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Loans | Print |

Federal Direct Stafford Student Loans
Jefferson College participates in the Federal Direct Stafford Loan Program. Detailed information regarding the program may be found at the Department of Education's Student Aid Website.

The program offers low cost/long term education loans to students to help pay the cost of higher education. Due to the low cost of attendance at Jefferson College, students are encouraged to carefully review their decision to borrow. Entrance loan counseling is required of all first time loan borrowers at Jefferson College. Students cannot borrow more than the cost of attendance minus any other financial aid received.

There are two types of Federal Direct Loans available to students:

1. Subsidized Loan - awarded on the basis of financial need. The federal government pays the interest on the loan while the student is in school at least half-time. Repayment begins six months after leaving school or dropping below half time enrollment. For subsidized loans first disbursed between July 1, 2012, and June 30, 2014, the borrower is responsible for any interest that accumulates during the six month grace period.  

2. Unsubsidized Loan - The borrower is responsible for paying the interest on the loan from the time the loan is disbursed. Students can choose to pay the interest while attending school or can allow the interest to accrue. Unsubsidized Loans are not based on financial need. 

Loan Eligibility Criteria

Loan Applicants must meet all of the following qualifications:

U.S. citizen or eligible non-citizen
Enrolled in at least 6 credit hours in an eligible degree program
Earned a High school diploma or GED 
Meet the 2014-2015 Minimum Standards of Academic Progress 
Have valid social security number
Not in default on a federal student loan 
Do not owe a refund on an overpayment to any Title IV program     
Registered with selective service, if applicable
Sign a statement on the FAFSA certifying that you will use federal student aid only for educational purposes only.

Subsidized Loan limits 

For new borrowers after July 1, 2013, subsidized loan funds are only available to students who have not exhausted 150% of their subsidized loan award. Subsidized loan limits are measured in total years the student received subsidized loans, not dollars borrowed. The 150% timeframe is based on the length of the student's program of study. 

Annual Loan Limits

The amount of loan you may request is based on your classification (freshman or sophomore) and your status (dependent or independent as determined by the FAFSA).  It is recommended that you borrow only what is necessary.  Jefferson College has the right to adjust any loan amount due to additional funding that you are awarded.

*Maximum Annual Loan Limits for Subsidized and Unsubsidized Student Loans


Dependent Student

Independent Student


Sub & Unsub Combined



Freshman:  Less than 30 credit hours

 ($3,500 Sub  $2,000 Unsub)



Sophomore:  30 or more credit hours

 ($4,500 Sub            $2,000 Unsub)




*Students may receive less than the annual maximum amounts since students cannot borrow more than the cost of attendance minus any other financial aid received.  


A standard repayment may run up to 10 years. Repayment of principle begins six months after graduating, leaving school, or dropping below half time status. 

Procedures to apply for Federal Direct Loans:

  1. Complete the Free Application for Federal Student Aid (FAFSA). List Jefferson College (code: 002468) as your school (when possible, students should use unaltered IRS data imported into the FAFSA using the IRS data transfer feature on the FAFSA).

    If the results of your processed FAFSA indicate you are selected for verification, submit the appropriate Verification Worksheet and copies of all requested tax documentation to the Jefferson College Student Financial Services Office.

  2. If you are a first-time borrower, complete Entrance Loan Counseling.  You will need your Federal Student Aid PIN number to complete the Entrance Counseling.  If you have misplaced your PIN, please visit to retrieve it. 

  3. Complete a Master Promissory Note (MPN) if you do not already have an active MPN on file with the Department of Education.  You will need your Federal Student Aid PIN number to complete the MPN. If you have misplaced your PIN, please visit to retrieve it.

  4. Submit a completed Student Loan Datasheet to the Jefferson College Student Financial Services Office.  Be sure to complete the entire sheet and SIGN your application.  

    Fall 2013-Spring 2014 Student Loan Datasheet

    Fall 2014-Spring 2015 Student Loan Datasheet

    If you have any questions regarding the loan application process, email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it


Processing and Disbursement
Allow two to three weeks for the processing of your loan application. You will receive notification of the approved loan amount. The Department of Education will also send you a notice of loan guarantee.

There is an origination fee on Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee is an expense of borrowing one of these loans. The loan fee is a percentage of the amount of each loan the borrower receives, and is subtracted proportionately from each loan disbursement. Loans with a first disbursement date on or after July 1, 2013 have a loan fee established by the Department of Education of 1.051%. Loans with a first disbursement date on or after December 1, 2013 have a loan fee of 1.072%. For additional information regarding Direct Loan Program Loan Fee Amounts, please click the attached.

Loan Disbursements are not released until a student has attended the first 30 days of the semester, are disbursed in 2 payments, and sent directly to the school.

Jefferson College Student Loan Code of Conduct 
To avoid any conflict of interest in the financial aid process, Jefferson College strictly adheres to the Jefferson College Student Loan Code of Conduct.  A copy of the code of conduct may be downloaded from the Financial Aid Forms and Publications page.

Helpful Websites

For more information about the Federal Direct Student Loans:

Federal Direct Parent Loan for Undergraduate Student (PLUS) 
PLUS loans are federally funded, low interest loans made available to eligible PARENTS of dependent undergraduate students. A PLUS loan borrower must be creditworthy or must obtain a creditworthy endorser on the loan. The borrower is responsible for paying the interest on the loan from the time the loan is disbursed. PLUS loans are not based on financial need and require no collateral. 

It is recommended that a student first borrow a Federal Direct Subsidized or Unsubsidized Student Loan if possible, as PLUS loan interest rates are higher than that of Federal Direct Stafford loans and PLUS loan repayment begins immediately after the first disbursement of the loan.

Plus Loan Eligibility Criteria

US citizen or eligible non-citizen
Parent of full or half-time dependent undergraduate student
No adverse credit history
Valid social security number
Certify that you are not in default on a federal student loan and that you do not owe a refund on an overpayment in any Title IV program

Annual Amount
Students may borrow up to the difference between the Cost of Attendance (COA) minus Estimated Financial Aid (EFA). Eligibility is determined by the school, but is not based on need.

Federal Direct PLUS Loan repayment begins within 60 days after the loan is disbursed. Interests rate vary depending on when the loan was originated. Visit the Dept. of Educations Student Aid website for more info.

Private Alternative Loans
Students who do not qualify to borrow funds from the Federal Loan programs may seek loans through private alternative loan companies. Jefferson College recommends alternative loans only be considered as a last resort as they offer less favorable interest rates and repayment terms than federal student loans. Alternative loans are offered by companies such as Commerce BankChase Student Loans, Fifth Third BankSallie Mae, or Wells Fargo.

Last Updated ( Wednesday, 02 July 2014 )
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