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Drawer Trigger

Loans

FEDERAL LOANS

SUBSIDIZED DIRECT LOAN

This loan is awarded based on financial need as determined by the FAFSA. Interest is paid by the federal government (subsidized) while the student is enrolled at least half time. Repayment begins following a six month grace period after the student graduates, withdraws, or drops below half time. All students will be considered for this loan after completing the FAFSA. All students awarded an Subsidized Direct Loan will need to complete a Master Promissory Note (MPN) and Entrance Counseling at studentloans.gov before the loan will disburse to their student account. Various deferment, forbearance, and repayment options are available.

UNSUBSIDIZED DIRECT LOAN

This loan is awarded based on completion of a FAFSA. No financial need is required. Interest begins to accrue after the first disbursement. Repayment of the loan principal and capitalized interest begins following a six months grace period after a student graduates, withdraws, or drops below half-time enrollment. All students awarded an Unsubsidized Direct Loan will need to complete a Master Promissory Note (MPN) and Entrance Counseling via studentloans.gov before the loan will disburse to their student account. Various deferment, forbearance, and repayment options are available.

PERKINS LOAN - EXPIRED 9/30/17

Please note: The Federal Perkins Loan program expired 9/30/17. Students can no longer borrow Federal Perkins Loans.

The Perkins Loan was available to full-time students demonstrating exceptional financial aid need. Perkins Loans have a fixed interest rate of 5%. A FAFSA must be submitted by March 2nd, the priority deadline, each year in order to be considered for this loan. Interest is deferred while the student is enrolled at least half time and repayment begins nine months after the student graduates, withdraws, or drops below half-time enrollment. After a Perkins loan is awarded and the student accepts the loan via the MyVU Portal, ECSI (Vanguard University’s Perkins loan servicer) will contact the student directly by email with instructions for completing the Perkins Entrance Counseling and a Perkins Master Promissory Note.

PARENT PLUS LOAN

This loan is available to credit worthy parents of Dependent undergraduate students to assist with educational expenses; the loan is borrowed in the parent's name on behalf of the student. Parents may borrow up to the cost of attendance minus all other financial aid received. The FAFSA is required to apply for the loan and eligibility is based upon the credit of the parent. All parents approved for a Parent PLUS Loan will need to complete a Parent PLUS Loan Master Promissory Note (MPN) via studentloans.gov prior to receipt of loan funds.

Interest begins to accrue after the first disbursement, and payment of principal and interest begins sixty (60) days after the final disbursement. Various deferment (including In-School Deferment), forbearance and repayment options are available.

What if my parent's credit is not approved?

If a parent borrower is not credit approved to borrow a Parent PLUS loan they have 3 options:

1) Pursue an endorser to co-sign the loan

2) Appeal the credit decision with the Department of Education

3) The student may request an increase to their Direct Unsubsidized Loan by submitting a Loan Change Form to the Financial Aid Office

GRADUATE PLUS LOAN

This loan is available to Graduate students who are enrolled at least half-time (5 units or more) in a Master's degree program. Students may borrow up to cost of attendance minus all other financial aid already awarded. The FAFSA is required to apply for the loan and eligibility is based upon the credit of the graduate student. All students approved for a Graduate PLUS Loan will need to complete a PLUS Loan Master Promissory Note (MPN) and Graduate PLUS Entrance Counseling via studentloans.gov prior to receipt of loan funds. Interest begins to accrue after the first disbursement, and payment of principal and interest begins sixty (60) days after the final disbursement. Various deferment (including In-School Deferment), forbearance and repayment options are available.

PRIVATE LOANS

SB 1289 DISCLOSURE: WHAT DO I NEED TO KNOW BEFORE APPLYING FOR A LOAN?

Students considering student loans need to be aware of the differences between federal student loans and private student loans:

Federal student loans are required by law to provide a range of flexible repayment options including, but not limited to, income-based and income-contingent repayment plans, as well as loan forgiveness benefits that private lenders are not required to provide.

Federal direct loans are available to most students regardless of income. Other qualification criteria do apply. For more information, please visit studentaid.ed.gov/eligibility.

Private student loan lenders can offer variable interest rates that can increase or decrease over time, depending on market conditions.

