Offices & Services

Office of Student Financial Aid

Student Loans

There are two types of Federal Direct Loans, subsidized and unsubsidized. Both loan types are originated and guaranteed directly by the U.S. Department of Education. Both types of loans offer a grace period of six months, which means that no payments are due from you until six months after graduation or enrollment of less than half-time.

 

William D. Ford Direct Subsidized Loan Program

Undergraduate students who demonstrate financial need and who are enrolled at least half-time (six credits or more), may qualify for a Subsidized Student Loan of up to $3,500 for the freshman year, $4,500 for the sophomore year, and $5,500 for junior and senior years.

The interest rate for the 2018-2019 academic year is fixed at 5.045%. 

Subsidized Direct Loans first disbursed on or after October 1, 2017 and before October 1, 2018, carry a 1.066% federal origination fee. Net proceeds will equal approximately 99.0% of the loan amount.

New borrowers must complete a Federal Direct Loan electronic master promissory note and complete an on-line Entrance Counseling  to borrow funds through this program.

 

William D. Ford Direct Unsubsidized Loan Program

The unsubsidized student loan is available to students who are enrolled at least half-time, regardless of their federal financial need. The unsubsidized loan allows  students to borrow up to $5,500 for the first year of undergraduate study, $6,500 for the second year, and $7,500 per year for subsequent undergraduate study less the amount of any subsidized Direct Loan received by the student.

The interest rate for the 2018-2019 academic year is 5.045% and the origination fee is the same as specified above for the Subsidized Direct Loan Program

The interest begins accruing immediately following disbursement of the unsubsidized loan (while the student is in school).

New borrowers must complete a Federal Direct Loan electronic master promissory note and complete an on-line Entrance Counseling  to borrow funds through this program.

Independent students may borrow up to an additional $6,000 per year for the first and second years of undergraduate study and up to an additional $7,000 per year for subsequent undergraduate study through the Unsubsidized Direct Loan Program. Dependent students may borrow up to the same additional amounts through this program but only if the student’s parent is denied eligibility to borrow funds through the Federal PLUS Loan Program. Click here to visit the Federal Direct Loan Program Web site.

Alternative/Private Student Loans

Many banks and lending institutions offer alternative educational loans that can be used to cover the portion of the total cost of education not covered by scholarships, grants, and other financial aid. These loans are offered by private lenders and there are no federal forms to complete. Eligibility for these loans often depends on the credit score of the borrower.

Some families turn to alternative loans when the federal loans do not provide enough money or when they need more flexible payment options.

Because most private loans cost more than the education loans offered by the federal government, and most have variable interest rates tied to your credit score, we recommend that families research the various private loans before electing to use this payment option.

Private loan borrowers will be required to complete Private Loan counseling about borrowing essentials. Loan funds will not be disbursed until counseling has been completed.

Complete PRIVATE LOAN COUNSELING by clicking on the BORROWER ESSENTIALS link HERE

Washington College does not partner with any lenders. Any private loans displayed within our FastChoice private loan counseling are random selections, based on a historical listing of lenders students at Washington College have used in the past 5 years. The Office of Student Financial Aid staff would be happy to answer questions you may have related to alternative/private loans. Students are encouraged to compare the terms and conditions of the various private loans before applying.