Federal Stafford Loan

Could you tell me something about the student loan program at VC? A Federal Stafford Loan is a fixed interest loan made to students enrolled in an eligible program who are attending school at least half-time. Students enrolled in only remedial coursework are not eligible for any financial assistance, including loans. Who makes the loans? Loans are made by a lender such as a bank, credit union or savings and loan association. These loans are insured by the state guarantee agency and reinsured by the federal government. How do I get a loan? First you must complete your financial aid file. In addition, Federal regulations require borrowers undergo entrance loan counseling and loan testing before receiving a loan each academic year. Exit loan counseling and testing is required before the student ceases at least half-time enrollment. When will I get my loan? Loan proceeds will be credited to the student's tuition, fees, books and dorm charges no sooner than 10 days prior to the first class day and credit balances, after all institutional charges have been paid, will be mailed to the borrower no later than 14 days after the first class day. Who is eligible? A loan recipient must be enrolled at least half-time in a semester and show satisfactory academic progress. When are loans paid back? Repayment of these loans starts six(6) months after you cease to be enrolled or after you drop below half-time status. How much can I borrow? A dependent student can borrow combined subsidized and unsubsidized loans not to exceed the annual loan limits. Independent students may borrow additional unsubsidized loans not to exceed $4,000. Effective July 1, 2007, loan limits for freshmen (students with less than 29 semester hours completed in their course of study) are $3,500, sophomores $4,500 per year. For loan purposes, a student's classification will be determined by the number of hours completed toward his or her selected degree or certificate at the time of initial certification. A student's classification will not be reevaluated until the beginning of the next academic year (Fall through Summer). Do I have to borrow that much? NO! You should only borrow as much as you need. Remember, these loans DO have to be paid back! What if I transfer to VC from another school? Will I be eligible for a loan? A student who transfers in the middle of an academic year and has received his or her annual loan limit while at the transfer institution will not be eligible for a loan at VC until the beginning of the next academic year. How often do I have to apply for a loan? Student loan recipients must apply for financial aid each year. Student loans are packaged for each eligible student and included in his/her award letter. Interested students must print a loan packet from http://vernoncollege.edu/forms.html and complete a student loan request. Which loan programs does VC participate in? The Federal Stafford Subsidized loan, Federal Unsubsidized Stafford loan, Federal Parent Plus Loan for undergraduate students are the only loans available at VC. VC does not participate in the following loan programs: Federal Perkins Loan; National Direct Student Loan; Hinson-Hazlewood Loan. What is the difference between subsidized and unsubsidized loans? The Federal Subsidized loan is need based and the government pays the interest during in-school status, grace periods and authorized deferment periods. The Federal Unsubsidized loan is not need based and the borrower is responsible for paying the interest during these loan periods. What is a Federal Parent Plus Loan? The Federal Parent Plus loan is a fixed interest loan created by the federal government to help creditworthy parents pay for their dependent student's education beyond high school. Repayment begins 60 days after the loan is fully disbursed. Interested students must complete their financial aid file and turn in a Parent Plus Certification/Authorization form and a Plus Request form. Both forms are available at http://www.vernoncollege.edu/forms.html. Where do I call if I have more questions? For questions concerning Veteran's Benefits, please call Debbie Alexander at (940) 696-8752 ext. 3203. For any other questions concerning Financial Aid, please call the Financial Aid office in Vernon at (940) 552-6291 ext. 2206 or in Wichita Falls at (940) 696-8752 ext. 3203. When is the Financial Aid office open? Regular office hours are: 8:00 a.m.--5:00 p.m., Monday through Thursday and 8:00 a.m.--12:00 p.m., Friday. Summer hours are 7:45 a.m.--5:15 p.m., Monday through Thursday and Closed on Friday. What is your address? Our address is: Vernon College 4400 College Drive Vernon, Texas 76384 Financial Aid Home Page Frequently Asked Questions Financial Aid Calendar Types of Aid How to Apply disclaimer