Your Lender Options


 

Direct Stafford Loans

Consolidating FFEL Program Loans into the Direct Loan Program

If you already have FFEL Program loans and will now be receiving Direct Loans, consolidating your FFEL and Direct Loan program loans together into a Direct Consolidation loan may make loan repayment easier. If you consolidate, you will have just a single monthly payment. Consolidating your FFEL Program loans into a Direct Consolidation Loan may also allow you to take advantage of certain benefits that are offered only in the Direct Loan Program, such as Public Service Loan Forgiveness and the Income Contingent Repayment Plan.

To learn more about when you may consolidate, the pros and cons of doing so, and the application process, visit www.loanconsolidation.ed.gov or call 800/557-7392 (TDD/TTY: 800/557-7395).

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (the Department) rather than a bank or other financial institution.

With Direct Loans, you

  • Borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center—for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.

  • Have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the Web.

  • Can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.

FA Picture 1Applying for Direct Loans
A quick introduction to Direct Loans and how they fit into your award package.

FA Pic 2

While you're in school
How the school disburses (pays out) Direct Loans to you and your rights and responsibilities while you're in school

» Interest rates:

All Direct Subsidized Loans Under the result of the Budget Control Act of 2011, Sec. 502, subsidized loans cannot be awarded to graduate and professional students if the loan period begins on or after July 1, 2012.

All Direct Subsidized Loans for undergraduate borrowers have a fixed interest rate that will be based on the first disbursement date as listed in the table below:

Interest Rate Date of Loans

6.8%

Loans first disbursed on or after July 1, 2006 and prior to July 1, 2008

6.0%

Loans first disbursed on or after July 1, 2008 and prior to July 1, 2009

5.6%

Loans first disbursed on or after July 1, 2009 and prior to July 1, 2010

4.5%

Loans first disbursed on or after July 1, 2010 and prior to July 1, 2011

3.4%

Loans first disbursed on or after July 1, 2011 and prior to July 1, 2012

6.8%

Loans first disbursed on or after July 1, 2012

All Direct PLUS Loans have a fixed interest rate of 7.9%.

The interest rate for Direct Consolidation Loans is based on the weighted average of the current interest rate on the loans that were paid off by the consolidation loan.

Direct Loans first disbursed before July 1, 2006 will continue to have a variable interest rate that is adjusted once a year, on July 1st. The rate for the year is based on the 91-day U.S Treasury bill plus a fixed add-on percentage based on when the loan was first disbursed. The interest rate can never exceed 8.25% for Direct Subsidized and Direct Unsubsidized Loans and 9% for Direct Plus Loans.

The loan fee, or borrower origination fee, is another expense of borrowing a Direct Loan. The loan fee is subtracted proportionately from each loan disbursement. The loan origination fee for Direct Stafford (Subsidized and Unsubsidized) Loans will be reduced annually according to the following schedule:

Origination Fee Date of Loans
3% Loans first disbursed prior to July 1, 2007
2.5% Loans first disbursed between July 1, 2007 and June 30, 2008
2% Loans first disbursed between July 1, 2008 and June 30, 2009
1.5% Loans first disbursed between July 1, 2009 and June 30, 2010
1% Loans first disbursed on or after July 1, 2010

Your actual interest rate and loan fee will be included in a disclosure statement you will receive after the first disbursement of your loan.

  • The interest on a Direct Subsidized Loan is paid by the Federal Government while you are enrolled in school at least half time, during your six-month grace period and during authorized periods of deferment (temporary postponement of payment).

  • The interest on a Direct Unsubsidized Loan continues to accrue even while you are in school, during your six-month grace and during authorized periods of deferment. You are responsible for paying all of the interest that accumulates. You do not have to pay the interest right away. But if you postpone paying the interest, it may cost you a significant amount over the life of your loan because the interest is capitalized – added to your principal balance – and you end up paying interest on interest.

