Student Loans Information

This page is an overview of the student loan programs. Student loans can help students pay for educational expenses. It is important to remember that student loans must be repaid. The student loan choices you make today could impact you for the rest of your life. Therefore, it is important to make an academic plan to complete your program as soon as possible. This can reduce the amount you need to borrow in student loans. We recommend you view our Be Student Loan Savvy Loan Information Guide PDF for detailed information on borrowing and repaying federal student loans. For questions regarding exit loan counseling and other repayment information, please visit our Loan Repayment page.

Federal Perkins Loans


Perkins Loans provide low interest loans to help students finance the costs of their education. To receive a Perkins Loan,a student must first complete the FAFSA. Additionally, a student must complete any other required items, which could include verification, and which a student can review through their UVLink account.

Once awarded, you must accept your loans in your UVLink account, confirming that you want the loan.You must be enrolled in at least 6 eligible credit hours if an undergraduate and 4.5 eligible credit hours if a graduate (waitlist hours are not enrollment hours) and have met all other financial aid requirements before your loan(s) can disburse. Loans are disbursed by electronic fund transfer (EFT) to your account, usually at the beginning of each semester for which the loan is awarded.

For continued eligibility for Federal Perkins Loans, a student must meet satisfactory academic progress  each semester and continue to meet all other eligibility requirements. A student must complete a new FAFSA and other application requirements each award year. Please see our Eligibility page for more information.

Loans are disbursed by electronic fund transfer (EFT) to the student’s account, usually at the beginning of each semester for which the loan is awarded. If the student accepts a loan but subsequently would like to cancel the loan or decrease the amount, the student will need to complete the Loan Cancellation Request Form and submit it to the Financial Aid and Scholarships Office.

For more information on the application process, please visit our How to Apply page. Additionally, please see the Federal Perkins Loans page on the Collections Office’s website.

General Terms, Conditions, and Eligibility Requirements for Federal Perkins Loans


Perkins Loans are available to undergraduate and graduate students who have a demonstrated financial need. Perkins Loans are awarded to undergraduate and graduate students with exceptional financial need, which is based on the EFC and COA (Cost of Attendance). The student’s EFC must be 10,000 or less. Perkins funds are limited. Priority is given to prior Perkins recipients.

If you are awarded a Perkins loan, in-person counseling will be required before your loan funds can disburse. You must also complete the Perkins Loan disclosure statement, return it to the Collections Office, and sign a Perkins Loan Promissory Note with the Collections Office. You must make an appointment with the Collections Office to sign your disclosure and promissory note. Loans are disbursed by electronic fund transfer (EFT) to your account, usually at the begining of each semester for which the loan is awarded.

Payments do not start and no interest is charged until nine months after the borrower ceases to be enrolled at least half time. When interest begins to accrue, it is at the rate of 5% per year (subject to change). You must complete Perkins exit counseling with the Collections Office when you cease to be enrolled at least half time.

Federal Direct Loans


Federal Direct Loans are low interest loans for students and parents to help pay for the cost of a student's education. The lender is the U.S. Department of Education, though the servicer the student will work with can be a private business. There are three types of Direct Loans: Subsidized, Unsubsidized, and PLUS.

To receive a Federal Direct Loan, a student must first complete the FAFSA. Additionally, a student must complete any other required items, which could include verification, and which a student can review through their UVLink account.

Once awarded, you must accept your loans in your UVLink account, confirming that you want the loan (excepting PLUS loans, as your application for these loans indicates an acceptance). You must be enrolled in at least 6 eligible credit hours if an undergraduate and 4.5 eligible credit hours if a graduate (waitlist hours are not enrollment hours) and have met all other financial aid requirements before your loan(s) can disburse. Loans are disbursed by electronic fund transfer (EFT) to your account, usually at the beginning of each semester for which the loan is awarded.

For continued eligibility for Federal Direct Loans, a student must meet satisfactory academic progress each semester and continue to meet all other eligibility requirements. A student must complete a new FAFSA and other application requirements each award year. Please see our Eligibility page for more information.

If necessary, you (or your parent, if a Parent PLUS loan) will need to e-sign a Master Promissory Note (MPN) at www.studentloans.gov. This can be completed approximately three business days after you accept your loan(s). Beginning in the 2014-2015 year, students must also complete entrance loan counseling at www.studentloans.gov.

If you choose to cancel all or part of your loan before disbursement, you must complete a Loan Cancellation Request Form and return it to the Financial Aid and Scholarships Office. If you choose to cancel all or part of your loan after the funds have already disbursed, you must submit a completed Loan Cancellation Request Form to the Financial Aid and Scholarships Office and return the funds to the Business Office. If 120 days have elapsed since your loan was disbursed, the funds cannot be returned to the school and must be returned directly to your loan servicer.

