Federal Student Loans
PVCC participates in the Federal Direct Student Loan Program. Federal student loans may be a way to address a shortfall between the funds that you have and the funds that you will need. There is always a cost to borrowing money but federal student loans may offer benefits, such as flexible repayment plans not available with other loans. It is important to know and understand everything involved with applying for a loan. Outlined below are the required steps along with the Direct Loan Request Form. Please review everything carefully and contact us if you have any questions.
- Step1: Complete the Free Application for Federal Student Aid (FAFSA)
To establish eligibility for the Federal Direct Loan you must complete and submit a FAFSA form for the applicable award year. Be sure to include PVCC (School Code: 009928) on your FAFSA. PVCC will not certify your loan without first obtaining the processed results from your FAFSA application. FAFSA and any additional requested paperwork must be completed before a loan can be processed.
- Step 2: Complete Entrance Counseling
Entrance counseling will help you learn more about the necessity of repaying your student loan, planning for repayment, and your rights and responsibilities as a borrower.
- Go to www.studentaid.gov/entrance-counseling
- Log in using your FSA ID
- Complete the Undergraduate Entrance Counseling
- Step 3: Complete the Master Promissory Note (MPN)
The Master Promissory Note (MPN) is a legal document in which you promise to repay your loans and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loans.
- Go to www.studentaid.gov/mpn
- Log in using your FSA ID
- Complete the Undergraduate MPN
- Step 4: Complete the PVCC Loan Application Form
This collects the information necessary for PVCC to electronically transmit student loan data to the Department of Education. They will send the loan funds to PVCC and PVCC will credit the account when the funds are received.
- Step 5: Certification by PVCC
The Financial Aid Office will create a loan record for you and electronically transmit the record to the Department of Education. To be eligible to receive a Federal Direct Student Loan you must:
- Meet Satisfactory Academic Progress (SAP),
- Not be in default on previous student loans,
- Be enrolled in a minimum of six eligible credits,
- Complete FAFSA verification, if applicable, and
- Have not exceeded undergraduate loan limits.
- Step 6: Disbursement of Funds
Financial Aid Disbursements & Refunds
Funds will not be disbursed until Entrance Counseling, MPN, and financial aid requirements are completed. The Department of Education will send funds to PVCC. If the loan amount exceeds your applicable charges, a refund will be issued to the authorized bank or issue a paper check to the mailing address on file for you. Refunds will be issued within 14 days from the date the refund is posted to your student account. Federal Direct Loans will not be disbursed to your PVCC account until after the last day to drop with a refund for all classes you are enrolled in each semester. Disbursements will begin no earlier than mid-semester. No aid is directly available at the beginning of the semester.
Understanding the Loan Program
Borrowing student loans is a serious responsibility–borrow conservatively. Review the following information carefully and contact
our office if you have any questions. For more detailed information, visit studentaid.gov.
Loan Type | Qualifications | Limits | How Interest Works | Credit Check? |
---|---|---|---|---|
Subsidized | Must have financial need | Lower loan limits (see table below) | U.S. Department of Education pays interest while student is enrolled | No |
Unsubsidized | Not required to have financial need | Higher loan limits (see table below) | Student is responsible for paying interest for the entire life of the loan | No |
Interest Rates
The interest rate for Federal Direct Subsidized and Unsubsidized loans is a fixed interest rate for the life of the loan. The interest rate for the 2024-2025 Academic Year (Fall 2024, Spring 2025, Summer 2025) is 6.53%.
Annual Loan Limits
Dependent Students* | Base Sub. Amount | Additional Unsub. Amount | Total |
---|---|---|---|
Freshman (1-30 Credits) | $3,500 | $2,000 | $5,500 |
Sophomore (31+ Credits) | $4,500 | $2,000 | $6,500 |
Independent Students** | Base Sub. Amount | Additional Unsub. Amount | Total |
---|---|---|---|
Freshman (1-30 Credits) | $3,500 | $6,000 | $9,500 |
Sophomore (31+ Credits) | $4,500 | $6,000 | $10,500 |
* Excludes students whose parents cannot borrow PLUS
** Includes students whose parents cannot borrow PLUS
Lifetime Loan Limits
Student Status | Sub Amount | Total |
---|---|---|
Dependent Undergraduate | $23,000 | $31,000 |
Independent Undergraduate* | $23,000 | $57,500 |
* Includes additional Undergraduate degree or post-baccalaureate
Fees
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. The loan origination fee is 1.057% for the 2024-2025 Academic Year.
