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Loan Program

  • The Federal Family Education Loans Subsidized and Unsubsidized
  • Federal Perkins Loans
  • Federal Parent Loan (PLUS)

FVSU is a participant in the U.S. Department of Education’s Federal Family Education Loan Program (FFEL). There are lenders for student’s Stafford Loans and Parent’s (PLUS) Loans to help pay for school. Your loans are guaranteed by the federal government. The servicer will handle repayment of your loan(s) and you will be able to choose a repayment plan that fits your needs. The average indebtedness for those students who borrow funds through the Federal Loan Program at FVSU is $16,600. The following table shows an estimate of monthly repayment amounts, total interest charges, and the total amount repaid for FFEL with 8% interest rate.

Total Loan Amount Number of Payments Monthly Payment Interest Charges Total Repaid
$2,625 66 $49.29 $628.14 $3,253.14
$4,000 120 $48.53 $1,823.60 $5,823.60
$7,5000 120 $91.00 $3,420.00 $10,920.00
$10,000 120 $121.33 $4,559.60 $14,559.60
$17,000 120 $208.00 $8,021.00 $25,021.00

The Federal Stafford Loan

The Federal Stafford Loan allows students enrolled at least half-time to borrow money at low interest for educational expenses. There are two types of Federal Stafford Loans: 1) Federal Stafford Loan, and 2) Federal Unsubsidized Stafford Loan.The Federal Stafford Loan is need-based and the federal government subsidizes and pays the interest on this loan while the student is in school and during the six-month grace period. The unsubsidized loan is not need-based. This loan was created for borrowers who do not qualify for federal interest subsidies. The student either pays the interest while in school and during the six-month grace period or it is added to the balance of the loan.

  1. Federal Stafford Loan interest rates are variable: that is, they are adjusted each year. For the year beginning 1 July 2007, current interest rate is 6.8 percent for the Federal Stafford Loans. The actual interest rate is established by the Secretary of Education. There is also a loan fee amount of 1.5 percent that is deducted proportionately from each delivery for loan proceeds. This money pays the guarantee and processing fees associated with every loan. Repayment must begin no later than six months following graduation or termination of at least half-time enrollment.
  2. Having your eligibility determined for a Federal Stafford Loan does not commit you to accepting the loan for the amount (you may borrow less than your full eligibility).
  3. Federal Stafford Loan maximums are $3,500 per year in the Freshman year, $4,500 per year in the Sophomore year $5,500 per year in the Junior and Senior years, with a $23,000 cumulative total of Subsidized and Unsubsidized loans for all undergraduate study. Graduate students may borrow $8,500 per year not exceed the COA. The cumulative total Federal Stafford Loan amount for undergraduate and graduate study is $65,000.
  4. Federal Unsubsidized Stafford Loan maximums for independent students are $4,000 per year in the Freshman and Sophomore years, $5,000 per year in the Junior and Senior years and $12,000 per year for the graduate students, not exceed the COA. Also, dependent students whose parents are denied a loan under the Federal Parent (PLUS) Loan can borrow Federal Unsubsidized Stafford Loan funds.
  5. When the loan is approved, the funds will be disbursed by the Bursars Office at the beginning of each semester. If your loan is approved for only one semester, you will receive half of your loan at the beginning of the semester and the reminder at the midpoint of the semester. If you have a Federal Stafford Loan you will receive a separate disbursement for each loan each semester.
  6. Federal regulations require that first semester freshmen who have not previously received a Federal Stafford Loan receive their first loan disbursement 30 days after the first day of classes.
  7. First-time borrowers must complete the federally-mandated Entrance Loan Counseling process before they receive any funds under the Federal Loan Program.By completing a FVSU Student Financial Aid Packet, you will provide enough information and an Award Letter will be mailed to you. After your Loan Request Form is processed you will receive a pre-printed Promissory Note.
  8. Receipt of an Award Letter from the OFA indicating eligibility for a Federal Stafford Loan does NOT mean the loan is approved. The student must complete and submit a Promissory Note electronically via the Allie website of his or her choice. If you do not have access to the internet at your home or school, we suggest that you visit your local public library where internet access is provided at no cost. Only when the Promissory Note is verified as accurate is the loan approved and the funds disbursed.
  9. The yearly maximum for the Federal Stafford Loan will cover the fall, spring and summer semesters. If the maximum has been received over the fall and spring semesters, students will not be eligible to borrow additional funds for the summer. The following fall semester would be the next term loan funds will be available. Students can request less on the Federal Stafford Loan application for fall and spring and then request the remaining eligibility on the summer application.

For Example:

2007-2008 Dependent Freshman $3,500 12-Month Maximum

Fall Semester 2007 $1750.00
Spring Semester 2008 $1750.00
Summer Semester 2008 0.00

or:
2007-2008 Dependent Freshman $3,500 12-Month Maximum

Fall Semester 2007 $1,166.67
Spring Semester 2008 $1,166.67
Summer Semester 2008 $1,166.66

The Federal Parent (PLUS) Loan

The Federal Parent (PLUS) Loan is an educational loan for parents of dependent undergraduate students enrolled at least half-time. Financial need is not an eligibility requirement, but good credit is required. Loan eligibility is based on the Cost of Attendance minus other aid received.

  1. Federal Parent (PLUS) Loan interest rates are fixed. For the year beginning 1 July 2006 the maximum interest rate for Federal Parent (PLUS) Loans is 6.79 percent. The interest rate will be established by the Secretary of the Department of Education.
  2. The repayment period begins on the day the loan is disbursed. The first payment is due within 60 days of the last disbursement.
  3. Federal Parent (PLUS) Loans will be disbursed by the Bursars Office . If you do not have access to the internet at your home or school, we suggest that you visit your local public library where internet access is provided at no cost.
  4. All Federal Parent (PLUS) Loans are disbursed in multiple disbursements, one per semester.

The student financial aid application process must be completed by ALL students, even if the only aid being requested if the Federal Parent (PLUS) Loan.

The Direct Loan PLUS Application must be completed by all parents who are applying for the PLUS Loan and returned to the Financial Aid Office via fax at (478) 825-6976 or mailed to Fort Valley State University, 1005 State University Drive, Fort Valley, Georgia 31030, Attention: Office of Financial Aid and Veterans Affairs