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Loans

Direct Subsidized Loan Time Limitation

Time Limitation of Direct Subsidized Loan Eligibility for First-Time Borrowers

There is a limit on the maximum period of time (measured in academic years) that a student can receive Direct Subsidized Loans. In general, students may not receive Direct Subsidized Loans for more than 150% of the published length of their program. For more information regarding this 150% limitation on Direct Subsidized Loans please click here.

http://ifap.ed.gov/eannouncements/attachments/051613DirectSubsidizedLoanLimit150PercentAnnounce1Attach

 

Federal Direct Loans

Direct Loans are the Federal Department of Education's major form of self-help aid. If you have financial need remaining after your expected family contribution, Pell Grant, and other financial aid are subtracted from your cost of attendance, you can borrow a Direct Loan to cover all or a portion of that remaining need. All first-time borrowers must complete an Entrance Counseling Session and sign a Master Promissory Note (MPN) before loan funds can be disbursed. You will sign your MPN at the direct lending website. Once you have signed the MPN, it will not be necessary to sign another MPN for future years of borrowing. Repayment begins six months after you cease to be at least a half-time student.

  • Subsidized Direct Loans: If you are eligible for a Direct Loan based on financial need, you will borrow a Subsidized loan. For this type of loan, the government will pay the interest while you are in school, for the first six months after you leave school, and when you qualify to have your payments deferred. The interest rate for 2014-15 is 4.66%.
  • Unsubsidized Direct Loans: If you do not have financial need (or remaining need), you may borrow an Unsubsidized loan. You will be responsible for paying all of the interest on this type of loan. The interest rate for 2014-15 is 4.66% for undergraduate unsubsidized loans and 6.21% for graduate unsubsidized loans.

Time Limitation of Direct Subsidized Loan Eligibility for First-Time Borrowers

There is a limit on the maximum period of time (measured in academic years) that a student can receive Direct Subsidized Loans. In general, students may not receive Direct Subsidized Loans for more than 150% of the published length of their program. For more information regarding this 150% limitation on Direct Subsidized Loans please click here.

http://ifap.ed.gov/eannouncements/attachments/051613DirectSubsidizedLoanLimit150PercentAnnounce1Attach

 

Parent Loan for Undergraduate Students (PLUS)

This is a loan in the parent’s name and has to be credit approved.Only parents may apply for this loan to help offset the remaining balance of aid needed for an academic year, up to the cost of education. Repayment can be deferred until after the student graduates or drops below half-time.  You may elect to pay the interest while the student is in school.  A parent must apply for this loan.  The interest rate is 7.21%.

To apply:

  1. The student must accept the PLUS loan in their financial aid package on the mylongwood portal
  2. Go to www.studentloans.gov. The parent will need to log in using the parent’s information and the parent’s FAFSA PIN
  3. Choose "Request Direct PLUS loan"
  4. Sign a Master Promissory Note

 

Federal Perkins Loans

A Federal Perkins Loan is a low-interest (5%) loan for students with exceptional financial need. The proceeds are federal funds allocated to the institution to award to students who demonstrate need through filing a FAFSA. Repayment on Perkins Loans begins nine months after you cease to be at least a one-half time student. You will be allowed up to 10 years to repay the loan in full. Your payment amount will be no more than $40.00 per month or $120.00 per quarter.

 

Graduate Plus Loans

Federal Graduate PLUS loans are low interest loans now available for graduate students, in the student's name, to assist with the cost of education. Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan. Interest rate for 2014-15 is fixed at 7.21%. Eligibility must be determined for the Federal Direct loan before consideration for the Graduate PLUS loan. Borrowers are required to pass a basic credit check. Eligible credit-worthy students can borrow up to the cost of education minus other financial aid received. If borrower is denied the Grad PLUS loan, he/she may still be eligible for the loan with a credit-worthy endorser. Borrower must meet the Satisfactory Academic Progress requirements and be enrolled at least half-time (6 credit hours). Students interested in applying for the Graduate PLUS loan should contact the Office of Financial Aid to determine eligibility and assistance with the process.

 

Private Loans

If you need additional funds to help offset the cost of your education, then perhaps a private/alternative loan is an option for you.  Selecting a private/alternative education loan can be an overwhelming task.  The lender options listed below, in alphabetical order, are ones that Longwood University students have used in the past 3 years and will provide information to help you make an informed decision. There are many more lenders who offer alternative/private student loans and Longwood will certainly certify (based on eligibility) a private/alternative loan from any lender.  (Some Credit Unions do require that you be a member to qualify for their private/alternative loan.)  We simply suggest you research the loans and the lender to find the best interest rate and terms of your loan to suit your individual need.  Please remember these loans are not backed by the federal government and therefore may have terms and conditions not as favorable as federally funded student and parent loans. We encourage all students and parents to first consider and apply for federal student loans, by submitting the FAFSA application, before applying for private loans.

For additional help in determining whether to borrow these additional student loans and to assess your ability to repay these loans, we highly recommend you review some practical money skills which will assist you in understanding how this might affect your personal finances.

 

Historical Lender List

ABNB Federal Credit Union

Apple Federal Credit Union

BayPort Credit Union

Chartway Federal Credit Union

Citizens Bank Private Loan/Citizens Bank Trufit Loan

Custom Choice Private Loan/SunTrust Private Loan

Direction FCU Private Loan

Discover Private Educ. Loan

Dupont Community Credit Union Private Loan

Langley Federal Credit Union

NASA Federal Credit Union

New Jersey Class Loan

Northwest Federal Credit Union

PNC Private Loan

Sallie Mae

Union Federal Savings Bank

Wells Fargo Private Loan

CU Student Loan

 

NSLDS

National Student Loan Data System

NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

 

How much have I borrowed at Longwood?

To find out, log into your myLongwood, click on Financial Aid, then View/Accept Financial Aid, and then Loan Application History.

The information about your direct loans or any Private/Alternative loans you have accumulated to date is current and listed by loan type, year and amounts.

You may also want to review some helpful information regarding money management such as budget creation, loan repayment, credit cards, managing debt, identity theft, and more.