VMI participates in the Federal Direct Student Loan Program providing federally insured, low-interest, long-term loans to cadets and/or their parents to help cover the costs of college. To be eligible for a Federal Direct Student Loan, students must file the FAFSA.
The Office of Financial Aid will indicate each student's eligibility for the federal direct loans on their Financial Aid Award. Students who choose to borrow a Federal Direct Student Loan must complete a Master Promissory Note and Entrance Counseling, which can be done online at studentloans.gov. The Master Promissory Note and Entrance Counseling only need to be completed the first year that students borrow the Federal Direct Student Loan.
Student Federal Direct Loans
The Federal Direct Loan Program has two types of loans: Subsidized and Unsubsidized. The Subsidized Loan is need-based (based both on the FAFSA results and how much other aid a student is receiving) and there is no interest while the student is in school or in grace period. The Unsubsidized Loan is not need-based and the interest begins when the loan is disbursed to the student’s account. Both loans have an origination fee that is deducted when the loan is disbursed to the student’s account. It is not uncommon for a student to have a mix of Subsidized and Unsubsidized Loans.
Parent PLUS Loans
Parents of dependent students can take out loans to supplement their children’s aid packages. The federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student’s financial aid package, up to the full cost of attendance. PLUS loans have a fixed interest rate and an origination fee that is deducted when the loan is disbursed to the student’s account. Repayment begins after the loan is fully disbursed for the year, and the repayment term is up to 10 years. Parents also need to complete a Master Promissory Note before the money can be disbursed to their student’s account. To apply for a Federal PLUS Loan and complete the Master Promissory Note please follow the link below.
Complete Master Promissory Note, Entrance Interview
Students with federal loans are required to complete a Master Promissory Note and Entrance Counseling before the loans can be disbursed to their accounts. These only need to be completed the first year that students borrow the Federal Direct Student Loan.
Acceptance or Rejection of Loans
Students offered a loan as part of their financial aid award, may accept or reject offers in their Post View account.
If VMI determines the applicant 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.