  • The interest on a Direct Subsidized and Direct Unsubsidized Loan continues to accrue while in forbearance (temporary postponement or reduction in payment). You are responsible for paying all of the interest that accumulates. You do not have to pay the interest right away. But if you postpone paying the interest, it may cost you a significant amount over the life of your loan because the interest is capitalized – added to your principal balance – and you end up paying interest on interest.

Remember:

  • Interest rates on Direct Subsidized and Direct Unsubsidized loans first disbursed prior to July 1, 2006 are variable and may be adjusted each year.
  • Interest rates on Direct Subsidized and Direct Unsubsidized loans first disbursed on or after July 1, 2006 are fixed.
 
 

 

Private/Alternative Loans

Once you and your family have considered institutional and federal loan options, you can use the California Private Loan Marketplace to instantly and accurately compare rates and terms from multiple private loan lenders side-by-side. This will help you make an informed decision about the most appropriate loan for you.

The Marketplace displays products from local and national lenders, complete with detailed listings of APRs (annual percentage rates), interest rates, total cost, monthly payments, borrower benefits, fees and repayment options.

  1. California Private Loan Marketplace

  2. Code Of Conduct Read more...

    This Code of Conduct is provided by American Jewish University to its employees who work in the financial aid office. 

    Code of Conduct
    American Jewish University

    INTRODUCTION

    American Jewish University values the integrity of our institution and its people. The position you hold within American Jewish University is evidence of the trust we have in our faculty and staff.

    Compliance with the spirit as well as the letter of all applicable laws, regulations, and American Jewish University policies, and performance of our duties according to the highest standards of honesty and integrity is expected of all of us.

    This Code of Conduct applies to all officers and staff in the financial aid office and all officers and staff, directors or trustees who have any duties with respect to education loans (“Covered Employees”). If you violate any of the policies set forth in this Code of Conduct, you subject yourself to discipline, up to and including termination of your employment. Moreover, if you violate provisions of the Code of Conduct you also subject American Jewish University to possible sanctions or liability. If you do not understand any provisions of the Code of Conduct or have any related questions you should always feel free to call on any of the resources listed in the section below titled Places for Assistance. If you observe violations or potential violations of this Code of Conduct you should also call on any of the resources listed in the Places for Assistance section.

    CODE OF CONDUCT PROVISIONS 

    A Covered Employee of American Jewish University (the “School”) acting in his or her role as a student financial aid professional will:

    1. Refrain from taking any action he or she believes is contrary to law, regulation, or the best interests of the students and parents he or she serves.
    2. Ensure to the best of the employee’s ability that the information he or she provides to students and parents is accurate, unbiased, and does not reflect any preference arising from actual or potential personal gain.
    3. Disclose to the School any financial interest in or similar involvement with any non-School entity involved in any aspect of student financial aid at the School.
    4. Be objective in advising the School regarding relationships with any entity involved in any aspect of the School’s student financial aid administration.
    5. Disclose to the School any instance of a lending institution attempting to give a gift to you, or any family member or relative of yours, or any other individual who has a close relationship with you. For purposes of this section, “gift” means any gratuity, favor, discount, service, entertainment, hospitality, loan, transportation, lodging, or meals, or other item that has monetary value.
    6. Except as described in this section, refrain from soliciting or accepting anything of value (including any gift as described above), whether provided in kind, by purchase of a ticket, payment in advance or reimbursement after the expense has been incurred, from any person or business involved in the education loan business, including lenders, servicers or guarantors. This prohibition on accepting gifts also applies to your family members, or any other person based on that person’s relationship with you, if the gift is given with your knowledge and you have reason to believe that the gift was given because of your official position with the School. Notwithstanding the above, you may accept reimbursement of reasonable expenses related to service on an advisory body established by a lender or guarantor or a group of lenders and guarantors, and you may accept food, refreshments, training or informational material that are an important part of a training session that is designed to improve the service of a lender, guarantor or servicer of education loans to the School, if such training contributes to your professional development, all as approved in writing by the School’s Vice President of Finance, Administration and Technology.
    7. Refrain from performing any consulting or other services for a lender or its affiliates in return for any fee, payment or other financial benefit.
    8. Inform students they have the right and ability to select the lender of their choice regardless of whether that lender appears on the School’s preferred lender list for federal or private education loans.
    9. Not impede a student’s right to select a particular lender.