The interest rate on a private loan may depend on the borrower’s and/or co-signer’s credit rating.

Private student loans have a range of interest rates and fees and students should determine the interest rate of, and any fees associated with, the private student loan included in their financial aid award package before accepting the loan. Students should contact the lender of the private student loan or their university campus’ financial aid office if they have any questions about a private student loan.

PRIVATE LOAN LENDERS

ELM Select

ELM Select is a private student loan lender comparison tool to assist borrowers in finding a lender with the most favorable terms and conditions that meets their needs. Vanguard University will certify a private loan with any lender that offers private student loans. If your lender or credit union does not appear in ELM Select, please contact the Financial Aid Office.

LOAN REQUIREMENTS & DISBURSEMENT

DIRECT LOAN ENTRANCE COUNSELING & MPN

Students who borrow under the Direct Loan Program for Subsidized and Unsubsidized Loans for the first time are required to complete a Master Promissory Note (MPN) and Entrance Counseling before their loan funds will disburse to their student account. These requirements must be completed online at studentloans.gov:

  1. Visit myVU and accept the loans you wish to borrow; we encourage you to only borrow what you need to pay for school related expenses. If you wish to borrow less than the amount of loan offered to you, complete a Loan Change Form and submit it to the Finacial Aid Office indicating how much of the offered loans you wish to borrow.
  2. Go to the website https://studentloans.govstudentloans.gov
  3. Select “Sign In”
  4. Sign in using your Social Security Number, the first 2 letters of your last name, date of birth, and your 4 digit FSA ID
  5. Select “Complete Entrance Counseling” (first item on list in center)
  6. Select “Subsidized/Unsubsidized”
  7. Complete all steps and submit
  8. Select “My Account” on the far left of menu across the top of the site.
  9. Select “Complete Master Promissory Note” (second item on list in center)
  10. Select “Subsidized/Unsubsidized”
  11. Complete all steps and submit

How will I receive my loan funds?

  • Vanguard will receive notification that you have completed your Entrance Loan Counseling or Master Promissory Note within 3 business days, and the status of these requirements will be updated to show as received on your myVU Portal Communications tab.
  • Your loans will disburse (pay) to your student account once these requirements are complete, provided you are enrolled full-time. If you are enrolled less than full-time for your program of study, notify our office as soon as possible by submitting a Status Change Form.
  • The net amount (principal minus origination fees) will disburse (pay) to your student account equally over the terms of enrollment in accordance with federal regulations. For traditional undergraduate students this means 50% fall and 50% in the spring. For graduate or professional studies students, this mean 33% in the fall, 33% in the spring and 33% in the summer.
  • If you are an undergraduate student and you plan to graduate in December, your loans must be pro-rated based on the number of units you are enrolled for the fall term.
  • You may request that your Direct Loan(s) be cancelled or reduced within 120 days of disbursement by submitting a Loan Change Form to the Financial Aid Office. If more than 120 days have passed, you must repay your loan servicer directly. Visit studentloans.gov to review your federal student loan lifetime borrowing history and loan servicer contact information.

Perkins Loan Entrance Counseling & MPN

Please note: The Federal Perkins Loan Program expired on 9/30/17 and is no longer available to students.

The first time a student accepts a Perkins Loan, the student is required to complete Perkins Loan Entrance Counseling and a Master Promissory Note (MPN) through ECSI, Vanguard University's Perkins Loan Servicer. The student will receive an email from ECSI with a unique link to login to ECSI and complete their missing requirements. If a student is offered and accepts a Perkins Loan and does not receive information from ECSI to complete the required MPN and Entrance Counseling, please contact ECSI’s Loan Servicing customer support.

Repayment/billing for Vanguard University Federal Perkins Student Loan is handled by Educational Computer Systems, Inc. (ECSI). ECSI is a billing service provider for the college, not a collection agency.

ECSI provides borrowers web-based access to their account, allowing them to verify when payments have been received, update address and phone information, verify account balances, obtain loan payoff amounts, sign-up for electronic billing, and make payments. ECSI also provides payment options such as recurring electronic funds transfer and credit card payments (additional fees will apply to some eCheck and credit card payments).

