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Vantage Credit Union Student Loans College Financial Aid Information Lender Code 826986 InTuition Newsletter Our informative newsletter, InTuition, is published quarterly to help keep students informed about the latest issues concerning financial aid. To view the latest issue of this newsletter, click here. Quick links: Financial Aid Overview Financial aid is the help you need to finance your college education. It is comprised of four areas: 1. Grants 2. Scholarships 3. Loans 4. Employment You must be admitted to a college or university to have your financial aid application processed. The Free Application for Federal Student Aid (FAFSA) is the application for all of the above. The earliest possible date to submit the FAFSA is January 1st of the calendar year the school term begins, in either summer or fall. Grants, scholarships, and loans are awarded regardless of income level, so do not let worries about your family's income keep you from applying. The only way to receive many state scholarships, as well as student loans, is by completing the FAFSA. There are deadlines, and the free monies are first come-first served, so be sure to submit your FAFSA no later than March 1st. Private scholarships and loans are also available. Please see below for detailed information on all grants, scholarships, loans, and the FAFSA. Stafford Loan The Stafford Loan is the most common loan received by students. This loan is in the student's name with no payment required until 6 months after a student graduates or falls below half-time attendance. Repayment term is ten years with a minimum $50 monthly payment. There are two types of Stafford, subsidized and unsubsidized. Students showing an economic need will receive the subsidized Stafford. Any interest accrued while in school will be paid by the US Department of Education. Students not showing an economic need will receive the unsubsidized Stafford and are responsible for all interest accrued on the loan. Interest payments can be made at any time but are not required until repayment begins. If there is interest owed when the loan enters repayment, it will be capitalized and added to the principal balance. Students will receive the same dollar amount regardless of whether the loan is subsidized or unsubsidized. It is possible to receive both. The government sets the interest rate, so it is the same no matter what lender you use. Interest rate reduction incentives are available during repayment. See the information on repayment for more details. Government limits for Stafford Loans for dependent undergraduate students:
The FAFSA is the application for a Stafford Loan. Once the FAFSA is completed, the student will need to sign the Master Promissory Note (MPN) in order to choose a lender and receive the funds. It is possible for the student to receive additional unsubsidized Stafford funds if the student is independent or the parent did not qualify for a PLUS loan. Stafford Master Promissory Note (MPN) Student loan funds cannot be disbursed without a signed MPN. As long as the student stays with the same lender, an MPN does not need to be signed again and the student can borrow for ten years. Some schools, however, may require an MPN be signed repeatedly. You can electronically complete and e-sign your MPN by clicking below. This will take you directly to our servicer's website (Mohela). Lender information will pre-fill. Follow the instructions on the screen. A paper version of the MPN is available from any school's financial aid office or by printing one from Mohela's website. Click here to complete the Stafford Master Promissory Note (MPN) Please note: If you attend a Direct Lending school, you must complete a Direct Loan MPN available only through Direct Lending schools or the federal website. Parent PLUS Loan A parent may borrow a PLUS loan to help cover the cost of education for their dependent undergraduate student. The PLUS loan is in one parent name, and the parent has the choice of repayment beginning immediately after full disbursement or deferring until six months after the student graduates or falls below half-time attendance. If the parent chooses to defer payment, any unpaid accrued interest will be capitalized quarter.ly Interest rates are set by the government and are the same for all lenders. There are repayment incentives available. See the repayment information for more details. The application for a PLUS loan is the PLUS Master Promissory Note (MPN) and Application. Some schools will require the FAFSA to be completed as well. The loan is in one parent's name and satisfactory credit is a criteria. If the parent does not qualify for a PLUS loan, the student can receive additional unsubsidized Stafford funds. Parent PLUS Master Promissory Note (MPN) and Application PLUS loan funds cannot be disbursed without a signed MPN. A Parent PLUS MPN must be completed for every loan request. Borrowers must reapply every school year. You can electronically complete and e-sign your MPN by clicking below. This will take you directly to our servicer's website (Mohela). Lender information will pre-fill. Follow the instructions on the screen. A paper version of the MPN is available from any school's financial aid office or by printing one from