Loans for Graduate Students
Stafford Loans
Federal Stafford loans carry a low-interest fixed rate of 6.8% effective July 1, 2006. The interest rate is based on current Federal guidelines. Loan fees up to 1.5% may be deducted from your loans at disbursement. All loan funds are disbursed in two equal amounts.
Subsidized Stafford Loan
The federal-subsidized Stafford Loan is based on financial need, as determined by the results of the Free Application for Federal Student Aid (FAFSA). The government pays the interest for you on a Federal Subsidized Stafford Loan during the following periods:
- While you are enrolled in school at least part-time (6 credit hours for undergraduate, 5 credit hours for graduate and 3 hours for summer term).
- During the six-month grace period after you stop attending school.
- During periods of authorized deferment.
Unsubsidized Stafford Loan
The Federal Unsubsidized Stafford Loan is not based on financial need - the government does not subsidize this loan. As a result, you are responsible for all interest that accrues during school, grace periods and deferment periods. You may choose to make interest payments while in school or capitalize the interest (add it to your loan principal) until repayment.
Fees and Interest Rates
Interest rates are set by federal regulation, effective as of July 1 of the acadeic year. Origination fees are limited to 1.5%. An upfront interest rebate of up to 1% may be included to encourage timely repayments of Direct Loans.
Federal Loan Limits, Starting July 1, 2008
|
Grade Level
|
Base amount
|
Additional Unsubsidized |
Total Amounts
|
|
Each Year |
$8,500 |
$12,000 |
$20,500 |
|
Aggregates |
$65,500 |
$73,000 |
$138,500 |
Repayment
- A Federal Stafford Loan may be deferred as long as the student is enrolled at least part-time.
-
Stafford Loan repayment begins you have six months (grace period) after you.
- Graduate
- Drop below half-time status
- Leave school
- Repayment plan of up to 10 years*. Loan can be pre-paid in whole or part without penalty.
*You may have longer than six months if you are on active duty with the military
How to Apply for a Federal Stafford Direct Loan
1. File a FAFSA online at http://www.fafsa.ed.gov/ . Once your file is complete, the Office of Financial Aid will send you a financial aid award notice.
2. To accept your student loans, login to myWSU . Look for Student Self-Service and under Financial Aid select "Accept/Decline Financial Aid Awards" or by returning the paper award notice to the office indicating the amount of student loan you would like to borrow. Keep in mind that you should borrow only what you need.
3. If this is your first Stafford Direct Loan at Wichita State University, you must complete the Online Entrance Counseling . Once you click on this link to begin your loan counseling you will leave the Wichita State University Office of Financial Aid Web site.
4. WSU will certify your loan eligibility and notify the Department Of Education.
5. All borrowers must have a completed Master Promissory Note (MPN) on file with the Department Of Education. If you completed a Direct Loan MPN for an earlier loan at WSU, you may not need to complete another one. All new borrowers will need to complete a MPN electronically at the Direct Loan Web site. However, if you do receive a MPN in paper format you must complete it and return it to Wichita State University in order to receive your loan funds.
It is important that you read all of the materials enclosed with your award notice and materials listed on the myWSU Financial Aid channel. If you have any questions after reading this information, please contact the Office of Financial Aid at (316_ 978-3430 or (800) 522-2978.
Federal Perkins Loan
A Federal Perkins Loan is a low-interest (5%) loan for both undergraduate and graduate students with exceptional financial need. It is awarded to a limited number of students each semester. For this loan, WSU is your lender; you are responsible for repaying the amount of the loan plus interest to WSU. The government, as well as WSU, funds the loan.
Borrowing Limits
Depending on when you apply, your level of need, and the funding level of WSU, you can borrow up to $3,000 for each year of undergraduate or graduate/professional study.
Eligibility
- You must be a full standing, degree bound graduate student attending an eligible school at least half-time.
- You must file a Free Application for Federal Student Aid (FAFSA).
- You must be a U.S. citizen or national or eligible resident non-citizen.
- You must have no unresolved defaults or overpayments owed on a Title IV educational loan or grant.
