Requesting Federal Loans
Step 1: Determine how much you need to borrow.
The amounts listed on your preliminary award letter represent the maximum that you are allowed to borrow from each loan program. It is NOT recommended that you borrow the maximum amount of unsubsidized loans; you should use your budget to determine the amount you need to borrow.
Please review the 2009-2010 Cost of Attendance budgets and other important awarding information by clicking here. For assistance in determining how much you need to borrow, please complete our budgeting worksheet. Fill in your expenses and your resources, and the worksheet will tell you how much you may need to borrow from the unsubsidized loan program.
Step 2: Request your loans online.
You must log in to the Student Information System (SIS) and accept, reduce, or decline your loans. Click here and choose "SIS Login." Next, in the Student Center under Finances, click on "Accept/Decline Awards." For each loan you want to request, you need to check the "Accept" box. For federal loans, you will then select your Stafford lender. You will then enter the amount that you want to borrow and click "Submit."
Choosing a Stafford Lender: The University of Virginia is lender-neutral. Click here to view our borrower's guide to lender selection. Borrowers may choose any bank or credit union authorized by the Federal Department of Education to participate in the Federal Stafford Student Loan Program. Federal regulations mandate the maximum fees and interest lenders are allowed to charge. Regulations also specify the repayment options available. Lenders may, however, offer repayment incentives and benefits such as fee and interest reduction at their discretion. Such benefits could represent substantial savings on your Stafford Loans, so it would be wise to compare offers from various lenders.
Step 3: Sign the Master Promissory Note.
If you are a first-time borrower at the University of Virginia or you are a returning UVA student who is selecting a different lender than the one you used last year, you will need to complete your lender's Stafford loan application/Master Promissory Note (MPN). You can find this form on your selected lender's website.
If your lender asks you to enter your school code, enter 003745 for the University of Virginia. If the lender asks for dates and amounts for the loan, leave those fields blank. The amount that you borrow is the amount that you select when you log into SIS and accept your loans, NOT any amount you choose on your lender's website. UVA will transmit to your lender the amount you wish to borrow and the correct disbursement dates. Many lenders allow you sign your MPN electronically using your FAFSA PIN. Whether completing the MPN electronically or mailing the completed form to your lender, remember to keep a copy for your records.
If you received a Stafford loan while attending UVA as an undergraduate, graduate or professional student within the last 12 months and are borrowing from the same lender again this year, you do not need to sign another MPN. Your previously signed promissory note serves as the MPN for this and all additional loan amounts. To assure you have an accurate record of the debt incurred under the Federal Stafford Loan Program, it is imperative you keep copies of your award letter and the loan disclosure statement provided by the lender.
LOAN TERMS AND CONDITIONS
Subsidized Federal Stafford Loan
Interest accrues but is paid by the federal government during in school and grace periods.
Maximum loan: $8,500
Eligibility: (need-based) equals the school-approved budget minus student/spouse contribution and other financial aid, up to the maximum $8,500.
Unsubsidized Federal Stafford Loan
The unsubsidized loan can be used to replace all or a portion of your expected contribution, or to fund remaining demonstrated need up to the program maximum. Take note, however, that interest on the unsubsidized loan accrues and is the borrower's responsibility from the date of disbursement.
Maximum loan: Med 1 = $42,722, Med 2 and Med 3 = $47,167, Med 4 = $40,500 minus subsidized loan eligibility per academic year.
Eligibility: (non-need based) equals the school approved budget minus other financial aid, up to the maximums shown above. (Total loan plus other aid expected cannot exceed the borrower's Cost of Attendance.)
Subsidized and Unsubsidized Federal Stafford Loans
The interest rate for Federal Stafford Loans disbursed on or after July 1, 2006 is a fixed rate of 6.8%. The primary difference between Subsidized and Unsubsidized is the accrual of interest during the in-school, grace and deferment periods. No interest is charged during this time on Subsidized Loans, while interest accrues from the date of disbursement on Unsubsidized Loans. In all other ways, these loans are the same. An origination/default fee of 0% - 1.5% (depending on your Stafford Loan Lender) will be deducted from the loan proceeds prior to disbursement to your UVA tuition account.
Institutional Loans
This is a loan made by the University of Virginia from gifts and endowments specifically designated for that purpose. It is not a federally guaranteed loan. Therefore, it is not eligible for inclusion in Federal Loan Consolidation. No interest is charged on this loan during the in-school and six-month grace periods. Thereafter, the interest rate is 5%. Borrowers may forbear principal and pay interest only during residency. Maximum repayment excluding periods of forbearance is 10 years.
DISBURSEMENTS
One half of your loan proceeds minus fees (if using a lender that assesses fees) will be applied directly toward payment of tuition and fees each semester. If your loan proceeds combined with other financial aid overpays your account, you will receive a refund that may be used for books and living expenses approximately one week after final registration.