FAQ on Private Education Loans (PVLs)
Do PVLs have a loan fee?
Typically, PVLs do not have a loan fee. Please check with your specific lender, as each one has different policies.
What is the interest rate?
Generally, lenders will initially advertise an interest rate range. Only when the credit check is run will the borrower find out what their specific interest rate is, as it is directly correlated to the credit score. However some lenders use other factors to determine the interest, so please consult with your specific lender for more details.
Is there a grace period before repayments begin?
Most lenders offer at least a 6-month grace period after graduation, withdrawal, or less than half-time enrollment before the borrower begins repayment. Please consult your specific lender on their policy.
When do I begin repayments?
Most lenders offer a grace period (see question above) before repayment begins. Some even offer lower interest rates if the borrower is able to make “interest only” repayments while enrolled, or if the borrower can make certain set monthly payments. Please work with your lender on any offers they have available.
The lender said they sent the certification request to Cedarville, but it is not showing on Financial Aid account.
First, please check your (the student’s) Cedarville email, as our office may have requested the student do something first before Financial Aid can continue with the certification. If no email is found, please email loans@cedarville.edu with the following information: student name, Cedarville ID, privacy permission code word (if the parent is emailing on behalf of the student), and the question.
What is the difference between a Federal Parent PLUS loan and a PVL?
| PLUS | PVL | |
| Interest Rate | Fixed; Changes each July 1. See our Loan Interest and Loan Fee Rates page for the updated number. | Fixed and Variable; Initial rates are offered as a range until borrower completes initial data. |
| Loan Fee | Changes each October 1. See our Loan Interest and Loan Fee Rates page for the updated number. | Most lenders do not have a loan fee, but may vary. |
| Repayment Responsibility | The borrowing parent | The borrower, whether that is the student (and cosigner, if applicable) or parent. |
| Approval Requirements | Parent borrower must not have adverse credit history. | Generally based off of an established credit score, however some lenders take other factors into account. |
| Early Repayment Penalties | Not penalized for early repayment | Most offer set in-school payment plans, however check with the lender for their specific requirements. |
Provided by Cedarville University – Financial Aid Office (updated 02-23-2024)