Student Loan Consumer Information

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Mission of the Student Financial Services Office

The Mission of the Financial Aid Office is to assist students in obtaining financial aid for their college education while complying with all federal, state and institutional regulations, and by offering optimal customer service to students, parents, staff and outside agencies.

Financial aid consists of funding provided through federal and state governments and institutional sources to help cover educational expenses. This funding consists of grants and scholarships that do not have to be paid back to the provider and loans that have a variety of repayment options.

Notice of Availability of Institutional and Financial Aid Information

Liberty University, as permitted by federal regulation [34 CFR 668.41], electronically disseminates consumer information, including the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act information. Upon request, the institution will provide a free paper copy. Anyone signing or processing financial aid forms or seeking information or assistance at Liberty University must read, understand, and comply with the requirements disclosed, which are available 24 hours a day on this webpage.


Outcome Disclaimer

Outcomes reported are based on data collected in instruments such as institutional surveys, which are stored and maintained by the Liberty University Office of Institutional Effectiveness. Reported outcomes are updated periodically to reflect the most accurate, recently collected data and are subject to change. Aggregated results may vary based on individuals who participated in the applicable survey.


Return of Loan Funds

Loan proceeds must be returned to the lender if the school is unable to deliver them or if the school is unable to document that the student attended classes during the payment period for which the loan(s) is intended. 

If the student fails to register, enroll, maintain at least half-time enrollment, or maintain Financial Aid Satisfactory Academic Progress (SAP), the school must meet the deadlines required for returning the loan proceeds to the lender.  Promptly, but no later than ten business days after the latest delivery date. 


Loan Code of Conduct

  • Liberty University does not participate in any revenue-sharing arrangements with any private lender.
  • Liberty University does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept any gifts of greater than a nominal value from any lender or servicer.
  • Liberty University does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept any fee, payment, or other financial benefit (including a stock purchase option) from a lender or affiliate of a lender as compensation for any type of consulting arrangement or contract to provide services to a lender or on behalf of a lender relating education loans.
  • Liberty University does not permit any officer, employee or agent of the school who is employed in the financial aid office or is otherwise involved in the administration of education loans to accept anything of value from a lender, guarantor, or group of lenders and/or guarantors in exchange for service on an advisory board, commission or other group established by such a lender, guarantor group of lenders and/or guarantors.  Liberty University does allow for the reasonable reimbursement of expenses associated with participation in such boards, commissions or groups by lenders or groups of lenders.
  • Liberty University does not assign private lenders to any first-time borrower through financial aid packaging or any other means.
  • Liberty University recognizes that a borrower has the right to choose any private lender from which to borrow to finance his/her education.  Liberty University will not refuse to certify or otherwise deny or delay certification of a loan based on the borrower's selection of a private lender.
  • Liberty University will not request or accept any offer of funds to be used for private education loans to students from any lender in exchange for providing the lender with a specified number or volume of Title IV loans, or a preferred lender arrangement for Title IV loans.
  • Liberty University will not request or accept any assistance with call center or financial aid office staffing.

Lending Statement Regarding Preferred Lender Lists and Preferred Lender Arrangements

Liberty University does not recommend specific student loan lenders, nor does it have a preferred lender list or preferred lender arrangement. Students may borrow from any lender that offers educational student loans. Liberty University encourages students to borrow only what is absolutely needed to prevent future debt.


Drug-related Convictions and Student Ineligibility

Regulation effective July 1, 2000: Students who have been convicted under federal or state law for possession or sale of a controlled substance will be suspended from Title IV [financial aid] eligibility, regardless of when the conviction occurred.

If a student is convicted of an offense involving the possession of an illegal substance, the ineligibility period is:

  • First Offense = 1 year from date of conviction
  • Second Offense = 2 years from date of conviction
  • Third Offense = Indefinite period

If the student is convicted of an offense involving the sale of an illegal substance, the ineligibility period is:

  • First Offense = 2 years from date of conviction
  • Second Offense = Indefinite period

A student may regain eligibility by successfully completing a drug rehabilitation program that complies with criteria established by the U.S. Department of Education.
A qualified drug rehabilitation program must include at least two unannounced drug tests and must satisfy at least one of the following requirements:

  • Be qualified to receive funds directly or indirectly from a federal, state, or local government program.
  • Be qualified to receive payment directly or indirectly from a federally or state-licensed insurance company.
  • Be administered or recognized by a federal, state, or local government agency or court.
  • Be administered or recognized by a federally or state-licensed hospital, health clinic, or medical doctor.