For more information on ECSI, please visit their website at borrower.ecsi.net.

Parent PLUS Loan

The Parent PLUS Loan may be an attractive financial aid option for families of Dependent undergraduate students who want to help spread the cost of their student's education over a 10-25 year repayment period. Only the legal parent(s) (including step-parents) may apply for a Parent PLUS Loan on behalf of their student. Grandparents, aunts, uncles, other relatives, friends and legal guardians do not qualify. Click here for more information.

  1. Parents and step-parents who wish to apply for a Parent PLUS Loan should visit studentloans.gov to complete a Parent PLUS Loan application, using an FSA ID. Parents must re-apply each academic year that they wish to borrow a Parent PLUS Loan.
      • Don't forget to include the amount you wish to borrow; indicate a specific amount or select 'Maximum Eligible.' The Financial Aid Office cannot process your loan if you select 'Don't Know.' Parents can borrow up to the cost of attendance minus all other aid received.
  2. If you are credit approved: The Financial Aid Office will be notified that you were approved to borrow a Parent PLUS Loan, and a Parent PLUS Loan will be added to your financial aid award within 3 business days. The credit decision is only valid for 180 days.
  3. If you are not credit approved: If you are not credit approved to borrow a Parent PLUS Loan, you have several options.
      • Appeal the credit decision with the Department of Education
      • Find an endorser to co-sign your loan
      • Explore private loan opportunities with the lender of your choice
      • Your student may qualify for an increase to their Unsubsidized Direct Loan. Submit a Loan Change Form to the Financial Aid Office to be considered. If your student's Unsubsidized loan is increased, and you later appeal your credit decision or acquire an endorser, the Unsubsidized loan increase will be cancelled and returned to the lender because your student cannot receive both a Parent PLUS Loan and an increased Unsubsidized Loan.
  4. Parent borrowers who are initially credit declined for a Parent PLUS Loan, but later appeal successfully or acquire an endorser must complete Loan Entrance Counseling specifically for this loan before it will disburse to your student's account. This requirement must be completed annually.
  5. The net amount (principal minus origination fees) of the Parent PLUS Loan will disburse to your student's account equally over the terms of enrollment beginning the first day of class (eg. 50% fall, 50% spring).
  6. You may request to return all or a portion of your Parent PLUS Loan within 120 days of disbursement by submitting a Loan Change Form to the Financial Aid Office.

Graduate Plus Loan

The Graduate PLUS Loan may be an attractive financial aid option for credit worthy graduate students enrolled in a Master's degree program who want to spread the cost of their education over a 10-25 year repayment period.

  1. Visit www.studentloans.gov to complete a Graduate PLUS Loan application using your FSA ID. You must apply each academic year that you wish to borrow a Graduate PLUS Loan.
      • Don't forget to include the amount you wish to borrow; indicate a specific amount or select 'Maximum Eligible.' The Financial Aid Office cannot process your loan if you select 'Don't Know.' You can borrow up to the cost of attendance minus all other aid received.
  2. If you are credit approved: The Financial Aid Office will be notified that you were approved to borrow a Graduate PLUS Loan, and a Graduate PLUS Loan will be added to your financial aid award within 3 business days.
  3. If you are not credit approved: If you are not credit approved to borrow a Graduate PLUS Loan, you have several options.
  4. Students that apply and are approved for the Graduate PLUS Loan must complete Loan Entrance Counseling specifically for this loan before it will disburse to your student account. This requirement must be completed annually.
  5. The net amount (principal minus origination fees) of your Graduate PLUS Loan will disburse to your student account equally over the terms of enrollment beginning the first day of class (eg. 33% fall, 33% spring and 33% summer).
  6. You may request to return all or a portion of your Graduate PLUS Loan within 120 days of disbursement by submitting a Loan Change Form to the Financial Aid Office.

DIRECT LOAN EXIT COUNSELING

The Federal Government requires all Direct Loan borrowers to complete Loan Exit Counseling requirement when a student graduates, withdraws from school or drops below half-time status.