For more information on the application process, please visit our How to Apply page.

General Terms, Conditions, and Eligibility Requirements for Federal Direct Loans


There are two types of student loans in the Federal Direct Stafford Loan Program: subsidized and unsubsidized. Loan awards are based upon a student's academic level, status as a dependent or independent student, the length of the academic program, cost of attendance, and receipt of other aid. Loan amounts are subject to annual and aggregate loan limits. You will be offered a base Stafford loan determined by your annual loan limit. Depending on your financial need, this initial award may be either subsidized or unsubsidized. Please note that graduate students are not eligible for subsidized loans. Also, at the time that you complete your UVU Data Form, you may request an additional unsubsidized loan by submitting a Loan Request.

Stafford Subsidized Loan: Direct Subsidized Loans are available to undergraduate students who have a demonstrated financial need. The Financial Aid and Scholarships Office will calculate your financial need by using the Expected Family Contribution (EFC) reported on your FAFSA and your cost of attendance. The federal government pays the interest on a subsidized student loan during periods of half time enrollment, authorized deferment periods, and the six month grace period (for loans first disbursed before July 1, 2012, and after July 1, 2014). The current interest rate for loans first disbursed on or after July 1, 2014 have an interest rate of 4.66%. An origination fee will be deducted from a subsidized loan before it is disbursed. The origination fee on a subsidized loan first disbursed on or after December 1, 2013 is 1.072%, and loans first disbursed on or after October 1, 2014 have an origination fee of 1.073%.

Stafford Unsubsidized Loan: Direct Unsubsidized Loans are available to undergraduate and graduate students. An unsubsidized loan may not exceed your cost of attendance. You are responsible for paying the interest on an unsubsidized student loan during all periods. If you choose not to pay the interest while in school, during grace periods, or during deferment and forbearance periods, interest will accrue and be capitalized (the interest will be added to the principal amount of the loan). The current interest rate for undergraduate unsubsidized loans first disbursed on or after July 1, 2014 is 4.66%. The current interest rate for graduate unsubsidized loans first disbursed on or after July 1, 2014 is 6.21%. An origination fee will be deducted from an unsubsidized loan before it is disbursed. The origination fee on an unsubsidized loan first disbursed on or after December 1, 2013 is 1.072%, and loans first disbursed on or after October 1, 2014 have an origination fee of 1.073%.

Base Loan Dependent Student Independent Student
             
  Semester Semester Total Semester Semester Total
Freshman 0-29 credit hours $1,750 $1,750 $3,500 $1,750 $1,750 $3,500
Sophomore 30-59 credit hours $2,250 $2,250 $4,500 $2,250 $2,250 $4,500
Junior/Senior 60-180 (Must be matriculated into a BS degree) $2,750 $2,750 $5,500 $2,750 $2,750 $5,500
Graduate Student       $4,250 $4,250 $8,500
Additional Loan Dependent Student Independent Student
             
  Semester Semester Total Semester Semester Total
Freshman 0-29 credit hours $1,000 $1,000 $2,000 $3,000 $3,000 $6,000
Sophomore 30-59 credit hours $1,000 $1,000 $2,000 $3,000 $3,000 $6,000
Junior/Senior 60-180 (Must be matriculated into a BS degree) $1,000 $1,000 $2,000 $3,500 $3,500 $7,000
Graduate Student       $6,000 $6,000 $12,000

Aggregate Loan Limits

  • Dependent students: $31,000; no more than $23,000 can be subsidized
  • Independent students: $57,500; no more than $23,000 can be subsidized
  • Graduate students: $138,500; no more than $65,500 can be subsidized

The following steps need to be taken to finalize a Stafford loan award:

1) Accept loan offer(s) through UVLink account.

2) Complete entrance loan counseling at www.studentloans.gov. This must be completed before the loans can disburse.

3) Complete a Master Promissory Note at www.studentloans.gov (if not already completed in a prior year).

4) Ensure your registration is finalized before the funds disburse.

5) Enroll in eRefund (direct deposit) through UVLink account, if not already completed.

IMPORTANT INFORMATION FOR FIRST-TIME LOAN BORROWERS:

Effective July 1, 2013, the Moving Ahead for Progress in the 21st Century Act established a new provision to Direct Loan statutory requirements that limits a first-time borrower's eligibility for Direct Subsidized Student loans to a period not to exceed 150% of the length of the borrower's education program (the 150% limit). A first-time borrower, for this provision, is a student who does not have an outstanding balance of principal or interest on a Direct or FFEL student loan as of July 1, 2013.

