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 2013-14 is 3.86%.
- 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 2013-14 is 3.86%.
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 monthly payment amount will depend on the size of your debt and the length of your repayment period.
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 2013-14 is fixed at 6.41%. 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.
The private/alternative loan is an educational loan through a lender chosen by the borrower to provide a source of financial assistance for your education that is not covered by other forms of financial aid. The loan programs are not federally guaranteed or subsidized. These loans are offered by lenders from the private sector and have no connection to the federal government or Longwood University. Interest rates are variable and based on market interest rates (such as Prime Rate or LIBOR) that can change on a quarterly basis.
Eligibility is based on the review of the borrower's and/or co-borrower's credit worthiness and ability to repay the loan. Approval is not guaranteed. Maximum loan amount is limited to the cost of attendance minus any other financial aid you are receiving. Students are responsible for researching the terms and conditions of all loan programs. Students interested in a Private/Alternative loan should contact the Office of Financial Aid to determine the amount of student loan you should request and/or pursue any other financial aid options. This loan should be used after all other Federal funds have been exhausted. Federal aid is always a better option. The student should then review all lenders terms and conditions to select the loan program which best meets your needs. Once the lender has been selected, you should apply online through the selected lender's website. After the loan has been approved, a certification request will be sent to our office from the lender. The loan will be certified by the Office of Financial Aid and the lender will disburse the funds to the school on the date designated by the school. The funds will be applied to your student billing account and a refund issued if necessary.
NSLDSNational 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.