Mohela's website. Click here to complete the Parent PLUS Master Promissory Note (MPN) (After entering the amount you wish to apply for, scroll down and click on the green "Apply" button to continue.) Please note: If you attend a Direct Lending school, you must complete a Direct Loan MPN available only through Direct Lending schools or the federal website. Grad PLUS Loan Grad and Professional students may borrow using a PLUS loan. As with the Parent PLUS loan, the student may borrow up to the cost of attendance less all other aid awarded. A FAFSA must be completed and processed before a Grad PLUS loan can be processed. A credit check is performed and the borrower must be credit worthy. Repayment term is ten years with a minimum $50 monthly payment. As with the Parent PLUS loan, the Grad PLUS loan enters repayment after full disbursement. If the student is still enrolled at least half-time, they can receive an in-school deferment to stay out of repayment until graduation. However, interest will continue to accrue on the loan. Interest rates are set by the government and are the same for all lenders. There are repayment incentives available. See the repayment information for more details. The application for a Grad PLUS loan is the PLUS Master Promissory Note (MPN) and Application. Grad PLUS Master Promissory Note (MPN) Application PLUS loan funds cannot be disbursed without a signed MPN. A Grad PLUS MPN must be completed for every loan request. Borrowers must reapply every school year. You can electronically complete and e-sign your MPN by clicking below. This will take you directly to our servicer's website (Mohela). Lender information will pre-fill. Follow the instructions on the screen. A paper version of the MPN is available from any school's financial aid office or by printing one from Mohela's website. Click here to complete the Grad PLUS Master Promissory Note (MPN) (After entering the amount you wish to apply for, scroll down and click on the green "Apply" button to continue.) Please note: If you attend a Direct Lending school, you must complete a Direct Loan MPN available only through Direct Lending schools or the federal website. Private Loans If a student needs more loan funds after exhausting all possibilities with the FAFSA, a Private Loan is an option. These are loans in the student's name with no payment required until after graduation. The difference is these loans are made through private lenders instead of the government. Vantage Credit Union does not offer Private Loans. Check with your school's Financial Aid Office for recommendations. Please note: Private Loans should only be used when all other resources have been exhausted. The interest and possible fees on Private Loans could cost you double or triple what you originally borrowed. Use caution. FAFSA The Free Application for Federal Student Aid, or FAFSA, is the main application for college financial aid. It can be completed online at www.fafsa.ed.gov The paper version is no longer available through schools or libraries. You may order a paper version by calling 1.800.FED.AID. Do not complete the FAFSA through any Web site other than that listed above. Some companies will charge a fee to access the FAFSA through their site. Avoid unnecessary fees. This is a FREE service. On the home page of the FAFSA Web site, you will be instructed to create a PIN first. Your PIN will be your electronic signature and your means to check the status of your FAFSA at any time. Then print the FOTW (FAFSA on the web) worksheet to help you gather necessary information for completing the online version. The earliest you may complete a FAFSA is January 1st of the calendar year your school year begins. For example, a student's school year begins in September of 2007. The earliest the FAFSA can be completed is January, 1, 2007. You will need your taxes done or estimated to complete the FAFSA. You must complete a FAFSA each school year. The FAFSA applies for all the free monies you may qualify for, as well as the federal student loans. Some free monies are based on merit and not income, so be sure to get the FAFSA submitted as early as possible. The free monies are first come, first served and deadlines do exist. Best scenario is to have applied by March 1st. For detailed questions about completing the FAFSA, contact your school's financial aid office. FAFSA4caster FAFSA4caster is a new tool from the Department of Education. This free service allows high school juniors and their families to:
The most common error parents and students make when it comes to financial aid is not applying at all and/or applying too late. Here is a brief time line to help keep you on track:
Federal Grants Federal grants are applied for by completing the Free Application for Federal Student Aid (FAFSA, see info above). Here is a list of the possible Federal grants:
Missouri offers several grants and scholarships. Most are applied for by completing the FAFSA (see details above). Here is a list of some of the major programs:
