Student Loans
A loan is money you borrow now and pay back later, with interest. Student loans are as real as a car loan or a mortgage, and you have to pay them back.
Loans let you spread the cost of college over time. Borrow carefully. You never have to take the full amount you’re offered, and you can always ask for less.
Types of federal loans
JWU takes part in the William D. Ford Federal Direct Loan Program. The money comes straight from the federal government. The interest rates are typically lower than commercial loans.
- Direct Subsidized Loans — For undergraduates with financial need, which JWU calculates from your FAFSA. The government pays your interest while you’re enrolled at least half-time and during your six-month grace period. You graduate owing exactly what you borrowed.
- Direct Unsubsidized Loans — For undergraduate and graduate students; financial need isn’t required. You owe the interest starting the day the money reaches JWU. If you don’t pay it while you’re in school, it gets added to your balance when you graduate. You’ll owe more than you borrowed.
- Parent PLUS Loans — Parents of dependent undergraduates can apply. Approval depends on a credit check, not financial need. Yearly and lifetime limits apply.
How much can you borrow
Your yearly limit depends on your grade level and whether you’re a dependent or independent student. You may be eligible for less than these maximums.
| Grade Level | Dependent Student | Independent Student |
|---|---|---|
| 1st-year undergraduate | $5,500 ($3,500 subsidized maximum) | $9,500 ($3,500 subsidized maximum |
| 2nd-year undergraduate | $6,500 ($4,500 subsidized maximum) | $10,500 ($4,500 subsidized maximum) |
| 3rd- and 4th-year undergraduate | $7,500 ($5,500 subsidized maximum) | $12,500 ($5,500 subsidized maximum) |
| Graduate | Not applicable | $20,500 |
Independent students get more because they can borrow extra unsubsidized loans — $4,000 more in years one and two, and $5,000 more in years three and four. The subsidized portion is the same for everyone: up to $3,500 in year one, $4,500 in year two and $5,500 after that.
Dependent students whose parents can’t get a PLUS Loan may borrow at the independent limits. All graduate students count as independent.
Lifetime limits
These caps cover your whole education, not one year:
- $31,000 for dependent undergraduates, with no more than $23,000 subsidized
- $57,500 for independent undergraduates, with no more than $23,000 subsidized
- $100,000 for graduate students, lowered from $138,500 on July 1, 2026
These totals include any older Federal Stafford Loans you borrowed through the Federal Family Education Loan Program (FFEL) Program.
Loan fee
A 1.057% fee comes out of your loan before the money reaches JWU. A $5,500 loan delivers about $5,442 to your student account.
Federal changes that took effect July 1, 2026
New rules changed how much parents and graduate students can borrow. Student loan limits stayed the same. Federal guidance can change. We’ll update this page as we learn more.
New rules from the federal government recently changed federal borrowing limits for parents and graduate students.
- Parent PLUS Loans — New borrowers can take $20,000 per year and $65,000 total per dependent student. Before, parents could borrow up to the full cost of attendance with no cap.
- Graduate students — Borrowing is capped at $20,500 per year and $100,000 for the degree, not counting undergraduate loans. Grad PLUS Loans are closed to new borrowers.
If you or your parents borrowed before July 1, 2026
You may be able to keep the older, higher limits for a while. This lasts up to three more years, or until you finish your current degree — whichever comes first.
Two things end that protection early:
- Moving from an A.S. to a B.S. degree. The new Parent PLUS limits apply the moment you start the bachelor’s program. There’s no exception.
- Withdrawing or stopping out. If you leave and come back, the new limits apply, no matter why you left.
Every PLUS Loan borrowed before July 1, 2026 counts toward the new $65,000 total. For example, if your parents already borrowed $50,000, they can borrow $15,000 more.
Taking fewer credits
JWU must now reduce your federal loan if you enroll less than full-time — under 12 credits for undergraduates, under 9 for graduate students. A half-time student may get only half the yearly limit.
This can happen even if you were billed as full-time and dropped a course later. Dropping below full time in the fall can shrink or cancel your spring loan. Parent PLUS Loans aren’t affected.
Talk with your Student Academic Advisor and your Financial Planner before dropping below full time.
2026–27 federal aid maximums
Check what federal aid you qualify for before you consider borrowing privately.
Grants — money you don’t repay:
- Federal Pell Grant: $7,395
- Federal SEOG (Supplemental Educational Opportunity Grant): $800
- Federal TEACH (Teacher Education Assistance for College and Higher Education) Grant, graduate students only: up to $4,000
Federal Direct Loan maximums are in the table above.
What you need to complete
Following the processing of your FAFSA, JWU will notify you of your loan amounts in an award letter that lists all of your proposed financial aid awards. You have the right to decline or lower your loan amount. Use your FSA ID — the same login you used for the FAFSA — to complete the process of accepting federal loans.
