Loans

NEW for 2010-2011

Due to Federal Student Loan regulatory changes, ALL Subsidized, Unsubsidized and PLUS loans processed beginning with the 2010-2011 school year will be Direct Loans. This means that the loan is funded by the U.S. Government rather than individual lending institutions. Students who have never signed a Direct Loan Master Promissory Note will be required to do so in addition to completing the Direct Loan Entrance Orientation. Additional information will be posted soon.

Federal Perkins Loans
These are low-interest loans for undergraduate and graduate students. The interest rate is fixed at 5 percent throughout the life of the loan.  To qualify, you must have exceptional financial need.  For undergraduate programs, you can borrow up to $4,000 per year, and for graduate programs, up to $6,000 per year.  Perkins Loans are made through the WSU Financial Aid and Scholarship Office.  The loan is made with government funds, but the University is the lender and repayment is made to WSU.  The amount of your monthly payment will depend on the size of your debt and the length of your repayment period.  You have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment.

Federal Subsidized Stafford Loan
This is a loan and must be repaid.  It is awarded on the basis of financial need.  The funds for your loan are lent to you from a private lender (a bank, credit union, etc).  You will not be charged any interest before you begin repayment or during authorized periods of deferment.  The Federal Government pays the interest during these periods.

Federal Unsubsidized Stafford Loan
This is a loan and must be repaid.  It is available to any student.  You will be responsible for interest payments during the life of the loan.

Graduate or Professional PLUS loans (GPLUS)  Beginning July 1, 2006, graduate or professional students are now eligible to borrow under the PLUS loan program up to their cost of attendance minus other estimated financial assistance.  The terms and conditions include; a determination that the applicant does not have an adverse credit history, repayment begins on the date of the last disbursement of the loan, a fixed interest rate of 8.5 percent.  All applicants' are required to complete the Free Application for Federal Student Aid (FAFSA) for eligibility determination.  Requests for this loan type can be made by submitting a completed Student Loan Supplement form which is available under the 'Supplemental Forms' link on this web site. 

Parent Loan for Undergraduate Students (PLUS)
This is a loan that must be repaid and is available to the parents of dependent undergraduate students.  Parents who do not have an adverse credit history can borrow up to the cost of attendance less any financial aid per college student.  Students of parent borrowers must complete the FAFSA and be awarded before PLUS eligibility can be determined.  Refer to the 'How to apply for Financial Aid' section of this site. Click here to print a PLUS request form.

INTEREST RATES for Stafford/PLUS  

Loans first disbursed after July 1, 2006 to the present day, the following rates will apply.

For undergraduate students, the fixed rate for Subsidized Stafford loans is 5.6%, and the fixed rate for Unsubsidized Stafford loans is 6.8%.

For graduate students, the fixed rate for Subsidized Stafford loans is 6.8%, and the fixed rate for Unsubsidized Stafford loans is 8.5%.

PLUS and Graduate PLUS loans fixed rate is 8.5%

Variable rate Loans First disbursed before July 1, 2006

For current information about the variable interest rate on loans disbursed before July 1, 2006, contact the hold of the loan.

Alternative Loans                                                                                                               

WSU Financial Aid requires that all students who are requesting an Alternative loan apply first for Federal Student Aid. To apply for Federal Student Aid, complete a FAFSA at www.fafsa.ed.gov.

Alternative loans are direct loans from participating banks for the purpose of helping supplement educational costs not covered by federal or state financial aid programs. Alternative loans allow you to borrow additional money if you have reached your Stafford loan limit or if you no longer qualify for federal financial aid.  These loans are not guaranteed by the federal government, and the interest rates are not capped.  Interest rates are variable and could be quite high.  Even if interest rates appear low, you could be paying high front-end and back-end fees.  Before considering an alternative loan, make sure all government and institutional financial resources are exhausted.  Questions students should ask lenders of these loan are:

1- What is your lowest interest rate and fee combination and how can I get it?

2- Is the rate only for a limited period, or is it for the life of the loan?

3- Is there a limit on how high the variable rate gan go?

4- How often is the interest rate adjusted, and how is it determined?

5- What interest rate can I get on a fixed-rate loan?

6- How long will I be repaying the loan?

7- Is there a penalty for paying it off early?

8- What proportion of your borrowers get the discounts you offer?

9- Are your discounts guaranteed or are they subject to change later?

Remember A.B.C.  Always Borrow Conservatively.