Subsidized or Unsubsidized Loans

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. 

INTEREST RATES for Fiscal Year 2007-2008

Effective July 1, 2006, all new Federal Family Education Loan Program (FFELP) loans will carry a fixed interest rate, so loans disbursed on or after July 1, 2006 will have a 6.8% interest during the in-school, grace, deferment, repayment or forebearance.  

Loans disbursed before July 1, 2006 will still carry a variable rate.  The rate is 6.62% during the grace and deferment periods.  During repayment and forbearance, the rate is now 7.22%.

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 amount you are eligible for each year.

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.