Undergraduate Loans
Federal Direct Undergraduate Student Loans
Federal Direct Loans may be borrowed to help cover the cost of education.
Loans must be repaid, with interest.
To qualify for a Federal Direct Loan students must:
- Complete a FAFSA
- Be a U.S. citizen or eligible non-citizen
- Be enrolled at least half-time
- Meet Satisfactory Academic Progress requirements
Half-time enrollment for undergraduate students is 6 credits.
Federal Direct Subsidized Loan
Subsidized loans are available to undergraduate students who demonstrate financial need on the FAFSA. The federal government pays the interest on subsidized loans as long as the student is enrolled in school at least half-time, during the six-month grace period, as well as during any authorized deferment periods.
The FASFA is the only application needed:
- No loan application or credit check
- Longwood will automatically offer the student his/her loan eligibility as part of the financial aid offer
Payments begin six months after the student:
- Graduates
- Leaves school
- Drops below half-time enrollment
This six month period is called the grace period.
Federal Direct Unsubsidized Loan
Unsubsidized loans are available to undergraduate and graduate students regardless of whether they demonstrate financial need on the FAFSA. Unlike the Direct Subsidized Loan, interest begins accruing after the loan disburses in full.
In other words, interest on a loan for the fall and spring semesters will start accruing after the spring portion has been applied to your account.
Students have the option of making interest payments on unsubsidized loans while in school or deferring until the loan enters repayment.
The FASFA is the only application needed:
- No loan application or credit check
- Longwood will automatically offer the student his/her loan eligibility as part of the financial aid offer
Payments begin six months after the student:
- Graduates
- Leaves school
- Drops below half-time enrollment
This six month period is called the grace period.
Federal Direct Parent Loans
The Federal Direct Parent Loan, typically called a PLUS loan, is a loan that a parent of a dependent undergraduate student may apply for. PLUS loans are credit-based and the loan is solely in the parent’s name.
These loans are issued through the U.S. Department of Education.
Students must file a FAFSA if the parent wishes to apply, but the demonstrated need is not required.
The maximum amount of PLUS loan a parent may borrow each year is the cost of attendance minus any other financial aid the student receives.
Repayment Deferment
During the application process, parents may request a deferment, meaning no payment will need to be made until six months after the student graduates, leaves school, or drops below half-time enrollment.
If deferment is not requested, repayment will begin after the full loan amount has been applied to the student’s account.
Private Loans
Private loans sometimes referred to as Alternative loans, are offered through private lending institutions. Students apply directly through the lender, and then the school certifies the loan based on the student’s enrollment, cost of attendance, and other aid.
Private loans are not associated with the Federal Direct Loan programs. They require credit checks and most often a co-borrower.