There are several loan programs available to students and their parents to help pay for college. There are two basic categories of loans:

1. Need based
2. Non-need based

Need based loans include the Federal Perkins, Nursing, and Subsidized Stafford loans. Non-need based loans include the Federal Unsubsidized Stafford,Graduate PLUS and Parent PLUS loans, as well as private/alternative loans. When you apply for financial aid, you are automatically considered for Perkins, Nursing, and Stafford loans - both subsidized and unsubsidized. The Graduate PLUS, Parent PLUS loan and all private/alternative loans require separate applications.
The University of Virginia participates in the Federal Family Education Loan Program (FFELP). This program offers low-interest Stafford loans to dependent and independent, undergraduate and graduate students enrolled in school at least half-time (minimum of six credit hours per semester). Student Financial Services certifies the loans and funds that come from a private lending institution such as a bank or credit union.

For a list of lenders used by our students in 2007 and 2008 click here

Loan Summary

Loan	Interest	Eligibility	Terms	How to Apply
Perkins	5% fixed interest for the life of the loan	• Need-based • For first undergraduate degree or graduate degree programs • Must be at least half-time	• Repayment deferred, no interest while in school at least half-time • 9-month grace period to begin repayment • Deferment/ cancellation options available	• Automatic when you apply for financial aid • Must sign Master Promissory Note to receive funds
Nursing	5% fixed interest for the life of the loan	• Need-based • Must be enrolled full-time in nursing program	• Repayment deferred, no interest while in school at least half-time • 9-month grace period to begin repayment • Deferment/ cancellation options available	• Automatic when you apply for financial aid • Must sign Promissory Note to receive funds
Stafford Subsidized	• Fixed Interest Rate of 6.80% for repayment •For 08-09 Undergraduate Loans a fixed Interest Rate of 6.00% for repayment	• Need-based • Must be in a degree or certificate program at least half-time • Limits based on year in school. See chart	• Repayment deferred, no interest while enrolled at least half-time. • Limited deferment provisions • Origination fee of 1.00% for 08-09 • Guarantor Fee up to 1.00% depending on the Guarantor	• Automatic when you apply for financial aid •First-time borrowers must notify Student Financial Services of the choice of lender and guarantor • Must sign Master Promissory Note with your lender to receive funds
Stafford Unsubsidized	• Fixed Interest Rate of 6.80% for in-school and repayment	• Non-need-based • Enrolled at least half-time in a degree or certificate program • Limits based on year in school. See chart	• Interest payments begin 60 days after disbursement unless capitalized • Repayment of principal deferred while enrolled at least half-time • Limited deferment provisions •Origination fee of 1.00% • Guarantor Fee up to 1.00% depending on the Guarantor	• Automatic when you apply for financial aid but requires separate application •First-time borrowers must notify Student Financial Services of the choice of lender and guarantor • Must sign Master Promissory Note with your lender to receive funds
Parent PLUS	• Fixed Interest Rate of 8.50% repayment	• Non-need-based May borrow cost of attendance minus other aid • Enrolled at least half-time in degree or certificate program. • Parent borrows on behalf of student.	• Repayment of principal and interest begins 60 days after loan disbursed • Limited deferment provisions • 3.00% origination fee • Guarantor Fee up to 1.00% depending on the Guarantor	Must complete: • UVA Parent PLUS application •First-time borrowers must notify Student Financial Services of the choice of lender and guarantor • Online Master Promissory Note with your lender to receive funds
Graduate PLUS	•Fixed Interest Rate of 8.50% repayment	•Non-need-based may borrow cost of attendance minus other aid • Enrolled at least half-time in degree or certificate program. • Must complete the FAFSA • Must have used all Stafford eligibility for the year	•Repayment of principal and interest begins 60 days after loan disbursed • Repayment may be deferred until after graduate.  Contact lender for information	Must complete: •UVA Graduate Financial Aid application, or •UVA Graduate Summer Financial Aid application, or •UVA Darden Financial Aid application and •UVA Graduate PLUS application •First-time borrowers must notify Student Financial Services of the choice of lender and guarantor and •Online PLUS Master Promissory Note with your lender to receive funds
Alternative/ Private	Varies with loan	•Non-need based •Most likely will need a credit worthy co-signer	Vary by lender	Vary by lender

