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Drawer Trigger

Loans

LOAN TYPES

SUBSIDIZED DIRECT LOAN

This loan is awarded based on financial aid need. Interest is paid by the federal government (subsidized) while the student is enrolled at least half time. Payment of both interest and principal begins six months after the student graduates, withdraws, or drops below half time. The FAFSA is required to apply for this loan. All students awarded an Subsidized Direct Loan will need to complete a Master Promissory Note (MPN) and Entrance Counseling at studentloans.gov prior to the receipt of loan funds.

UNSUBSIDIZED DIRECT LOAN

This loan is awarded based on completion of a FAFSA. No financial need is required. Interest accrues during the time the student is enrolled. Repayment of principal loan and any accrued interest begins six months after the student graduates, withdraws, or drops below half-time enrollment. The FAFSA must be completed to receive this loan. All students awarded an Unsubsidized Direct Loan will need to complete a Master Promissory Note (MPN) and Entrance Counseling via studentloans.gov prior to receipt of loan funds.

PERKINS LOAN

The Perkins Loan is a loan 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 servicer) will contact the student directly with instructions for completing the Perkins Entrance Counseling and a Perkins Master Promissory Note.

PARENT PLUS LOAN

This loan is available to parents of undergraduate students to assist in covering educational expenses. Parents may borrow up to the cost of attendance minus financial aid. Interest and repayment begin while student is enrolled, but In-School Deferment may be requested. 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.

GRADUATE PLUS LOAN

This loan is available to graduate students who are enrolled at least half-time (5 units or more). Students may borrow up to cost of attendance minus any 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.

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.


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.

LOAN COUNSELING

DIRECT LOAN ENTRANCE & MPN

Students who borrow under the Direct Loan Program for the first time are required to complete a Master Promissory Note (MPN) and Entrance Counseling before their loan proceeds can be released. This requirement must be completed online at studentloans.gov. Listed below are instructions on how to complete your MPN and Entrance Counseling:

  1. Go to the website www.studentloans.gov
  2. Select “Sign In”
  3. Sign in using your Social Security Number, the first 2 letters of your last name, date of birth, and your 4 digit FSA ID
  4. Select “Complete Entrance Counseling” (first item on list in center)
  5. Select “Subsidized/Unsubsidized”
  6. Complete all steps and submit
  7. Select “My Account” on the far left of menu across the top of the site.
  8. Select “Complete Master Promissory Note” (second item on list in center)
  9. Select “Subsidized/Unsubsidized”
  10. Complete all steps and submit

If you are having difficulties with your FSA ID, visit FSAID.ed.gov for assistance.

It takes 1-3 business days for Vanguard to receive and process the submissions and for them to reflect on a student’s myVU Portal (“Communications” tab).

Perkins Loan Entrance & MPN

Only required for those receiving a Perkins Loan. The first time a student is offered and accepts a Perkins Loan, the student is required to complete Perkins Loan Entrance Counseling and an MPN through ECSI. ECSI contacts the student with login information, etc. shortly after the student accepts the loan. 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.

Graduate Plus Loan

Graduate students that apply and are approved for the Graduate PLUS Loan, must complete Loan Entrance Counseling specifically for this loan. This requirement is completed once a year. Complete your Graduate PLUS Loan Counseling only if you have been asked to do so by the Financial Aid Office.

DIRECT LOAN EXIT

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

Please have 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

If you do not have information on your loans, you may contact your lender or go to the NSLDS website at www.nslds.ed.gov. You will need your PIN number that you used to file your FAFSA. If you would like to apply for a PIN, visit www.pin.ed.gov.

Please use the following link to complete your student loan exit counseling only if you have been asked to do so by the Financial Aid Office. Click here for Online Loan Exit Counseling

LOAN LIMITS, REPAYMENT & INTEREST RATES

DIRECT LOAN LIMITS

Grade Level

Dependent Students
(excluding students whose parents cannot borrow PLUS)

Independent Students
(including dependent students whose parents cannot borrow PLUS)

Freshman (0-26 units)

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

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

Sophomore (27-56 units)

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

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

Junior/Senior (57+ units)

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

$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

AGGREGATE BORROWING LIMITS

Dependent Undergraduate Student

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

Independent Undergraduate Student

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

Graduate Student (including undergraduate loans)

$138,500

INTEREST RATES&ORIGINATION FEES

Loan Type

2016-2017 Interest Rate

Origination Fee

Perkins Loan

5% Fixed

None

Subsidized & Unsubsidized Direct Loan (Undergraduates)

3.76% Fixed

  • 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%

Unsubsidized Direct Loan (Professional Studies & Graduate)

5.31% Fixed

  • 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%

Parent & Graduate PLUS Loan

6.31% Fixed

  • 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%

Private Loans

Contact your lender for more information

*The origination fee is the amount of money that is deducted from the original 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 applied to the student account.

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

Compare PLUS and Private loans.

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/your family.
For Parent PLUS loans: this loan is in the parent’s name. The parent is responsible for payments.

Repayment

Repayment on Direct Loans begins six months after a student graduates, withdraws, leaves school, or drops below half-time status. View a repayment estimator chart courtesy of USAFunds.