Vantage Scholarships Vantage Credit Union offers scholarships for graduating high school seniors. For detailed information on our Quest For Education scholarship, Click here. Private Scholarships There are thousands of private scholarships awarded every year. The national scholarships can be researched by visiting the Web sites listed below. Other private scholarships and local scholarship information can be found through your high school counselor, local library, or the Scholarship Foundation of St Louis. www.fastWEB.com www.scholarships.com www.mapping-your-future.org www.srnexpress.com www.collegeboard.com Links to Other Sites The internet is an excellent source of information for college financial aid, but you must be a smart user. There are companies out there who will try to charge you for information that is available for free. All this information is available free to you through the sites already listed here. For this reason, it is best to stick with companies with whom you are familiar. If you are in doubt, check with your school's financial aid office or Vantage Credit Union's Student Loan Department. Here is a list of other useful Web sites for financial aid: www.fafsa.ed.gov (Application for financial aid) www.finaid.org (Financial aid information) www.dhe.mo.gov (Missouri Department of Higher Education) www.studentaid.ed.gov (USDE info and aid site) www.petersons.com (Education and career information) www.fastWEB.com (Scholarship search) www.mapping-your-future.org (College career and financial aid information) www.scholarships.com (Scholarship search) www.pin.ed.gov (To receive-check on PIN) www.usafunds.wiredscholar.com (Education and career information) www.salary.com (List of salaries per occupation) www.monster.com (Student information) www.scholaraid.com (Student information) www.nslp.org (Financial aid info; budget and loan links) www.srnexpress.com (Scholarship search) www.collegeboard.com (Scholarship search) FSA Ombudsman's Office (US Department of Education Federal Student Aid) Mailing address: US Dept. of Education, FSA Ombudsman, 830 First Street NE, Washington D.C. 20202-5144 E-mail address: Email FSA Ombudsman Phone number: (877) 557-2572 (toll free) or (202) 377-3800 Fax number: (202) 275-0549 Current Interest Rates Interest rates for student loans are set by the US Department of Education and are the same for every lender. The only time there can be a difference in rates is after the borrower enters repayment. The companies that handle the repayment of student loans can offer special incentives to reduce the interest rate. Vantage sells their student loans to Mohela, and they have one of the best repayment incentives available. Details on those options can be found under "Rate Relief Program" and "Public Service Award Program" below. Here are the current interest rates set by the USDE:
Changes effective for Subsidized Undergraduate Stafford only:
Repayment Information Stafford loans do not enter repayment until six months after the student graduates or falls below half-time attendance. Parent PLUS loans begin repayment 30-60 days after full disbursement or may be deferred until six months after the student graduates or falls below half-time attendance. Grad PLUS loans begin repayment 30-60 days after full disbursement unless the borrower takes an in-school deferment to postpone payment. Most lenders sell their student loans when they enter repayment. Vantage sells their loans to Mohela, the secondary market for student loans in Missouri. The companies that handle the repayment of student loans can offer special incentives to reduce the interest rate. Mohela has one of the best repayment incentives available. Details on those options can be found under "Rate Relief Program" and "Public Service Award Program" below. Per government guidelines, borrowers have four choices of repayment. Mohela will send all information to the borrower. Those choices are:
For loan repayment calculators, information on budgeting, and suggested limits of borrowing per profession, go to www.mapping-your-future.org. Consolidation Once a borrower is in his/her grace period (the 6 months between graduation and first payment due) or repayment, loan consolidation is an option. When you consolidate, you combine all your federal student loans into one loan with one payment at one lender. Here are some details of consolidation:
There are many reasons to choose the loans in the federal student loan program: low interest rates with easy repayment terms, several repayment choices, and the option to do deferments and forbearances if needed. A deferment is a temporary cessation of loan payments because of an unexpected event. Interest usually continues to accrue. In a case where a deferment is not possible, a forbearance may be available. A forebearance is an agreement between the lender and the borrower to help during a hardship. Here is a list of the deferments available for Stafford Loans:
Vantage Credit Union hosts free College Financial Aid Seminars on an annual basis. These seminars are a detailed explanation of financial aid and the steps to take. Information on the seminars is posted on this Web site, in all branch offices, and in the quarterly magazines. Vantage's Student Loan Department mails a quarterly newsletter to all Vantage in-school student loan borrowers to keep the students up to date with the latest information on financial aid. Phone calls and emails with questions are always welcome. Contact information: 314.298.0055 800.522.6009 cheneghan@vcu.com
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