Loans
The main difference between loans and scholarships or grants is that you are responsible for repaying the loans. Be a smart borrower and only borrow what you need. You must be enrolled in at least 6 credit hours to receive loan funds.
The option to accept federal student loans on your VUX account for the upcoming award year will not be available until after the first week of July. We will send you an email letting you know when and how to complete the process.
All of this can get a little intimidating, but don't worry. Our staff is here to help with your questions and concerns.
Federal Direct Student Loan
Students who meet the eligibility standards for financial aid are eligible for Federal Direct Loans. There are two types of federal direct loans, Subsidized and Unsubsidized. Students with sufficient financial need as determined by the results of the FAFSA can borrow a Subsidized Federal Direct Loan, which accrues no interest while the student is enrolled at least half-time. Most students are also eligible for an unsubsidized Federal Direct Loan, which does accrue interest while the student is enrolled at least half-time. Currently, the interest rates on Federal Direct Loans are established on an annual basis by an act of Congress.
- Subsidized loan – no interest accumulates until repayment starts; repayment is deferred for six months after graduation or dropping below half-time status. For 2024-2025 the interest rate is 6.53% once repayment starts. An origination fee of 1.057% is withheld by the Department of Education.
- Unsubsidized loan - interest is charged immediately; the student can pay interest while in school or let it accumulate until repayment starts; repayment is deferred for six months after graduation or dropping below half-time status. For 2024-2025 the interest rate is 6.53%. An origination fee of 1.057% is withheld by the Department of Education.
Dependent student loan limits
First-year students can borrow up to $5,500 in Federal Direct Loans for an academic year; no more than $3,500 can be a subsidized loan. Second-year students (must have earned 31 credit hours) can borrow up to $6,500 per academic year; no more than $4,500 can be a subsidized loan. Third and fourth-year students (must have earned 61 credit hours) who are seeking a bachelor’s degree can borrow up to $7,500 per academic year; no more than $5,500 of that can be a subsidized loan. Dependent students whose parent’s application for a parent PLUS loan has been denied are eligible for up to an additional $4,000 in unsubsidized loans.
Independent student loan limits
First-year students can borrow up to $9,500 in Federal Direct Loans for an academic year; no more than $3,500 can be a subsidized loan. Second-year students (must have earned 31 credit hours) can borrow up to $10,500 per academic year; no more than $4,500 can be a subsidized loan. Third and fourth-year students (must have earned 61 credit hours) who are seeking a bachelor’s degree can borrow up to $12,500 per academic year; no more than $5,500 of that can be a subsidized loan.
Vincennes University limits all students seeking a certificate or an associate degree
to no more than second-year levels.
So that students understand their rights and responsibilities with respect to borrowing
a student loan, first-time borrowers must complete at least an online entrance counseling
session. They are also required to sign a loan application called a master promissory
note (MPN) that commits them to repay any loans they accept. Students can complete
entrance counseling and sign the MPN at StudentAid.gov. First-time borrowers are also subject to a requirement to complete at least thirty
(30) days of their first semester of classes before they can receive payment of a
Federal Direct Loan.
Because federal regulations require that loans be disbursed in equal installments, a borrower applying for a fall/spring loan will have half of the loan disburse for fall semester and the equal remaining half will disburse the spring semester. If a loan is for one semester only, there must still be two equal payments made. Typically the first half will disburse when classes start, unless a 30-day delay is required, and the second equal remaining disbursement will occur at midway of the semester.
- Annual and Aggregate Loan Limits (View Online & Print)
Federal Direct Parent PLUS Loan
For dependent students: Parents may be offered a Direct PLUS loan. For 2024-2025 the
interest rate is 9.08%, and the origination fee is 4.228% of the loan amount, which
is withheld by the Department of Education. The interest rate and origination fees
are set annually by Congress.
