Alternative Loans are available to students attending BVU. Loan eligibility is determined by the borrower’s credit worthiness and out-of-pocket expenses. The interest rates vary. The borrower may take up to 20 years to repay. Principal payments may be deferred, in most cases, while the student is enrolled at least half-time. Financial need is not a prerequisite.
Federal Direct Loans are available to students who complete a Free Application for Federal Student Aid (FAFSA) and enroll at least half-time in college. The federal government offers loans with an interest subsidy (SUBSIDIZED) to students who show financial need and loans without an interest subsidy (UNSUBSIDIZED), for students who do not show need or show a limited amount of need. If eligible for the interest subsidy, the government will pay the interest on the loan while you are enrolled at least half-time and during the six month grace period. If eligible for an unsubsidized loan, students are responsible for the interest charge upon receipt of the loan, but interest payments may be deferred until a student is no longer enrolled.
Freshmen will be eligible for up to $5,500 a year, sophomores $6,500 a year and all other undergraduate students $7,500 a year. The totals represent the maximum that a dependent student can normally borrow in a combination of the subsidized and unsubsidized loans. The interest rates for loans disbursed on or after July 1, 2017 through June 30, 2018 is 4.45% for subsidized and unsubsidized loans for undergraduate students. Borrowers are normally allowed ten years to repay.
Independent (or dependent students whose parents are denied a Federal PLUS Loan) freshmen or sophomore students may be eligible to apply for up to $4,000 in Additional Federal Direct Unsubsidized Loan funds per year, in addition to the yearly amounts indicated above. Those students beyond the sophomore level may be eligible for an additional $5,000 per year.
The maximum aggregate amount available in a Federal Direct Loan for a dependent undergraduate is $31,000. For independent undergraduate students, the maximum aggregate amount available is $57,500. Of this amount, not more than $23,000 can be subsidized.
Graduate student are eligible for Unsubsidized Direct Loan only, with a maximum of $20,500 a year. The aggregate maximum is $138,500, which includes all direct loan funds received for undergraduate study. The interest rate on loans disbursed on or after July 1, 2017 through June 30, 2018 is 6%.
If a Federal Direct Loan is included in your financial aid award and you have indicated that you would like to take advantage of this aid source, a Master Promissory Note and Entry Counseling may need to be completed during your first term of borrowing. If the promissory note and entry counseling has been completed, the funds will be available to you at the beginning of each term/semester. After signing the Master Promissory Note the first time, a new note will normally not be required for subsequent borrowing. The amount of your disbursement will equal the amount you request or are eligible for minus the origination fee of 1.066% on loans disbursed on or after October 1, 2017. The loan will typically be divided into three disbursements, but will depend on your enrollment plans.