10 and 6/30/13, the interest rate is 7.9% fixed. For loans disbursed between 7/1/14 and 6/30/15, the interest rate is 7.21%. This interest rate is tied to the 10-year Treasury Note, but is considered "variable-fixed," meaning that rates change each year based on the market, but once a loan is given an interest rate, it is locked in for the life of the loan. This change does not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same.

Application for this non-subsidized loan is made directly with the Federal Loan Program. There is a 4.288% fee charged to the borrower at the time of disbursement. Federal Direct PLUS loans may be applied for with the Federal Direct Loan Program at http://studentloans.gov

Federal Direct GRAD PLUS Loan

This is a non need, credit based federal loan that Graduate/Medical students only may borrow. The Federal Direct Loan Program is the only lender for this federal loan. Interest rate is 7.21% fixed for loans disbursed between July 1, 2014 and June 30, 2015. Application for this non-subsidized loan is made directly with the Federal Direct Loan Program using the generic 'Thomas Jefferson University' school code. There is a maximum 4.288% fee charged to the borrower at the time of disbursement..

Private Educational Loans

Private loans are non-federal, non-need, credit based educational loans. Many banking institutions, but not all, offer a private loan. Interest rates are variable with no ceiling offered. Most are based on an index (i.e., Prime Rate, 91 day LIBOR rate) plus additional interest rate points. Check with individual lender for interest rate and loan fee parameters. A credit worthy cosigner is required by most private loan lenders. Application for this non-subsidized loan is made directly with the lender.

Suggested Private Lenders

Private loans are non-federal, non-need, credit based educational loans. Many banking institutions, but not all, offer a private loan. Interest rates are variable with no ceiling offered. Most are based on an index (i.e., Prime Rate, 91 day LIBOR rate) plus additional interest rate points. Check with individual lender for interest rate and loan fee parameters. A credit worthy cosigner is required by most private loan lenders. Application for this non-subsidized loan is made directly with the lender.

Often used lender by TJU students include:

PLEASE NOTE: In order for the Financial Aid Office to process any loan application, students must have a completed TJU financial aid application on file. This consists of the FAFSA, institutional application, verification worksheet, tax returns and a Federal Direct Stafford Loan application. The Federal Direct Stafford Loan application form is the document where you indicate the amount of subsidized and unsubsidized being applied for. If you have any questions regarding the TJU financial aid application process or the Federal Direct Stafford Loan application form, please select the appropriate college/school under the 'Application Process' from the left navigation, or contact the University Office of Financial Aid at (215) 955-2867 or by email at financial.aid@jefferson.edu.

To complete a private loan application using a lender's online capabilities log onto one of the lenders' Web sites below. To apply for private loans online, you must have the following information available to reference:

  • Your federal PIN # (used to file your FAFSA online). If you do not have a federal PIN #, please apply for a PIN # at http://www.pin.ed.gov/
  • Two references, living at different addresses (one reference can be a parent)
  • Driver's License number
  • When applying for a private loan, please indicate school code 01239302 

Need Help?

If you have any questions regarding these loan programs or completing your loan MPN or other loan application, please contact the University Office of Financial Aid at (215) 955-2867 or financial.aid @jefferson.edu.

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