The period of ineligibility begins as of the date of the conviction. A conviction is defined as a conviction that is on a student’s record at the time the student’s eligibility is being determined. A conviction that was reversed, set aside, or removed from the student’s record is not relevant.

An illegal drug is a controlled substance as defined by section 102(6) of the Controlled Substances Act [21 U.S.C. 801(6)] and does not include alcohol or tobacco. Students may obtain additional information on eligibility by contacting the U.S. Department of Education at 1-800-433-3243 or go to http://www.fafsa.ed.gov.


Graduation Rate Information

Liberty University’s Fall 2008 6-year cohort graduation rate is 52% federally defined.  However, please note this rate only reflects about half of our students (first-time, full-time students in Bachelor degree programs who have not taken any college credit courses prior to enrollment (i.e. dual enrollment, community college coursework)). View complete list of graduation rate information.

Identified Student Groups with those required by HEOA (Sec. 488 (a)(3))

2008 6-Year Cohort Graduation Rate

Incoming resident undergraduates with at least a 3.0 GPA who completed the first year

77%

Fall 2008 6-Year Cohort Graduation Rate

52%

Gender: Male

45%

Gender: Female

58%

Students who did not receive any Federal Pell Grants or Federal Subsidized Student Loans

61%

Student recipients of Federal Pell Grants

35%

Student recipients of Federal Subsidized Student Loans, but not recipients of Federal Pell Grants

52%

American Indian

33%

Asian

56%

Black/African American

26%

Hispanic Latino

49%

Native Hawaiian or other Pacific Islander

43%

Non-resident alien

51%

Two or more races

50%

Unknown

51%

White

57%


Average Indebtedness

As of May 2016, undergraduate students who graduated from Liberty University borrowed an average of $22,431 through federal and private loan programs.  This average includes students who graduated without borrowing any student loans. 

As of May 2016, undergraduate student-borrowers who graduated from Liberty University, borrowed an average of $31,553 through federal and private loan programs. 

Please note that the averages listed above are based on actual data from 9,440 Liberty University students who graduated in 2016.  Some private and government websites will calculate averages using other methods, different student groups, and/or different years.

Students should seek out loan forgiveness programs such as the Southside Tobacco Loan Forgiveness Program and Teacher Loan Forgiveness to look toward ways on saving during repayment. 


Cost of Attendance Room and Board Calculation

The total room and board calculation for a student’s cost of attendance (COA) is based on weeks of attendance.  Federal regulations state a week is a consecutive seven-day period, which is how room and board is determined for the purpose of the COA.  For example, if an intensive course lasts from Friday-Friday, one week of room and board will be allocated since there is only one full week, or consecutive seven day period.


Locating Free Student Consumer Information

Many publications provide important consumer information. The following is a list of those publications:

Consumer Information is also available through the following publications offered by the U.S. Department of Education (ED):


Student Loans

For student loans at Liberty University, important information is available regarding terms and conditions, and additional eligibility requirements. Below are several links to assist students with the details for federal and private student loans. You can also learn more about loans in this video.

Federal Loans

 

Federal Loans

The federal student loan is a low interest rate loan with interest rates tied to the 10-year Treasury Bill rate (or "T-bill").  To review the current interest rates, please visit www.studentaid.gov or click here.

  • Subsidized
    • Need-based as determined by the FAFSA, other aid sources and educational costs
    • Only available for undergraduate students
    • The U.S. Department of Education pays the interest on the loan while the student is enrolled at least half-time
    • Limited to 150% of the time a student is enrolled in his or her program.  Example: if you are enrolled in a four-year bachelor’s degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years). If you are enrolled in a two-year associate degree program, the maximum period for which you can receive Direct Subsidized Loans is three years (150 percent of 2 years = 3 years). For additional information regarding this rule, please visit www.studentaid.gov.
  • Unsubsidized
    • Not need-based
    • Available for undergraduate and graduate students
    • The student pays the interest while in school or it can be capitalized*

Borrower limits for federal loans based on grade level and dependency status
(U.S. Department of Education)

Student Type Base
(Max Subsidized Loans)
Additional Unsubsidized
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/ Parent plus Denial $3,500 $6,000
Independent Sophomore and Dependent Sophomore w/ Parent plus Denial $4,500 $6,000
Independent Junior/Senior and Dependent Junior/Senior w/ Parent plus Denial $5,500 $7,000
Graduate Students $0 $20,500



Note (Effective July 1, 2008): Dependent undergraduate students whose parent is denied a Parent PLUS Loan have increased eligibility for unsubsidized loans. Freshman and sophomore students may borrow a maximum of $6,000 in unsubsidized loan funds in addition to their base amount listed above. Junior and senior students may borrow a maximum of $7,000 in unsubsidized loan funds in addition to their base amount listed above.

