Loans Loans Students and parents may borrow funds to help cover educational costs. Loan funds are available through both federal and private programs. For federal loans, the student must be enrolled in a degree or certificate program and taking at least 6 credits per semester. The student must also be making satisfactory academic progress and not be in default on any prior student loans. The College also awards loans from several small loan programs. Students and parents should first consider the federal loan programs. Federal Direct Stafford Loan–Federal student loans available through the federal government. The interest rate is fixed at 5.50% for Subsidized and Unsubsidized Stafford Loans beginning July 1, 2023 for undergraduate students. The interest rate for graduate students is 7.05%. The federal government pays the interest while the student is enrolled at least half time if there is demonstrated financial need for a Subsidized Stafford Loan. The student will be responsible for interest payments for any unsubsidized loan. Loans are repaid over a period of up to ten years. Repayment begins six months after the student graduates, withdraws, or drops below half-time enrollment status. To apply, complete the FAFSA and the following necessary financial aid supplemental forms. Federal Direct Stafford Loan Master Promissory Notes can be completed on-line with the FSA-ID. First-time borrowers must complete entrance counseling. Stafford Loans must be disbursed in two payments with the first at the beginning of the first semester and the second arriving at the College half way through the loan period. ALL STUDENTS Subsidized/Unsubsidized Base Amount ADDITIONAL UNSUBSIDIZED LOAN AMOUNT INDEPENDENT STUDENTS & DEPENDENT STUDENTS WHOSE PARENTS CANNOT BORROW A PLUS LOAN - Additional Unsubsidized Annual Loan Limit Freshmen $3,500 $2,000 $4,000 Sophomores $4,500 $2,000 $4,000 Juniors & Seniors $5,500 $2,000 $5,000 Teacher Certification Programs $5,500 $2,000 $5,000 Masters Program 0 $20,500 Federal Direct Parent Loans for Undergraduate Students (PLUS) are Federal loans designed to help parents meet educational expenses not already covered by financial aid. Like Federal Direct Stafford Loans, Federal Direct PLUS loans are available through the federal government. Parents may complete the online Master Promissory Note. Federal PLUS borrowers may borrow the difference between the student’s cost of education and any financial aid already awarded. The interest rate is set at 8.05% effective July 1, 2023. Repayment begins within 60 days after the final loan disbursement for the loan term. However, parents may arrange deferred payment through the loan servicer. The parent borrower must complete a PLUS Loan application each year which includes a credit check. The PLUS Loan application process may be completed online. The MPN is completed only once. The parent will use the parent FSA-ID as the electronic signature. Wilson College is required to notify student or parent borrowers in writing whenever it credits the student’s account with Stafford or PLUS Loan funds sent electronically (EFT). This notification will be sent to borrowers no earlier than 30 days before and no later than 30 days after the College credits the student’s account. Student or parent borrowers have the right to cancel all or a portion of the loan by informing Wilson College’s Financial Aid Office, in writing, within 14 days after the date of the College’s loan disclosure notice of their wishes. Alternative Loans - Additional assistance is available to students through a number of private loan programs. Loans require a credit check and a student may need a co-borrower if there is no prior or a poor credit history. Interest rates and repayment options vary. Student may check the Fast Choice website to compare loan options from different lenders.
