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Financial Aid

How to Apply for Student Loans

All applicants for Federal Stafford Loans must file a Free Application for Federal Student Aid (FAFSA). We recommend completing the FAFSA electronically at the FAFSA website.  Loan eligibility cannot be determined until the need analysis information has been received and reviewed.

Federal Subsidized Stafford, Unsubsidized Stafford, and PLUS loans are designed to provide students and parents with additional funds for college, beyond those received in the form of grants, scholarships, and work-study earnings. Loans must be repaid.

Federal Subsidized Stafford Loans are based upon financial need. They are long-term, low-interest educational loans with no repayment or interest obligations while the student is enrolled in college with at least 6 credit hours. The student is the actual borrower.

Federal Unsubsidized Stafford Loans are similar, except that financial need is not required. They can be used to replace the Expected Family Contribution (EFC). Meanwhile, the student must pay or capitalize interest while enrolled in school. Students may choose to defer interest payments until repayment begins; however, the student is responsible for all interest that has accrued. The accrued interest automatically capitalizes to the loan principal.

Federal PLUS loans are long-term low-interest educational loans received by the parent of a dependent student. Demonstration of financial need is not required. They can be used to replace the Expected Family Contribution (EFC). Repayment normally begins 60 days from the date of disbursement and can continue over a ten-year period. Interest begins to accumulate upon actual disbursement.

 

Loan Application Important Dates

Semester
Application Start Date
Fall Semester
July 1
Spring Semester
July 1
Summer Semester
March 2

Who is eligible to apply for Federal Stafford Subsidized and Unsubsidized Loans?

Students must be enrolled in at least 6 credit hours to be eligible for a Stafford Loan. The program is limited to U. S. citizens and eligible non-citizens. The student must be enrolled in an eligible degree or certificate program.

Who is eligible to apply for Federal PLUS Loans?

The natural or adoptive parent (or current spouse thereof) may borrow on behalf of a dependent undergraduate student. The student must be enrolled in at least 6 credit hours in an eligible degree or certificate program. The program is limited to U.S. citizens and eligible non-citizens.

How much may a student borrow?

Effective July 1, 2008 the new loan limits are as follows:

(A second-year student is a student who already has completed at least 30 credits within his or her program of study.)

NOTE: The amounts listed above are the maximum yearly amounts a student may borrow in both Subsidized and Unsubsidized Stafford Loans, singly or in combination. However, a student may not borrow more than the cost of attendance minus any other financial aid that is received.

The total cumulative Subsidized and Unsubsidized Stafford Loan limits are:

What is the interest rate?

The interest rate for Subsidized Stafford Loan is currently 5.6% and Unsubsidized Stafford Student Loan is currently 6.8 %. The interest rate is adjusted each year on July 1.

The interest rate on PLUS Loans is currently 8.5 %. The interest rate is adjusted each year on July 1.

How do I apply for a Federal Stafford Loan?

If you are a student interested in applying for a Federal Stafford Loan, you will need to follow these steps:

Are there any fees charged to Federal Stafford Loans borrowers?

From July 1, 2008 through June 30, 2009, the maximum origination fee will be 1%. From July 1, 2009 through June 30, 2010, the maximum origination fee will be 0.5%. From July 1, 2010 and thereafter, lenders can no longer charge an origination fee.

Effective July 1, 2009 ECMC is charging the 1% federal default fee on student loans.

When are loan funds disbursed?

Federal regulations require two (2) disbursements of all Subsidized Stafford, Unsubsidized Stafford, and PLUS loans. The first disbursement is made approximately six-eight weeks into the first semester. Similarly, the second disbursement is made approximately six-eight weeks into the second semester. Prior to that time, tuition and book expenses can be charged against the loan amounts. For one- semester loans, the second disbursement is made after the midpoint of the semester.

The student will be notified by (college email) when loan funds are received by the college each semester.

How are loans disbursed to the student?

Loan proceeds are applied to the student's account to cover tuition, fees, and book charges. A check for the balance is mailed to the borrower six to eight weeks into the semester.

What happens if a student drops below half-time status?

If you drop or withdraw from a course before your loan is disbursed or you fall below half-time status (less than six credits), your Federal Stafford Loan or Federal Parent PLUS Loan will be canceled for that semester, and you will owe any balance due on your student account.  If your loan has already been disbursed and you withdraw from all of your courses, you will need to repay a portion of your loan funds to the College.  The repaid portion would reduce the amount of the principal loan balance that you will owe to your lender when you enter repayment.  In addition, if you drop below half-time status, you will enter your six month grace period for repayment of your loan.