To apply for the Parent PLUS loan, the parent must fill out the Parent PLUS Loan Application
at StudentAid.gov. Upon applying, a credit check is conducted to determine approval. If the parent's
credit is approved, the parent will also need to complete a PLUS Master Promissory
Note (MPN).
Once funds are sent to the school, PLUS loan funds are applied directly to the student's
account. If there are excess of the Parent loan funds, a refund will be sent to the
student or directly to the parent based on the refund option selected by the parent
when completing the PLUS application.
If a parent’s application is denied, the student may be eligible to receive an additional
unsubsidized student loan of up to $4,000 per year. The school will be notified of
the parent's denied application and will automatically offer the additional unsubsidized
loan to the student. If the student chooses to accept this additional unsubsidized
student loan, the student can accept the "Additional Unsub - PLUS Denial" by logging
in to their VUX account and accepting either all or a portion of the offered loan.
Private Loans
Private loans are sometimes also referred to as alternative education loans. Since this is a private loan that is not monitored or guaranteed by the Department of Education, the terms and interest rates vary according to the lender you choose. Eligibility for a private loan is based on credit worthiness as determined by the lender. If you are considering applying for a private loan, you should research and compare multiple lenders offering private loans. You can use the options provided below to get started. However, you are not limited to choosing a lender on either of these sites. If you prefer to use another lender, just let us know. We may need to collect additional information from the lender to process your loan request. Please note, private loans are not suitable for emergency funding as the process can take up to 12 business days from the date you are approved. Then once funds are sent to the school, there is an additional refund processing period that could possibly be up to 14 days after funds are received.
Repaying Your Loans
Repayment of student loans is very important for your financial stability going forward. If you have borrowed only federal student loans, get up-to-date information at STUDENTAID.GOV. You can then choose “Loan Repayment” to learn more about your repayment options. You can estimate monthly payments, weigh the pros and cons of combining all your federal student loans into one consolidation loan, and find how to start repaying your student loans. Paying the interest on your loans before repayment begins may save you money. Contact your loan servicer for assistance.
If you have also or exclusively borrowed private student loans, refinancing them with a refinancing or refi loan might be an option to consider. A refi loan allows you to combine both private and federal loans into one loan and one payment. Understand that combining federal and private loans may not be your best option because that can affect your federal loan repayment benefits. For more information on consolidation and refinancing, check out our loan consolidation/refinancing page.
Code of Conduct on Private Loans
To comply with the 2008 Higher Education Opportunity Act and to prohibit conflicts of interest for personnel in student financial services, Vincennes University adopts the following code of conduct with respect to lenders of private education loans.
Vincennes University:
- does not require the use of particular lenders or in any way limit the choice of lenders.
- processes loan applications through any lender a student or parent chooses.
- does not solicit or accept anything of value from any lender in exchange for any advantage sought by the lender to make educational loans to students of the university.
- prohibits employees of student financial services and any employee who otherwise has responsibilities with respect to educational loans from entering into any type of consulting arrangement or other contract to provide to a lender services relating to educational loans.
- prohibits employees of student financial services and any employee who otherwise has responsibilities with respect to educational loans, who serve on an advisory board relating to educational loans established by a lender from receiving anything of value from the lender in conjunction with service on such an advisory board.
- prohibits external lenders’ employees, representatives, or agents from providing staffing services to the student financial services office.
Information for Students from Washington State
- For Washington State residents seeking information and resources about student loan repayment or seeking to submit a complaint relating to your student loans or student loan servicer, please visit www.wsac.wa.gov/loan-advocacy or contact the Student Loan Advocate at loanadvocate@wsac.wa.gov.
Total and Permanent Disability
If you are seeking more information regarding how to have your federal student loans discharged due to total and permanent disability, you can find more information on the Federal Student Aid Web site. Or if you already have a federal student loan that has been discharged due to a Total and Permanent Disability and are applying for financial aid, please contact our office and ask to speak with a Financial Aid Counselor.
