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 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 before the loan will disburse to their student account. Various deferment, forbearance, and repayment options are available.

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 Federal Student Aid 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?

1) Pursue an endorser to co-sign the loan

If endorser is approved, parent must complete the PLUS Credit Counseling.

2) Appeal the credit decision with the Department of Education

3) The student may request an increase to their Direct Unsubsidized Loan by

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 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.

FEDERAL STUDENT 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. Various deferment, forbearance, and repayment options are available.

UNSUBSIDIZED DIRECT LOAN

All students awarded an Subsidized Direct Loan will need to complete a Master Promissory Note (MPN) and Entrance Counseling before the loan will disburse to their student account.

Visit Self-Service and under Financial Aid, accept or decline any offered aid.
- If you wish to borrow less than the loan amount offered to you, you may reduce and submit the changes through Self-Service.
Go to Federal Student Aid
Select “Log In" and log in using your FSA ID Username, Email, or Phone
Under the Loans and Grants tab, select “Loan Entrance Counseling”
Select student status
Complete all steps and submit
Under the Loans and Grants tab, select “Master Promissory Note”
Select student status
Complete all steps and submit

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 Federal Student Aid. 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 find your loan servicer and federal student loan lifetime borrowing history, log into Federal Student Aid and review the 'Dashboard.'

PARENT PLUS LOANS

PARENT PLUS LOAN

The FAFSA is required to apply for the loan and eligibility is based upon the credit of the parent. This loan is available to credit worthy legal parent(s) or step-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 must re-apply each academic year that they wish to borrow a Parent PLUS Loan. 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.

Parents and step-parents can complete a Parent PLUS Loan application by logging into Federal Student Aid using their FSA ID.

Please 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.

If you are credit approved: The Financial Aid Office will be notified that you were approved to borrow a Parent PLUS Loan and within 3-5 business days, it will be added to your financial aid award. The credit decision is only valid for 180 days.

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).
Complete a Parent PLUS Loan Master Promissory Note (MPN) via Federal Student Aid prior to receipt of loan funds.
You may request to return all or a portion of your Parent PLUS Loan within 120 days of disbursement by emailing the Financial Aid Office.

What if my parent's credit is not approved?

Obtain an endorser to co-sign the loan

If the endorser is approved, parent must complete the PLUS Credit Counseling.

The student may request additional Unsubsidized loan funds by emailing the Financial Aid Office.
File an appeal with the Department of Education.

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.

GRADUATE PLUS LOANS

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. This loan is available to Graduate students who are enrolled at least half-time (5 units or more) in a Master's degree program. The FAFSA is required to apply for the loan and eligibility is based upon the credit of the graduate student. Students must re-apply each academic year that they wish to borrow a Graduate PLUS Loan. 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.

Graduate students can complete a Graduate PLUS Loan application by logging into Federal Student Aid using their FSA ID.

Please indicate a specific amount or select 'Maximum Eligible.' The Financial Aid Office cannot process your loan if you select 'Don't Know.' Students can borrow up to the cost of attendance minus all other aid received.

If you are credit approved: The Financial Aid Office will be notified that you were approved to borrow a Graduate PLUS Loan and within 3-5 business days, it will be added to your financial aid award. The credit decision is only valid for 180 days.

The net amount (principal minus origination fees) of the 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).
Complete a PLUS Loan Master Promissory Note (MPN) and Graduate PLUS Entrance Counseling prior to receipt of loan funds
You may request to return all or a portion of your Graduate PLUS Loan within 120 days of disbursement by emailing the Financial Aid Office.

What if my credit is not approved?

Obtain an endorser to co-sign the loan

If the endorser is approved, the student must complete the PLUS Credit Counseling.

File an appeal with the Department of Education.

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.

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 F ederal Student Aid.
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. 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

NATIONAL STUDENT LOAN DATABASE SYSTEM (NSLDS)

LOAN REQUIREMENTS & DISBURSEMENT

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)

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 (0-29 units)	$5,500 (up to $3,500 may be Subsidized)	$9,500 ($3,500 may be Subsidized)
Sophomore (30-59 units)	$6,500 (up to $4,500 may be Subsidized)	$10,500 ($4,500 may be Subsidized)
Junior/Senior (60+ 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 7/1/21-7/1/22	Origination Fee*
Subsidized & Unsubsidized Direct Loans (Undergraduates only)	3.73% Fixed annually	On or after 10/1/18 and before 10/1/19: 1.062% On or after 10/1/19 and before 10/1/20: 1.059% On or after 10/1/20 and before 10/1/22: 1.057%
Unsubsidized Direct Loan (Graduates only)	5.28% Fixed annually	On or after 10/1/18 and before 10/1/19: 1.062% On or after 10/1/20 and before 10/1/22: 1.057%
Parent & Graduate PLUS Loan	6.28% Fixed annually	On or after 10/1/18 and before 10/1/19: 4.248% On or after 10/1/20 and before 10/1/22: 4.228%
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, 2019, have different loan fees.

For more information about interest rates and origination fees click here.

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. Visit Federal Student Aid to apply and find more information.

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 Federal Student Aid 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	Parent PLUS Loan: 6.28% (07/01/2021-07/01/2022) Graduate PLUS Loan: 5.28% (07/01/2021-07/01/2022)	As low as 3.75% (varies by lender)
Variable Interest Rate	N/A	As low as 2.25% (varies by lender)
Origination Fee	4.236% (10/1/19-09/30/20) 4.228% (10/1/20-09/30/22)	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 for program of study	Available for less than full-time
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	Some lenders
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.	Generally no deferment during unemployment or economic hardships
Repayment Terms	Various repayment plans available	Determined by lender; varies by lender
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.

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

Loans

FEDERAL LOANS

SUBSIDIZED DIRECT LOAN

UNSUBSIDIZED DIRECT LOAN

PARENT PLUS LOAN

GRADUATE PLUS LOAN

PRIVATE LOANS

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

PRIVATE LOAN LENDERS

FEDERAL PLUS LOAN VS. PRIVATE LOAN

Federal PLUS Loan Program

Private Loan Programs

Borrower

Fixed Interest Rate

Variable Interest Rate

Origination Fee

Credit Requirements

Enrollment Requirements

Eligibility

Pay for Past due Balance

Annual Loan Limit

Aggregate Loan Limit

Grace Period

Deferment

Repayment Terms

Master Promissory Notes (MPN)

Consolidation

Borrower Benefits

Loan Discharge

Tax Incentives