Direct Loan Program
The University participates in the William D. Ford Federal Direct Loan Program. Under the Direct Loan Program, loans are made by the U.S. Department of Education instead of private lenders. Direct Loans are available in unsubsidized loans only. Unsubsidized Direct Loan assistance is not need-based. Students borrowing unsubsidized Direct Loans may defer payment of principal and interest while enrolled and for a six-month grace period following graduation, in which case accrued interest is added to the principal.
Students may borrow an annual maximum of $20,500 in unsubsidized Direct Loans. The interest rate is fixed at an annual rate of 6.8 percent, and the maximum aggregate is $138,500. Students who are not U.S. citizens or permanent residents are not eligible to borrow under the Direct Loan program, but may be eligible for alternative private loans.
Master Promissory Note: All borrowers are required to complete a Master Promissory Note (MPN) the first time they borrow as a University of Virginia student. The MPN does not show loan amounts because it can serve as the student’s promissory note for future years. The amount of the loans will be included in the student’s financial aid award notification. Sign the MPN
Students will receive their Loan Disclosure Statement for each new loan borrowed. The disclosure statements provide information about the types and amounts of loans borrowed, the loan period and the anticipated disbursement dates. Students should maintain the statements for their records.
Students initially accept, decline or reduce loan amounts in the Student Information System (SIS). Once a loan is accepted in SIS, contact the Law School Financial Aid Office if you need to make changes to your award. Note that increases are subject to annual maximums. If you have borrowed more than you need, excess funds must be returned to UVA within 120 days of disbursement. The loan fee will be reduced or eliminated in proportion to the amount of the disbursement returned.
Disbursement Procedure: The financial aid award indicates the total loan amount of the Direct Loan the student is awarded. The net amount disbursed will be the gross amount of the loan less fees.
The Direct Loan is normally payable in two disbursements, one-half of the total in each semester. Loan funds cannot be credited to the student’s account until approved by the Department of Education and the student has enrolled in sufficient credit hours.
Students will receive an email once their loan has been disbursed to their University Student Account (billing account statement). The disbursement will first pay outstanding tuition, fees and room and board due to the University of Virginia for the current semester, and the remaining funds will be sent to the student by check to their local address or direct deposit to their own personal bank account.
In the case of an over-award, one or both of the loan disbursements may be reduced or canceled. Similarly, if tuition charges are reduced because of a change in enrollment or additional departmental or non-university awards, one or both of the loan disbursements may need to be adjusted or canceled.
If a student fails to enroll in sufficient credit hours, their loan will be canceled, typically within 30 days of the start of classes.
Entrance Counseling: All first-time borrowers of federal loans must be informed of their borrower obligations before their first loan disbursement can be credited to their University account. Loan Entrance Counseling Information
Exit Counseling: It is the student’s responsibility to undergo exit counseling before leaving the University or in the event he or she registers for less than half-time basis (minimum six credit hours). Student loan history can be found at www.nslds.ed.gov; use your Federal PIN (available at pin.ed.gov) to access the data. It is the student’s responsibility to contact the Law School Financial Aid Office in the event they withdraw from the University or enroll less than half-time (minimum six credit hours) to obtain exit counseling information. Exit Counseling Information
On average, graduating students have accumulated law school debt of $117,886, with payments of approximately $1,420 per month under the standard 10-year repayment term. Loan consolidation and repayment options are available in a variety of formats to meet individual needs.
How to Apply for a Direct Subsidized or a Direct Unsubsidized Loan
