Federal Work-Study and Loan Programs

Federal Work-Study Program (FWS)

The College receives federal funds to provide on-campus and off-campus employment opportunities to a limited number of students with a demonstrated financial need (FAFSA Required) who are enrolled in at least one (1) credit and are progressing in their program of study. Through the FWS program, you can earn money to pay for college while gaining valuable work skills. Every attempt is made to place students in jobs that match their academic majors, skills or past experiences, and/or desired areas of employment. FWS is awarded to students until funds are exhausted.


  1. Students may work up to 20 hours per week while classes are in session and 29 hours per week when classes are not in session but may never exceed 8 hours per day.
  2. Most work-study jobs are located on campus, and hours are scheduled around your classes.
  3. Students are paid $12.00 per hour, and wage payments are made by the College's Human Resources office on a bi-weekly basis. Students are hired on a rolling basis.
Students interested in FWS must complete the Virginia Peninsula Community College Federal Work-Study Application (click here for application information). In addition, students hired in FWS positions are required to complete a background check administered by our Human Resources Department.

Federal Direct Loan Program (FDLP)

The Federal Direct Loan Program (FDLP) provides eligible students with loans for their freshman and sophomore years. Loans made under the Federal Direct Loan Program are low-interest, long-term loans. A student must be enrolled for at least six (6) credits and be in good academic standing.

Students with financial need can obtain a subsidized (interest-free) Stafford Loan. This means the U.S. Department of Education will pay the interest charges on your behalf as long as you remain enrolled on at least a half-time basis (6 or more credits) and during a six-month period following enrollment (your grace period). At the end of the grace period, repayment of the loan must begin, and interest begins to accrue to the student borrower. Repayment may extend up to ten (10) years, but borrowers must make payments of at least $50 per month. Students who do not qualify for the need-based (subsidized) Stafford Loan can obtain an unsubsidized non-need-based loan. Unlike the subsidized loan, the student is responsible for the interest obligation while enrolled. While enrolled on at least a half-time basis (6 or more credits), the student may pay interest only or have the interest capitalized (added to the principal).

Student Loan Borrowers must complete a Master Promissory Note, an Entrance Loan Counseling session, and an Exit Loan Counseling session upon graduation or withdrawal. Please note that completing the "Entrance Loan Counseling" session is a one-time-only requirement (at the point in time when you are borrowing your first federal student loan). We encourage continuing borrowers (students who have prior student loans - including loans taken out while attending other institutions) to complete the Annual Student Loan Acknowledgement. Repayment begins six (6) months after a student leaves school because of graduation, or other reasons or drops below half-time level. All loan applicants must have completed a FAFSA for the year in which they plan to enroll in classes and may not have defaulted on prior loans or have excessive existing student loan debt. Students may not borrow more than the cost of their education minus expected family contribution (EFC) and other financial aid awarded to them. The Financial Aid office must approve all federal loans and reserves the right to refuse loan applications due to academic deficiency or evidence that a student may have difficulty managing loan debt. Students who request a single/one semester-only loan will receive their disbursement in two separate allotments.

Federal Cohort Default Rate Information (CDR); please click on the following link to the official website for the most up-to-date Virginia Peninsula Community College CDR data (website).

Learn About the Federal Direct Student Loan Program

Virginia Peninsula Community College (VPCC) participates exclusively in the Federal Direct Loan Program, including Subsidized Student Loans, Unsubsidized Student Loans, and Parent Plus Loans. The Federal Government is the lender in the Direct Student Loan Program. Students and parents interested in federal student and parent loans will be required to complete steps through the Direct Student Loan Program and complete a new master promissory note.

