Financial Aid

An Open Letter from our Financial Aid Team
March 2009

Dear Parents of St. John’s College Students,

In this time of economic uncertainty, we know that parents are more concerned than ever about being able to finance a college education for their children.

In recognition of the current economic pressures, St. John’s College has approved a tuition increase of 2.9%, the smallest one in twenty years. Secondly, regardless of a student’s financial situation and new difficulties being experienced by many families, the college remains committed to maintaining a strong needs-based financial aid program. 

The financial aid team would like to take this opportunity to update you about changes on the Federal level that may substantially help you realize the hope that your child’s education can be affordable into the future.

The 2009 American Recovery and Reinvestment Act, i.e. the Federal stimulus package contains a number of provisions relating to student financial aid that may be helpful to you in funding your child’s education:

  • an additional $17.1 billion has been allocated to increase awards under the Federal Pell Grant Program. The maximum grant a qualifying student may receive will increase to $5,350 in 2009 and to $5,550 in 2010.  This increase in Pell grant funding will help the college to continue to meet the full need of its students.
  • a new $2,500 American Opportunity Tax Credit will temporarily replace the Hope tax credit for postsecondary education and will cover tuition, fees, books and course materials. Please check with your tax adviser for details.  Here is what we understand. Single filers with adjusted gross income up to $80,000 and couples filing jointly with adjusted gross income up to $180,000 may be eligible for a tax credit of up to $2,500. Filers in the higher end of the income range would receive a lower tax credit. For low-income filers, 40% of the $2,500 may be refundable to the taxpayer.

In the 2008 Higher Education Act, dependent undergraduate students may now borrow the following amounts from the Federal Stafford Loan Program: 

  • $3,500 subsidized and $2,000 unsubsidized for first year students;
  • $4,500 subsidized and $2,000 unsubsidized for second year students;
  • $5,500 subsidized and $2,000 unsubsidized for third and fourth year students.


We are keeping in touch with our Stafford, PLUS, and Alternative Loan lenders to monitor the availability of these loans. 

Stafford Loans do not require a credit-check, so students should encounter no problems obtaining these loans. 

PLUS Loan approval is contingent on a credit check that shows no adverse entries.  ‘Adverse’ has been defined by one lender as a history of late payments.  PLUS lenders do not use a credit score to determine eligibility. 

Alternative (or private) loans are generally borrowed by students who have maximized their federal eligibility and need more funds.  Most students need a credit-worthy cosigner to qualify.  The lender does look at the credit score of the applicant to determine eligibility and the interest rate and fees. 

Because eligibility requirements for private loans have been tightened in many cases, it is advisable for parents and students to apply for these loans as early as possible this year.

Notwithstanding all these programs designed to help families afford a college education for their children, we encourage you to call our Financial Aid Office if you are having any difficulties understanding or navigating these difficult waters, so we can help you take advantage of the new funds available to families through the Federal stimulus package and through the generous St. John’s College financial aid program.

Please call us if you think there is any way we might help!
In Annapolis: 410-626-2502
In Santa Fe: 505-984-6058

Sincerely,

The Financial Aid Team
St. John’s College
Annapolis, Maryland and Santa Fe, New Mexico