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Loan Information

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Loan Programs
VSU participates in both the Federal Direct Loan Program and the Federal Family Education Loan (FFLEP). You may be offered loans under either program depending on your suitation. You can only borrow under one loan program at VSU. The average indebtedness for those students who borrowed funds through the Federal Direct Loan Program at VSU and graduated in 2005-2006 is $19,026. The following table shows an estimate of monthly repayment amounts, total interest charges, and the total amount repaid for a Federal Direct Stafford/Ford Loan with an 8% interest rate.

Estimated Loan Repayment Amounts
Loan
Payments
Monthly
Interest
Total
$4,000
120
$48.53
$1,823.60
$5,823.60
$7,500
120
$ 91.00
$3,420.00
$10,920.00
$10,000
120
$121.33
$4,559.00
$14,559.00
$17,000
120
$208.00
$8,021.00
$25,021.00

Loan Request forms for Fall 2008 must be received by the OFA by July 1, 2008 for processing.

If you receive a Federal Stafford/Ford Loan or your parent receives a Federal Parent (PLUS) Loan you must maintain at least half-time enrollment (6 hours undergraduate or 5 hours graduate) at all times. Dropping below half-time will result in subsequent loan disbursements being cancelled. If you re-enroll at least half-time you must contact the OFA to re-apply for the loan(s). 

To check information concerning previous loan balances and their status, you may visit the website, www.nslds.ed.gov by using your Federal Financial Aid PIN#.

Federal Stafford Loan
The Federal Stafford Loan allows students enrolled at least half time to borrow money at low interest for educational expenses. There are two types of Federal Stafford Loans: 1) Federal Subsidized Stafford Loans, and 2) Federal Unsubsidized Stafford Loans. The Federal Subsidized Stafford Loan is need-based and the interest is subsidized (paid) by the federal government while the student is in school and during the six month grace period. The unsubsidized loan is not need-based and was created for borrowers who do not qualify for federal interest subsidies. The Federal Government does not pay any of the interest for these loans. The student either pays the interest while in school and during the six-month grace period or it is added to the balance of the loan.

  1. Federal Stafford Loan interest rates are fixed at 6.0% (beginning July 1, 2008) for all new loans. There is also a loan fee of up to 3% that is deducted from each delivery of loan proceeds. Many lenders pay a part or all of this fee for students. This fee is passed on to the federal government to help reduce the government’s cost of supporting these low-interest loans. Repayment begins six months after graduation or termination of at least half-time enrollment.
  2. By completing a FAFSA and providing all requested documentation, you will provide enough information to be awarded financial aid. Receipt of your Award Letter from the OFA indicates eligibility for a Federal Stafford Loan but does NOT mean the loan is processed and approved. You must complete the Loan Request Form that is enclosed in the award letter and return it to the OFA by July 1st to ensure that your loan will be processed prior to the fee payment deadline. Once your Loan Request Form is processed, instructions for completing a Master
    Promissory Note may be mailed to you if you are a first time borrower. The loan is not approved and the funds are not available for disbursement until the Master Promissory Note is completed and verified.
  3. Having your eligibility determined for a Federal Stafford Loan does not commit you to accepting the loan or the amount you are offered (you may borrow less than your full eligibility). If you do choose to accept these loan funds, you are obligated to repay the amount you borrow, plus interest.
  4. Federal Stafford Loan maximums are $3,500 per year in the freshman year, $4,500 per year in the sophomore year, $5,500 per year in the junior and senior years, with a $23,000 cumulative total of Subsidized and Unsubsidized loans for all undergraduate study. Graduate students may borrow $8,500 per year. The cumulative total Federal Direct Subsidized Stafford/Ford Loan amount for undergraduate and graduate study is $65,000.
  5. Independent students and dependent students, whose parents are denied a PLUS Loan, can borrow an additional Federal Unsubsidized Stafford Loan. The maximums for these students are $4,000 per year in the freshmen and sophomore years, $5,000 per year in the junior and senior years and $12,000 per year for graduate students, not to exceed the COA. NOTE: Dependent students whose parents are denied a Federal Parent (PLUS) Loan must submit a signed letter stating that the parent will not pursue the PLUS Loan any further.
  6. Once the loan is processed, the funds will be disbursed at the beginning of each semester that is included in the loan period.
  7. The yearly maximum for the Federal Stafford Loan is available for Fall, Spring, and Summer Semesters. If the maximum loan limit has been received during Fall and Spring Semesters, students will not be eligible to borrow additional funds for the Summer Semester. The following Fall Semester would be the next term loan funds would be available. Students can request less on the Federal Direct Stafford Loan application for Fall and Spring and then request the remaining eligibility on the Summer application. For example:

    Dependent Freshman
    $3,500 12-Month Maximum
    Fall Semester
    $1750
    Spring Semester
    $1750
    Summer Semester
    $0


    Dependent Freshman
    $3,500 12-Month Maximum
    Fall Semester
    $1166
    Spring Semester
    $1166
    Summer Semester
    $1167

  8. Student loans for those undergraduate students who graduate during the Fall term will be pro-rated if the student is not enrolled full-time (12 hours). For example your loans will be prorated to 25% of the annual limit for 6 hours and 37.5% for 9 hours.
  9. If you receive a Federal Stafford Loan or your parent receives a Federal Parent (PLUS) Loan you must maintain at least half-time enrollment at all times. Dropping below half-time will result in subsequent loan disbursements being cancelled. If you re-enroll at least half-time you must contact the OFA to re-apply for the loan(s).

Loan Counseling
If you are a new borrower or transferring to VSU, you MUST complete loan counseling. These loan counseling sessions are conducted in the Office of Financial Aid, University Center, Room 4121: M-Th 8:00 AM - 5:00 PM and Friday 8:00 AM - 2:30 PM. You may also complete loan counseling online at the www.dlssonline.com website.

Service-Cancellable Loans
Service-Cancellable Loans are made by the Georgia Student Finance Authority to Georgia residents who are preparing for professions in which there is a critical shortage in Georgia. You may cancel principle and interest payments by practicing in an approve Georgia location twelve months for each academic year of assistance. The only approved critical field at VSU is Nursing.

Federal Parent (PLUS) Loan
The Federal Parent (PLUS) Loan is an educational loan for parents of dependent undergraduate students enrolled at least halftime. Financial need is not an eligibility requirement, but an acceptable credit rating is required. Loan eligibility is based on the Cost of Attendance minus all other aid received.

  1. The interest rate for all new Federal Direct (PLUS) loans is set at a fixed rate of 7.9% .
  2. The interest rate for all new FFELP PLUS Loans is set at a fixed rate of 8.5 %.
  3. The repayment period begins on the day the loan is disbursed. The first payment is due within 60 days of the last disbursement of funds from the PLUS loan.
  4. The Office of Student Accounts will distribute Federal Parent (PLUS) Loans after a Master Promissory Note is completed.
  5. The student financial aid application process must be completed by ALL students even if the only aid being requested is the Federal Direct Parent (PLUS) Loan.