Default
A default status on a student loan indicates you are not meeting the terms and conditions of paying your loan back, disclosed in your master promissory note. You are in default on your Direct Loan if your payments are more than 270 days past due or if you fail to comply with all other terms of the loan. When this happens, any or all of the following may occur: the default will be reported to national credit bureaus, recorded on your permanent credit record, and can significantly and adversely affect your credit history; you may be subjected to legal action by the holder of the loan; your wages may be garnished; you will be unable to get additional federal or state financial aid—including student loans.
Loan Denial
Under federal regulations 34 CFR 685.301(a) (8), PVCC has the right on a case-by-case basis to deny loans. Loan approval may be denied for the following circumstances:
- Students with insufficient loan eligibility remaining to complete their program of study.
- Students with a previous default and student loan debt from all sources of equal to or greater than half the maximum aggregate limit in either Federal Direct Subsidized or Unsubsidized Loans for the student's status as a dependent or independent student.
- PLUS Loans: when the parent's or student's loan debt exceeds combine Federal Direct Subsidized/Unsubsidized aggregate undergraduate loan limits.
- Other circumstances that strongly indicate an unwillingness to repay or abuse of loan programs.
- Any denial will be explained to the student in writing.
- Student and parent borrowers cannot be denied based on race, gender, color, religion, national origin, age disability status, or income.
Return of Title IV Aid
If a student receiving federal or state aid withdraws from college during a period of enrollment, the school must calculate the amount of aid the student earned up through the date of last attendance. Unearned aid (including loans) must be returned to the Title IV programs. Title IV Aid includes Federal Pell Grant, Supplemental Education Opportunity Grant (SEOG), Federal Direct and Federal Parent PLUS Loan programs, Commonwealth of Virginia Grant (COMA), Virginia Guaranteed Assistance Grant (VGAP), and G3. When a student resigns from college before completing 60% of the period of enrollment for the semester, a calculation of the return of funds will be performed. When it is necessary to return loan funds, PVCC is required to return the money that was disbursed to the student and the student will be required to reimburse PVCC for the repayment amount.
Exit Counseling
As a student, you are required to complete Exit Counseling if:
- you drop or withdraw classes to less than half-time or begin to attend as a less than half-time student.
- you withdraw fully from the college.
- you do not begin classes in a subsequent semester.
- you complete and graduate from a program.
You will be notified by PVCC U.S. postal mailed to the address on file. Exit Counseling is completed online at studentaid.gov.
ALL Federal Direct Stafford loan borrowers must complete an Exit Loan Counseling session upon graduation or withdraw. Repayment begins six months after a student graduates, withdraws, stops attending, or drops below half-time level. To find out your loan service and keep track of your student loan borrowing, please check the National Student Loan Data System at nsldsfap.ed.gov.
Creating Your In-School Budget
Establish a budget each school year before you take out a loan. This will help you monitor your spending and determine whether or not your financial resources will cover your education costs. You may find that you don't need to take out a loan each school year or that you don't need to borrow all the money your school has offered you.
Parent PLUS Loans
Parents of undergraduate dependent students can borrow a Federal Direct Parent PLUS Loan in their name for their student's education expenses, up to the Cost of Attendance. The borrower must be a biological, adoptive or stepparent. Parents can borrow in addition to the student borrowing Federal Direct Stafford Subsidized or Unsubsidized Loans or instead of the student borrowing. The interest rate for the 2024-2025 Academic Year (Fall 2024, Spring 2025, Summer 2025) is 9.08% and loan origination fee is 4.288%.
- The U.S. Department of Education is your lender.
- Credit check required, no adverse credit.
- Repayment begins after the last disbursement. Parents can apply for a deferment with the lender until the student graduates, withdraws or drops below six credit hours.
- The maximum loan amount is the cost of attendance minus any other financial aid received.
- Direct PLUS Loans Basics for Parents