For additional information on the Direct Student Loan Program, please click on the following links:

How to Request a Direct Student Loan

To apply for a Direct Student Loan, students must meet basic eligibility criteria and complete the following steps:

  1. Complete Direct Student Loan Entrance Counseling (New Borrowers): Entrance Loan Counseling session (REQUIRED)
  2. Complete a Direct Student Loan Master Promissory Note: Master Promissory Note (REQUIRED IF NOT ALREADY COMPLETED FOR PREVIOUS DIRECT STUDENT LOAN)
  3. Complete an Annual Student Loan Acknowledgement (OPTIONAL)
  4. Print a Federal Direct Loan Request Form
  5. Complete and sign the Direct Loan Request form, and then submit it to Financial Aid by uploading it to Financial Aid Portal

Federal Direct PLUS (Parent Loan for Undergraduate Students)

The Federal Direct PLUS Loan program is a non-need-based source of loan funds for dependent students' parent(s). Federal Direct PLUS loans may be used in conjunction with the Federal Stafford Loans. Each year, parents of dependent students may borrow an amount equal to the cost of attendance, less any financial aid, including any federal loans. Repayment begins immediately unless the parent borrower is enrolled in college on at least a half-time basis. The interest rate is a variable rate. The PLUS loan is only available to parents. Guardians are ineligible. A credit check is performed on all parental borrowers, and pre-approval is required.

How to Apply for a Direct PLUS (Parent Loan for Undergraduate Students)

To apply for a Direct Parent Student Loan, students must meet basic eligibility criteria, and parents must complete the following steps:

  1. Complete the Direct Parent Loan Promissory Note (click here to begin)
  2. Complete an Annual Student Loan Acknowledgement
  3. Complete a Federal Direct Parent PLUS Loan Request Form. Remember to sign the form and submit it to the Financial Aid Office via e-mail, mail, or in person. Our email address is financialaid@tncc.edu

Federal Direct Loans and Default

For a Federal Direct Student or Parent Plus Loan, default occurs when the borrower fails to make a payment for 270 days under the normal repayment plan and has not requested deferment of payment according to the Department of Education's standards.

How do I know if I am in default?

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data.

In order to access your federal loan information and current loan servicer, please visit studentaid.gov.

1. Log into your account with your FSA ID and select "My Aid" from the drop-down menu

2. View your loan summary

3. View loan servicer information

Note: "My Federal Student Aid" will not include information about any private student loans you may have received. Contact the loan holder of your private student loans for loan information.

How do I get out of default?

One way to get out of default is to repay the defaulted loan in full, but that may not be a practical option for most borrowers. Loan rehabilitation and loan consolidation are the two main ways to get out of default. While loan rehabilitation takes several months to complete, you can quickly apply for loan consolidation. However, loan rehabilitation provides certain benefits that are not available through loan consolidation.

Rehabilitation vs. Consolidation of a defaulted Federal loan

Rehabilitation Consolidation

If you rehabilitate a defaulted loan, the record of the default will be removed from your credit history. However, your credit history will still show late payments that were reported by your loan holder before the loan went into default.

If you consolidate a defaulted loan, the record of the default (as well as late payments reported before the loan went into default) will remain in your credit history.

Loan Rehabilitation:

To start the loan rehabilitation process, you must contact your loan holder. If you're not sure who your loan holder is, you can log into studentaid.gov to get your loan holder's contact information.

A loan will be rehabilitated once the borrower makes nine consecutive, full, voluntary payments on time, within 20 days of the due date, and makes all nine payments during a period of 10 consecutive months. Once the loan has been rehabilitated, the student will receive normal loan benefits, such as deferments. Payments must be made within twenty days of the due date for ten consecutive months.

For a Perkins loan, you must make a full monthly payment each month, within 20 days of the due date, for nine consecutive months. Your required monthly payment amount is determined by your loan holder.

If you rehabilitate a defaulted loan and then default on that loan again, you can't rehabilitate it a second time. Rehabilitation is a one-time opportunity.

Loan Consolidation

Another option for getting out of default is to consolidate your defaulted federal student loan into a Direct Consolidation Loan. Loan consolidation allows you to pay off one or more federal student loans with a new consolidation loan.

To consolidate a defaulted federal student loan into a new Direct Consolidation Loan, you must either:

  1. Agree to repay the new Direct Consolidation Loan under an income-driven repayment plan
  2. Make three consecutive, voluntary, on-time, full monthly payments on the defaulted loan before you consolidate it

Note: If you choose to make three payments on the defaulted loan before you consolidate it, your loan holder will determine the required payment amount, but it cannot be more than what is reasonable and affordable based on your total financial circumstances.