Federal Loans

1. Federal Perkins Loan Program is available to both undergraduate and graduate students
   
   
• Must complete Master Promissory Note
  
  
• Students must have financial need to borrow from this program.
  
  
• 5 % interest rate
  
  
• Repayment begins nine months after student ceases half-time enrollment.
  
  
• Average annual loan $500 to $1,300
  
  
2. Federal Direct Subsidized & Unsubsidized Loans (William D Ford Direct Student Loans)
   
   
• Must complete Student Loan Entrance Counseling.
  
  
• Must sign a Master Promissory note.  (Use your FAFSA pin to sign)
  
  
• Eligibility is based on cost of attendance less other financial aid and family contribution.
  
  
•   Annual borrowing limits:
  
  
• Dependent Undergraduate students:
  Freshmen          $5,500  No more than $3,500 can be Subsidized.
  Sophomores      $6,500  No more than $4,500 can be Subsidized.
  Juniors/Seniors  $7,500  No more than $5,500 can be Subsidized.
  
  
• Independent Undergraduate students:
  Freshmen          $9,500  No more than $3,500 can be Subsidized
  Sophomores     $10,500  No more than $4,500 can be Subsidized.
  Juniors/Seniors $12,500  No more than $5,500 can be Subsidized.  
  
  
• Interest rates for new borrowers 4.5% Subsidized & 6.8% Unsubsidized
   
• There are repayment plans designed to meet the needs of almost every borrower.
  
  
• No payments of principal are required while enrolled at least half time on Subsidized and Unsubsidized Direct Loans, but interest accrues while enrolled for Unsubsidized Direct Loans. Students can choose to pay the interest while they are in school or have the interest added to their principal.
  
  
3. Federal Direct Parent Loan for Undergraduate Students (PLUS)  
   
   
• The PLUS program allows one parent of a dependent student to borrow funds. Parents can borrow up to the cost of attendance less financial aid.
  
  
• Interest rate is fixed at 7.9 percent.
  
  
• Net Origination fee of 2.5% (4% fee with a 1/5% rebate if first 12 monthy payments are made on time.
  
  
• Must complete Parent Loan Request Form and return to  Vermont Tech
  
  
• Must complete Master Promissory Note (Use your FAFSA pin to sign)
  
  
• A credit check is required to borrow from this loan program. 
  
  
• Repayment begins 60 days after the second disbursement.
  
  
• Parents may choose to defer payments until six months after the date the student ceases to be enrolled at least half time or may pay accruing interest monthly or quarterly, or allow interest to be capitalized quarterly.  To request an in-school deferment (after the first disbursement) you may contact Direct Loan Borrower Services at 800-848-0979.
  
  
• There are three repayment options: Standard Repayment, Graduated Repayment and Extended Repayment Plan. 
  
  
• Parents are given a choice of repayment plans prior to their first payment. 
  
  
• Repayment periods range from 10 to 30 years depending on repayment option selected.