6.8Subsidized or Unsubsidized 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 Stafford Loans are either subsidized or unsubsidized.  A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government ‘subsidizes’ the interest during these periods.

An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accumulate, it will be capitalized. That is, the interest will be added to the principal amount of your loan. Additional interest will be based upon the higher amount. This will increase the amount you have to repay.  If you choose to pay the interest as it accumulates, you will repay less in the long run.

Students can accept both subsidized and unsubsidized loans for the same enrollment period.

Weber State will certify Federal Stafford and PLUS loans for any lender chosen by the students.  It is recommended that the student asks the lenders the following questions before they decide which lender to select.

1- What are the borrower benefits in repayment?

2- Where will I be making my payments:  to the lender or will the loan be sold to a secondary market?  If I will be making payments to a secondary market, who would it be?

3- If I have questions or problems, who do I call?

Most of the students at Weber State use lenders who participate with Utah Higher Education Assistance Authority (UHEAA) for the guaranty on the loan. UHEAA has one of the best borrower benefit programs in the country when the loans go into repayment, and the payments are made locally with good customer service. To learn more about UHEAA borrower benefits, access www.uheaa.org.

For students who are interested in using lender's not affiliated with UHEAA, or who prefer to receive a Direct Loan feel free to contact our office at (801)626-7569 for assistance.

As of the 2010-11 school year, the FFEL program will be replaced by the Direct Loan program offered by the US Government. Students will no longer select a lender as the loan will be issued and serviced by the US Government. Interest rates will remain the same.

INTEREST RATES for Fiscal Year 2008-2009

Effective July 1, 2006, all new Federal Family Education Loan Program (FFELP) loans will carry a fixed interest rate, so loans disbursed to graduate students on or after July 1, 2006 will have a 6.8% interest during the repayment or forebearance periods. Subsidized Stafford loans disbursed to undergraduate students on or after July 1, 2009 but before July 1, 2010 carry a 5.6% rate. Unsubsidized Stafford loans disbursed to undergraduate students on or after July 1, 2009 but before July 1, 2010 carry a fixed 6.8% rate. For PLUS loans first disbursed on or after July 1, 2006, the interest rate is 8.5%.

Loans disbursed before July 1, 2006 will still carry a variable rate.  Contact the holder of these loans for current interest rates.

Maximum Loan Amounts

Your award offer will show you the maximum amount you may be eligible for. However, the actual amount you receive depends on your year in school and past loan amounts.  The following chart shows the maximum 'base' amount you are eligible for each year. Base amounts can be Subsidized or Unsubsidized, or a combination of both.  For Additional Unsusidized Stafford loan condsideration, please contact our office at (801) 626-7569 for further information.

To request Additional Loan Assistance, print, complete and return the Student Loan Supplement form  to WSU Financial Aid Department 1136 University Circle, Odgen Utah 84408.  This form can be used only after your inital award offer has been accepted or declined by you online.