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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.

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

LOAN LIMITS, REPAYMENT & INTEREST RATES

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

7.6% (07/01/2018-07/01/2019)

As low as 3.75% (varies by lender)

Variable Interest Rate

N/A

As low as 2.25% (varies by lender)

Origination Fee

  • 4.264% (10/1/17-09/30/18)
  • 4.248% (10/1/18-09/30/19)

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.