COLLEGE LOANS

The U.S. Department of Education pays interest on these loans while you are enrolled at least half-time (6 credit hours) and during the 6-month grace period.  This is a need-based loan and students must have unmet need as determined by their FAFSA.  Some students are also subject to the Subsidized loan limit, commonly known as SULA (Subsidized Usage Limit Applies). It refers to the regulation that limits the amount of time (measured in academic years) a student may receive Direct Subsidized Loans.  The regulation applies to students who are considered first-time borrowers on or after July 1, 2013.  If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is generally based on the published length of your current program.

For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years).

Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.

If this applies to you, the Department of Education will track your enrollment, the length of the program in which you are enrolled and the number of academic years in which you borrow a Direct Subsidized Loan.  If you do not complete your program within 150 percent of the length of the program, then you may lose the interest subsidies on your subsidized loan(s) and your interest may begin to accrue as though it were an unsubsidized loan.

Maximum award: $3,500 for the first year.

Unsubsidized loans accrue interest. This means interest is added to the loan while you are in school enrolled at least half-time (6 credit hours). The entire loan amount, plus all of the accumulated interest, must be paid back beginning six months after you graduate or if you drop below half-time (6 credit hours) status.

The Parent/Grad Plus loan is a government-backed, no collateral necessary loan available to parents of dependent undergraduate students and independent graduate students.  The Parent/Grad Plus loan is not need based but requires credit approval. Repayment of the Parent/Grad Plus loan begins 60 days after the second disbursement has been sent to the college. Parents and graduate students interested in a Plus loan must apply by going to www.studentaid.gov  Each parent and graduate student must also complete the master promissory note and entrance counseling.

Maximum award: Up to cost of attendance, less other aid.

Parent Loan (PLUS) 

For purposes of receiving a Direct PLUS loan on behalf of a dependent undergraduate student only if you are: 

• A biological parent of the student. 
• A legal adoptive parent of the student; or 
• The spouse of the student’s biological or legal adoptive parent (the student’s stepparent) and you are considered to be a parent in accordance with the instructions on the Free Application for Federal Student Aid (FAFSA®) form for purposes of reporting income and assets on the FAFSA 

Apply for a Direct PLUS Loan as a Parent | Federal Student Aid 

Note: Before a parent receives a Direct PLUS Loan, they must complete and sign a Master Promissory Note for parents (MPN).  

MPN for Parents | Federal Student Aid 

Students who are not eligible to receive federal direct loans can apply for an alternative or private educational loan. Students must select a bank and complete the bank’s online application and credit check. Alternative and private loans are credit-based and students who plan to apply for private education loans should review their credit report since credit worthiness is a requirement for these funds.

Have questions about student loans or want to learn more about the loan programs through the federal government ? Contact our financial aid office.

Maximum award: Up to cost of attendance, less financial aid.

How to reach us:

Phone: 1. 866.6VAUGHN, extension 100

Email:

When to see us:

Financial Aid Office Hours

Office and Zoom hours

• Monday – Friday 9 a.m. to 5 p.m.
• Tuesday 9 a.m. to 7 p.m. (Zoom only)

                                                      FREQUENTLY ASKED QUESTIONS

Federal regulations require schools to prorate the Direct Loan amounts for graduating undergraduate students when their final period of enrollment is less than a full academic year (fall-only, spring-only, or summer-only). The loan limit proration determines the maximum loan amount that a student may borrow for the final term of study based on the degree they are earning.

Graduating undergraduate students who are only attending one semester of the academic year will have their Direct Loans prorated based on the actual number of credit hours they are enrolled.

Note: Graduate and professional students are excluded from the loan proration requirement

All students must complete an annual student loan acknowledgment each year you accept a federal student loan. If this is your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan.

If you have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you can borrow.  This will need to be completed each year by going to www.studentaid.gov

Complete Annual Student Loan Acknowledgment for Federal Student Loans 

• Annual Student Loan Acknowledgment | Federal Student Aid