If you’ve never borrowed before
- Entrance counseling — walks you through what you’re agreeing to and helps you estimate your future monthly payment
- Master Promissory Note (MPN) — your legal promise to repay, listing the terms
- Annual Student Loan Acknowledgment — confirms you’ve seen how much you owe
If you’ve borrowed before
You complete the Annual Student Loan Acknowledgment again each year. It shows what you currently owe and how much more you can borrow.
More than 95% of JWU students who apply for aid qualify for a Federal Direct Loan. It’s one of the lowest-cost ways to pay for school.
We recommend completing your Master Promissory Note (MPN) early. Signing it doesn’t lock you in — you can still decline any loan and owe nothing.
If you skip it, JWU can’t process your loan money. That creates a hold that could stop you from starting classes or changing your schedule.
Before you start, have ready: your Social Security number, your driver’s license number and two adult references with full U.S. addresses and phone numbers.
- Sign in at studentaid.gov with your FSA ID
- Choose the MPN for Subsidized/Unsubsidized Loans
- For school state, select Rhode Island — even if you attend in Charlotte, N.C. — then select Johnson & Wales University
- Read each section and check the box as you go
- Type your name, sign and wait for the system to confirm
- Save or print a copy for your records
One MPN usually covers every Direct Loan you receive. Afterward, you’ll get a statement for each loan showing the amount, the fees and the payment dates.
Private Loans
Private loans, also called alternative loans, come from banks and other lenders instead of the government. They help cover the gap between your costs and your financial aid. Approval depends on credit, not financial need.
Use federal aid first. Federal loans usually have better terms. Only consider a private loan after you’ve used every scholarship, grant and federal loan available.
Most students need a co-signer. Every application includes a credit check.
Choosing a lender
JWU publishes a list of every private lender our students have used for five or more loans in the past three years, where the lender agreed to share their information. You’ll find it in FASTChoice, a tool for comparing loans and applying.
JWU also keeps a preferred lender list:
Required disclosures for both lenders are available at those links. Compare several lenders before you apply, and look closely at interest rates and repayment terms.
Johnson & Wales University has selected these two lenders because they offer highly competitive interest rates and little to no fees compared to traditional lenders. As nonprofit organizations, they are able to keep borrowing costs lower, helping to ensure loan options are in the best interest of students and families. These two nonprofit organizations offer private student loans to residents of the state and non-residents attending school in the state. North Carolina Assist and RISLA are not affiliated with each other.
Students are not required to borrow from either list. RISLA appears on both lists. JWU does not receive revenue sharing or financial incentives from any listed lender; selections are based solely on potential borrower benefits. You are not restricted to either list and may be eligible for loans or other assistance under Title IV, HEA (Higher Education Act) programs. Terms and conditions of Title IV, HEA program loans may be more favorable.
JWU puts the interests of borrowers first. Our Code of Conduct for Education Loan Practices requires every JWU employee to act lawfully and ethically in anything involving student loans. It also bars them from accepting gifts, payments or anything of value from lenders.
Self-certification form
Federal law requires every private loan borrower to fill out a Private Loan Self-Certification form. It shows your cost of attendance, your total aid and the gap between them. The point is making sure you don’t borrow more than you need. Your lender provides the form with its application. You must submit it before any money is released.
After you graduate or leave JWU
Student loans are just as real as car loans or mortgages. You have to pay back your student loans to the federal government (or the private lender who serviced your Federal Direct Loan). Be aware of your obligations so you can stay on top of your loans. The U.S. Department of Education explains in detail what happens to your loans once you graduate or leave school.
- Exit counseling — Federal rules require exit counseling before you graduate, withdraw or drop below half-time. Exit counseling shows you your full federal loan history — every lender and servicer, how much you borrowed, your interest rates and who to contact. It also walks through repayment options, how to avoid default and how to manage your debt.
- Clear your account — Check your tuition account and settle anything you still owe JWU. An unpaid balance creates a hold that blocks your transcript and diploma.
Grace periods
You get time before payments begin. This grace period is six months for a Federal Direct Loan. It starts the day after you drop below half-time enrollment.
If you go back to school at least half time before those six months run out, the clock resets. You’ll get a full six months again next time you leave.
If you have a Federal Perkins Loan, that grace period is nine months and you repay JWU directly.
Staying out of default
Make your full payment on time, every time. Missing payments can put your loans into default, which seriously damages your credit and your finances.
We’re Here to Help
You don’t have to sort through it alone. Your financial planner knows your aid package and can walk through your options with you and your family. They can explain what you’ve been offered, what it will cost you over time and whether you should borrow less than the full amount.