Congress wants to encourage students to obtain undergraduate degrees within a reasonable time frame. Students who change majors multiple times or drop/retake classes excessively are most likely to be affected by Public Law 121-141. The Government will no longer provide interest rate deferments for students taking an exceptional amount of time to obtain an undergraduate degree. In such cases, the interest rate expense will now be passed along to the student.

Student borrowers who exceed 150% limit will no longer be eligible for a Direct Subsidized Loan or loan interest subsidy. Once the student has exceeded the 150% of the published length of the student's current educational program, the student will only be eligible to receive Unsubsidized Student Loans. Below are examples of the 150% maximum eligibility periods for Utah Valley University degree and certificate programs:

Program Length   Maximum Eligibility Period
4-year bachelor degrees X 1.5 6.0 Years
2-year associate degrees X 1.5 3.0 years
1-year certificate programs X 1.5 1.5 years

In addition, a borrower who has lost eligibility for additional subsidized loans as a result of reaching the maximum (150%) eligibility period will also lose the interest subsidy on all previous subsidized loans received on or after July 1, 2013. This is because the student did not complete the program in the 150% time frame and continues enrollment in the same program or enrolls in another program of the same or shorter length. The loss of the interest subsidy would be effective on the date of the continued or new enrollment. Additional information can be found here and here.

PLUS Loans

Plus loans are federal loans that graduate students and parents of undergraduate students can apply for to aid in paying for educational expenses. To be eligible, you (or your parent in the case of undergraduate students) must not have adverse credit history. All PLUS applications will require a credit check. PLUS loans first disbursed on or after July 1, 2014 and before June 30, 2015, have an interest rate of 7.21%. An origination fee will be deducted from a PLUS loan before it is disbursed. The origination fee on a PLUS loan first disbursed on or after December 1, 2013 will have an origination fee of 4.288%, and PLUS loans first disbursed on or after October 1, 2014 will have an origination fee of 4.292%. PLUS loans are not subject to the Direct Loan annual or aggregate limits; however, the maximum amount that can be borrowed is up to your cost of attendance. You must first complete the FAFSA before you (or your parent) are eligible to apply for a PLUS loan. Additionally, graduate students must complete PLUS loan entrance counseling and all borrowers must complete a Master Promissory Note. Loans are disbursed by electronic fund transfer (EFT) to your account, usually at the beginning of each semester for which the loan is awarded.

For questions regarding exit loan counseling and loan repayment, please visit our Loan Repayment page.

Private Education Student Loans


DISCLAIMER:
Utah Valley University (UVU) does not promote any private student loan lenders or guarantors or their loan products. UVU does not have a preferred lender list, nor do we have a preferred lender arrangement. Students at UVU have the right to choose their lender from among those that participate in private student loans.

If a private education loan is necessary, students are strongly encouraged to research and compare several lenders. Each lender may have different interest rates and requirements for repayment. These loans are not awarded on the basis of financial need. Students may qualify for federal student loans or other assistance from the Federal Student Aid programs. The terms and conditions of a federal student loan may be more favorable than the provisions of a private education loan. Students can determine their eligibility for these loans by completing the Free Application for Federal Student Aid (FAFSA). Please see our How to Apply page.

New provisions in the Truth in Lending Act, implemented in February 2010, have resulted in a number of changes in the process for applying for and receiving private education loans. Lenders who provide these loans must comply with the following requirements:

Lenders must provide three separate loan disclosures to borrowers--one at the point of application, one when the loan is approved, and one before the loan is disbursed. A waiting period of three to seven business days is required between the time the borrower receives the final loan disclosure and the time that the loan is disbursed. Students must also sign a self-certification form and submit it to the lender before the loan can be disbursed. The lender should provide the student with all of the information needed to know about these requirements.

If you are applying for a private education loan, you must provide a completed Private Education Loan Applicant Self-Certification Form PDF to your lender. You will need to submit the form to your lender. Once your loan is approved by the lender, the lender will request that the Financial Aid and Scholarships Office certify the loan. Certification confirms for the lender that the loan applicant meets all eligibility requirements. The maximum amount you may have certified per year in private education loans is your cost of attendance minus federal aid and other resources. You must be admitted to, enrolled in, and be a degree-seeking student at UVU for your loan to be certified. The enrollment status required for a private education loan is determined by the lender.

Private education loan funds will be disbursed from your lender to UVU in the form of a check. You will be notified when the check is received. You will then go to the Business Office to endorse the check.