General Information about Loans

Federal Perkins and Nursing Loan Program

Federal Stafford Loan Program

Federal Stafford Loan Maximums

Federal Parent PLUS Loan Program

Federal Graduate PLUS Loan Program

How to Choose a lender and Guarantor for your Stafford or PLUS Loan

Private Loans

Loan Summary Sheet

Federal Perkins and Nursing Loans
The Federal Perkins and Nursing Loans are based on financial need. These loans must be repaid.

The Perkins Loan is awarded to students who demonstrate the greatest financial need. Preference is given to students who are eligible for the Federal Pell Grant. Annual award amounts range from $500 to $4,000 a year. The aggregate maximum limit an undergraduate student may borrow is $20,000.

The Nursing Loan is awarded to students who demonstrate the greatest financial need and who are enrolled in the University's undergraduate Nursing Program. Annual award amounts range from $500 to $2,500 to first- and second-year students, and up to $4,000 to third- and fourth-year students. The aggregate maximum amount an undergraduate nursing student may borrow is $13,000.

Unlike other federal loan programs, origination fees are not deducted from Perkins and Nursing Loans. No interest is charged while students are enrolled in school (undergraduate or graduate) on at least a half-time basis.

Perkins or Nursing Loan Promissory Notes: Students awarded a Perkins loan will be mailed a Master Promissory Note from the the Student Loan section of Student Financial Services.  Once signed, this promissory note will serve for any future Perkins loans received at UVA.

Nursing Loan Promissory Notes: Students awarded a Nursing Loan will be mailed a loan promissory note from the Student Loan section of Student Financial Services each year. There is no master promissory note for the Nursing Loan. Students must sign their loan note each year they borrow.  In addition to the Nursing Loan promissory note, Nursing Loan borrowers must complete an entrance interview form, which explains the borrower obligations to the Nursing Loan program. The Nursing Loan Entrance Interview form is mailed along with the promissory note.

Students who do not return the signed Perkins or Nursing Loan promissory note by October 1 will have their loan canceled for the academic year.

Disbursement Procedures: One-half of the loan is applied directly to the student's account each semester soon after the student registers full-time, as long as the required Promissory Note is on file.

Exit Interview: It is the Perkins and Nursing Loan student's responsibility to have an exit interview before leaving the University or in the event they register less than half-time (less than six credit hours). Exit Counseling information online


Repayment: Repayment begins nine months after the student leaves school or drops below half-time (six credit hours). At that time, interest will begin to accrue at a rate of 5% each year with a minimum yearly payment of $480 or minimum monthly payment of $40. The actually monthly repayment will depend on the amount of the student's debt. Repayment may be spread over a ten-year period from the date of the first payment, and loans can be consolidated for repayment.

Stafford Loan Program
Stafford Subsidized Loan
Students who demonstrate financial need are eligible for the Stafford Subsidized Loan. The federal government will pay the interest while students are enrolled at least half-time (minimum of six credit hours). Repayment of the loan principal begins six months after the student leaves school or is enrolled less than half-time (fewer than six credit hours). At that time, interest will begin to accrue at a fixed rate with a minimum monthly payment of $50.  Loans for undergraduate students for 08-09 will have a fixed rate of 6.00%, while loans for graduate/professional students will have a 6.80% fixed rate.

Stafford Unsubsidized Loan
Students who do not demonstrate financial need, in whole or in part, are eligible for the Stafford Unsubsidized Loan. Under this program, students may still borrow, but will be required to pay all the interest on the loan. Repayment of the interest on the unsubsidized loan begins 60 days after disbursement unless interest capitalization is requested. Interest on an unsubsidized loan is fixed at 6.80% for 08-09.

