Federal Student Loans

Introduction to Direct Lending

Jefferson College of Health Sciences participates in the Federal Direct Loan (subsidized and unsubsidized student loans), Federal Parent PLUS Direct Loan, and Federal Grad PLUS Direct Loan programs. Students and parents will be required to use the Direct Loan program for all federal student and parent loans.   The traditional Federal Family Educational Loan Program (FFELP) loans (i.e., Stafford Loan, Parent PLUS Loan, and Grad PLUS Loan) through banks, credit unions, and other student loan lending companies will no longer be processed at Jefferson College, as we will stop doing business with these lenders and join the Federal Direct Loan program. Under this program, students borrow from the federal government.   The Direct Loan program has been in existence since the early 1990's. As a result of many legislative changes over the past few years, as well as recent economic issues, FFELP loans are often more costly to borrowers than Direct Loans. Additionally, many FFELP loans are being sold by lenders to the federal government. The chart listed below will help you understand the differences in these two programs. Jefferson College is making this change to assist (students) with identifying and obtaining resources to finance their education.   Instructions for how to apply for a Federal Direct Loan (subsidized and unsubsidized), Federal Parent PLUS Direct Loan, and Federal Grad PLUS Direct Loan will be provided from the Office of Financial Aid. For more information on any aspect of Direct Loans you can visit the Federal Direct Loan website at the following link: http://www.direct.ed.gov/student.html.

Types of Loans

Federal Direct Loan

Low-interest loans, must be at least half-time, repayment begins 6 months after graduation, withdrawal or falling below half-time, government pays interest while student is enrolled in school, not based on credit history.  For loan limits see the chart below. Interest will accrue when you enter repayment or a period of forbearance.  

Federal Direct Unsubsidized Loan

Low-interest loans, must be at least half time, repayment begins 6 months after graduation, withdrawal or falling below half time, and interest is the responsibility of the student, not based on credit history.  For loan limits see the chart below.  You will be charged interest from the day the loan is disbursed until it's paid in full, including in school, grace, and deferment and forbearance periods.  

Federal Direct Plus or Graduate Plus Loan

Low-interest loans for parents of dependent students or graduate students, must be at least half-time, repayment begins 30-45 days after last payment is released or credited to student account. The Parent Plus or Graduate Loan is approved or denied based on the borrower’s credit history. The yearly limit on a PLUS loan is equal to the cost of attendance minus any other financial aid you receive.  If the borrower is denied the loan, the dependent student is allowed to request additional unsubsidized loan funds. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. 

Annual Loan Limits for Federal Loans

Award Year Dependent Independent
1st Year Students

Subsidized: $3,500

Unsubsidized: $2,000

Subsidized: $3,500

Unsubsidized: $6,000

2nd Year Students

Subsidized: $4,500

Unsubsidized: $2,000

Subsidized: $4,500

Unsubsidized: $6,000

3rd Year Students

Subsidized: $5,500

Unsubsidized: $2,000

Subsidized: $5,500

Unsubsidized: $7,000

4th and 5th Year Students

Subsidized: $5,500

Unsubsidized: $2,000

Subsidized: $5,500

Unsubsidized: $7,000

Graduate Students

Unsubsidized: $20,500

Unsubsidized: $20,500

What do I need to do to get Federal Student Loans?

In order to receive Federal Student Loans students need to complete three requirements

  • Firstly, they need to complete a Free Application for Federal Student Aid (FAFSA). Completing a FAFSA makes students eligible for Federal Student Aid. You can complete a FAFSA at www.fafsa.ed.gov.
  • Second, a student must complete the federal Entrance Counseling. This makes you aware of the various requirements and details pertaining to Federal Student Loans. This requirement can be completed at www.studentloans.gov.
  • Finally, the student must complete a Master Promissory Note (MPN) to be eligible for Federal Student Loans. This requirement can also be completed at www.studentloans.gov.

The Financial Aid Office should contact you regarding which requirements you need to complete. In the event that you have any questions, please do not hesitate to ask Financial Aid at financialaid@jchs.edu.

Direct Loans and the 150% Time Limit

For more information regarding the specifics of the 150% Subsidized Loan Limit regulation from the Department of Education please click here.

Sample Loan and Loan Repayment

The average student at Jefferson College borrows $21,638 in student loans over five years. The standard repayment option for a loan of this size is $249.53 over a ten year period. Your borrowing may be different. For a comprehensive repayment calculator visit the Department of Education's website here for more information.