Financial Aid

Student Loans at Liberty
Students who indicate an interest in loans on the FAFSA are automatically considered for loans. Although Liberty University awards students up to their maximum yearly eligibility, we encourage students to borrow wisely.

Apply for a Loan On-line
Students who indicate an interest in loans on the FAFSA are automatically considered for student loan eligibility. Student and parent loans are one option to help finance the cost of education. First-Time student borrowers also need to complete an online “Entrance Counseling” session. There are a wide variety of Student, Parent, Alternative, Law and other consumer loans available (and described below).

First Time Borrowers at Liberty Only

Accepting your Loans , EASY AS 1-2-3
(You may preview a list of lenders that Liberty students have chosen in the past. Lender Listing)

Timing of Steps:

After full acceptance only

Any time

If applying for 08-09 loans, please complete Steps 2 and 3 only.
1. Accept your loan(s) and indicate your lender on your ASIST account.
2. Complete your Entrance Interview.
3. Select and apply for your loan(s).
(Your lender selection must match the lender you indicated in step 1.)

The federal student loan is a low interest loan with a fixed interest rate of 5.6% after July 1, 2009 for an undergraduate subsidized student loan for 2009-2010. An unsubsidized loan will maintain an interest rate of 6.8% for undergraduate and graduate students.

Subsidized
- Based on financial need as determined by the FAFSA, other aid sources and educational costs
- The federal government pays the interest on the loan while the student is enrolled half-time in school
Unsubsidized
- Not based on financial need
- The student pays the interest while in school or it can be capitalized into the principal thus increasing the amount owed

*Student Type*	*Base Amount (Maximum Subsidized Portion)*	*Additional Unsubsidized Loan*
*Dependent Freshman*	$3,500	$2,000
*Dependent Sophomore*	$4,500	$2,000
*Dependent Junior/Senior*	$5,500	$2,000
*Independent Freshman and Dependent Freshman w Plus Denial*	$3,500	$6,000
*Independent Sophomore and Dependent Sophomore w Plus Denial*	$4,500	$6,000
*Independent Junior/Senior and Dependent Junior/Senior w Plus Denial*	$5,500	$7,000
*Graduate Student*	$8,500	$12,000

DEPENDENT STUDENTS WHOSE PARENT IS DENIED A PLUS LOAN (Effective July 1, 2008)

Dependent undergraduate students whose parents are denied eligibility for the Federal PLUS Loan have higher additional Unsubsidized Loan amounts. Freshman and Sophomore students may borrow a maximum of $6000 unsubsidized loan funds in addition to their “Base Loan” amount listed above. Junior and Senior students may borrow a maximum of $7000 unsubsidized loan funds in addition to their “Base Loan” amount listed above.

AGGREGATE LOAN LIMITS (Effective July 1, 2008)

Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)

Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)

Graduate Students: $138,500 (no more than $65,500 of which can be subsidized).

PLUS Loans

The Federal Parent PLUS Loan is for parents of dependent students. This loan is for a credit worthy parent borrower. The amount is based on educational costs minus any other aid. Students whose parents are denied the PLUS Loan due to bad credit may be eligible to receive an additional $4000 or $5000 in unsubsidized loans. The PLUS Loan interest rate is fixed at 8.5%. Re-payment usually begins 60 days after the final disbursement of the PLUS Loan.

Alternative Loans

Private Alternative Loans are not part of the federal loans programs and should be used as a last resort. We encourage all students to first consider the Federal Stafford and PLUS Loan programs as they offer the lowest fees and interest rates. However, if those loan programs do not cover your educational expenses you may want to consider the alternative loan option. Private loans that students may receive that are NOT certified by Liberty University are called “Direct To Consumer – DTC” loans. Students should be very cautious regarding the terms of these loans. Additionally, like any other aid, DTC loans may affect other aid eligibility when they are applied to the student’s account.

Click here for Loans for Licensure, Certification, and Law Bar Exam

Direct To Consumer Loans (DTC)

Students apply for a Direct-To-Consumer Loan (DTC loan) by directly contacting the lender. Because of this, the Liberty University Financial Aid Office is not initially notified of the loan and is also not part of the process to certify eligibility. Since the U.S. Department of Education requires Liberty University to track the receipt of the loan as a resource, when the loan is paid to the student’s account, Liberty University often must adjust other sources of financial aid to accommodate the DTC loan amount. Please be VERY CAREFUL to understand that DTC loans – especially large ones – can negatively impact other financial aid. It is to the student’s benefit to exhaust all federal loan sources (with better terms) first. We stress that students may borrow from any lender they choose. Please be careful, however, to understand that DTC loans can dramatically lower your eligibility for other financial aid.

Lender Choice
Liberty University no longer maintains a preferred lenders list. Students are encouraged to borrow from any participating lender they choose. For convenience, Liberty University provides direct links to lenders that students have previously chosen (federal and alternative loan categories in alphabetical order). Additionally, students are welcome to select any participating lender not shown.

AVERAGE INDEBTEDNESS:

The average student at Liberty (at the time of graduation in May 2007) has borrowed $21,171 of loans through all student loan programs. Using an estimated 7% interest rate over a ten year repayment, that student would make payments of $246 per month.

Check on your loans with ELM Net Loan Inquiry

Fees Charged by Lenders/Guarantors

Lenders and guarantors may charge a fee for borrowers of Federal Stafford and Federal PLUS Loans. The fee is taken from loans in percentages that vary slightly from lender to lender. For example, a student who borrows $4000 in a Stafford student loan that has a 3% fee will leave $3880 to disburse to the student's account at the school they are attending. This is NOT a charge from Liberty University, but from your lender or guarantor.