Additional Stafford Unsubsidized Loans
Through the Stafford Loan Program, independent undergraduate students and students whose parents were denied the PLUS may borrow up to the following additional amounts:

First and Second Year Students--$4,000
Third and Fourth Year Students--$5,000
Preparatory Coursework--$7,000

Master Promissory Note: All borrowers are required to complete a Master Promissory Note (MPN) the first time they borrow from a particular lender as a University of Virginia student. Your lender will contact you with procedures for completing your MPN.  Many banks will offer on-line electronic signatures for MPNs. 
The MPN does not show loan amounts because it can serve as the student's promissory note for future years. The amount of the subsidized and unsubsidized loans will be included in the student's financial aid award notification.

Students will receive their Loan Disclosure Statement from their lender for each new loan borrowed. The disclosure statements provide information about the types and amounts of loans borrowed, the loan period, and the anticipated disbursement dates. Students should maintain the statements for their records.
Students may decline or reduce the amount of their loan(s) by completing a Financial Aid Change form and submitting it to the Student Financial Services office at UVA. To avoid incurring interest charges and loan fees, funds must be returned within 120 days of disbursement. The loan fee will be reduced or eliminated in proportion to the amount of the disbursement returned.

Disbursement Procedure: The financial aid award letter indicates the total loan amount of the Stafford Loan the student is awarded. The actual amount disbursed may be less due to the loan origination fee or the guarantor fee. This amount can vary, depending on the lending institution.

The Stafford Student Loan is normally payable in two disbursements, one-half of the total in each semester. Loan funds cannot be credited to the student's account until approved by the Lender and the student has enrolled in sufficient credit hours.

Students will receive an email once their loan has been disbursed into their University Student Account (billing account statement). The disbursement will first pay any outstanding charges due to the University of Virginia and the remaining funds will be sent to the student by check to their local address or direct deposit to their own personal bank account.

In the case of an over-award, one or both of the loan disbursements may be reduced or canceled. Similarly, if tuition charges are reduced because of a change in enrollment or additional departmental or non-university awards, one or both of the loan disbursements may need to be adjusted.

If a student fails to enroll in sufficient credit hours, their loan will be canceled within 30 days from the last day of final registration.

Entrance Interview: All first-time borrowers of federal loans must be informed of their borrower obligations before their first loan disbursement can be credited to their University account. Loan entrance counseling information online.

Exit Interview: It is the student's responsibility to have an exit interview before leaving the University or in the event he or she registers for less than half-time basis (minimum of six credit hours). Student loan history can be found at www.nslds.ed.gov; use your Federal PIN to access the data. It is the student's responsibility to contact the Student Financial Services if they are not contacted when they withdraw or enroll less than half-time (minimum of six credit hours) to obtain exit interview information. Exit counseling information online.

Stafford Loan Maximums

*Additional Stafford loans are available only for Independent students and Dependent students whose parents have been denied a Parent PLUS loan

Federal Parent PLUS Loan
The Federal Parent PLUS Program is a low-interest loan made to parents or legal guardians of dependent undergraduate students enrolled in school at least half-time (minimum of six credit hours per semester). Parents or legal guardians must be U.S. citizens or registered permanent residents to apply for the PLUS. Eligibility for the PLUS is not based on demonstrated financial need. Parents with adverse credit history or who have filed bankruptcy in the past may be denied the PLUS.  Students whose parents have been denied the PLUS loan may receive an additional unsubsidized Stafford loan (see chart above for eligible amount).

Eligible parents may borrow up to the cost of attendance less any financial assistance. The interest rate is fixed at 8.50% with an origination fee of 3.00% and a guarantor fee of 1.00%.  Repayment begins 60 days after the full disbursement of the loan, but parents may request a deferment while the student is in school.

Please note that PLUS proceeds are applied to tuition charges before any other financial assistance. Unless parents request otherwise, credit balances are refunded to them rather than to the student.

