Student Loans

Federal Direct Loans
To receive a Federal Direct Loan, you must first apply by completing the Free Application for Federal Student Aid (FAFSA). Loans are awarded to eligible students when all financial aid requirements are completed. 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 credit hours if an undergraduate and 4.5 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.

If necessary, you 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 2013-2014 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 & 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 & 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.

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.

There are two types of student loans in the Federal Direct Loan Program: subsidized and unsubsidized. 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.

Stafford Subsidized Loan: Direct Subsidized Loans are available to undergraduate students who have a demonstrated financial need. The Financial Aid & 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 between July 1, 2012, and June 30, 2013 is 3.4%. Currently, Congress is expected to raise the rate on subsidized loans to 6.8% on loans first disbursed on or after July 1, 2013. An origination fee will be deducted from a subsidized loan before it is disbursed. Due to the recent legislated sequestration, the origination fee on a subsidized loan first disbursed on or after March 1, 2013 is 1.051%.

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 (i.e., the interest will be added to the principal amount of the loan). The current interest rate for loans first disbursed between July 1, 2012, and June 30, 2013 is 6.8%. An origination fee will be deducted from an unsubsidized loan before it is disbursed. Due to the recent legislated sequestration, the origination fee on an unsubsidized loan first disbursed on or after March 1, 2013 is 1.051%.

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

 
Federal Perkins Loans
Perkins funding is available on a limited basis. Perkins Loans are available to undergraduate and graduate students who have a demonstrated financial need. Interest does not accrue until repayment begins, which is nine months after the borrower ceases to be enrolled at least half time. The interest rate is 5%, which is subject to change. 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 Questionnaire, return it to the Collection's Office , and sign a Perkins Loan 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.

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 currently have a fixed interest rate of 7.9%. An origination fee will be deducted from a PLUS loan before it is disbursed. Due to the recent legislated sequestration, the origination fee on a PLUS loan first disbursed on or after March 1, 2013 is 4.204%. 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. You 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. You can determine your eligibility for these loans by completing the Free Application for Federal Student Aid (FAFSA). Please see our 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. Your lender should provide you with all of the information you need to know about these requirements, but if you have questions, feel free to contact our office.

If you are applying for a private education loan, you must provide a completed Private Education Loan Applicant Self-Certification Form 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 & 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.