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Eligibility Requirements for Loans
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
Loan Aggregate Limits, How much can I borrow?
|College Year||Dependent Students||
Independent Students and Dependent Students whose Parents are denied PLUS Loans
|Freshman - Annual Limits||$5,500 - No more then $3,500 can be in Subsidized Loans||$9,500 - No more then $3,500 can be in Subsidized Loans|
|Sophomore - Annual Limits||$6,500 - No more than $4,500 can be in Subsidized Loans||$10,500 - No more then $4,500 can be in Subsidized Loans|
|Junior/Senior - Annual Limits||$7,500 - No more then $5,500 can be in Subsidized Loans||$12,500 - No more then $5,500 can be in Subsidized Loans|
|Maximum Lifetime Limits||$31,000 - No more than $23,000 can be in Subsidized Loans||$57,500 - No more than $23,000 can be in Subsidized Loans|
The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. The table below provides interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2019, and before July 1, 2020.
Interest Rates for Direct Loans First Disbursed on or After July 1, 2019, and Before July 1, 2020.
|Loan Type||Borrower Type||Fixed Interest Rate|
|Direct Subsidized Loans and Direct Unsubsidized Loans||Undergraduate||4.53%|
|Direct PLUS Loans||Parents and Graduate or Professional Students||7.08%|
|Loan Type||First Disbursement Date||Loan Fee|
|Direct Subsidized Loans and Direct Unsubsidized Loans||On or after 10/1/19 and before 10/1/20||1.059%|
|Direct PLUS Loans||On or after 10/1/19 and before 10/1/20||4.236%|
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive while enrolled in school. This means the money you receive will be less than the amount you actually borrow. You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
Is there a time limit on how long I can receive Subsidized loans (Subsidized Usage Loan Applies –SULA)?
If you are a first-time borrower on or after July 1, 2013, there is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. This time limit does not apply to Direct Unsubsidized Loans or Direct PLUS Loans. If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your “maximum eligibility period.” Your maximum eligibility period is based on the published length of your current program. You can usually find the published length of any program of study in your school’s catalog.
For example, if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years). If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years).
Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.
Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U.S. Department of Education usually would have paid the interest. These enrollment patterns are described below.
I become responsible for paying the interest that accrues on my Direct Subsidized Loans, when:
To apply for a Federal Direct Stafford (Subsidized or Unsubsidized) Loan, you must complete the FAFSA using our School Code of 006750. To be eligible, you must be enrolled for at least six credit hours which count toward your current degree and be maintaining Valencia’s Standards of Satisfactory Academic Progress. If you are eligible for a Federal Direct Stafford (Subsidized or Unsubsidized) Loan, it will be included on your financial aid offer notification.
You will have the option to Accept, Decline or Reduce your Federal Direct Stafford Loan on your offer notification you receive through ATLAS email.
If you are a first time borrower of the Federal Direct Loan, you will be required to complete a Master Promissory Note (MPN) before the loan funds will be disbursed. In most cases, you will only be required to complete one MPN during your college career at Valencia, provided you are borrowing a Direct Loan. You complete your Federal Direct Stafford Loan MPN by signing into the StudentLoans.gov website with you Federal PIN. You can also complete your Loan Entrance Counseling while you are on the site.
Before the Office of Student Aid can disburse your loan funds you are required to complete Loan Entrance Counseling by signing into the StudentLoans.gov website with your Federal PIN. This counseling session provides you with information that will help you understand your rights and responsibilities as a loan borrower, as well as other tools to assist you with managing your loans. In most cases, you will only be required to complete Loan Entrance Counseling once during your college career at Valencia.
It is important to know that loan funds will automatically credit to your student account to pay the current term balance first before issuing a refund, if the Direct Loan Processor has a valid MPN on file for you and you have completed Loan Entrance Counseling, on the disbursement date noted on your Atlas Account.
