Loans and Awards

Federal Direct Student Loans

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.

Subsidized vs. Unsubsidized

• Subsidized loan – No interest accumulates until repayment starts; repayment is deferred for six months after graduation or dropping below half-time status.
• 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.

Interest Rates & Origination Fees

The interest rates on Federal Direct Loans are established on an annual basis by an act of Congress. Interest rates are determined each June 1 for the upcoming award year.

* Interest charged once repayment starts for subsidized; immediately for unsubsidized. Origination fee is withheld by the Department of Education.

Dependent Student Loan Limits

• First-year students: Up to $5,500 per academic year (no more than $3,500 subsidized)
• Second-year students (31+ credit hours earned): Up to $6,500 per academic year (no more than $4,500 subsidized)
• Third & fourth-year students (61+ credit hours earned): Up to $7,500 per academic year (no more than $5,500 subsidized)
• PLUS Denial: Dependent students whose parent's PLUS loan application was denied are eligible for up to an additional $4,000 in unsubsidized loans

Independent Student Loan Limits

• First-year students: Up to $9,500 per academic year (no more than $3,500 subsidized)
• Second-year students (31+ credit hours earned): Up to $10,500 per academic year (no more than $4,500 subsidized)
• Third & fourth-year students (61+ credit hours earned): Up to $12,500 per academic year (no more than $5,500 subsidized)

First-Time Borrower Requirements

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 Opens in a new window .

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.

Disbursement Process

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.

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.

Important: 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.

If you are considering applying for a private loan, you should research and compare multiple lenders offering private loans. You are not limited to any specific lender. 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.

View more information about Private Loans

Refinancing

Refinancing Private Loans

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.

Comparing Refinancing Options

The INvestEd Refi Marketplace is a tool that allows you to compare actual rates from multiple lenders and provides the information you need to make the right decision. INvestEd works with Indiana families to help them make responsible decisions in the refinancing process.

To find your loan options, click above on the INvestEd Refi Marketplace link.

Important information as you consider refinancing:

• Identify all your current loans including lender, servicer, type of loan, interest rate, borrower benefits, repayment options, etc.
• Understand that you may need a cosigner to refinance your loans.
• Refinancing is not always the best solution, so review the possible rates and overall costs to determine if this is the right choice for you.

Visit the INvestED Refi Marketplace site

Additional Resources

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 Opens in a new window or contact the Student Loan Advocate at loanadvocate@wsac.wa.gov.

Total and Permanent Disability

If you are seeking information on how to have your federal student loans discharged due to total and permanent disability, you can find more information on the Federal Student Aid Opens in a new window website. 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. You must complete the Total and Permanent Disability Discharge Form PRIOR to the borrower receiving any additional Federal Direct loans.

View the Total Permanent Disability Discharge Form opens a new window