If you apply for financial aid, you may be offered loans as part of your school’s
financial aid offer. A loan is money you borrow and must pay back with interest. If you decide to take out a loan, make sure you understand who is making the loan
and the terms and conditions of the loan. Student loans can come from the federal
government or from private sources such as a bank or financial institution. Loans
made by the federal government, called federal student loans, usually offer borrowers
lower interest rates and have more flexible repayment options than loans from banks
or other private sources. Learn more about the differences between federal and private student loans.
The U.S. Department of Education provides federal student loans.
- The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program,
the U.S. Department of Education is your lender.
- Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the cost of higher education at a college or career school.
- Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but
in this case, the student does not have to demonstrate financial need to be eligible
for the loan.
- Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate
students to help pay for education expenses not covered by other financial aid.
- Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan
with a single loan servicer.
Additional Federal Direct Loan links and other resources are available to guide student
borrowers through the loan process. (Courtesy of U.S. Department of Education YouTube Channel)
University of the Virgin Islands Loan- The UVI loan, with an interest rate of 5%,
is available to undergraduate, full-time students. Fund for the University of the
Virgin Islands Loan are allocated to the Financial Aid Office by the University. These
funds are used to augment the resources of undergraduate resident students with financial
need. The recipients must sign a promissory note prior to the disbursement of the
loan proceeds. Repayment begins six months after the student graduates or withdraws
from the University. Students who have completed a bachelor's degree are not eligible
to receive this loan.
UVI 3-Year Cohort Default Rate
Effective October 31, 2024, UVI's current default rate for Fiscal Year (FY) 2021 is
0 percent.
The U.S. Department of Education provides federal student loans.
- The William D. Ford Federal Direct Loan (Direct Loan) Program is the largest federal student loan program. Under this program,
the U.S. Department of Education is your lender.
- A student, who meets the definition of an eligible borrower, must be enrolled at least half-time (six or more credits) in both the undergraduate
and graduate programs and must be making Satisfactory Academic Progress, (SAP). Graduate/Professional
students enrolled in Thesis/Dissertation coursework may receive a direct loan for enrollment hours less than six credit hours.
Get the FACTS: Financial Awareness Counseling
The new Financial Awareness Counseling module will provide you with the basics of
financial management, show your current federal student loan debt (and your other
student loan debt if you enter information about your private student loans), and
provide you with an estimate of what your student loan debt is likely to be at the
time you leave school. The Financial Awareness Counseling will show you how to:
- Understand Your Loans – This section will allow logged-in users to see their existing federal student loan
debt based on the National Student Loan Data System (NSLDS) data. Users can enter
additional loans that are not reflected in the NSLDS.
- Manage Your Spending – This section includes an in-school budgeting tool that compares living expenses
vs. a user’s current income. The user can export his or her data to an Excel spreadsheet.
- Plan to Repay – This section includes a budgeting tool which compares living expenses vs. estimated
income after leaving school and calculates monthly payment amounts for each of the
basic repayment plans. This section also includes a tool that allows the user to see
the effect of paying extra towards their loans to reduce their overall debt and the
amount of interest paid over time.
- Avoid Default – This section provides tips on how to postpone repayment or lower monthly payments,
if needed. It also provides information on loan forgiveness or cancellation of student
debt. Lastly, this section informs on the pitfalls of loan delinquency and default.
- Make Finances a Priority – This section discusses the development of a financial plan and making financial
decisions such as planning for the future, your income and taxes, credit and identity,
credit cards and other borrowing options.
- Print a Summary Page – This page gives a summary of the data used and/or entered and can be printed. Be
proactive with your student loans and future indebtedness; be an informed consumer. Be
proactive with your student loans and future indebtedness; be an informed consumer
visit Financial Awareness Counseling.