PLUS Application and Promissory Note: All parent borrowers will be required to complete the UVA PLUS Loan Application and sign a Master Promissory Note (MPN). Your lender will contact you with procedures for signing your MPN. Current regulations allow a parent to sign one promissory note (Master Promissory Note) that will be used for future PLUS loans borrowed, as long as you continue to borrow from the same lender. The PLUS MPN does not show loan amounts because it can serve as a parent's promissory note for future years. However, a parent may request (in writing) that the MPN be used for a single year award. In this instance, a parent would have to complete a new MPN, should she/he wish to apply for future PLUS loan funds. The amount of the PLUS loan eligibility will be included in the most recent financial aid award notification.

Parent borrowers will receive their PLUS Disclosure Statement from the lender for each new loan borrowed. The disclosure statements provide information about the amount of money borrowed, the loan period, and the anticipated disbursement dates. Parents should maintain the statements for their records.

Parents may decline or reduce the amount of their loan(s) by completing a Financial Aid Change form and submitting it to Student Financial Services. To avoid incurring interest charges and loan fees, funds must be returned within 120 days of disbursement. The loan fee will be reduced or eliminated in proportion to the amount of the disbursement returned.

Please note that parents who do not submit a signed promissory note by October 1 will have their loan canceled for the academic year.

Disbursement Procedure: The PLUS is normally payable in two disbursements, one-half of the total in each semester. Loan funds cannot be credited to the student's account until approved by the lender and the student has enrolled in sufficient credit hours. All undergraduates at the University must be enrolled full-time (at least 12 credit hours).

The financial aid award letter indicates the total loan amount of the PLUS awarded. The actual amount disbursed will be less due to the origination and guarantor fees.

In the case of an over-award, one or both of the loan disbursements may be reduced or canceled.  Similarly, if tuition charges are reduced because of a change in enrollment, one or both of the disbursements may need to be adjusted.

Repayment: Under the PLUS program, repayment must begin within 60 days after full disbursement of the loan. There is no grace period for the PLUS loan. Parents must repay both principal and interest of the loan even while the student is enrolled in school. Parents can choose the Standard, Extended, or Graduated Repayment Plan. The Income Contingent repayment plan is not an option for the PLUS.  Parents can contact their lender for possible deferment of payments while their student is in school.

Federal Graduate PLUS Loan

The Federal Graduate PLUS Program is a low-interest loan made to graduate students enrolled in school at least half-time (minimum of six credit hours per semester).  Graduate students must be U.S. citizens or registered permanent residents to apply for the PLUS. Eligibility for the PLUS is not based on demonstrated financial need.  Graduate students with adverse credit history or who have filed bankruptcy in the past may be denied the PLUS.

Eligible graduate students may borrow up to the cost of attendance less any financial assistance. The interest rate is a fixed 8.50% with an origination fee of 3.00% and a guarantor fee of 1.00%.  Repayment begins 60 days after the full disbursement of the loan, but most lenders offer automatic deferment options.

Graduate students must complete the Free Application for Federal Student Aid (FAFSA), www.fafsa.ed.gov, the University Graduate Financial Aid application and/or the Graduate Summer School Financial Aid application or the Darden Financial Aid application and have exhausted their Stafford loan annual eligibility in order to qualify for the Graduate PLUS loan.  Graduate students must also complete the UVA Graduate PLUS Loan application.

PLUS Promissory Note: All Graduate student borrowers will be required to complete the UVA Graduate PLUS Loan Application and sign a Master Promissory Note (MPN). Your lender will contact you with procedures for completing your MPN. Current regulations allow a graduate student to complete one promissory note (Master Promissory Note) that will be used for future PLUS loans borrowed, as long as the lender remains the same. The PLUS MPN does not show loan amounts because it can serve as a graduate student's promissory note for future years. However, a graduate student may request (in writing) that the MPN be used for a single year award. In this instance, a graduate student would have to complete a new MPN, should she/he wish to apply for future Graduate PLUS loan funds. The amount of the Graduate PLUS loan eligibility will be included in the most recent financial aid award notification.

