William D. Ford Federal Direct Stafford Loan (formerly Federal Stafford Loan): This federal loan is available to students and is not credit based. The amount students can borrow each academic year is based on class level. Freshmen can borrow a maximum of $3,500, $4,500 for sophomores, and juniors and seniors can borrow $5,500 each year. Class levels are based on the number of completed courses. Students whose parents are denied a PLUS loan can borrow additional unsubsidized Stafford loan funds. Interest rates are fixed beginning July 1, 2006. Loans disbursed before this date will continue to have a variable rate of interest.
The Ensuring Continued Access to Student Loans Act signed into law in May of 2008 approved additional unsubsidized Stafford loan eligibility for all students. These loan funds are included in financial aid awards.
A Stafford loan will be part of the financial aid award package if the FAFSA form is on file. The loan will be certified by the Office of Financial Aid unless the award letter is returned by the student indicating that the loan is not needed. A Master Promissory Note (MPN) will need to be completed by the student when they borrow their first loan and will automatically be used for all other Stafford loans borrowed while attending W&J.
Entrance Counseling for First-Time Borrowers (Freshmen and Transfer Students): As a first-time borrower, federal regulations require you to complete an entrance counseling session before federal Stafford loan funds can be credited to your student account at the College.
Federal Perkins Loan: This federally funded loan is offered through the College at a 5% interest rate with a nine-month grace period and a ten-year repayment term after graduation. A Master Promissory Note (MPN) will have to be signed before the beginning of the fall semester before loan funds can be credited to the student's account. This MPN can be used for Perkins loans awarded in subsequent years. ECSI, the servicer for this loan, will contact students with additional instruction about promissory note completion over the summer. Currently our Perkins funds are very limited and are available only for selected freshmen.
William D. Ford Federal PLUS Loan (formerly Federal PLUS Loan): This loan is for parents of dependent undergraduate students. Parents who are credit approved may borrow a PLUS loan each year to assist in meeting college expenses that are not covered through other financial aid awards. The maximum a parent may borrow is the difference between the cost of attendance and the student's total financial aid. Repayment traditionally begins within 60 days of the final disbursement. Beginning July 1, 2006 the rate of interest for PLUS Loans is a fixed 7.9%. Parents can now choose to defer payments on a PLUS loan disbursed on or after July 1, 2008. Payment can be deferred until six months after the date the student ceases to be enrolled at least part-time. Accruing interest can be paid monthly or quarterly or be capitalized quarterly.
Students must now complete a Free Application for Federal Student Aid (FAFSA) in order for a parent to apply for a PLUS loan. A biological parent who wishes to borrow a PLUS Loan and is not the parent listed on the FAFSA must complete this PLUS Pre-Application in order for an aid representative to verify his/her relationship to the student. In addition, a Direct PLUS Loan Request and MPN must be completed on www.studentloans.gov by the borrower.