Student Loans
New! 2010-2011 VWC changes to the Direct Loan ProgramAs we begin our 2010/2011 awarding season for new and returning students, we want to inform our families of some changes in the way we process Federal Stafford Loans. Virginia Wesleyan College has chosen to participate exclusively in the William D. Ford Direct Loan program for all of our Federal Stafford Subsidized and Unsubsidized Stafford Loans as well as Federal Parent Loans for Undergraduate Students (PLUS). Our decision is based in part on the current lender issues regarding their continued participation in the Federal Family Education Loan Program (FFELP). We believe that this change will provide a more stable and predictable borrowing experience as Direct Loans (DL) are offered by the U.S. Department of Education.
Does this change impact me? Yes, if you are a new or a continuing student or parent borrower who plans to borrow a federal loan after July 1, 2010; this change will impact you. As of the 2010/2011 academic year, ALL Federal Stafford and Federal PLUS loans will be processed through the Direct Loan program. Please see more information and instructions listed below. _____________________________________________________________________________________ 2010-2011 Direct Stafford LoanVirtually all students will be eligible to borrow using this type of loan. Students who have demonstrated need, based on completion of the FAFSA, will be entitled to borrow a loan which will be subsidized by the government while they are enrolled at least half-time. Students who do not show need will also be eligible to borrow, however, the loan will not be subsidized by the government and interest will begin accruing as soon as the funds have been disbursed. Annual loan limit for freshmen is $5,500, $6,500 for sophomores and $7,500 for juniors and seniors ($2000 of all limits must be a Unsubsidized Stafford loan). Current subsidized stafford interest rate is 5.6%; unsubsidized stafford interest rate is 6.8%. Subsidized Stafford interest rate is 4.5% as of July 1, 2010. 2010-2011 Direct Stafford Loan process (this process effects ALL Stafford Loan borrowers)All students must complete a new Entrance Counseling and Direct Master Promissory Note online electronically. The Financial Aid Office (FAO) will reflect the accepted stafford loan amount(s) on the student's financial aid record as a "pending" loan amount. A .5% processing fee will be deducted (fee based on 1% minus .5% up-front rebate). If the stafford loans are initially declined, the student may accept the stafford loan prior to the end of the term enrolled. In June, the FAO will certify/originate the accepted loan amount(s) and electronically send to the Common Origination and Disbursement Center (COD) for loan guarantee. The pending loan amount will reflect on your student billing statement mailed monthly by the Business Office starting in June. _____________________________________________________________________________________ Alternative Loan ProgramAn Alternative Loan is a financing option designed to allow the student to finance their remaining balance after other financial aid is deducted. This is a private loan borrowed by the student with a credit-worthy co-signer. Students who are interested in this option may compare loan options and apply online at www.elmselect.com. _______________________________________________________________________________________ National Student Loan ClearinghouseFind who is servicing your student loans. The LoanLocator searches the National Student Loan Clearinghouse and delivers an up-to-date list of loan providers and a means for contacting them via telephone or Internet hyperlink. VWC students may access the LoanLocator using the following steps: 1 Log into your WebAdvisor account. 2. Click on the red "Students" box 3. Click on the link that reads "Student Clearinghouse - Enrollment Verification" 4. Enter the required personal information 5. Click on LoanLocator For more information, contact: National Student Loan Clearinghouse Phone (703) 742-4200
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