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, collects the promissory note 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:
- Federal Stafford Subsidized Loan - requires FAFSA
- Federal Stafford Unsubsidized Loan - requires FAFSA
- Federal Parent PLUS Loan - does not require FAFSA
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.
