Federal Direct Loan Program
Valparaiso University participates in the Federal Direct Loan Program, which requires filing of the Free Application for Federal Student Aid (FAFSA). Grad Plus and private loans are available to students to assist with additional tuition costs and living expenses associated with attending law school. Please refer to the tuition and fees section of the web page for more details on costs.
Students should note the FAFSA no longer requires your parents information and you are eligible for up to $20,500 in federal loans per year (this may vary if you receive a scholarship). Grad Plus and Private loans do require a credit check prior to their approval and disbursement and can only be approved for costs up to the cost of attendance.
Since over 80 percent of our students utilize grad plus or private loans to subsidize their living expenses we recommend that all students request a credit report before they begin school. This not only gives the student peace of mind that they will have no problems qualifying for a private loan, but it provides an opportunity to review your credit report for any mistakes.
The following links are just a few of the credit reporting agencies to which creditors subscribe:
You can now get a free copy of your credit report from any of the above agencies by going to www.annualcreditreport.com. You are allowed one free copy from each agency per year.
More details about the Federal Loan Program and how loans are disbursed at Valparaiso University will be sent to you in your Financial Aid Award packet in the Spring.
Grad Plus Loans
The Grad Plus loan is a non-need-based federal loan administered by Valparaiso University and available to Graduate and Law Students.
To be eligible to borrow a grad plus loan the borrower must be:
- A US Citizen or eligible non-citizen.
- Not in default on prior educational loans.
- Meets federally defined credit worthiness standards.
- Enrolled at least half-time in a degree program.
- Making satisfactory academic progress.
Students will need to meet credit worthiness requirements, therefore and applicant cannot be:
- 90 days or more delinquent on the repayment of any debt
- The subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years.
A 4.0 percent Loan Fee is deducted from the Federal PLUS loan before it is credited toward your charges. However, 1.5 percent of the fee is immediately refunded back to you in the form of an interest rebate. The net effect of this rebate is that you will receive the loan amount requested less 2.5 percent. If the first twelve required monthly payments are not made on time, the rebate amount will be added back to the loan. The loan has a fixed interest rate of 7.9%.
Students who borrow a Grad Plus Loan should be aware that:
- Repayment begins within 60 days of disbursement ;
- You can apply for an in-school deferment (repayment would begin 45 days after you are no longer enrolled at least ½ time.)
- 30 year maximum repayment period
- Complete the form at www.studentloans.gov and return it to the Financial Aid Office.