Loans
William D. Ford Direct Loan Program
The University participates in the William D. Ford Federal Direct Loan Program, in which borrowers obtain loan funds directly from the U.S. Department of Education.
Federal Direct Loans for Undergraduate Students
Students who file a FAFSA and enroll at least half-time may qualify for a Direct Loan, which is a long-term, low-interest loan.
Undergraduate students who demonstrate need, according to the federal need analysis formula, may qualify for a subsidized Direct Loan. The federal government pays the interest on the subsidized loan while the student is enrolled at least half-time. Students who do not qualify for a subsidized Direct Loan may be eligible for an unsubsidized Direct Loan. Interest accumulates on the unsubsidized loan while the student is enrolled and throughout the repayment period.
The interest rate for subsidized and unsubsidized loans undergraduate students is fixed at:
Interest Rate
| Academic Year | Rate |
|---|---|
| 2024-2025 | 6.53% for loans first disbursed on or after 7/1/2024 and before 7/1/2025 |
Repayment of the principal for both subsidized and unsubsidized Direct Loans begins six months after the borrower ceases to be enrolled at least half-time.
First-time borrowers must complete two requirements to accept federal Direct loans. Loan Entrance Counseling provides information on the rights and responsibilities of the student borrower. The Master Promissory Note is the student's legal promise to repay the loan money borrowed. Both items can be completed at StudentAid.gov.
The following charts outline the annual and aggregate amounts that undergraduate students may borrow from the Federal Direct Loan Program (subsidized and unsubsidized combined):
Loan Limits
| Grade Level | Dependent Students | Independent Students |
|---|---|---|
| Freshman | $5,500 | $9,500 |
| Sophomore | $6,500 | $10,500 |
| Junior | $7,500 | $12,500 |
| Senior | $7,500 | $12,500 |
| Total Undergraduate | $31,000 | $57,500 |
Please note: With both subsidized and unsubsidized Direct Loans, a loan fee is deducted from the gross loan amount before any loan proceeds are sent to Xavier University. The current loan fee is 1.057%.
Estimating Federal Student Loan Repayment
A dependent undergraduate student who borrows the maximum amount allowed each year for four years will borrow a total of $27,000 in the Federal Direct Loan Program. Using the Standard Repayment Plan, which is a fixed repayment over a ten-year period, the borrower will have a monthly payment of approximately $300/month beginning six months after graduation. The estimated total amount that the student will pay over the ten years is $36,800. Loan Simulator is available to help estimate repayment of federal student loans for different repayment plans and loan amounts.
Federal Direct PLUS Loan for Parents
Parents of dependent undergraduate students may borrow a Direct PLUS Loan on behalf of their child. The applicant must be the biological or adoptive parent; in some situations, a stepparent may apply. PLUS loans have a fixed interest rate of 9.08% for loans first disbursed on or after July 1, 2024 and before July 1, 2025. There is a 4.228% loan fee. Repayment of principal and interest begins 60 days after the loan is fully disbursed. Deferment is available for parents who prefer to not make payments while the student is enrolled at least half-time and for six months after they graduate, leave school, or drop below half-time enrollment. Check with the loan servicer for information.
To apply* for a PLUS loan, a parent must submit a Direct PLUS Loan Application and sign a Master Promissory Note (MPN) online at StudentAid.gov. The Office of Student Financial Services will process loan applications beginning in May for summer periods of enrollment and in June for fall periods of enrollment. Once processed, an email will be sent to the student directing them to check their financial aid package online. The Department of Education will notify the parent if they are approved or denied. The suggested deadline to submit a PLUS loan request is June 30th for the upcoming Fall semester. This should allow enough time for the loan to be originated (if approved) and for it to appear on the Fall billing statement.
If a parent is denied, there are two options for loan funding. The student may borrow an additional $4,000 (freshman and sophomore students) or $5,000 (junior and senior students) from the Direct Unsubsidized Loan. Or, the parent can choose to have a credit-worthy individual endorse the PLUS loan. Instructions will be sent to the parent about obtaining an endorser for the PLUS loan. The Office of Student Financial Services will automatically award the additional Direct Unsubsidized Loan amount to the student's aid when a PLUS loan is denied and the parent will not be pursuing the PLUS loan. Students have the right to reduce or decline the additional unsubsidized Direct Loan.
*For Summer periods of enrollment, parents should complete the PLUS Loan Application and Master Promissory Note (MPN) on May 1st or later. For Fall and Spring periods of enrollment, parents should complete the PLUS application and MPN June 1st or afterwards. A credit check will be done once a parent applies; the credit is valid for 180 days. If approved, the loan must disburse before the credit check expires.
Private Loans
Various private loans are available for students who need additional financial assistance. We strongly recommend that students utilize federal loans before considering private loan options. Private loans are commercial loans which usually require a credit check and a creditworthy cosigner. The interest rates may be fixed or variable.
We have included several lenders on our private loan list. They were selected on the basis of their loan fees, rates/terms, and customer service. Please note that Xavier will process a private loan from any lender that a student chooses. The amount requested cannot exceed the cost of attendance minus other financial aid sources. Additional Information on private loans and lenders is available online at the FastChoice website.
Students who decide to apply for a private loan will do so directly on the lender's web site. The lender will notify Xavier if the loan has been approved. If a loan has been approved, a staff member in the Office of Student Financial Services will certify the loan (if the student has enrolled for classes). Loan funds will disburse to the student's account 5-7 days before the start of classes.
It typically takes 2-3 weeks for the loan application and school certification process. The suggested deadline for students to submit a private loan application for the upcoming Fall semester is June 30th. This should allow enough time for the loan to be certified (if approved) and to appear on the Fall billing statement.
Nurse Education Assistance Loan Program (NEALP)
The Nurse Education Assistance Loan Program (NEALP) provides financial assistance to Ohio residents enrolled for at least half-time study (or accepted for enrollment) in an approved Ohio nurse education program. NEALP provides funding for nurses who intend to serve as instructors or students who intend to serve as nurses after graduation. Applicants will be offered NEALP funding based on FAFSA data and the NEALP application. Applicants who demonstrate the highest level of need will be funded first. The application period is January 1 to July 15th of each year. Visit the NEALP website for more information.
The Nurse Education Assistance Loan Program Information for Future Nurses
The annual loan amount for the 2023-2024 academic year is $1,650/year. Loans may be granted for a maximum of twelve quarters or eight semesters or the equivalent. A recipient who serves as a full-time nurse in Ohio for five years will qualify for 100% NEALP cancellation.
The Nurse Education Assistance Loan Program Information for Future Nurse Instructors
The annual loan amount for the 2023-2024 academic year is $6,000/year. Loans may be granted for a maximum of twelve quarters or eight semesters or the equivalent. The total aggregate loan amount shall not exceed $12,000. After graduation, the recipient must serve as a nurse faculty member in Ohio for a minimum of four years to qualify for 100% NEALP cancellation.