To complete Loan Exit Counseling visit studentloans.gov. Gather the following information before you begin:

  • Social security number
  • Expected permanent address
  • Expected employer
  • Next of kin
  • Two references (these persons will be contacted if your loan holder cannot reach you)
  • Loan types and balances
  • Interest rate

To review your federal student loan lifetime borrowing history visit www.nslds.ed.gov. NSLDS will also contain information on how to contact your loan servicer.

How will I receive my loan funds?

How will I receive my Subsidized or Unsubsidized loan funds?

      • Visit myVU and accept the amount of offered loan you wish to borrow.
      • Vanguard will receive notification that you have completed your Entrance Loan Counseling or Master Promissory Note within 3 business days, and the status of these requirements will be updated to show as received on your myVU Portal Communications tab.
      • Your loans will disburse (pay) to your student account once these requirements are complete, provided you are enrolled full-time. If you are enrolled less than full-time for your program of study, notify our office as soon as possible by submitting a Status Change Form.
      • The net amount (principal minus origination fees) will disburse (pay) to your student account equally over the terms of enrollment in accordance with federal regulations. For traditional undergraduate students this means 50% fall and 50% in the spring. For graduate or professional studies students, this mean 33% in the fall, 33% in the spring and 33% in the summer.
      • If you are an undergraduate student and you plan to graduate in December, your loans must be pro-rated based on the number of units you are enrolled for the fall term. Please notify our office by submitting a Status Change Form.
      • If the total amount of your financial aid exceeds your direct costs at Vanguard University, you may request your refund from the Office of Accounting Operations beginning the first day of classes.
      • You have 120 days from the date your loan is first disbursed to your student account to request that Vanguard University cancel or reduce your loan amount. If you would like to cancel or reduce your loan amount by submitting a Loan Change Form to the Financial Aid Office. If more than 120 days have passed, you must return the loan funds directly to your servicer.
      • Visit www.nslds.ed.gov to review your lifetime federal student loan borrowing history, including loan amounts, and contact information for your loan servicer(s).

How will I receive my Parent PLUS loan funds?

      • If your Parent is credit approved to borrow a Parent PLUS Loan on your behalf, funds will disburse directly to your student account after the loan is processed and all disbursement requirements are complete.
      • The net amount (principal minus origination fees) will disburse (pay) to your student account equally over the terms of enrollment in accordance with federal regulations. For traditional undergraduate students this means 50% fall and 50% in the spring. For Dependent professional studies students, this mean 33% in the fall, 33% in the spring and 33% in the summer.
      • If the total amount of your financial aid exceeds your direct costs at Vanguard University, you may request your refund from the Office of Accounting Operations beginning the first day of classes. The parent borrower may elect for any refund to be issued to themselves, or the student directly.
      • You have 120 days from the date your loan is first disbursed to your student account to request that Vanguard University cancel or reduce your loan amount. If you would like to cancel or reduce your loan amount by submitting a Loan Change Form to the Financial Aid Office. If more than 120 days have passed, you must return the loan funds directly to your servicer.

How will I receive my Graduate PLUS loan funds?

  • If you are credit approved to borrow a Graduate PLUS Loan, funds will disburse directly to your student account after the loan is processed and all disbursement requirements are complete.
  • The net amount (principal minus origination fees) will disburse (pay) to your student account equally over the terms of enrollment in accordance with federal regulations. For graduate students, this mean 33% in the fall, 33% in the spring and 33% in the summer.
  • If the total amount of your financial aid exceeds your direct costs at Vanguard University, you may request your refund from the Office of Accounting Operations beginning the first day of classes.
  • You have 120 days from the date your loan is first disbursed to your student account to request that Vanguard University cancel or reduce your loan amount. If you would like to cancel or reduce your loan amount by submitting a Loan Change Form to the Financial Aid Office. If more than 120 days have passed, you must return the loan funds directly to your servicer.

National Student Loan Data System (NSLDS)

The National Student Loan Data System (NSLDS)

The NSLDS webiste is maintained by the US Department of Education and contains your lifetime federal student loan borrowing history, including contact information for your loan servicers. We encourage you to log-in to NSLDS periodically and review your borrowing history to prepare for repayment.