Graduate borrowers will receive their PLUS Disclosure Statement from the lender for each new loan borrowed. The disclosure statements provide information about the amount of money borrowed, the loan period, and the anticipated disbursement dates. Graduate students should maintain the statements for their records.

Graduate students may decline or reduce the amount of their loan(s) by completing a Financial Aid Change form and submitting it to Student Financial Services. To avoid incurring interest charges and loan fees, funds must be returned within 120 days of disbursement. The loan fee will be reduced or eliminated in proportion to the amount of the disbursement returned.
Please note that graduate students who do not have a signed promissory note on file by October 1 will have their loan canceled for the academic year.

Disbursement Procedure: The Graduate PLUS is normally payable in two disbursements, one-half of the total in each semester. Loan funds cannot be credited to the student's account until approved by the lender, and the student has enrolled in sufficient credit hours. All graduates at the University must be enrolled at least half time (6 hours) in a degree or certificate program.
The financial aid award letter indicates the total loan amount of the Graduate PLUS awarded. The actual amount disbursed will be less due to the origination and guarantor fees.

In the case of an over-award, one or both of the loan disbursements may be reduced or canceled.  Similarly, if tuition charges are reduced because of a change in enrollment, departmental or non-university awards, one or both of the disbursements may need to be adjusted.

Repayment: Under the Graduate PLUS program, repayment must begin within 60 days after full disbursement of the loan. There is no grace period for the Graduate PLUS loan.  Deferments may be available from your lender.

How to choose a lender and Guarantor for your Stafford or PLUS Loan

The University of Virginia participates in the Federal Family Education Loan Program (FFELP). This program offers low-interest Stafford loans to dependent and independent, undergraduate and graduate students enrolled in school at least half-time (minimum of six credit hours per semester) and PLUS loans to graduate students and to the parents of undergraduate students. Student Financial Services certifies the loans and funds that come from private lending institutions such as a bank or credit union.  Borrowers are required to select a lender and a guarantor.  We suggest that you look at all borrower benefits before selecting a lender.  As you get started, here are some terms and organizations in which you should be aware.

Lender—The lender is the bank or credit union that participates in the FFEL program.  The lender supplies the money for the loan.

Guarantor—The Guarantor is an organization that provides the insurance for the loan in the event of a default.

Servicer—The Servicer is the organization that services the loan.  Servicing includes processing payments, calculating accrued interest, etc.

Guarantor Fee—Guarantors are required to charge a 1.00% guarantor fee to the Federal government.  Some guarantors are paying the fee for the borrower, and some lenders are paying the fee for a borrower.  In any event, the fee must be paid by either the borrower or someone else.  Example—A student borrows $5,500.  If the student is responsible for paying the guarantor fee, then the net amount of the loan will be $5,445.  If a lender is paying the fee for a student, the net amount of the loan will be $5,500.

Origination Fees—Origination fees are charged by the lender to the borrower.  Origination fees are slowly being eliminated, but the current fee schedule is:

• A Stafford loan first disbursed on or after July 1, 2008, will have a maximum fee of 1.0%.
• A Stafford loan first disbursed on or after July 1, 2009, will have a maximum fee of 0.5%.
• A Stafford loan first disbursed on or after July 1, 2010, will have no origination fee (the fee will be eliminated).

Some lenders will pay the origination fee for the borrower.

Subsidized Loan—This is a need-based loan in which the Federal government pays the interest on the loan while the student is in school.

Unsubsidized Loan—This is a non-need-based loan in which the student is responsible for the interest on the loan while the student is in school.  Our recommendation is for the student to pay the interest if at all possible because deferred interest will become principal during repayment.

Master Promissory Note (MPN)—Students and Parents are required to complete a MPN with their lender.  This is a promise to repay the loan.  Most lenders have an on-line process for completing the MPN, but borrowers may request a paper MPN.  The lender will contact the borrower about completing the MPN after the University certifies the loan and loan amount.