*Capitalized interest is daily interest that is calculated on a loan's unpaid principal balance at the rate specified in the promissory note.  Unlike accrued interest, capitalized interest is added to the principal loan amount and paid at a later time.

 

Liberty University is not responsible for returning any portion of a loan that was disbursed to a student or parent directly (e.g., as a result of a credit to the student’s account) before the request for cancellation was received.

If a student or parent borrower decides to return Direct Loan funds, he or she will need to visit www.nslds.ed.gov to look up their loan servicer information. He or she can send the check to the address listed for their particular loan servicer.

Please follow this link to the Federal Direct Loans Q & A page on how to find your loan servicer: http://www.liberty.edu/index.cfm?PID=20371. You will find step-by-step instructions by clicking on “How can I find the servicer for my federal student loans?” Loan Servicer Payment addresses are also listed under “List of Federal Student Loan Servicers.”

The borrower must include a cover note stating whether the funds are for a loan payment or for canceling (inactivating) the loan. The note should indicate which loan or loans the funds should be applied to, and in what amounts (if repayment is being split between loans).

Aggregate Loan Limits (Effective July 1, 2008)

Aggregate Loan Limits
 

  • 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 unsubsidized only

PLUS Loans

PLUS Loans

The Federal Parent PLUS Loan is for credit-worthy parents of dependent undergraduate students. The Federal Graduate PLUS Loan is for credit-worthy independent graduate students. The amount is based on educational costs minus any other financial aid.

Students whose parents are denied the Parent PLUS Loan due to adverse credit may be eligible to receive an additional $4,000 or $5,000 in unsubsidized loans. For information regarding to the Parent PLUS interest rate, please see "Federal Loan" dropdown to learn more about this being tied to the T-bill. Repayment on a Parent PLUS loan usually begins 60 days after the final disbursement.

As of March 29, 2015, if a borrower has been approved for a Direct Parent PLUS or Direct Graduate PLUS loan by means of obtaining a qualified endorser or documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to the borrower’s adverse credit, the borrower must complete the new Direct PLUS Loan Counseling requirement at www.studentloans.gov.

Liberty University is not responsible for returning any portion of a loan that was disbursed to a student or parent directly (e.g., as a result of a credit to the student’s account) before the request for cancellation was received.

If a student or parent borrower decides to return Direct Loan funds, he or she will need to visit www.nslds.ed.gov to look up their loan servicer information. He or she can send the check to the address listed for their particular loan servicer.

Please follow this link to the Federal Direct Loans Q & A page on how to find your loan servicer: http://www.liberty.edu/index.cfm?PID=20371. You will find step-by-step instructions by clicking on “How can I find the servicer for my federal student loans?” Loan Servicer Payment addresses are also listed under “List of Federal Student Loan Servicers.”

The borrower must include a cover note stating whether the funds are for a loan payment or for canceling (inactivating) the loan. The note should indicate which loan or loans the funds should be applied to, and in what amounts (if repayment is being split between loans).

Private Loans

Private Loans

Check out Private loans at ELM Select.

Private loans are not part of the federal loan programs and should be used as a last resort. Liberty encourages all students to first consider the Federal Student Loan programs, as they may offer the lowest fees and interest rates. However, if those loan programs do not cover the student's educational expenses, they may want to consider applying for a private loan.

Private loans that are not certified by Liberty University are called Direct-to-Consumer (DTC) loans. Students should be read the terms of DTC loans very carefully and be aware that DTC loans may affect other aid eligibility when they are applied to the student's account.

Direct-to-Consumer Loans (DTC)

Direct-to-Consumer Loans (DTC)

Students apply for a Direct-To-Consumer Loan (DTC loan) by directly contacting the lender. Liberty University's Financial Aid Office is not initially notified of DTC loans, nor is it part of the process to certify eligibility. Since, however, the U.S. Department of Education requires Liberty University to acknowledge the receipt of the loan and regard it as a resource paid to the student's account, Liberty may need to adjust other sources of financial aid to accommodate the DTC loan amount.

Because DTC loans can negatively affect other financial aid, students are encouraged to exhaust all federal sources first. 

