Federal Student Loans

Valpo participates in the Direct Lending program, and processes all federal loans directly, apart from private lenders. Federal loans are credited to the student’s Finance Office account. All loans are subject to a total aid cap equaling the cost of attendance less other aid received.  You must be enrolled at least half-time to be eligible for a federal loan. (For undergraduate half-time = 6 credits per semester; Graduate students: half-time = 4.5 credits per semester)  First time student borrowers are required to complete following on studentaid.gov before a disbursement can be made:

• Entrance Counseling
• Complete Master Promissory Note

Special Notice: Companies not affiliated with the Department of Education may call soliciting you or your family members about loan consolidation. Many of these companies are exploiting students and their families. Your loan servicer will never text you regarding loan forgiveness or debt collection. Do not reply to the text or call the number.

Declining or Reducing Loan Amounts for Students

Students can decline, accept or reduce their Federal subsidized and unsubsidized loans through the Student Self-Service site on DataVU. There are some rare occasions where students may have to email the Office of Financial Aid to request the changes.

Annual federal direct student loan limits

• Freshmen = $5,500 ($3,500 max in a subsidized loan)
• Sophomore = $6,500 ($4,500 max in a subsidized loan)
• Junior = $7,500 ($5,500 max in a subsidized loan)
• Senior = $7,500 ($5,500 max in a subsidized loan)
• Graduate/Law = $20,500 (All in an unsubsidized loan)

Federal Direct Subsidized Loan

• Need-based, must file FAFSA
• A 1.057% federal *origination fee is deducted from loan proceeds if disbursed on or after October 1, 2020 and before October 1, 2025.
• Principal and Interest deferred while enrolled at least half-time in school.
• Current Interest Rates for Undergraduate Loans:
  • Processed between July 1, 2023 – June 30, 2024: 5.50%
  • Processed between July 1, 2024 – June 30, 2025: 6.53%

Federal Direct Unsubsidized Loan

• Not need-based, but must file FAFSA
• A 1.057% federal *origination fee is deducted from loan proceeds if disbursed on or after October 1, 2020 and before October 1, 2025.
• Current Interest Rates for Undergraduate Loans
  • Processed between July 1, 2023 – June 30, 2024: 5.50%
  • Processed between July 1, 2024 – June 30, 2025: 6.53%
• Interest Rates for Graduate Loans
  • Processed between July 1, 2023 – June 30, 2024: 7.05%
  • Processed between July 1, 2024 – June 30, 2025: 8.08%
• Principal deferred but interest accrues while in school, borrower may pay interest or defer.