How to Get or Refinance Virginia Student Loans

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Planning on going to college in Virginia? Then you should know all your options for Virginia student loans, which can help you pay tuition and other expenses, such as room, board and textbooks.

Below you’ll find out how to obtain Virginia student loans, including federal loans that are available to everyone, as well as how you can refinance or consolidate your student loan debt, and how to get scholarships and grants.

How to get Virginia student loans How to refinance Virginia student loans Some final thought on Virginia student loans How to get Virginia student loans

If you’re headed to school in the Commonwealth of Virginia, you’ll first want to exhaust your opportunities for scholarships, grants and other aid that you generally don’t need to repay. But after that, you may well need to turn to student loans. Here are your options:

Federal student loans Private student loans Virginia student loans and grants Federal student loans

Federal student loans are available to undergraduate and graduate students in the U.S., including in the commonwealth of Virginia. Options for federal loans include:

Direct subsidized loans: These are need-based loans available to undergrads, with interest charges covered while you’re in school, during your grace period and during any periods of deferment. Direct unsubsidized loans: Undergraduate and graduate students are eligible for direct unsubsidized loans, regardless of financial need. However, interest will accrue while loans are deferred, including while you’re still in school. Direct PLUS loans: Graduate students and parents of undergrads can qualify for PLUS Loans, but you can’t have an adverse credit history. Interest isn’t subsidized on these loans. Direct consolidation loans: These loans allow you to combine all your federal loans into one loan with one servicer.

Note, though, that there are federal loan borrowing limits, depending on your situation.

Federal loans provide benefits that may be unavailable on private loans. For example, your federal debt may be forgiven through Public Service Loan Forgiveness, and you can cap monthly payments as a percentage of your discretionary income using income-driven repayment plans. You can also get a deferment or forbearance on your loans more easily if you are struggling financially.

Because federal loans offer these advantages, you should consider them before turning to private loan options. And don’t forget to apply for federal grants — these rewards won’t likely need to be repaid, so they wouldn’t add to your debt. They include the Pell Grant, the Federal Supplemental Educational Opportunity Grant and the Teacher Education Assistance for College and Higher Education Grant. You might also be able to take advantage of work-study programs.

You can apply for federal loan funding by completing the annual Free Application for Federal Student Aid, also known as the FAFSA.

For more information, please see our complete guide to federal student loans.

Private student loans

If you have a funding gap after applying for federal student loans and scholarships and grants, you may consider private student loans.

Many different lenders provide funding for undergraduate and graduate programs.

While private loans don’t offer all the perks of federal loans, you could benefit from lenders that provide a discount for automatic payments and allow you to temporarily pause payments in the event of a job loss or other financial hardship.

You may also qualify for a lower interest rate than you do for federal loans, although you will generally need to have acceptable credit to get your best rates, or to even qualify for the loans at all. Most federal student loans do not require a credit check, so this does mean private loans could be more difficult to secure. Some lenders may also have an income minimum requirement.

There’s more variation in rates and terms for private student loans than for federal student loans. Shop lenders and make sure to ask:

What interest rate you’ll be charged How long you’ll have to repay the loan When you’ll enter loan repayment

Depending on your income and credit score, you may need a cosigner to qualify for a private loan. You can check out our list of private student loan lenders to find banks, credit unions and online lenders that offer funding for your education.

Virginia student loans and grants

Students attending school in Virginia may obtain federal or private student loans to fund their education. And while Virginia doesn’t offer its own specific state-funded student loan programs, individual colleges and universities in the commonwealth may offer financing options.

For example, Virginia Polytechnic Institute and State University (Virginia Tech) offers short-term loans of up to $600 for students who experience a pressing financial need, which must be repaid within the academic term that the money is borrowed. The College of William & Mary offers a series of scholarships, including the 1693 scholarship for incoming students with excellent academic credentials.

One of the best ways to find out about student loans and grants or scholarships specific to your school is to speak with its financial aid office.

The State Council of Higher Education for Virginia (SCHEV) also makes resources available for local students who need help exploring options for funding their education. Through SCHEV, you can discover details about federal and Virginia-specific financing, private loan programs and financial aid through Virginia institutions.

How to refinance Virginia student loans

If you’ve taken out federal or private student loans, there may come a time when it makes sense to refinance your debt. Refinancing allows you to pay off your existing debt with a new loan that has better terms, such as a lower interest rate. This means you may be able to save money overall. You can try our refinancing calculator to see just how much you might be able to save:

While the federal government doesn’t offer loan refinancing, it does offer a direct consolidation loan, as detailed earlier in this article. This type of loan allows you to combine eligible federal student loans into one big loan with a single monthly payment.

This can make repayment easier to manage, but you may not be able to save money with a direct consolidation loan — your interest rate will be the weighted average of the loans you consolidate, rounded up to the nearest eighth of a percent.

If your goal is to reduce your interest rate, refinancing with a private lender could be your best approach. Many private lenders offer loan refinancing, so shop around to compare rates and terms to find the right loan for you — you could start with our list of solid refinancing options.

Keep in mind, however, that if you refinance federal loans into a private loan, you’ll be giving up the benefits of federal loans described earlier in the article — that is, the option of participating in public loan forgiveness programs, taking advantage of an income-driven repayment plan or more easily obtaining deferment or forbearance.

So make sure you understand what you’re giving up if you do decide to go with a private loan refinancing plan. Assess whether it makes sense for you — you may decide in the end that this isn’t the right option for you.

Some final thought on Virginia student loans

By understanding your loan options and comparing different lenders carefully, you can find the right types of Virginia student loans for you and graduate with lower debt payments that won’t be a huge burden in your post-grad life.

It’s important to look for scholarships and grants before securing student loans to keep your debt as low as possible. To start your search, consider this complete guide to state grants. These include the Virginia Tuition Assistance Grant, for full-time students at private schools; the Two-Year College Transfer Grant, to help holders of associate degrees transferring to a four-year institution; and the New Economy Workforce Credential Grant, which provides funding for training programs.

Here as well are 10 scholarship search tools to help you find money for college.

Rebecca Stropoli contributed to this report.

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