Federal Loans

Federal Loans

Villa Maria College participates in the Federal Family Education Loan (FFEL) Program. Students are eligible for Subsidized Stafford Loans on the basis of financial need. Students are eligible as long as they are in school at least part time. Repayment begins six months after student stops attending college or graduates. Subsidized loans disbursed after July 1, 2011 have an interest rate of 3.4%.

	Cost of Attendance
-	Expected Family Contribution (EFC)
-	Other Financial Assistance (PELL, TAP,SEOG, Work Study)
=	Maximum Stafford Loan Amount

The interest is paid by the Federal Government while the student is in school and during the grace period (before repayment begins). Subsidized loans disbursed after July 1, 2009 have an interest rate of 5.6%. 

Students are eligible for Unsubsidized Stafford Loans not on the basis of financial need, rather to help students cover the cost of attendance.

	Cost of Attendance
-	Other Financial Assistance (PELL, TAP, SEOG, Work Study)
=	Maximum Loan Amount

 

Unsubsidized loans disbursed after July 1, 2009 have an interest rate of 6.8%. The interest starts accruing when in school. There is an option to make interest payments while in school.  
 

Stafford Loan Limits

Dependent Students

Student Status	Stafford Subsidized Annual Loan Limit	Additional Stafford Unsubsidized Annual Limit
Freshman	$3,500	$2,000
Sophomore	$4.500	$2,000
Junior	$5,500	$2,000
Senior	$5,500	$2,000

 

Independent Students

Student Status	Stafford Subsidized Annual Loan Limit	Additional Stafford Unsubsidized Annual Loan Limit
Freshman	$3,500	$6,000
Sophomore	$4,500	$6,000
Junior	$5,500	$7,000
Senior	$5,500	$7,000

Aggregate Stafford Loan Limits

Undergraduate Dependent Students: $31,500 (no more than $23,000 of which can be subsidized)

Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)

 

Completing Your Financial Aid

After returning a copy of the signed award letter to the Financial Aid Office all students that have accepted loans

need to electronically sign their Master Promissory Note (e-MPN) and complete Direct Loan Entrance Counseling.

The following are the steps needed to complete both the e-MPN and Entrance Loan Counseling processes:

Be sure you have the necessary information ready before you begin:

• The federal pin number that you used when completing your FAFSA.
• Your driver’s license number (if you have one)
• The names, addresses and telephone numbers of two references who have known you for at least three years.

Direct Loan Entrance Counseling:

1. Go to www.studentloans.gov
2. Click on “Sign In” in the “Manage My Direct Loan” box
3. Click on “Entrance & Exit Loan Counseling”
4. Click on “Complete Entrance Counseling”
5. Select “I am an Undergraduate Student” and then “Continue”
6. After reading the instructional page, click “continue”
7. Select state and name of college from drop down menus.  If you aren’t sure which college you will be attending,
8. you can add multiple schools by selecting the “Add Another School” button.  (All schools that you select will receive verification that you completed the entrance counseling process.)
9. From this point on you will be guided through 15 pages of information.  You will need to read the information and then answer a series of multiple choice questions at the end of each page.  As you answer questions, a box will display the correct answer. Simply click on the “X” in the upper right corner to move on to the next question. 
10. On Page 16, you will reach the “Borrower’s Rights & Responsibilities” section.  Select “Click here to view the Borrower’s Rights and Responsibilities for Direct Loan Sub/Unsub/Perkins Loan Type.” You may want to print
11. a copy of this part of the document for your records.
12. Click “Submit” button

Note: If you entered Villa Maria College’s name while applying, the Financial Aid office should automatically receive notification that you have completed this process. But if you wish, the website does give you the opportunity to print out a “Counseling Verification Page.”

Electronic Master Promissory Note (e-MPN):

1. Go to www.studentloans.gov
2. Click on “Sign In” in the “Manage My Direct Loan” box
3. Click on “Complete Master Promissory Note”
4. Click on “Subsidized/Unsubsidized”
5. You will be asked to enter basic information such as: your name, address, telephone number and email address.  You will also be asked to provide your Driver’s license number (if you have one). Please note you will also be asked to provide your that both your driver’s license and all phone numbers entered cannot contain any spaces or dashes between the numbers.
6. Click “Continue” button at the bottom of the screen.
7. You will now be asked to enter the names, addresses and telephone numbers of two references.  Again, please note that all telephone numbers (including area code) must not contain spaces or dashes between the numbers. Click “Continue”
8. In the “Terms & Conditions” section of the application you need to read the boxes for sections B – G.  Then click the small box at the bottom of the screen that indicates you have reviewed the information regarding your federal loans and that you are accepting the terms and conditions.  Click “continue.”
9. The last section you will need to complete is “Review & Sign.”  Here you will be given the opportunity to review the information you have already entered and make any changes by clicking on the “edit” button.  At the bottom of the screen you need to enter your legal name and hit the “Sign” button.
10. Once your signature has been authenticated, click on “HTML Version.”  Here you will be given an opportunity to view your e-MPN. 
11. Click “Continue” and you will be given an opportunity to print a PDF version of your completed e-MPN.
    

PLUS Loan (Parent Loan for Undergraduate Students)

Parents can borrow a PLUS Loan to help pay their child's education expenses if they are a dependent undergraduate student enrolled at least half time in an eligible program at an eligible school and have done the FAFSA. PLUS Loans are available through the Federal Family Education Loan (FFEL) Program. The Parent PLUS borrower must be the biological or adoptive parent or stepparent (if the stepparent's income is included in the FAFSA). The parent must also be US citizen or eligible non-citizen and have a valid social security number. The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid the student receives.

The parents generally will be required to pass a credit check. If parents don't pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if your parents fail to do so. Effective July 1^st, if the parent is denied the PLUS loan (and does not to apply with an endorser), the student is eligible for an additional $4000 for the year for the Unsubsidized Stafford Loan. As of July 1, 2010, the fixed interest rate is 7.9%.

Parents have the option to defer payment until student graduates. Arrangment is made with particular lender.