Federal Direct Loans & Private Education Loans

There are two types of Federal Direct Loans: subsidized and unsubsidized.

Federal Subsidized Direct Loan — the government pays the interest on the need-based Federal Subsidized Direct Loan while the student is in school and during the post-graduation six-month grace period. For Federal Subsidized Direct Loans, no payments are required while a student is enrolled on at least a half-time basis.

Federal Unsubsidized Direct Loan — also available to most students is the non-need based Federal Unsubsidized Direct Loan. Unlike the Federal Subsidized Direct Loan, the student is responsible for the interest on the Federal Unsubsidized Direct Loan, which begins to accrue at the time of disbursement. The interest may be deferred until repayment. For Federal Unsubsidized Direct Loans, no payments are required while a student is enrolled on at least a half-time basis.

New borrowers please note: it is a federal requirement that all new borrowers must complete a Federal Entrance Interview/Counseling before all loans are fully dispersed.

For Federal Direct Loan interest rates, please click here. 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 apply for a Federal Direct Loan, please complete the Direct Lending Master Promissory Note (MPN):

• Go to http://studentloans.gov
• Sign in using your FSA ID and password, then click Complete Master Promissory Note
• Follow the steps given and select Thomas Jefferson University when college name is requested

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

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

This is a non-need, credit based federal loans for parents to borrow on behalf of dependent undergraduate students only.

Application for this non-subsidized loan is made directly with the Federal Loan Program. There is a 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.

If students are denied this loan, they are eligible to receive additional Federal Unsubsidized Direct Loans.

For Federal Direct PLUS Loan interest rates, please click here. 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.

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 7.00% fixed for loans disbursed between July 1, 2017 and June 30, 2018. Application for this non-subsidized loan is made directly with the Federal Direct Loan Program using the generic 'Thomas Jefferson University' College code. There is a 4.276% fee charged to the borrower at the time of disbursement..

Private education loans are non-federal, non-need, credit-based education loans that may be offered by banks, credit unions, and private education loan companies. Application for these loans is made directly with the lender. Interest rates are often variable and some programs do not have a ceiling. Please check with individual lenders for their interest rate, loan fees, and other terms and conditions including but not limited to repayment provisions. Oftentimes, a credit worthy cosigner is required.

Please note: if you forgo federal loans and apply only for private education loans, you must complete a form to confirm that you were counseled by the Financial Aid Office that the Federal Direct Loan (subsidized and/or unsubsidized) may be a better loan option than private education loans.

To learn about private lenders often used by Thomas Jefferson University, please visit elmselect, an online lender comparison tool.

To apply for private loans, some lenders may require the information below:

• Two references, living at different addresses (one reference can be a parent)
• Driver's license number
• When applying for a private loan, please indicate college code 01239302