    The School will:

    1. Refrain from accepting anything of value (including any revenue or profit sharing) from any lender, guarantor or servicer of education loans, in exchange for recommending such entity or recommending the loan products of such entity. The School may accept permissible assistance provided by a lender in managing loan programs, including: (1) material, activities or programs on issues related to default aversion, default prevention, or financial literacy, such as a brochure, a workshop or on-site training; (2) entrance and exit counseling services, so long as the School’s staff is in control of the counseling and the counseling does not promote the products and services of any specific lender; (3) philanthropic contributions from a lender, servicer or guarantor of education loans that are not made in exchange for any advantage related to education loans; (4) state education grants, scholarships, or financial aid funds administered by or on behalf of a state; (5) reimbursement of reasonable expenses for employee service on an advisory body and reimbursement for reasonable expenses related to employee participation in professional development activities; (6) professional development training for financial aid administrators; or (7) educational counseling materials, financial literacy materials, or debt management materials, provided that such materials contain the identification of any lender that assisted in preparing or providing such materials, all as approved in writing by the School’s Vice President of Finance, Administration and Technology.
    2. Ensure to the best of its ability that employees of lenders do not identify themselves to School’s students as employees of the School and that no employee of a lender works in or provides staffing to the School’s financial aid office, with limited exceptions allowed under the law and approved in writing by the Vice President of Finance, Administration and Technology.
    3. Not assign, through award packaging or other methods, a first-time borrower’s loan to a particular lender or refuse to certify or unnecessarily delay certification of any loan based on a borrower’s selection of a particular lender or guaranty agency.
    4. Maintain any preferred lender list used by the School, including preferred lender lists for private education loans, in compliance with federal law.
    5. Not request or accept funds to be used for private student loans, including a private education loan made by a lender that involves the payment by the School of points, premiums, additional interest or financial support to such lender in order for the lender to extend credit to a student or a student’s family, in exchange for providing any concessions or promises regarding providing the lender with a specified number of loans to be made, insured or guaranteed under the federal loan program, a specified loan volume of such loans or a preferred lender arrangement for such loans.

    PLACES TO GO FOR ASSISTANCE 

    If you have a question regarding any policy contained in this Code of Conduct or you are aware of any actual or potential breach, you should contact Director of Financial Aid at 310-476-9777 ext.252. If you feel that this person has not addressed your question or information appropriately or, if the circumstances make it inappropriate to discuss the matter with them, please contact Vice President of Finance, Administration and Technology at 310-476-9777 ext. 530. To the maximum extent possible, the School will protect the confidentiality of persons who report possible breaches of this Code of Conduct on the part of other persons.

     

  3. California Marketplace Disclosure

If you have exhausted all other financial aid options (scholarships, grants, federal loans, etc.) and still need money for college you may want to apply for a private loan . These loans are generally based on your credit worthiness rather than financial need.

FASTChoice

Please ensure that you are aware of and have exhausted other potential sources of funding and discussed the availability of federal, state, and institutional financial assistance with the AJU Director of Financial Aid before turning to private loans:

Please ensure that you are aware of and have exhausted other potential sources of funding and discussed the availability of federal, state, and institutional financial assistance with the AJU Director of Financial Aid before turning to private loans::

  • You may qualify for federal, state, or AJU financial assistance, in place of, or in addition to, a private education loan.

  • A private education loan may reduce eligibility for free or low-cost federal, state, or AJU financial assistance.

  • No requirement to update the form once it has been supplied.

  • This Form is required ONLY for those "enrolled or admitted" at the AJU.

  • Finally, here are the three data fields that need to be completed:

    • Cost of attendance for the period of enrollment covered by the loan.
      See Schedule of Charges

    • Total Financial Aid – can be obtained from the AJU Financial Aid Office

    • Difference between amounts A and B (A – B = C)