LOAN LIMITS, REPAYMENT & INTEREST RATES

DIRECT LOAN ANNUAL BORROWING LIMITS

Grade Level

Dependent Students

Independent Students
(and Dependent students whose parents cannot borrow PLUS)

Freshmen

(0-26 units)

$5,500 (up to $3,500 may be Subsidized)

$9,500 ($3,500 may be Subsidized)

Sophomore

(27-56 units)

$6,500 (up to $4,500 may be Subsidized)

$10,500 ($4,500 may be Subsidized)

Junior/Senior

(57+ units)

$7,500 (up to $5,500 may be Subsidized)

$12,500 ($5,500 may be Subsidized)

Credential

$5,500 (with Parent PLUS Denial- up to $12,500)

$12,500 ($5,500 may be Subsidized)

Graduate

$20,500 Unsubsidized

Subsidized loan amounts are based on demonstrated financial need. If your parent(s) are credit denied for the Parent PLUS loan and you wish to be considered for increased loan borrowing limits, submit a Loan Change Form to the Financial Aid Office at least 2 weeks prior to the end of the semester or module you are enrolled.

AGGREGATE LIFETIME BORROWING LIMITS FOR SUBSIDIZED & UNSUBSIDIZED LOANS

The amounts below represent the maximum amount of Federal Direct Subsidized and Unsubsidized Loans that a student may borrow over their lifetime based on their program of study:

Dependent Undergraduate Students

$31,000
(Maximum $23,000 Subsidized)

Independent Undergraduates & Dependent Students Whose Parent's Can't Borrow a PLUS Loan

$57,500
(Maximum $23,000 Subsidized)

Graduate Students (including undergraduate loans)

$138,500

To review your federal student loan borrowing history and loan servicer information, visit the National Student Loan Data System (NSLDS).

INTEREST RATES&ORIGINATION FEES

Loan Type

Interest Rate

7/1/17-7/1/18

Origination Fee*

Perkins Loan

5% Fixed

None

Subsidized & Unsubsidized Direct Loan (Undergraduates)

4.45%

Fixed annually

  • On or after 10/1/15 and before 10/1/16: 1.068%
  • On or after 10/1/16 and before 10/1/17: 1.069%
  • On or after 10/1/17 and before 10/1/18: 1.066%

Unsubsidized Direct Loan (Graduate)


6.00%

Fixed annually

  • On or after 10/1/15 and before 10/1/16: 1.068%
  • On or after 10/1/16 and before 10/1/17: 1.069%
  • On or after 10/1/17 and before 10/1/18: 1.066%

Parent & Graduate PLUS Loan

7.00%

Fixed annually

  • On or after 10/1/15 and before 10/1/16: 4.272%
  • On or after 10/1/16 and before 10/17/17: 4.276%
  • On or after 10/1/17 and before 10/1/18: 4.264%

Private Loans

Contact your lender for more information

*The origination fee is deducted from the principal loan amount by Department of Education as a processing fee. This is a portion of the loan that is removed prior to the aid being disbursed to the student account at Vanguard University.

Loans first disbursed prior to Oct. 1, 2014, have different loan fees.

Parent & Graduate PLUS Loans

Interest begins to accrue after the first disbursement, and payment of principal and interest begins sixty (60) days after the final disbursement. Various deferment options are available (including In-School Deferment). Please read the application carefully when applying to choose the correct option for you and your family.

Repayment

Visit the National Student Loan Data System (NSLDS) to review your lifetime federal student loan history, including contact information for your loan servicers.
  • Direct Subsidized & Unsubsidized Loans: Students enter repayment following a six (6) month grace period after a student graduates, withdraws, leaves school, or drops below half-time status. Deferment, forbearance and repayment options are available.
  • Direct Parent PLUS Loan: Parent(s) are generally expected to start making payments on Direct PLUS Loans once the loan is fully disbursed (paid out). However, the parent borrower may request a deferment while their child is enrolled at least half-time and for an additional six (6) months after their child graduates, leaves school, or drops below half-time enrollment. Borrowers are not required to make any payments while the loan is deferred. Borrowers can request a deferment as part of the loan application process at studentloans.gov or by contacting their servicer if the loan has already disbursed.
  • Direct Graduate PLUS Loan: You are not required to make any payments while you are enrolled in school at least half-time, and for an additional six (6) months after you graduate, leave school, or drop below half-time enrollment. During any period when you are not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.
  • Federal Perkins Loan: Repayment begins nine (9) months after a student graduates, withdraws, leaves school, or drops below half-time status.
  • Private Loan: Contact your loan lender.

