Student Loans

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.

Financial Aid Overview
Financial aid is the help you need to finance your college education. It's 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 1 of the calendar year the school term begins, in either summer or fall. Grants, scholarships, and loans are awarded regardless of income level, so don't 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 1.

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 10 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's possible to receive both. The government sets the interest rate, so it's 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:

Year	Limits	Temporary Limits
First	$3500+$2000=	$5500
Second	$4500+$2000=	$6500
Third	$5500+$2000=	$7500
Fourth	$5500+$2000=	$7500
Fifth	$5500+$2000=	$7500

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's 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 doesn't need to be signed again and the student can borrow for 10 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. On the first screen, do nothing but click on the green Apply button. Then, follow each screen's instructions. 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 quarterly.

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. 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.

Click here to complete the Parent PLUS Master Promissory Note (MPN)

Please note: If the student attends 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 Grad 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 10 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.

Click here to complete the Grad PLUS 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.

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.

Don't complete the FAFSA through any website 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 website, you'll 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 1 of the calendar year your school year begins. For example, a student's school year begins in September of 2009. The earliest the FAFSA can be completed is January, 1, 2009. You'll 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 1.

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:

   • Calculate instantly an estimated EFC
   • Be informed of possible Federal Pell Grant eligibility
   • Reduced time needed to complete the FAFSA when applied for as seniors
   • Find information concerning admissions application
   • Navigate the federal student financial aid application process
   • Discover resources to help pay for post-high school education
   • Click here for more information

Timeline
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:

July/August:       Apply for private scholarships; visit schools
Sept–Dec:          Apply for admissions; apply for scholarships
Jan–Feb:            Complete FAFSA and any other forms required
Mar–May:           Follow all instructions from school
Jun–Aug:            Get a summer job and save money
Sept:                   Classes begin

Federal Grants
Federal grants are applied for by completing the Free Application for Federal Student Aid (FAFSA, see info above). Here's a list of the possible Federal grants:

• Pell Grant
• FSEOG Grant
• SMART Grant
• Academic Competitiveness Grant
• TEACH Grant
• Click here for more information

State Financial Assistance
Missouri offers several grants and scholarships. Most are applied for by completing the FAFSA (see details above). Here's a list of some of the major programs:

• Access Missouri
• Bright Flight Scholarship
• Marguerite Ross Barnett Memorial Scholarship
• Public Service Offices Child Survivor Program

For details on these and more, visit www.dhe.mo.gov

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. You can research national scholarships by visiting the websites listed below. Other private scholarships and local scholarship information can also be found through your high school counselor, local library, or the Scholarship Foundation of St. Louis.

www.fastWEB.com
www.scholarships.com
www.mappingyourfuture.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 that will try to charge you for information that's available for free. All this information is available free to you through the sites already listed here. For this reason, it's best to stick with companies you already know. If you're 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 websites 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.mappingyourfuture.org (College career and financial aid information)
www.scholarships.com (Scholarship search)
www.pin.ed.gov (To receive-check on PIN)
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 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.

Here are the current interest rates set by the USDE:

Stafford Loans	6.80% fixed
Parent PLUS	8.50% fixed FFELP
	7.90% fixed Direct Lending
Grad PLUS	8.50% fixed FFELP
	7.90% fixed Direct Lending
	7.90% fixed if sold to Mohela

Changes effective for Subsidized Undergraduate Stafford only:

July 1, 2008:      6.00%
July 1, 2009:      5.56%
July 1, 2010:      4.50%
July 1, 2011:      3.40%

Repayment Information
Stafford loans don't 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.

Per government guidelines, borrowers have several choices of repayment. Mohela will send all information to the borrower. Visit Mohela's website for repayment options.

For loan repayment calculators, information on budgeting, and suggested limits of borrowing per profession, go to www.mappingyourfuture.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:

• Interest rate for a consolidation loan is the weighted average of the interest rates of the
     existing loans rounded up, and it becomes a fixed interest rate for the life of the loan.
• Extends the term by 15, 20, 25 or 30 years depending on the loan balance.
• Can lower your monthly payment up to 50% or more.
• You may pay much more interest over the term of the loan.
• You may only consolidate once, unless you borrow again. In that case, you'd have two loans
     again and could consolidate once more.
• You may consolidate your loans with the lender of your choice.
• When you consolidate, you may lose deferment and loan forgiveness options.
• Only federal student loans in the borrower's name can be included in a consolidation loan.
     You can't include alternative loans.
• Click here for detailed information and loan calculators.

Deferments and Forebearances
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 isn't possible, a forbearance may be available. A forebearance is an agreement between the lender and the borrower to help during a hardship. Here's a list of the deferments available for Stafford Loans:

• In-School Deferment
• Educational-Related Deferment
• Temporary Total Disability Deferment
• Unemployed Deferment
• Economic Hardship Deferment
• Public Service Deferment
• Parental Leave–Working Mother Deferment

Free Financial Aid Seminars
From time to time, Vantage Credit Union hosts free College Financial Aid Seminars. These seminars are a detailed explanation of financial aid and the steps to take. Information on the seminars is posted on this website, in all branch offices, and in other member communications.

Need more information? Your phone calls and/or e-mails are always welcomed. Please contact: