Stafford Loan Process
In order to process loans more efficiently, Xavier University electronically processes loan applications. Students who file a FAFSA and enroll at least half time may qualify for a Stafford loan, which is a long-term, low-interest loan.
Students who demonstrate need, according to the federal need analysis formula may qualify for a subsidized Stafford loan. Subsidized means that the government pays the interest on the loan while the student is enrolled at least half time, and for a period of six months after the student ceases to be enrolled at least half time.
Students who do not qualify for a subsidized Stafford loan may be eligible for an unsubsidized Stafford loan. Unsubsidized means that the borrower must pay the accrued monthly interest on the loan, or the interest will be capitalized (added to the principal). Repayment of principal, for both subsidized and unsubsidized Stafford loans, begins six months after the borrower ceases to be enrolled at least half-time.
Lenders
A student or parent may choose to borrow from a loan program to help finance Xavier educational expenses. The borrower must select a lender. Xavier's Financial Aid Office does not receive any benefits from any lenders.
The following are on Xavier University's lender list: Chase Bank, Edamerica, Fifth Third Bank, Franklin Savings, Key Bank, National City Bank, PNC Bank, Student Lending Works, and US Bank.
The lenders that Xavier University has identified are those lenders who have consistently provided borrowers with efficient, quality service. These lenders are associated with Great Lakes Higher Education which is one of Ohio's guarantors for student loans. Xavier works closely with Great Lakes Higher Education and your lender in obtaining your loan funds quickly. Should any difficulty arise in securing your funds, Xavier immediately knows whom to contact to resolve the problem. Finally, choosing one of Xavier's listed lenders guarantees that Xavier will be able to electronically transmit your loan information to your lender, and that lender will transmit the loan funds to Xavier via electronic fund transfer (EFT).
Please note that Xavier will process a loan from any lender. We provide a list of lenders so families have a starting point in the lender selection process. The lender list is reviewed on an annual basis and is subject to change as loan programs change. Lenders are chosen based on the best interest of the student (i.e. no or low origination fees for Stafford loans, electronic funds transfer, and customer service).
If Your Are a New Stafford Loan Borrower
Your maximum loan eligibility will be indicated on the Financial Aid Award. Your loan will automatically be certified by the office of financial aid once all requested documents are submitted (e.g., tax returns and verification worksheet if your application is selected for verification). Your certified loan will be electronically transmitted to Great Lakes Higher Education Corporation, an agency that guarantees student loans. To accept the loan, you must complete the Master Promissory Note on-line or in paper form. If you do not complete the Master Promissory Note on-line, one will be mailed to you by Great Lakes. (If you do not wish to accept the loan, do not complete the Master Promissory Note.) Your loan money will be electronically transmitted to Xavier University in accordance with the disbursement dates provided by the University. Once Xavier insures that you have completed a Stafford Loan Entrance Interview, are registered at least half time, and are meeting all other eligibility requirements, your loan funds will be disbursed to your account.
Once the guarantee agency receives the completed promissory note, it will electronically forward the loan proceeds to Xavier University. If a student signed a Master Promissory Note with a previous Stafford loan, the student will not receive another promissory note from the guarantee agency. In this case, after the student has returned the Student Loan Data Sheet to Xavier and Xavier has transmitted the loan eligibility information to the guarantee agency, the lender will forward the loan proceeds to Xavier University.
Federal regulations require that all first-time student loan borrowers complete Entrance Interview loan counseling before receiving the proceeds of their student loans. The Entrance Interview explains the borrowers rights and responsibilities including the consequences of defaults on loans. All first-time borrowers must complete their entrance interview loan counseling via the web at https://ent.glhec.org/FastFacts/entrance/Welcome.do?schoolNr=314400.
Before student loan lenders send loan disbursements to Xavier University, a maximum of 4% in origination and guarantee fees will be deducted from the gross student loan amount. The remaining net loan amount will be evenly divided among the number of semesters for which the student has borrowed.
If you are a Previous Stafford Loan Borrower:
Your maximum loan eligibility will be indicated on the Financial Aid Award. Your loan will automatically be certified by the office of financial aid once all requested documents are submitted (e.g., tax returns and verification worksheet if your application is selected for verification). Your certified loan will be electronically transmitted to Great Lakes Higher Education Corporation, an agency that guarantees student loans. To accept the loan, you must complete the Master Promissory Note on-line or in paper form. If you do not complete the Master Promissory Note on-line, one will be mailed to you by Great Lakes. (If you do not wish to accept the loan, do not complete the Master Promissory Note). Your loan money will be electronically transmitted to Xavier University in accordance with the disbursement dates provided by the University. Once Xavier insures that you have completed a Stafford Loan Entrance Interview, are registered at least half time, and are meeting all other eligibility requirements, your loan funds will be disbursed to your account.