Federal student loans
Valpo participates in the Direct Lending program, and processes all federal loans directly, apart from private lenders. First time student borrowers are required to complete entrance counseling before disbursement can be made. Valpo determines the loan amount and mails the promissory note to the borrower. Federal loans are credited to the student's Finance Office account. All loans are subject to a total aid cap equalling the cost of attendance less other aid received.
Federal Direct Subsidized Loan
- Need-based, must file FAFSA
- Annual limits: freshmen=$3,500, sophmore=$4,500, junior/senior=$5,500, graduate=$8,500
- A 1% federal origination fee is deducted from loan proceeds. (Loans disbursed after July 1, 2008 will have an origination fee of .5%)
- Principle and Interest deferred while enrolled at least 1/2 time in school.
- Interest Rate for Graduate Student Loans processed after July 1, 2006 are at a fixed rate of 6.8%
- Interest Rates for Undergraduate Loans:
- Processed between July 1, 2006 - June 30, 2008: 6.8%
- Processed between July 1, 2008 - June 30, 2009: 6.0%
- Processed between July 1, 2009 - June 30, 2010: 5.6%
- Processed between July 1, 2010 - June 30, 2011: 4.5%
- Processed between July 1, 2011 - June 30, 2012: 3.4%
- Interest Rate returns to 6.8% for subsequent years.
Federal Direct Unsubsidized Loan
- Not need-based, but must file FAFSA
- Annual limits are the same as Subsidized.
- Grad/Law students may borrow up to $20,500 annually in Subsidized/Unsubsidized.
- A 1% federal origination fee is deducted from loan proceeds. (Loans disbursed after July 1, 2008 will have an origination fee of .5%)
- Interest Rate: Loans processed after July 1, 2006 are at a fixed interest rate of 6.8%
- Principle deferred but interest accrues while in school, borrower may pay interest or defer.
Loan repayment information
