Financial Aid Office

Loans Available

Below is a list of loans that are available to UW-Whitewater students. A loan is a form of financial assistance which must be repaid and should only be accepted with full realization of that responsibility. Access your total outstanding loan balance via the NSLDS web site http://www.nslds.ed.gov/. Click on any of the loans below to learn more about them:

Perkins Loan Program

This is a need-based loan that is contingent on the availability of funds at the time of awarding. It is interest-free as long as the student is enrolled at least half time at any eligible institution. Repayment of the principal plus 5% begins 9 months after graduation or leaving the university.

William D. Ford Federal Direct Loan Program - Stafford Loan Program

The Federal Stafford Loan Program enables both undergraduate and graduate students to borrow directly from the government. The maximum amount that can be borrowed is:

  • Freshmen (Under 24 Credits) - $5500
  • Sophomores (24 to 59.5 Credits) - $6500
  • Juniors and Seniors (60+ credits) - $7500
  • Graduate Students - $20500

No Payments are required until 6 months after the student graduates or leaves school. An origination fee is assessed at the time each loan is made. The borrower will receive a disclosure statement from the Direct Loan Servicing Center regarding the amount of his/her loan and the anticipated disbursement dates.

Interest rates are set on July 1 each year. The current rate is 6.8% for unsubsidized loans and 3.4% for subsidized loans. Independent students may be eligible for higher limits. Contact the Financial Aid Office for more information.

Federal Direct Stafford Loan (Subsidized)

Students must demonstrate a financial need determined by the information submitted on the FAFSA and the University's estimated cost of attendance. The federal government pays the interest on these loans in the following situations:

  • While the student is enrolled at least half time
  • During the 6-month grace period after graduation or leaving the university
  • During periods of deferment (a postponement of repayment)

Federal Direct Stafford Loan (Unsubsidized)

If the student demonstrates no need he/she is still eligible for the Unsubsidized Direct Stafford Loan. The interest is not paid by the government at any time during the life of the loan. The student is responsible for all interest for this loan.

Federal Direct PLUS Loan* (Parent Loan for Undergraduate Students)

Parents of dependent students can take out loans to supplement their children's financial aid package. The federal Parent Loan for Undergraduate Students (PLUS) allows parents to borrow money to cover any educational cost not already covered by the student's financial aid package, up to the cost of attendance. The lender for UW-Whitewater is the U.S. Department of Education rather than a bank or other financial institution.

PLUS loans are the financial responsibility of the parents, not the student. You may use the PLUS loan money only to pay for your child's education expenses. Education expenses include school charges such as tuition, room and board, fees, and indirect expenses such as books, supplies, equipment, transportation, and rental or purchase of a personal computer. Parents must reapply every year if they want a PLUS loan. To assist in determining the amount you may need in the PLUS Loan, please use the PLUS Loan Worksheet.

Interest & Repayment

PLUS loans have a fixed interest rate of 7.9%. Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. Parents have the option to defer payments on the PLUS loan while the undergraduate student on whose behalf they borrowed the PLUS loan is in school and for a six-month grace period after the student graduates or drops below half-time enrollment. Please be aware the interest continues to accrue while deferred and is capitalized when the loan enters repayment. We recommend the parent at least pay the interest while in deferment.

To estimate what your payments will be you may wish to use the following Repayment Calculator.

Fees

Combined origination and insurance fees: 4% less an up-front interest rebate of 1.5% results in a net up-front deduction of 2.5%. Fees are deducted from the loan amount.

Eligibility

Borrower must be the student's biological or adoptive parent or the student's step-parent (if the step-parent information was provided on the FAFSA). Your child must be a dependent student who is enrolled at least half-time and making Satisfactory Academic Progress (SAP). For financial aid purposes, a student is considered "dependent" if he or she is under 24 years old, unmarried, and has no legal dependents at the time of the FAFSA is filled out. In addition, parents and their child must be U.S. citizens or eligible noncitizens.

Eligibility for the PLUS loan depends on a credit check that determines whether the parent has an adverse credit history. For the PLUS loan, an adverse credit history is defined as being 90 or more days late on any debt or having any Title IV debt within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off. The Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) extended the 90 days late threshold to 180 days for mortgage payments and medical bill payments during calendar years 2007 through 2009.

If a dependent student's parents are denied a PLUS loan, the student becomes eligible for increased Unsubsidized Direct loan (DLU) for up to $4,000 (freshman/sophomore) and $5000 (junior/seniors). Only one parent needs to apply for and be denied a PLUS loan. However, if one parent is denied a PLUS loan and the other is approved for a PLUS loan, the student is not eligible for increased DLU. If a parent is denied the PLUS loan, the student is eligible for additional Unsubsidized Direct Loan for up to $ 4000 (freshman/sophomore) or $5000 (juniors/seniors).

Master Promissory Note (MPN)

First time borrowers must complete a Master Promissory Note (MPN). The MPN is a legal document in which the borrower promises to repay his/her loans and any accrued interest fees to Direct Loans. It also explains the terms and conditions of the loan. If you are borrowing for more than one student, you must complete a separate MPN for each student. To complete an MPN online, the borrower will be required to use a Department of Education issued PIN number. If the borrower does not have a PIN number, they can apply for one at www.pin.ed.gov. The website for the MPN is https://studentloans.gov.

PLUS loans vs Alternative Loans

PLUS Loans offer a fixed interest rate that is tax deductible. Alternative loans often have high variable interest rates that are not tax deductible. Also, alternative loans are considered consumer debt and impact your credit report very differently from PLUS loans.

PLUS Loan for Grad Students

Here are some common question and answers about the Direct PLUS Loans for Graduate Students. Grad Plus Q&A's

The application for the Parent PLUS or Grad PLUS can be downloaded from the web at the Online Financial Aid Forms page, mailed, faxed, or obtained from the Financial Aid Office.

*Processing time can take up to one month depending on current volume.