Student Loans
Understanding Federal Student Loans
Student loans are a type of federal financial aid that must be repaid.
Â鶹ÊÓƵ participates in the Federal Direct Loan Program, which offers low-interest loans from the U.S. Department of Education. Eligibility is based on federal requirements, enrollment level, and other financial aid received.
Before borrowing, remember that student loans must be repaid. Borrow only what you need.
Federal Loan Updates
Effective July 1, 2026, your loan eligibility will be determined in part by your enrollment status.
How This May Affect You
- Students must be enrolled in at least 6 aid-eligible credits to receive a federal student loan.
- Students enrolled full-time (12 or more credits) may qualify for their full annual loan eligibility.
- Students enrolled less than full-time may receive a reduced loan amount.
- Changes to enrollment may affect current or future loan disbursements.
Important Information
Under previous regulations, students enrolled at least half-time could generally receive their full annual loan eligibility. Beginning with the 2026-27 academic year, federal loan eligibility is adjusted based on enrollment levels.
If you add, drop, or withdraw from classes after your loan has been awarded or disbursed:
- Your loan eligibility may be recalculated.
- Future loan disbursements may be reduced.
- Previously disbursed loan funds may need to be adjusted.
- In some situations, repayment of funds may be required.
There are no grandfathering provisions for this requirement. The enrollment-based reduction applies to all eligible federal student loan borrowers receiving loans under current regulations.
Before making schedule changes, contact the Financial Aid Office to discuss how your enrollment may affect your loan eligibility.
Students enrolled less-than-full-time will have their loan eligibility reduced to their level of enrollment. For more details on how the One Big Beautiful Bill Act effects Federal Student Loan Programs, please visit .
Last Updated: June 2026
Types of Federal Direct Loans
There are two types of Federal Direct Loans available to YVC undergraduate students:
- Available to students with financial need.
- The federal government pays the interest while you are enrolled at least half-time and during certain deferment periods.
- Annual and lifetime borrowing limits apply.
- Available to all eligible students, regardless of financial need.
- Interest begins accruing as soon as the loan is disbursed.
- You can choose to pay the interest while you're in school or allow it to be added to the loan balance.
Note: There is a time limit on how long you can receive Direct Subsidized Loans. Generally, you may not receive subsidized loans for more than 150% of the length of your academic program. For more information, visit .
Getting started
Federal student loans can help cover educational expenses, but they are borrowed money that must be repaid.
Consider:
- How much you actually need.
- Your future repayment obligations.
- Other financial aid you may qualify for.
- Employment or work-study opportunities.
Use our CashCourse tool found on our Financial Literacy page to learn how to budget, manage credit, and understand loans.
Link:
- Complete the (FAFSA).
- Monitor your YVC email and Financial Aid Portal to make sure you are all caught up with Financial Aid and wait for your Offer Letter.
- First-time borrowers must go to to complete their:
- Entrance Counseling
- Master Promissory Note (MPN)
- Submit the YVC Federal Direct Loan Request Form found on the page.
Allow approximately 1 to 2 weeks for processing.
Annual and Lifetime Loan Limits
| Academic Year (45 credits) | Dependent Students | Independent Students |
|---|---|---|
| 1st Year | $5,500 total (up to $3,500 subsidized) | $9,500 total (up to $3,500 subsidized) |
| 2ed Year | $6,500 total (up to $4,500 subsidized) | $10,500 total (up to $4,500 subsidized) |
| 3ed & 4th Year | $7,500 total (up to $5,500 subsidized) | $12,500 total (up to $5,500 subsidized) |
| Aggregate Limit | $31,000 total (up to $23,000 subsidized) | $57,500 total (up to $23,000 subsidized) |
Notes:
The aggregate loan limits include any Direct Loans and any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program.
If the total loan amount you receive over the course of your education reaches the aggregate loan limit, you are not eligible to receive additional loans. However, if you repay some of your loans to bring your outstanding loan debt below the aggregate loan limit, you could then borrow again, up to the amount of your remaining eligibility under the aggregate loan limit.
These are the maximum federal loan limits for undergraduate students. The exact amount you’re eligible to borrow depends on your financial need, cost of attendance, and other aid you receive.
Beginning July 1, 2026, federal student loans are also subject to a lifetime borrowing limit of $257,500. This includes all federal loans received over your lifetime, even if they are paid off or forgiven.
Enrollment and Loan Eligibility
Federal regulations require schools to consider enrollment levels when determining annual loan eligibility.
To receive a federal loan:
- You must be enrolled in at least 6 aid-eligible credits.
- You must complete a .
- Enrollment changes may affect your eligibility.
- Students enrolled less than full-time may receive reduced loan amounts.
- Dropping classes or withdrawing may result in adjustments to current or future loan disbursements.
If you are considering changing your enrollment, contact the Financial Aid Office to discuss how it may affect your loan eligibility.
Interest Rates for 2026-2027
For undergraduate students at YVC, the interest rate for Direct Loans first disbursed between July 1, 2026, and June 30, 2027 is:
-
6.52% fixed
(This rate applies to both Direct Subsidized and Direct Unsubsidized Loans)
This interest rate is based on the 10-year Treasury note high yield 4.342% from May 6, 2025, plus a 2.05% federal add-on set by law.
Interest rates are set each year but remain fixed for the life of the loan. For current rates and more details, visit .
Repayment Changes (Effective July 1, 2026)
Loan Disbursement & Billing
- Your loan amount may change based on your final enrollment level
- Changes to your schedule may result in a reduced loan amount
- This may affect your refund or result in a balance owed
Loan fees are subtracted from your loan before funds are disbursed. These fees can change each year. Check with the YVC Financial Aid Office for current loan fees.
Â鶹ÊÓƵ’s most recent official student loan default rate is 0.0% for the 2022 fiscal year, according to the U.S. Department of Education.
Default rates have remained very low nationwide in recent years due to the pause on federal student loan payments during the COVID-19 pandemic.
YVC’s default rate for the 2021 fiscal year was 0.0%, and 0.0% in 2020.
For schools with more than 30 students in repayment, the U.S. Department of Education calculates the default rate by dividing the number of borrowers who default within three years of entering repayment by the total number who entered repayment in that same year.
As federal student loan repayments resume, future default rates are expected to rise somewhat as borrowers adjust after several years without payments.
Resources for Student Borrowers
- Complete your Master Promissory Note (MPN)
- Complete Entrance and Exit Counseling
- Explore repayment plans and loan forgiveness options
- View your loan balance and service information