Loan Information

VMI participates in the William D. Ford Federal Direct Loan Program providing federally insured, low-interest, long-term loans to cadets and/or their parents to help cover the costs of college. The Federal Government is the lender, not a bank or other lending institution, and makes the loan directly to the cadet and/or their parents through the school.

The school determines eligibility, calculates the loan amount, verifies submission of the electronic master promissory note & entrance counseling, and disburses the money. Once the loan is made, it is managed and collected by the U. S. Department of Education. A direct loan is money that is borrowed and must be repaid.

VMI offers 3 types of Federal Direct Loans:

  1. Federal Stafford Subsidized Loan - requires FAFSA submission
     
  2. Federal Stafford Unsubsidized Loan - requires FAFSA submission
     
  3. Federal Parent PLUS Loan - requires FAFSA submission

Acceptance or Rejection of Loans 

Cadets who are offered a loan as part of their Financial Aid Award Letter, may accept or reject their loan offers in their PostView account.  For new cadets, the PostView account must be activated upon application to VMI.   

If VMI makes the determination that the family does not meet the criteria for need-based financial aid at VMI, the cadet and/or parents may apply for the Federal Stafford Unsubsidized Loan or the Federal Parent PLUS Loan. The cadet will be notified by mail if he/she does not meet the criteria for need-based financial aid.

All Direct Loan or PLUS Loan borrowers must: 

  • Submit a FAFSA (Free Application for Federal Student Aid) for the academic year in which they wish to apply for a loan
  • First-time Direct Loan borrowers complete loan entrance counseling at https://www.studentloans.gov 
  • Submit/sign an electronic Master Promissory Note (eMPN) at  https://www.studentloans.gov 

NOTE:  Loan amounts are not credited to a cadet's account until after loan entrance counseling has been completed and an eMPN is on file at the Dept. of Education.

Entrance Counseling and eMPN Instructions - This site provides the borrower with information regarding what is needed in order to complete entrance counseling and submit their respective eMPN (Direct or PLUS Loan)