Federal direct student loans

Subsidized loans

The direct subsidized student loan is available to students who demonstrate financial need. The maximum subsidized loan for a post-bac pre-medical student is $5,500 per academic year. Direct Student Loans for 2019-20 carry a fixed interest rate of 4.53%. A 1.062% origination fee will be deducted from the proceeds of loans first disbursed before October 1, 2019; loans first disbursed on or after October 1, 2019 and before October 1, 2020 are subject to a 1.059% origination fee. The interest rate for each year is announced in June. The federal government pays the interest on the loan as long as the student is enrolled at least half-time in school. Repayment options have been expanded under the Direct Loan Program to include longer repayment periods as well as income-sensitive payment schedules.

Unsubsidized loans

Students who do not qualify for the need-based subsidized loan may borrow the direct unsubsidized student loan. Direct Student Loans for 2019-20 carry a fixed interest rate of 4.53%. A 1.062% origination fee will be deducted from the proceeds of loans first disbursed before October 1, 2019; loans first disbursed on or after October 1, 2019 and before October 1, 2020 are subject to a 1.059% origination fee. Interest begins accruing on the unsubsidized Federal Direct Loan after the first disbursement. While enrolled in school, the borrower may choose to pay all, part, or no interest at all. If the borrower chooses to make partial interest payments or no interest payments, the unpaid interest is added to the principal of the loan which makes the loan more costly. We encourage students to make interest payments while in school, if possible. Student borrowers may view their loan history through NSLDS. On NSLDS you may obtain contact information for the organization which is servicing your loan. The servicer will handle billing, deferment requests, and arrangements for payment of interest on your loan.

Annual loan limits

Post-bac students who are independent may borrow up to a maximum total of $12,500 in Federal Direct Loans per academic year. This total includes both subsidized and unsubsidized loans combined. (For example, students who obtain the maximum subsidized loan of $5,500 have the option to borrow up to $7,000 unsubsidized per academic year). Students who are dependent may borrow up a total of $7,500 in Federal Direct Student Loans (subsidized and unsubsidized combined) per academic year.

Federal Direct Student Loans are available for this non-degree program because it is a preparatory program for entrance to medical school. However, federal regulations limit students in preparatory programs to one year of federal student aid. If your program should extend beyond one calendar year, you will need to consider other funding, such as private loans. Supplemental funding may be available through the Federal Direct Parent PLUS loan for dependent students, as well as through private loans for both dependent and independent students. Students in the post-baccalaureate program are not considered graduate students because the program is a non-degree, preparatory program. Therefore, students in this program are not eligible to apply for the Graduate PLUS federal loan program.

First-time borrower information

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 and complete Entrance Counseling online. The website to complete these items is https://studentloans.gov. Your FSA ID is required to complete this process. If you do not have a valid FSA ID, you must go to the Department of Education’s FSA ID site.

  • Sign in with your PIN and other identifying information.
  • Select the “Complete Master Promissory Note” option.
  • Select Loan Type Subsidized/Unsubsidized.
  • Be sure to select JOHNS HOPKINS UNIV – ASEN when asked to provide the name of your school.

Follow the instructions, and remember to print a copy of the promissory note for your records. Under the same login, select the option to ‘Complete Entrance Counseling” and repeat the steps. 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.

Supplemental loans

Private banks also offer loan programs for educational costs. For most of these loans, the student is the borrower with the parent as a cosigner. Interest rates generally are variable. Johns Hopkins University recommends that students exhaust their eligibility for federal loans before considering private loan programs. If you are uncertain about your eligibility for federal loans, please contact the financial aid office prior to initiating a private loan application. For state or private loans, the borrowing limit is the total cost of education for the academic year (as defined by JHU) minus any financial aid.

The University does not endorse or recommend any lender, nor does the University have any financial interest in any lending institution. Students and their families have the right to select the educational loan provider of their choice. If you would like to learn more about supplemental loan funding, please review ELM Select. JHU provides access to this interactive tool to help students and families better understand their private loan options. Additionally, please see the Maryland’s College Loan Code of Conduct.

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