Student Loans
There are several types of student loans available to individuals who attend the School of Nursing. For most students, the majority of funds in the financial aid package are from student loans.
Federal Stafford Loan Program
The Federal Stafford Loan Program is the main source of funds borrowed from a lending institution. The Federal Subsidized Stafford Loan is need based and has a 6-month grace period prior to repayment. The maximum available is $8,500 per two semesters. With a subsidized loan the Department of Education pays the interest on the loan while the student is enrolled in school, during the grace period and any period of deferment.
The Federal Unsubsidized Stafford Loan is non-need based and also has a 6-month grace period prior to repayment. The maximum available is $10,000 per two semesters. If a student does not qualify for a subsidized loan it is possible to receive the entire $18,500 in an unsubsidized loan. With an unsubsidized loan the student is responsible for payment of the accruing interest and may request that payment be deferred until the grace period expires. At which time, the interest is capitalized.
All Federal Stafford Loans have a fixed interest rate of 6.8%. After you graduate, leave school, or drop below half-time enrollment (less than 6 hours a semester), you have a six-month grace period before you begin repayment. During the grace period of a subsidized loan, you are not required to pay any principal, and you won't be charged interest. During the grace period of an unsubsidized loan, you are not required to pay any principal, but you will be charged interest. As mentioned, you may either pay the interest or it will be capitalized.
Your lender will send you information about repayment, and you'll be notified of the date repayment begins.
Federal Graduate PLUS Loan Program
The Federal Graduate PLUS Loan enables graduate/professional students with a good credit history to borrow to pay education expenses for at least half-time enrollment.
The student must meet the general eligibility requirements for federal student aid. The student must be a citizen or eligible non-citizen and may not be in default or owe a refund to any federal aid program. To be eligible to receive a PLUS Loan, the student generally will be required to pass a credit check. If he/she does not pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan, promising to repay it if the student should fail to do so. The interest rate, beginning July 1, 2006, is fixed at a rate of 8.5% throughout the life of the loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.
Private Alternative Loans
When an individual is granted Federal Stafford Loans the Financial Aid Office at Vanderbilt is notified regarding the amount of the award. Based on this information, the student Financial Aid Office will determine an individual's eligibility for a Private Alternative Loan (based on credit history). This type of loan is from a private bank or lender and should cover cost of living expenses.
Notification of Financial Aid Award
Financial Aid awards are made after an individual has been accepted to the School of Nursing and has paid their matriculation fee (deposit). The Financial Aid Office extends financial aid awards beginning in late April/early May for individuals who plan to begin school in the fall semester.