What types of loan repayment plans are available?

There are several repayment options available that are designed to meet the individual needs of borrowers. Some repayment plans are not available to parent PLUS borrowers. Your loan servicer can help you understand which repayment options are available to you. Generally, you'll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn about your repayment options.

What If I have trouble repaying my loan(s)?

If you are unable to make your scheduled loan payments, contact your loan servicer immediately. Your servicer can help you understand your options for keeping your loan in good standing. For example, you may wish to change your repayment plan to lower your monthly payment or request a deferment or forbearance that allows you to temporarily stop or lower the payments on your loan. Learn more about deferment or forbearance options.

FEDERAL PLUS LOAN VS. PRIVATE LOAN




Federal PLUS Loan Program


Private Loan Programs

Borrower

  • Parent PLUS Loan: Parent
  • Graduate PLUS Loan: Student

Student

Fixed Interest Rate

7.41% (2014/2015)

As low as 3.75% (varies by lender)

Variable Interest Rate

N/A

As low as 2.25% (varies by lender)

Origination Fee

  • 4.288% (12/1/13-09/30/14)
  • 4.292% (10/1/14-09/30/15)

Usually 0% (check with lender)

Credit Requirements

  • Credit check required
  • Approval determined by federal criteria, not credit score
  • No adverse credit & no excessive debt
  • Credit check required
  • Approval determined by lender criteria
  • Credit score & credit history important
  • Cosigner with good credit recommended (cosigner is only responsible if borrower (student) fails to make payments. Only the borrower’s credit history will be impacted, not the cosigner’s.

Enrollment Requirements

At least half-time (6 units)

At least half-time (6 units) – except Wells Fargo Collegiate Loan & Sallie Mae Smart Option Loan, which accept less than half-time (3 units).

Eligibility

U.S. Citizen or permanent Resident

U.S. Citizen or permanent resident OR must apply with a creditworthy U.S. Citizen or permanent resident cosigner

Pay for Past due Balance

No

Charter One TruFit Student Loan (180 days) and Sallie Mae Smart Option Loan (365 days) – if recently graduated or plan on enrolling at Vanguard again

Annual Loan Limit

Cost of Attendance minus financial aid

Cost of Attendance minus financial aid

Aggregate Loan Limit

None

Varies by lender

Grace Period

No federal grace period; in some cases possible to request deferment while student is in school

Varies by lender. Determined by how application is originally completed.

Deferment

PLUS offers unemployment and economic hardship deferments.

No deferment during unemployment or economic hardships

Repayment Terms

  • Standard
  • Graduated
  • Income-based
  • Pay as You Earn
  • Income Contingent

Determined by lender; Varies by lender; Chosen during application process and cannot be changed after application is completed.

Master Promissory Notes (MPN)

  • Regular approval: MPN is good for 10 years
  • Endorsed loan: new MPN need for each application

New MPN required for each application. Part of application process with lender.

Consolidation

Consolidate with other federal PLUS loans (Direct Loans & FFEL)

Cannot be consolidated with federal loans. Some lenders offer consolidation (Undergraduate: Wells Fargo, Charter One TruFit Loan; Graduate: CU Student Loans)

Borrower Benefits

0.25% interest rate reduction for electronic debit account repayment (ACH)

  • Benefits offered to reduce interest rates and overall loan costs (usually include 0.25% reduction for use of ACH, check with lender)
  • Cosigner release options – varies by lender

Loan Discharge

PLUS Loans are federally insured and are discharged in the even of total and permanent disability or death.

Most lenders offer the ability to discharge a loan in the event of total and permanent disability or death. Check with lender.

Tax Incentives

Yes; 1098E given if interest paid is over required amount. Check with tax advisor to determine eligibility for benefit.

Varies by lender. Contact lender to determine eligibility to receive 1098E. Contact tax advisor to determine eligibility for tax benefit.