Front-End Benefits—Some lenders are offering front-end benefits to borrowers.  These are benefits that occur when the loan is disbursed.  Some examples of front-end benefits include the payment of guarantor fees, payment of origination fees, or a rebate of a portion of the principal amount.

Back-End Benefits—Some lenders are offering back-end benefits to borrowers.  These are benefits that occur when the borrower goes into repayment.  Some examples of back-end benefits include an interest rate reduction with auto-debit payments or a number of on-time payments, a rebate of a portion of the principal amount or rebate of the origination fees.

On-Line Assistance—Some websites offer on-line assistance in selecting a lending institution.  Keep in mind that most of these sites may have partner relationships with certain lending institutions featured on their website.  If you use a website, you should compare the data to the data on other similar websites, and also to any information you receive from your lending institution or personal bank.

For information purposes, here is a list of lenders that UVA student borrowers used for the 2008-09 academic year.  UVA does not endorse any of these lenders but will process a loan from the student’s choice of FFELP eligible lenders. You may use any lender who participates in the FFELP program.

DuPont Community Credit Union

Rhode Island Student Loan Authority (RISLA)

Arvest Bank

The Student Loan People

Wachovia

Chesterfield Federal Credit Union

University Federal Credit Union

SunTrust

Wells Fargo

EdAmerica

South Carolina Student Loan Corporation (SCSLC)

Notre Dame Federal Credit Union

Delta Community Credit Union

United Nations Federal Credit Union

NelNet

College Foundation, Inc. (CFI)

KeyBank

Citibank

Vermont Student Assistance Corporation (VSAC)

Nellie Mae

Alaska Commission on Postsecondary Education

Bank of America

Navy Federal Credit Union

PNC Bank

University of Southern California Credit Union

State Department Federal Credit Union

Discover Student Loans (DSL)

Student Funding Group (StuFund)

Virginia United Methodist Church Credit Union

Graduate Leverage

Regions Bank

Virginia Beach Schools Federal Credit Union

Student Loan Funding

Academic Management Services

Access Group

Park View Federal Credit Union

Baylands Federal Credit Union

CollegeInvesthttp://www.cslf.com/

Newport News Shipbuilding Employees Credit Union

Missouri Higher Education Loan Authority

Chase

Sallie Mae

Private Loan Programs

Many private lending institutions offer credit-based loan programs to students.  Students should carefully consider the interest rates, loan fees, and terms of the program before making a selection.  Most institutions have an on-line application followed by a credit check.  Once the school is notified, the school will certify the loan amount.  The student most likely will then be required to complete either an on-line or paper promissory note.  Here is some information to consider before selecting a private loan.

Know Your Score—Most private loans are based on the creditworthiness of the borrower and/or co-signer.  Students need to know their credit score.  The higher the credit score, the better the interest rate.  Students can get their credit score at http://www.annualcreditreport.com/.  This site has been created by the three crediting bureaus and allows students to get a copy of their free credit report and to buy a copy of their credit score.

LIBOR—London Interbank Offered Rate.  The interest rate on some private loans is based on the LIBOR 3 month rate or the LIBOR 1 month rate.  The interest rate for the loan is probably variable and will change quarterly.

Prepayment Fee—Make sure the private loan does not have a prepayment fee for early repayment.

Deferment—Most private loans offer a deferred payment option.  If loan payments are deferred, interest will accrue.  Our recommendation is to pay the interest if at all possible so that your principal will not increase.  Some interest rates for deferment may be different than the repayment interest rate.

Repayment Fee—A few lenders actually charge a fee for going into repayment.  Shop around to avoid this fee.

Late Payment—Find out from the lender at what point a payment will be considered late.

Credit Worthy Borrower—A borrower or co-signer who has sufficient credit to borrow or co-sign for a loan.

Credit Ready Borrower—A borrower who does not have any credit history but is ready to establish credit.

For students interested in searching for available private loans, one source is www.CertifiedPrivateLoans.com.  This website allows you to compare private loans from up to ten different lenders.  You may also wish to go to www.finaid.org and search for  “private student loans.”

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