Important Loan Information
Prairie View A&M University participates in various educational loan programs offered by the federal government, the state of Texas and alternative loans by various lenders.
Methods and Criteria Used to Choose the Lenders
The banks featured on our ‘Commonly Used Lender List’ were selected by the Assistant Provost for Student Financial Aid based on the following criteria:
- Borrower Benefits (i.e. 0% fees charged for student loan origination - customarily students are charged at least 4%)
- Once fully disbursed, the servicer does not sell the loan (Helps to lower our default rate)
- Lender Default Rate
- Lender Stability and the Quality of Lender Products, Services, and Customer Service
- Lender Operational Standards
- Access to loan applications on-line 24/7/365;
- Interface easily with the school’s technology;
- Provide a seamless continuum in processing payments, handling inquiries, and maintaining careful records)
- Market position
- Name recognition of lender
- Experience of peers with lender
- Guarantee agency relationships of lender
- Value-added products and services
- Common Line Compliance
- PLUS pre-approval options
- Electronic Funds Transfer (EFT) Option
- Private Loan Products
- Experience with Historically Black Colleges and Universities (HBCUs)
Relative Importance of the Criteria
In order to support measured yet continuous improvement of the student loan process, the following issues needed to be addressed:
- The process to certify a loan was convoluted and needed to be streamlined;
- The default rate was 14.8% and had been rising for the previous three consecutive years; and,
- Student satisfaction was very low with financial aid services.
Borrower Rights Regarding Preferred Lender Lists
Borrowers have the right and ability to sect the student loan lender of the borrower’s choice, is not required to use any of the lenders on the list, and will not be penalized for selecting a lender that is not on the list.
Disclosure of Financing Options
Please select a type of loan:
Federal Stafford Loan
The Federal Stafford Loan is a government-sponsored, low interest loan that helps students pay for their education beyond high school. This loan is part of the Federal Family Education Loan Program (FFELP).
You must complete and file the FAFSA in order to qualify. If you do not, you will not be eligible for the Federal Stafford Loan. It is important that this form be completed and filed as soon as possible to avoid delays in processing.
Types of Federal Stafford Loans
- Subsidized - a need based loan, for which the government pays the interest both while the student is in school and during grace and deferment periods.
- Unsubsidized - the borrower is responsible for interest from the time the loan is disbursed until the loan is paid in full.
Financial Aid Process
- Determining Eligibility - PVAMU will determine your eligibility and whether or not you qualify for subsidized loans. Federal Stafford Loan eligibility requires that you:
- Be a U.S citizen or eligible non-citizen
- Be enrolled or accepted for enrollment at least half time at PVAMU
- Be in a degree program or a program required for certification as an elementary or secondary teacher
- Meet the satisfactory academic progress standards at PVAMU
- Have no unresolved defaults on federal education loans and no refunds owed on federal educational grants
- Not be incarcerated
- Select a Lender - It is your responsibility to select a lender who participates in the federal student loan program. You have several options in locating a lender:
- Choose one from the list of lenders used most often by our students by using our interactive lender list.
- If you have previous education loans, try to use your previous lender.
- Complete Application - Follow the OpenNet instructions to complete the loan application process.
- Lender disburses loan to the school, in which the school applies the funds to your student accounts receivable. If a credit balance occurs, and your school debt is paid, the Business Office will issue a refund check for the balance. Please note, when we receive the loan we verify that you are still enrolled at least half-time and that you are making satisfactory progress.
Apply for a loan
If you have previously borrowed at PVAMU or another OpenNet school and signed a Master Promissory Note (MPN), you may not need to make a lender selection. OpenNet will indicate if you have a signed MPN on file.
If you would like to apply for a student loan now, please click on the link below:
The following is a link to get more information on USA Funds and the FFELP family programs:
Federal PLUS Loan
The Federal PLUS Loan is designed for parents of undergraduate dependent students to borrow funds in the parent’s name to assist with their college student’s college educational expenses.
All parents may apply for a PLUS Loan as eligibility is not based on financial need.
However, creditworthiness is used in determining eligibility. The parent borrower’s credit bureau report will be reviewed and must meet the lender’s established borrowing guidelines. A borrower cannot have adverse credit history.
Repayment of principal and interest begins 60 days after the final disbursement of the PLUS loan.
Financial Aid Process
- Apply for a PLUS Loan from a lender who participates in the FFELP program. A parent may choose one from the list of lenders used most often by our students/parents – Lender Comparison Gateway or if a parent has had previous education loans, try to use your previous lender.
- Lender sends PLUS Loan pre-approval or denial to Prairie View A&M University Financial Aid Office.
- PLUS Loan eligibility is determined after Stafford Loan eligibility is determined.
- Complete Application/Master Promissory Note – the OpenNet instructions to complete the loan application process.
- Lender disburses loan to the school, School releases loan to you - When we receive the loan we verify that you are still enrolled at least half-time and that you are making satisfactory progress. If a credit balance occurs, and your school debt is paid, the Business Office will issue a refund check for the balance. If a balance is owed, the Business Office will contact the parent regarding the procedure for payment.
Apply for a PLUS loan
If you have previously borrowed at PVAMU or another OpenNet school and signed a Master Promissory Note (MPN), you may not need to make a lender selection. OpenNet will indicate if you have a signed MPN on file.
If you would like to apply for a student loan now, please click on the link below:
The following is a link to get more information on USA Funds and the FFELP family programs:
