Office of Financial Aid


Loans

William D. Ford Direct Loan Program

Vance-Granville Community College will participate in the Federal Direct Loan Program beginning with the 2011-2012 academic year. Federal Direct Loans will be made available to eligible student borrowers. A Direct loan may be Subsidized, Unsubsidized or both. Federal Direct PLUS loans will be made available to eligible parent borrowers. These are loans which must be repaid!

You must request a loan from VGCC. The VGCC Financial Aid Office will not automatically award a loan to you. You may apply for a Federal Direct loan AFTER the Free Application for Federal Student Aid (FAFSA) has been completed and all follow-up paperwork has been submitted to the Financial Aid Office.

Students receiving Financial Aid (including Direct loans) must meet all three Standards of Academic Progress (SAP).

Types of Loans


The Federal Direct Loan Program offers the following types of loans:

  • Subsidized Direct Loan: for students with demonstrated financial need.  The government pays the interest due on the loan while a student is enrolled at least half-time, during the grace period, and during deferment periods.

  • Unsubsidized Direct Loan: for students regardless of financial need. No payment is required until the student drops below half-time enrollment; however interest begins accruing from the date of disbursement.   By making interest payments while in school, a student can avoid capitalization of the interest. When interest is capitalized, it is added to the principal amount of the loan upon which further interest charges are based.

  • Direct PLUS Loan: for parents of dependent students regardless of financial need. Parents may borrow up to the cost of attendance less any other aid received by the student annually. PLUS loans feature low interest rates and long-term repayment options. A credit check will be performed to determine eligibility. For a parent to apply for a PLUS loan, please complete the VGCC Federal Direct Parent PLUS Loan Request Form and follow the steps listed.


Annual Loan Limits

DEPENDENT - Dependent Students who answered “NO” to all questions in Step Three on the FAFSA are required to provide parent information on their application. These questions relate to a student’s age, marital status, military service, having children, legal guardianship, homeless, etc.

  Base Amount (may be subsidized, unsubsidized, or both) Additional Unsubsidized Amount Total Subsidized and Unsubsidized Amount
1st year undergraduate, Fewer than 33 credits earned up to $3,500 per year up to $2,000 per year up to $5,500 per year
2nd year undergraduate, 33 or more credits earned up to $4,500 per year up to $2,000 per year up to $6,500 per year
Undergraduate aggregate maximum up to $23,000 up to $8,000 up to $31,000 total

*Maximum Annual Loan Amounts

INDEPENDENT - Independent Students who answered “YES” to at least one question in Step Three on the FAFSA, and parent information is not required on the FAFSA

  Base Amount (may be subsidized, unsubsidized, or both) Additional Unsubsidized Amount Total Subsidized and Unsubsidized Amount
1st year undergraduate, Fewer than 33 credits earned up to $3,500 per year up to $6,000 per year up to $9,500 per year
2nd year undergraduate, 33 or more credits earned up to $4,500 per year up to $6,000 per year up to $10,500 per year
Undergraduate aggregate maximum up to $23,000 up to $34,500 up to $57,500 total

*Maximum Annual Loan Amounts

How to Apply

To receive a Federal Direct Loan:

  1. Complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov.  Be sure Vance-Granville’s school code, 009903, is listed on your application.

  2. Respond promptly to all requests for additional information from the Financial Aid Office. Check WebAdvisor to review your financial aid status.

  3. Once your file is complete, we will determine if you are eligible for any state or federal grants. We will not automatically award a loan to you.  

  4. Complete the Direct Loan Entrance Counseling online at www.studentloans.gov.

    Studentloans.gov

    You will need the Personal Identification Number (PIN) issued to you by the US Department of Education when you completed your FAFSA to complete the Entrance Counseling and sign the MPN. If you have forgotten your PIN, you can retrieve it through www.studentloans.gov.

  5. Complete the Direct Loan Master Promissory Note (MPN) online at www.studentloans.gov for both Subsidized and Unsubsidized Stafford loans. The parent of a dependent student completes the Direct PLUS Loan Request process online at www.studentloans.gov for a PLUS loan.

    You are not required to complete a new MPN if you previously borrowed a Federal Direct Loan at another school, and your existing MPN is less than ten years old.  Please notify the Financial Aid Office if you have completed a MPN previously.

  6. Sign up and attend a VGCC Loan Entrance Workshop. All borrowers at VGCC must attend a one-hour workshop each academic year before their loan request can be processed. Before you can register for a workshop, your FAFSA processing must be complete and all follow-up paperwork submitted to VGCC.  You may register for a Loan Entrance Workshop by contacting the Financial Aid Office.

    Sessions are held several times a month. Please check with the Financial Aid Office for dates and times. A photo ID is required for entrance to the meeting.

    ***Loan Entrance Workshop Review***

  7. Complete a VGCC Direct Loan Request Form. This form is discussed in the VGCC Loan Entrance Workshop. You may submit this form at the workshop or turn it in to Financial Aid Office once complete.

  8. The Financial Aid Office will notify you of your loan eligibility.  You have the right to reduce or decline the amount you are offered through WebAdvisor.  Only borrow what you absolutely need to pay your educational expenses.  Remember - this is a loan.  It must be repaid!  Use available Budget and Repayment Calculator tools to figure out how much you need to borrow, and how much you will be repaying later.

  9. Once the loan is processed, you will receive a disclosure statement from the US Department of Education explaining the type of loan, loan amount, and anticipated disbursement dates.

  10. You must be enrolled at least half-time to receive the proceeds of the loan.

  11. Your loan will be disbursed in two installments. The first disbursement cannot be more than 1/2 of the total approved loan amount, minus fees.   For loans covering more than one semester (i.e. Fall & Spring), one disbursement will be made each semester.  For loans covering only one semester, there will only be one disbursement of the semester.

All steps must be completed before any funds can be disbursed.

Graduating or Leaving VGCC


All students who receive a Federal Direct Loan at VGCC MUST complete the Exit Counseling when they drop below half-time enrollment, leave the college or graduate. Click on this link to complete the Exit Counseling online.

Resources

  • To determine what type of loan you have, how much your loan balance or total debt is, or who your loan servicer is: Call 1-800-4-FED-AID or check the National Student Loan Data System at NSLDS Student Access.

    NSLDS

  • To resolve a problem with your loan, request payment relief, cancellation or discharge, contact your loan servicer.
  • If you have further concerns or complaints, contact the Federal Student Aid Ombudsman at 1-877-557-2575 or at Ombudsman.
  • When you graduate or leave VGCC, you may want to consider consolidating your student loans in order to have one single payment, rather than several payments for different loans or to different lenders. For more information on loan consolidation, click this link: Loan Consolidation.

Private/Alternative Loans

Loan disclaimer

Vance-Granville Community College's Financial Aid Office provides information for students, prospective students, and parents to help make informed choices about their financial aid options. The student loan information provided is a guideline only to assist students. Our website can help assist with the financial aid process and should be used as a tool. Many private lenders offer alternative loans; however, the choice of which lender to borrow from is a decision the student must make. Our office will certify an alternative loan from any lender the student chooses. Some of the lenders students have chosen in the past are listed within this website. Please remember that Vance-Granville Community College does not endorse any lender.

This information is subject to change due to changes in federal or state regulations, college policy, financial aid office procedures, or budgeting by any agency supplying financial aid funding. If you discover discrepancies with regard to other sources of information (federal publications, college publications, etc.), please notify the Financial Aid Office at (252) 738-3280.

For more information regarding private student loans click on the link below:
http://www.finaid.org/loans/privatestudentloans.phtml