The William D. Ford Federal Direct Stafford Loan (Direct Loan) Program is the best financing option for a student to pursue, and should be considered before any private educational loan options. The loan is available to students regardless of the level of financial need. Direct Loans are funded by the US Department of Education through Villanova University and are managed by federal loan servicers, under the supervision of the Department of Education.
This federal education loan is available to students who demonstrate financial need. It is available to students accepted/enrolled on at least a half-time basis in an undergraduate program. The Direct Subsidized Loan is designed to provide students with the opportunity to participate in paying for college. It is available to students who are determined eligible on the basis of financial need. The advantage of a Direct Subsidized Loan is that interest does not accrue while the student is enrolled at least half-time.
This federal education loan was established by the federal government for students who are not eligible or have limited eligibility for the Subsidized Direct Loan. Students may borrow under the same terms as the Subsidized Direct Loan program with one exception; the government does not pay the interest on an Unsubsidized Loan (note: see difference in interest rate below). The student either pays all interest that accrues on this loan during the time of enrollment, grace period and repayment, or may capitalize the interest during the period of enrollment.
The Direct Unsubsidized Loan is designed to provide students with the opportunity to participate in paying for college. It is available to students regardless of financial need. Interest will begin to accrue at the time of disbursement.
*Undergraduate Federal Direct Subsidized and Unsubsidized Loans: All loans disbursed between 7/1/19 through 6/30/20 are subject to a 4.53% interest rate
*Graduate Federal Direct Unsubsidized Loan: All loans disbursed between 7/1/19 through 6/30/20 are subject to a 6.08% interest rate
Please note: For all new borrowers who receive a loan on or after July 1, 2013 a 150% limitation is in effect as noted in the Moving Ahead for Progress in the 21st Century Act (MAP-21). This provision limits a first-time borrower’s eligibility for Federal Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower’s educational program. New student borrowers will be limited to receiving subsidized loans for 6 years in a 4-year program, or 3 years in a 2-year program. Once a student has reached their 150% limitation, their interest subsidy will end on all outstanding loans that were disbursed on or after July 1, 2013, and interest will begin to accrue. Students are therefore encouraged to complete undergraduate study on a timely basis. Federal law provides no provisions to appeal this rule.
Each year the U.S. Department of Education (Department) calculates an annual cohort default rate. The latest rate released in September, 2108 is the Fiscal Year (FY) 2015 national federal student loan cohort default rate (also referred to as the CDR).
The FY 2015 national cohort default rate is the percentage of a school's borrowers who entered repayment on Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans between Oct. 1, 2014 and Sept. 30, 2015, and subsequently defaulted prior to Sept. 30, 2017.
During the tracking period for the FY 2015 borrower cohort—from Oct. 1, 2014 to Sept. 30, 2017—more than 4.9 million borrowers entered repayment, and 531,653 of them, or 10.8 percent, defaulted on their loans. Those borrowers attended 6,155 postsecondary institutions across the nation.
Villanova University is proud to report that the FY 2015 rate is 1.7%.
For public institutions, the FY 2015 rate, 10.3 percent, fell from 11.3 percent in FY 2014. Public institutions make up approximately 27 percent—or 1,660—of the total number of schools and represent approximately 53 percent of borrowers who entered repayment that year. The rate dropped among private schools from 7.4 percent in FY 2014 to 7.1 percent in FY 2015. Private schools comprise approximately 28 percent—or 1,726—of the total number of schools.
Among the 2,364 proprietary institutions in the borrower cohort, the default rate went from 15.5 percent for FY 2014 to 15.6 percent for FY 2015. Proprietary schools accounted for approximately 38 percent of the total number of schools. Additionally, 405 foreign schools saw their rate remain at 3.5 percent for FY 2014 and FY 2015. Foreign institutions make up nearly 7 percent of all postsecondary schools.
The Department's default management website provides information about the national student loan default rate, as well as rates by individual schools, states, types of postsecondary institutions, and other details.
The Office of Financial Assistance will review the results of the aid application and determine the amount of Direct Loan Eligibility.
Each aid applicant will receive a notice of aid eligibility from the Office of Financial Assistance.
Students should go to https://studentloans.gov and complete the Master Promissory Note (MPN).
First time borrowers at Villanova University (Freshmen/Transfers/Graduate Students) must complete Entrance Counseling. If you have not already done so, log on to https://studentloans.gov and complete Entrance Counseling.
Direct Loan proceeds will be credited to the student account at the beginning of the academic year as long as all necessary requirements are complete.
Students interested in loan assistance for the summer term must contact the Office of Financial Assistance.
If you wish to apply for a loan for the 2019-2020 academic year, you need to complete the 2019-2020 financial aid process. Applying for the loan late may delay your funds and possibly cause you to incur University late fees, if your bills are not paid timely.
The Direct Loan is an educational loan available to students accepted/enrolled on at least a half-time basis in an undergraduate or graduate degree program. Students must complete a Master Promissory Note from the US Department of Education. They must also file an initial FAFSA or the Renewal FAFSA.
Eligibility for a Direct Loan is based on cost of education, amount of other financial aid being received, as well as an expected family contribution towards educational costs.