ELIGIBILITY CRITERIA

     Eligibility for Vanderbilt Education Loan Program funds is determined by the Office of Student Financial Aid on the basis of the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service Financial Aid PROFILE form. You must be enrolled or accepted for enrollment in a degree-seeking program and you must maintain at least half-time enrollment. In addition, neither the student nor the co-borrower may have filed a bankruptcy claim.

   Additional borrowing eligibility criteria and considerations include:

• Creditworthiness of borrower and co-borrower

• Demonstrated capacity to meet any relevant current financial/credit obligations

     Note:  Vanderbilt students will be required to obtain a co-borrower for this loan.

APPLICATION AND PROMISSORY NOTE  

     When you sign a promissory note, you are agreeing to repay the loan according to the terms of the note. The note is a binding legal document.  Please click here to continue the Vanderbilt Education Loan application process.  Please return all required paperwork to Edfinancial. 

INTEREST RATES  

     Vanderbilt pays the interest on the loan ("subsidizes" the loan) only during any period of at least half-time enrollment as an undergraduate student at Vanderbilt University. During the six month post-enrollment grace period and during the following repayment period, you (the borrower) are responsible for paying the interest which accrues on the loan. For loans made after July 1, 2006, the interest rate is variable and will change quarterly on the first day of January, April, July, and October and also at the beginning of repayment. Based upon student and co-borrower credit, the rate is equal to the Prime Rate minus 0.5%, or Prime plus 0.5% or Prime plus 3.5%. Please see the interest rate and fee summary information listed below.

  The annual amount you can borrow is established each year by the Office of Student Financial Aid, subject to your demonstrated financial need and any applicable program minimum/maximum borrowing limits. 

LOAN FEES

     For most applicants, fees will not be charged for this loan. For borrowers that fall into the fourth credit tier, you will pay an origination fee of 6% of the loan amount, which will be added to the loan balance at disbursement. Additionally, an insurance  fee  equal  to  2% of your total  loan principal will be added to the loan balance at repayment. Please see the interest rate and fee summary information listed below.

Late charges of 5% of the late amount or the maximum amount permitted by law, whichever is less, will be assessed for each payment or portion thereof which is more than 15 days past due.

DISBURSEMENT

     Before Vanderbilt Education Loan funds can disburse, your financial aid file must be complete and all verification documents must have been submitted to the Office of Student Financial Aid (OSFA) for review.   

     Funds are normally disbursed in equal installments per semester by electronic funds transfer (EFT) and are credited directly to your Vanderbilt student account.

REPAYMENT

     After you graduate, leave school, or drop below half-time enrollment, you have 6 months before you begin repayment. This is called a "grace period."

   During the grace period, you do not have to repay any principal, but interest will accrue. You can either pay the interest or allow it to accumulate (to be capitalized) during the grace period.  

   Repayment of the principal and any accumulated interest begins at the end of the grace period. The repayment period is based on the total amount borrowed (not to exceed 20 years for extremely large amounts of borrowing), with repayment generally established on an equal monthly installment basis. The minimum monthly payment is $100.

TAX INCENTIVES

    There are tax incentives for certain higher education expenses, including a deduction for student loan interest for certain borrowers. This benefit applies to all loans taken out to pay for postsecondary education costs. The maximum deduction is $2,500 a year. IRS Publication 970, Tax Benefits for Higher Education, explains these credits and other tax benefits. You can find out more at www.irs.gov or by calling the IRS at 1-800-829-1040. TTY callers can call 1-800-829-4059.

REPAYMENT DIFFICULTIES

   Under certain circumstances, you can apply for deferment on your loan at the time of repayment. During a deferment you are allowed to temporarily postpone payments on your loan, but interest will continue to accrue. You may apply for deferment under certain conditions, such as full-time enrollment at another approved institution participating in the Federal Family Education Loan Programs.

   You may also apply for an Internship/Residency deferment for up to 48 months maximum for serving in a medical or dental internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility that offers postgraduate training.

   Deferments are not automatic. You must apply and provide documentation from an authorized school official, or from an authorized official of the institution at which you are serving in an internship or residency program.

   If you are temporarily unable to meet your repayment obligations, but are not eligible for a deferment, you may apply for forbearance for a limited and specified period. During forbearance, your payments are postponed or reduced, but you are responsible for the interest as it continues to accrue. Please note that both the borrower and co-borrower, if applicable, must apply for and be approved for any forbearance.

     Forbearance is not granted automatically. You may apply and be granted forbearance for up to 1 year at a time. The forbearance may be renewed, but the periods may not exceed a total of 24 months. You must apply for forbearance in writing and provide documentation to support your request for forbearance.

CONTACT INFORMATION

     For more information regarding this program, you may contact our office at 1-800-288-0204 or loans@vanderbilt.edu. You may also contact Edfinancial at 1-800-337-6884.

* The information listed above is a basic overview of the program and is accurate to the best of our knowledge. The actual promissory note will be more detailed and will contain specific terms and conditions of the program.