The Peabody Institute of the Johns Hopkins University

Federal Direct Student Loan (same as Federal Stafford Loan or Guaranteed Student Loan):

The Peabody Institute uses the Federal Direct Student Loan program, rather than the Federal Stafford Loan program, for federal student loans. Through this program, the U.S. Department of Education makes student loans, through Peabody, directly to the student for educational expenses. Direct Student Loans carry a fixed interest rate of 6%-6.8% (see below). The maximum amount per year is $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors.  Graduate Students may borrow up to $20,500 annually, although no more than $8500 can come from the subsidized loan program.   A 0.5% origination fee is deducted from the proceeds of the loan. The Direct Loan is either subsidized or unsubsidized.   New borrowers are required to complete an entrance counseling interview online  BEFORE disbursement at http://www.dlssonline.com.

• The subsidized Direct Student Loan is need-based, so the family contribution is used to determine eligibility. The federal government subsidizes the loan by paying the interest while the student is in school, during the six-month grace period after leaving school, and during deferment periods. The interest rate on a subsidized loan for undergraduates for 2008-2009 will be 6%.  The interest rate will remain at 6.8% for graduate students. • The unsubsidized Direct Student Loan is not based on financial need, although borrowers must complete the Free Application for Federal Student Aid (FAFSA) to obtain the loan. The interest is not subsidized by the government and must be paid on an ongoing basis or deferred while the student is in school and capitalized once repayment of principal begins. Loan principal and capitalized interest repayment begins six months after completion of studies. The interest rate on an unsubsidized loan for 2008-2009 will be 6.8% for graduate and undergraduate students.

 

Students are not required to complete a separate loan application from a bank or other lender. If you are offered a Direct Student Loan as a part of your aid package and you accept it, you will receive instructions to sign a master promissory note online. The website is http://www.dlenote.ed.gov. For assistance with signing the Direct Loan Electronic Master Promissory Note, call Applicant Services at 800-557-7394. The master promissory note is valid for 10 years of consecutive borrowing at JHU. The loan proceeds will be credited to your student account 10 days prior to the start of the semester. Students who signed a Direct Loan master promissory note in a previous year are not required to sign a new note.

The Direct Student Loan Program simplifies the application process for students and provides quicker access to loan funds. The loan repayment allows more options for repaying the loan through extended, graduated, and income contingent plans. Loan repayment information will be sent with the promissory note and at the time of repayment. Loan repayment information as well as interactive calculators are available on the web.

Additional information regarding Federal Direct Loans:

• Check the Status of a William Ford Direct Loan • Estimate monthly payments on student loans and compare the repayment plans for a Direct Consolidation Loan • Deferments & Forbearances • Consolidating your Loans • Access your student loan history on-line through the National Student Loan Database • Contact the U.S. Department of Education's Student Loan Ombudsman to informally resolve loan disputes and problems.

 

Federal Perkins Loan

This federal loan is available to students who demonstrate exceptional financial need. The Federal Perkins Loan program is administered by Peabody, therefore, the money borrowed is paid back to Peabody. The rate of interest is 5%. Interest does not accrue until the loan goes into repayment. Repayment begins nine months after completion of studies and can extend up to 10 years. Deferment and repayment information is sent to all borrowers by the Student Loan Office. The loan proceeds are credited to your account 10 days prior to the start of the semester if a promissory note has been signed.  Promissory notes must be signed every year at http://www.ecsi.net/promj9.html.

Federal Direct Graduate PLUS Loan

Federal Direct Graduate PLUS loans are federally guaranteed loans available to graduate students who have exhausted their eligibility for subsidized and unsubsidized Federal Direct Student Loans.  There is no financial need requirement to receive these loans.  You do not need to contact a lender; these loans are made directly with the U.S. Department of Education.

Student Eligibility:

• Must be enrolled as a regularly admitted student in a graduate program (provisionally admitted students are not eligible)
• Must be enrolled at least half-time (at least 2 courses in the term for which the loan is certified)
• Must be a U.S. citizen or permanent resident
• Must be registered for Selective Service (males only)
• Must not be in default on a student loan
  

Credit Review:

• A credit review is required; however, there is no “debt to income” review.
• A co-borrower/endorser option is offered if the borrower’s credit is denied.
• Credit checks are valid for 120 days.   For this reason, we advise that borrowers wait until summer before applying for loans for the upcoming year.  Our loan processing begins in June.
  

Borrowing Eligibility:

• Borrowers apply for the Graduate PLUS for each academic year that they wish to borrow.  Multi-year loans may be consolidated. 
• The loan amount may not exceed the cost of attendance for the academic year less any financial aid the student is eligible to receive. Students must be considered for their full eligibility under the subsidized and unsubsidized Federal Direct Student Loan before a Graduate PLUS loan will be certified.   
• Borrowers are encouraged to apply for the amount needed for the academic year (not semester by semester).
  

Loan Terms and Disbursement:

• The interest rate for Federal Direct Parent PLUS loans is fixed at 7.9%.
• The origination/default fee for the Federal Direct Graduate PLUS loan is 2.5%.  This fee is deducted from each disbursement of the loan.
• Disbursements are scheduled at the beginning of each semester and are deposited directly in the student’s account.
  

Repayment:

• In school deferment is available for Federal Direct Graduate PLUS borrowers. Interest will accrue while the loan is in deferment.
• If in school deferment is not requested, repayment begins 60 days after the loan is fully disbursed.  Fully disbursed means that all installments (fall and spring) have been paid.  Interest begins accruing after the first disbursement.
• There is no pre-payment penalty.
• Consolidation options and extended or graduated repayment plans are available.
  

To apply for a Federal Direct Graduate PLUS Loan:

• Federal Direct Graduate PLUS borrowers must complete the Free Application for Federal Student Aid (FAFSA) and must be considered for subsidized and unsubsidized Federal Direct Student Loans before a Federal Direct Graduate PLUS loan will be certified.
• Complete and return the Federal Direct Graduate PLUS request form, available on our website:
• New PLUS borrowers will need to sign a promissory note online on the Direct Lending website:http://dlenote.ed.gov
  

The borrower will be contacted by Peabody and the Direct Loan Servicing Center once the loan has been processed.