Federal Loans

Three types of federal loans are available to Johnson University Tennessee Students. 

  • Federal Direct-Student
  • Federal Direct PLUS-Parent
  • Federal Direct PLUS-Student

Borrowers have the right to cancel all or a portion of the loan within 14 days of disbursement. Contact the Financial Aid Office in writing to complete the cancellation. If a credit balance remains on the student account after the loan funds have been disbursed, a check will be issued in the amount of the credit. For more information, please review the Student Accounts Refund Policy.

Johnson University Tennessee is committed to providing an affordable Christian education and hopes that all students will graduate free of debt. At the same time, we understand this may not be possible for everyone. Only students and their families can determine how much money needs to be borrowed to cover educational costs. Financial planners recommend students borrow no more than their anticipated first year’s salary or that the anticipated monthly loan repayment not exceed 10% of their anticipated monthly take-home pay. A loan repayment calculator is available at www.FinAid.org to assist in the planning process.

Federal Direct Loan-Student

Repayment of a Federal Direct Loan begins six months after the student’s enrollment status drops to less than half time. Students must complete Entrance Counseling and sign a Master Promissory Note (MPN) at studentloans.gov. The student must also complete the Financial Aid Check-In. For more information, please contact the Financial Aid Office.

The two types of Direct Loans are:

  • Subsidized - The government pays interest on the loan while the student is enrolled at least half-time. Interest will start accruing when the student drops below half-time status.
  • Unsubsidized - Interest accrues immediately. Students may pay the interest quarterly or request that interest be capitalized (added to the loan principle).


Maximum Direct Loan Award Amounts

Grade Level Dependent Student Independent Student
Freshman (0-29.9 hrs) $5,500/yr $9,500/yr*
Sophomore (30-59.9 hrs) $6,500/yr $10,500/yr*
Junior/Senior (60 and up) $7,500/yr $12,500/yr**
Graduate N/A $20,500/yr

* At least $6,000 of this amount must be in unsubsidized loans.
** At least $7,000 of this amount must be in unsubsidized loans.

More information on Disclosures or Rights and Responsibilities

Federal Direct PLUS – Parent

Parents of a dependent undergraduate student may apply for a PLUS loan. They may borrow up to an amount that does not exceed the student's cost of attendance (COA) minus any other financial aid. Parents must complete an application each year and a one-time Master Promissory Note (MPN) at studentloans.gov. They will receive immediate notification of acceptance on their application. 

Repayment begins the day the loan is fully disbursed. The first payment of principal and interest is due within 60 days. However, parents may request the payment be deferred as long as the student is enrolled half-time.

If the loan is denied due to a poor credit rating, and the parent does not appeal the credit decision or complete the endorser information, the parent and student will be notified of additional loan options. 

More information on Disclosures or Rights and Responsibilities

Federal Direct PLUS – Student

In addition to the Federal Direct loans, graduate students or students in the adult studies program may apply for the Federal Direct Plus loan for students. The student is eligible to borrow up to an amount that does not exceed their cost of attendance (COA) minus any other financial aid. Students must complete an application and a Master Promissory Note (MPN) at studentloans.gov. Students must also complete the Financial Aid Check-In each year.

The repayment period begins 60 days after the final loan disbursement. However, students may request the payment be deferred as long as they are enrolled half-time. This loan does not have a six-month grace period.

More information on Disclosures or Rights and Responsibilities