Student borrowers are required to complete an Exit Counseling session when they drop below 1/2 time or cease to enroll at the college. You can complete your Exit Counseling at https://www.nslds.ed.gov.
Direct PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay for college. Student need to have a FAFSA application on file. You must not have an adverse credit history. A credit check will be conducted. If you have an adverse credit history, you may still be able to receive a PLUS loan if you meet additional requirements.
The maximum PLUS loan amount you can receive is the cost of attendance (determined by the school) minus any other financial aid received.
If denied, student may qualify for additional unsubsidized loan upon request.
(The parent must apply for a PLUS Loan)
Interest Rate and Fee Information for the PLUS: The interest rate is fixed at 7.08% with a 4.236% origination fee.
For more information on interest rates go to the Federal Student Aid site.
1. Direct Parent Loans for Undergraduate Students (PLUS)
Visit Federal Student Aid for Information on a PLUS Loan.
2. Complete FAFSA and Financial Aid File
Your son or daughter must have a completed FAFSA at Valencia College using our School Code of 006750 with a completed financial aid file.
3. You must complete a Parent Loan (PLUS) Certification Request for the correct year
This Parent Loan (PLUS) Certification Request will ask for the requested amount and allow you to certify who to send any excess refunds to (the student or parent). If requested amount sent to parent, refund will be sent as paper check via mail.
4. E-sign your Federal Direct Master Promissory Note (MPN)
You are required to complete a PLUS MPN before loan funds can be disbursed. By signing the MPN you authorize the Department of Education to perform a credit check to determine your eligibility for the PLUS loan. You can complete the MPN by signing into the StudentLoans.gov website with your Federal FSA ID.
5. Receiving Federal Direct Parent Loan funds
It is important to know PLUS loan funds will be applied to the students account if the Direct Loan Processor has a valid MPN on file and your son or daughter has begun attendance in at least six compliant credit hours. If selecting a one term loan, the loan will be split into two disbursements. If selecting a two term loan, the loan will be split equally between the two terms. (e.g. 1/2 the loan in the Fall and 1/2 in the Spring).
Students are encourage to see if they are eligible for Federal Aid but it is not required to complete the FAFSA application to receive a Private Loan. This will provide us with information to review your file for State, Federal, and Institutional funds before you borrow a Private Loan.
Choose a lender or Bank to apply for a Private Education Loan. Valencia does not offer a preferred lender list for private loans. Students can check with their bank or research private loans on the Web. We strongly encourage students to borrow federal loans first as they offer better benefits and interest rates.
*Some lenders may require students to meet Satisfactory Academic Progress. Be sure to review the lenders requirements before applying. At the time of certification by the institution, failure to meet lender requirements will cause request to be rejected.
*Private loans are offered for degree/non-degree seeking students with branch code 006750-00 and continuing education students with branch code 006750-98.
2. School Certification
Our office will certify the loan once we receive a certification request from your lending institution and you are enrolled in classes for the requested payment period.
Private loan limits are set by federal regulations and cannot exceed the cost of attendance minus any financial aid received.
To determine the certification amount:
A. Student’s cost of attendance for the period of enrollment covered by the loan $____________________
B. Estimated financial assistance for the period of enrollment covered by the loan $____________________
C. Difference between amounts A and B
WARNING: If you borrow more than the amount on line C, you risk reducing your eligibility for free or lower-cost federal, state, or school financial aid.
3. Receiving Private Student Loan
Preparatory Coursework Loans
Federal Preparatory Coursework Loan Limits:
Dependent: $2625 all subsidized or combined unsubsidized loan
Independent: $2625 combined subsidized/unsubsidized base loan plus additional unsubsidized up to $6000
Dependent: $5500 all subsidized or combined unsubsidized loan
Independent: $5500 combined subsidized/unsubsidized base loan plus additional unsubsidized up to $7000
Note: Loan Amounts subject to Aggregate loan limits.
Steps to Apply for a Federal Preparatory Coursework Loan