Federal Stafford Loan borrowers must participate in exit counseling activities during the semester in which they graduate, withdraw, or drop below half-time enrollment. These activities include a review of information from the entrance counseling session, and other topics such as the following:

In order to complete this requirement, please access the website, http://mappingyourfuture.org click on Complete Online Student Loan Counseling, click on Stafford exit, and follow the on-screen instructions. NOTE: You must complete the entire process to get credit for having participated.

You need not inform the Financial Aid Office when you have completed the exit counseling activities. We will learn of your completion via a report that we generate.

If you do not complete this requirement, an administrative hold will be placed on your academic record which will prohibit release of your diploma, transcripts and grade reports.

When are Federal Stafford Loans repaid?

Repayment of Federal Subsidized and Unsubsidized Stafford Loans begins six months after graduation, or otherwise six months after the student drops below half-time enrollment. The length of the repayment period, and the monthly amounts, depend on the outstanding loan balance, the interest rate, and any special repayment provisions established by the lender. Borrowers have the options on unsubsidized loans to pay the interest while in school or allow the interest to accrue and have the interest added to the principle balance. The second option is called capitalization. If the borrower decides to capitalize the interest, it will increase the total amount you have to repay.

Can loan payments be deferred?

Payment may be deferred if the borrower satisfies certain eligibility requirements and requests deferment of payment by submitting appropriate documentation to the loan servicer. Deferments are not automatic. Borrowers must contact the lender for more information. Deferrable situations include but are not limited to:

*Active duty and teacher shortage deferment options are not applicable to new borrowers (no outstanding FFEL balance and first disbursement on or after July 1, 1993).

How to Apply for Federal Parent PLUS Loans

The Federal Parent PLUS Loan program is a non-need-based source of loan funds for the parent(s) of dependent students.  Federal Parent PLUS Loans may be used in conjunction with Federal Stafford Loans.  Each year, parents of dependent students may borrow an amount not to exceed the cost of attendance less any financial aid (including Federal Stafford Loans).  Repayment begins 60 days after the final disbursement is made unless the parent borrower makes other arrangements with their lender to defer repayment.  The interest rate is currently fixed at 8.5%.  The Federal Parent PLUS Loan on the undergraduate level is only available to parents.  Guardians are ineligible.  A credit check is performed by the lender on all parental borrowers, and pre-approval is required.   

If you are an eligible parent interested in applying for a Federal Parent PLUS Loan, you will need to complete the following steps:

Are there any fees charged to Federal PLUS Loan borrowers?

Fees for Federal Parent PLUS Loans range from 3-4%.

Lenders for Federal Subsidized and Federal Unsubsidized Stafford Loans

You must choose a lender for your loan. Virginia Western Community College prefers that you select a lender from the following list. These are lenders for whom the loans are guaranteed by the Educational Credit Management Corporation (ECMC), and for whom the actual disbursements are also sent to us by ECMC. Selection of a lender from this list will enhance the flow of communications involving you, the college, the lender, and the guaranteeing agency.

 

Lender Lender Code
Edamerica
831453
SunTrust Education Loans
811304
Wachovia
830005
 
 

 

Preferred Lender Statement

The Financial Aid Office at VWCC has selected a diverse list of lenders that offer the highest level of service and other benefits for our students. We base our decision on who makes this list on a number of considerations which include: Ease of processing, borrower benefits, customer service and whether or not the lender sells its loans. Students have the right to choose any lender that participates in the Federal Stafford Loan program and we are required to accommodate the student if he/she chooses a lender not on our list. However, we feel that a preferred list is a helpful tool for students because the Financial Aid Office has investigated and determined that its lenders are top-notch and will service our students with excellence during all stages of the student loan process.

If you decide that you would like to select a lender that is not listed above, please log off of this site and visit the Financial Aid Office to complete the paper loan application process.

Alternative Loans

The links below are just some of the lenders who offer alternative/private student loans. We strongly suggest you research the loans and the lender to find the best interest rate and terms of your loan. Please be aware that when viewing the alternative lender web pages below that you may be leaving the VWCC Financial Aid web site.

VWCC - The Community's College