Average Indebtedness

Average Indebtedness

As of May 2016, undergraduate students who graduated from Liberty University borrowed an average of $22,431 through federal and private loan programs.  This average includes students who graduated without borrowing any student loans. 

As of May 2016, undergraduate student-borrowers who graduated from Liberty University, borrowed an average of $31,553 through federal and private loan programs. 

Please note that the averages listed above are based on actual data from 9,440 Liberty University students who graduated in 2016.  Some private and government websites will calculate averages using other methods, different student groups, and/or different years.  

Students should seek out loan forgiveness programs such as the Southside Tobacco Loan Forgiveness Program and Teacher Loan Forgiveness to look toward ways on saving during repayment. 

Federal Loan Origination Fee

Federal Loan Origination Fee

To review the most up to date origination fees, please visit www.studentaid.gov or click here.

Student Loan (NSLDS) Issues

Student Loan (NSLDS) Issues

Disability Discharge

The Department of Education (ED) has established certain requirements for students who have had federal student loans discharged due to Total and Permanent Disability (TPD) and would like to receive additional federal student loans and/or a TEACH grant upon returning to school. Requirements vary depending on the category and status of the TPD discharge.

If a student is granted a TPD discharge of one or more federal student loans or TEACH Grant service obligation, the student will not be eligible to receive a new Direct Loan, Perkins Loan, or TEACH Grant in the future unless:

  • The student obtains a certification from a physician that he or she is able to engage in substantial gainful activity; and
  • The student submits a signed statement acknowledging that the new loan or TEACH Grant service obligation cannot be discharged in the future on the basis of any present injury or illness.

  • In addition, if a student requests a new Direct Loan, Perkins Loan, or TEACH Grant during the 3-year postdischarge monitoring period (PDMP), the student must resume repayment on the previously discharged loans or acknowledge that he or she is once again subject to the terms of his or her TEACH Grant service obligation before receiving the new loan or TEACH Grant.

Please click on the PDF link below that corresponds with the academic year you plan to attend and carefully review the chart to determine the necessary steps needed to regain eligibility. Complete and submit the necessary forms (also included in the PDF link) to the Office of Financial Aid.  

Contact Information

Liberty University 
1971 University Blvd.
Financial Aid MSC 710282
Lynchburg, VA 24515

Fax: (434) 582-2053
Email: financialaid@liberty.edu

For additional information regarding your TPD discharge, please refer to the documents provided to you by the Disability Discharge Provider (DDP) or visit: http://www.disabilitydischarge.com.

Overlapping Loan Periods

Overlapping loan issues will need to be reviewed if a student has Stafford Subsidized and/or Unsubsidized loans in which the loan period end date has crossed into the current academic year at Liberty. All schools will not have the same academic year loan periods as Liberty University; therefore, if the loan period at your previous school extends into Liberty University's current academic year even by one day, they will need to be reviewed.  Overlapping loan issues are reviewed in an effort to not overaward a student for any given academic year.  We will need to gather information from the student's previous school in order to determine eligibility for the current academic year. 

Default

Please visit here for more information on how to resolve a loan default.

Bankruptcy

A student with a Federal Student Aid (FSA) loan or grant overpayment that has been discharged in bankruptcy remains eligible for federal loans, grants, and work-study. The Bankruptcy Reform Act of 1994 prohibits denial of aid based solely on filing for, or having a debt discharged in, bankruptcy.

A student who has filed for bankruptcy may need to give additional documentation before receiving federal funds. However, if the loans are not in default the necessity for documentation is unlikely.

Aggregate Loan Limits

The U.S. Department of Education sets both annual and aggregate loan limits for Stafford loans based on the student’s dependency status and grade level. The 2012 Federal Student Aid Handbook 3-119 states, “A student who has inadvertently received more than the annual or aggregate Stafford loan limits is ineligible to receive any FSA funds until the over borrowing is resolved.” This includes Pell, Stafford loans and Plus loans.

Based on the information from the National Student Loan Data System (NSLDS) a student who has an overage or potential overage is flagged with a “C” code or comment code advising the school to review the information. When flagged,  a manual review is needed to determine if there is an overage or an overage that may have been resolved. If unresolved, there are several ways an overage can be taken care of.  Proof of resolution must be provided to Liberty University before any remaining Title IV eligibility can be processed.

  • Pay the overage
  • Contact a financial aid representative with the school where the overage was  created to see if a reallocation of funds is an option
  • Contact the over awarding school or lender for a reaffirmation letter
  • Consolidate loans