Federal Aid FAQ

What is federal aid?

The following are classified as federal aid: Stafford loans (subsidized and unsubsidized); Perkins loans; and work study.

What types of federal aid are offered by the School of Theology?

The School of Theology offers federal work study, federal Stafford loans (subsidized and unsubsidized), and Perkins loans.

Who is eligible to receive federal aid?

Only U.S. citizens and U.S. permanent residents may apply for federal aid. All U.S. citizens and U.S. permanent residents must complete the online FAFSA each academic year.

How do I defer payment on a previous federal loan?

All loan deferments are handled by the Office of the University Registrar. They are located at 881 Commonwealth Avenue and you can contact them at 617-353-3612.

What are the terms of my federal loan? Who is my lender?

The terms of your loan will be outlined in your master promissory note. The lender is the U.S. Department of Education.

I am a first-time borrower of federal loans. What do I need to do?

All first-time borrowers must complete online entrance counseling and sign the online master promissory note. Loan funds will not become active in the student’s account until these requirements have been met.

Why did I not receive the requested federal work study/Perkins loan?

The School of Theology receives a very limited amount of funds for federal work study and Perkins loans. Returning students who previously received federal work study and/or a Perkins loan are given preference. The remaining funds are divided up amongst eligible incoming students with the greatest financial need on a first-come first-served basis.

Why did I not receive the requested loan?

When a student completes the FAFSA their federal need is determined. Federal need determines overall financial need and a student’s eligibility for subsidized and unsubsidized loans. For example, if a student requested a subsidized loan but did not receive it, it is likely because they did not have a federal need high enough to qualify.

What is the difference between subsidized and unsubsidized loans?

A subsidized loan does not accrue interest while the student borrower is enrolled in their degree program at least half-time. An unsubsidized loan begins to accrue interest when it is disbursed to the student’s account. The current rate of interest for an unsubsidized loan is 6.8%. Additional information is provided by the Office of Financial Assistance.

How do I apply for a subsidized/unsubsidized loan?

Students may indicate their loan preferences and desired amounts on the STH Financial Aid Application.

When does repayment begin for subsidized and unsubsidized loans?

Repayment begins six months after the student borrower is no longer enrolled at least part-time in their degree program.