Who is eligible for a student loan?
Ninety-eight percent of financial aid recipients are eligible for
either a Subsidized Loan or a Unsubsidized Loan, or a
portion of both
loans. Students must be enrolled at least 1/2-time status by the census date in order to be eligible for any loan funds awarded.
- Federal Subsidized (Sub) Loans are offered to undergraduate
and graduate students on the basis of financial need. While attending school,
the government pays the interest that accrues on these loans. Payments can be
made at any time before repayment begins. Repayment of principal and interest
begins approximately six months after graduation, if attendance goes below
half-time status, or if withdrawn from program.
- Federal Unsubsidized (Unsub) Loans are offered to
undergraduate and graduate students regardless of financial need. The student is
responsible for paying all interest of any Unsub Loan from the date of
disbursement until the loan(s) is paid in full. If the student chooses not to
pay interest while attending school, the interest will accrue and be
capitalized. Repayment of principal and interest begins: six months
after graduation, when enrollment goes below half-time status, or when withdrawn from
program.
How much money can be borrowed, and what are the interest rates?
This award is based on eligibility, and additional steps may be required in order to receive the maximum amounts listed below.
If a student is a new loan recipient at FVTC and awarded a Federal loan, the student is required to:
Dependent
Student
| Subsidized
| Unsubsidized (minus
any subsidized award)
| Maximum Amounts
for Subsidized &
Unsubsidized
|
1st Year
| $3,500
| $5,500 | $5,500 |
2nd Year
| $4,500 | $6,500 | $6,500 |
Independent
Student
| Subsidized
| Unsubsidized (minus
any subsidized award) | Maximum Amounts
for Subsidized &
Unsubsidized |
1st Year
| $3,500 | $9,500 | $9,500 |
2nd Year
| $4,500 | $10,500 | $10,500 |
- The current loan interest avergae is 6.8% and the Parent PLUS Loan is at 7.9%.
Am I able to request additional Loans?
Only an independent student (a student not required to provide parent information on the FAFSA application) may be eligible to receive other loan funds; however, the following additional loan request form must be filled out to prove financial need.
Can a parent process a loan to help pay for college expenses?
Parent Loans for Undergraduate Students (PLUS) are education loans for
parents of undergraduate dependent students (students required to provide parent information on the FAFSA application) who are pursuing an education. PLUS Loans are
available to parents regardless of income or assets, but a credit check is
performed. Parents may borrow up to the Cost of Attendance, minus the Expected
Family Contribution (EFC) derived from the Free Application for Federal Student
Aid (FAFSA), minus any other financial aid the student has already received.
The PLUS Loan goes into repayment 60 days after it is fully disbursed for the
year and is the financial responsibility of the parents, not the student. If the
student agrees to make payments on the PLUS loan, but fails to make the payments
on time, the parent will be held responsible. The first payment is due within 60
days of disbursement. Interest rates at this time are fixed at 7.9%.
To ensure that your PLUS loan is processed in a timely manner, you will need to complete the PLUS Loan Request, the Online PLUS Loan Application, and the Master Promissory Note (MPN) as follows:
Where can I start looking for Alternative Loans?
Alternative or “private” student loans can be an important funding source for
students who need more loan funds than the federal programs can supply or who
are ineligible for federal student loans.
Alternative loan programs have
various interest rates and terms of repayment.
Many lenders offer
numerous incentive options upon repayment, so students are likely to find a loan
that fits their needs.
Alternative loans are not federally
guaranteed and can take several weeks to process.
All alternative
loan programs require a credit check on either the borrower, the co-signer or
both.