Fall 2022 Academic Calendar
 

VC Direct Loan Information

 

As a potential student loan borrower, you need to be aware of the following,

Vernon College student loan policies:



1. Federal regulations require that students interested in the Federal Direct and/or PLUS loan complete a Free Application for Federal Student Aid and provide the financial aid office any requested documentation. Student loan recipients must meet general eligibility requirements for federal student aid (see current catalog). At VC, Direct loans will automatically be packaged in each eligible student’s offer letter based on the student’s classification. A student’s classification is determined based on the number of hours completed towards his or her selected degree or certificate at the time of initial certification. A student’s classification will not be re-evaluated until the beginning of the next academic year (fall through summer). Students also have the option to reduce, accept or decline their offered loan amount via the on-line acceptance feature that is available through My VC.

2. Students or parents in default on a previous student loan or who owe money back on a federal grant are not eligible for financial aid. This includes both Federal Direct and PLUS Loans.

3. Student borrowers at VC must complete entrance loan counseling and the Master Promissory Note. Also, starting 2022-2023 all direct loan borrowers (students and parents) will be required to confirm they have viewed the Annual Student Loan Acknowledgement before loans can be disbursed for each award year. Each process is available at www.studentaid.gov must be completed before receiving any loan during the academic year.

4. Student loan recipients are also required to complete exit loan counseling before they cease enrollment, graduate or drop below half-time status. Exit counseling is available online at www.studentaid.gov. If you fail to meet this requirement, a hold will be placed on your records until you complete this requirement.

5. Student loan funds will be sent to VC via electronic funds transfer (EFT) and applied to the student’s account. Once a student’s account is credited and all VC expenses have been paid the business office will submit any remaining refunds to the student. Loan refunds will be disbursed no later than 30 days after the beginning of the semester via your Chaparral Card, direct deposit or in the form of a check.

6. Student loans are for educational expenses only! Authorized expenses include: tuition and fees, room and board, books and supplies, dependent child care, transportation and commuting expenses, and personal and miscellaneous expenses. Keep in mind student loans must be repaid so only borrow what you need.

7. Students must be enrolled at least half-time (6 credit hours) at Vernon College each semester in order to receive their loan disbursement. Any additional assistance received may reduce your loan eligibility. (Ex: outside scholarships, Catholic Charities, WIA etc.) Eligibility for loan proceeds will be verified prior to each disbursement and could result in the reduction or cancellation of your loan and the remainder returned to the lender (U.S. Department of Education) without further notice. PLEASE NOTE: If you enroll in classes that do not apply towards your major you have on file in Admissions, you must complete a Declaration of Purpose in the Admissions office to update your major before you will be eligible to receive your loan funds.

8. VC participates in the Federal Direct Subsidized and Unsubsidized Loan Programs and the Federal Parent Loan for Undergraduate Students (PLUS). VC does not participate in the following loan programs: Perkins Loan Program, Hinson-Hazelwood Loan Program, HEAL Loan Program, HELP Loan Program, and the CAL Loan Program.

9. A student can borrow combined subsidized and unsubsidized loans not to exceed the annual loan limits. Please see chart for annual Direct Loan limits. Parents of dependent students can apply for a PLUS loan to assist with their expenses at VC. The amount a parent can borrow for a student cannot exceed the student’s total cost of attendance less any other aid. If you are a dependent student interested in the PLUS loan, you and your parent must complete and return the DL PLUS Request Form along with the PLUS Certification/Authorization Form. No action will be taken on your PLUS loan until you complete this process. Dependent students whose parents have been denied a PLUS loan may receive the additional unsubsidized Federal Direct Loan. Denial must be based on credit reasons only, and not be based on the parents’ refusal to accept the loan.

10. Students must begin repayment on Federal Direct loans 6 months following graduation or dropping below half-time enrollment status. Parent borrowers will begin repayment on PLUS loans 60 days after the loan is fully disbursed.

 

Loan Limits

 

Dependent

Undergraduate

Students

Independent

Undergraduate

Students

1st year

(<30 Hrs)

$5,500 – No more than $3,500 of this amount may be in subsidized loans.

$9,500 – No more than 3,500 of this amount may be in subsidized loans.

2nd year

(<= 30 Hrs)

$6,500 – No more than $4,500 of this amount may be in subsidized loans.

$10,500 – No more than $4,500 of this amount may be in subsidized loan.

New Direct loans

(First disbursed on or after July 1, 2022 – June 30, 2023)

Student loan interest rates are as follows:

New SUB Loans –4.993%

New UNSUB loans –4.993%

New Parent PLUS loans –7.543%

 

Remember: Student loans require repayment!

Develop a budget to determine the amount you need to borrow. Only borrow what is necessary to

assist in paying your educational costs!

 

What Happens Next

After the student or parent accepts or decreases their loan offer they will need to log on to www.student aid.gov website and complete the loan process. 

The Student Loan Website allows borrowers to complete entrance loan counseling and complete their Federal Direct/Plus Loan master promissory note (MPN), and print the MPN for signature or electronically sign using their Department of Education FSA ID 

**VC WILL NOT DISBURSE FUNDS UNTIL WE HAVE RECEIVED NOTICE THAT THE STUDENT OR BORROWER HAS COMPLETED ENTRANCE COUNSELING AND A COMPLETE AND SIGNED PROMISSORY NOTE HAS BEEN RECEIVED! STARTING 2022-2023 ALL DIRECT LOAN BORROWERS (STUDENTS AND PARENTS) WILL BE REQUIRED TO CONFIRM THEY HAVE VIEWED THE ANNUAL STUDENT LOAN ACKNOWLEDGEMENT BEFORE LOANS CAN BE DISBURSED FOR EACH AWARD YEAR**

 

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