Repayment
- A Perkins Loan may be deferred as long as the student is enrolled at least part-time.
- Perkins Loan repayment begins you have nine months (grace period) after you
- Graduate
- Drop below half-time status
- Leave school
- Loan can be pre-paid in whole or part without penalty.
- Repayment plan of up to 10 years
Postponement of Repayment Provisions
Under certain circumstances, you can receive a deferment or forbearance on your loan. During a deferment, you are allowed to temporarily postpone payments on your loan, without accruing interest. You may receive a deferment under certain conditions, such as unemployment.
Deferments are not automatic. You must apply for one through the Perkins Department in the Office of Financial Operations and Business Technology at WSU. You may reach them at (316) 978-5921. To avoid paying a late charge for your deferment request, file the application on time. For more details on deferments, contact the controller’s office at WSU.
If you are temporarily unable to meet your repayment schedule but are not eligible for a deferment, you can receive a forbearance for a limited and specific period. During forbearance, your payments are postponed or reduced. Interest continues to accrue and you are responsible for it.
Like deferments, forbearance is not automatic. You may be granted forbearance in 12-month intervals for up to three years. You must apply for forbearance in writing through the controller’s office at WSU. You will have to provide documentation to support your request for forbearance.
You must continue making scheduled payments until deferment or forbearance has been granted.
Loan Cancellation Provisions
If the borrower dies or becomes totally and permanently disabled, the loan can be cancelled. A loan can also qualify for cancellation under other conditions - as long as the borrower is not in default. For more information, contact Perkins Department in the Office of Financial Operations and Business Technology at WSU.
For more information about Perkins loans, visit the Perkins Loan Department website.
If you have any questions about the terms of your Federal Perkins Loan, repayment obligations, deferment, forbearance, or cancellation, check with the Perkins Department in the Office of Financial Operations and Business Technology at WSU. Only the WSU Office of Financial Operations and Business Technology may grant deferment, forbearance, or cancellation, or make other decisions concerning your loan.
How to Apply for a Perkins Loan
1. File a FAFSA online at http://www.fafsa.ed.gov/ by WSU’s March 1 priority date. Once your file is complete, the Office of Financial Aid will send you a financial aid award notice.
2. To accept your Perkins loans, login to myWSU . Look for Student Self-Service and under Financial Aid select "Accept/Decline Financial Aid Awards" or by returning the paper award notice to the office indicating the amount of student loan you would like to borrow. Keep in mind that you should borrow only what you need.
The amount awarded is based on initial computations and our knowledge of additional resources available to you. If any changes or corrections are made to the information used in determining your financial need, the loan amount is subject to change and/or cancellation. You must report all scholarships and outside aid to our office. Adjustments will be made based upon notification of additional resources not listed on your award letter.
3. The Office of Financial Aid will notify the Perkins Department in the Office of Financial Operations and Business Technology of your loan eligibility.
4. If this is your first Perkins Loan at Wichita State University, you must complete the Perkins Loan Online Entrance Counseling.
5. All borrowers must have a completed Master Promissory Note (MPN) on file the Perkins Department in the Office of Financial Operations and Business Technology. If you completed a MPN for an earlier loan at WSU, you may not need to complete another one. All new borrowers will be mailed a MPN to the address listed with the Registrar’s Office. However, if you do receive a MPN, you must complete it and return it to the WSU in order to receive your loan funds.
Graduate PLUS Loans
Federal Graduate PLUS Loans are available to graduate students with a good credit history to help pay for educational expenses. A Federal Graduate PLUS Loan is a low-cost, low-interest-rate loan and the interest you pay on these loans may be tax deductible. Your eligibility for a Graduate PLUS Loan is not based on financial need or family income and assets.
Borrowing Limits
You can use a Graduate PLUS Loan as a supplement to a Stafford Loan or as the sole loan to cover the cost of education. There is no minimum or maximum loan amount; you can borrow as little or as much as you need (up to the cost of education minus financial aid).
Eligibility
- You must be a full standing, degree bound graduate student attending an eligible school at least half-time.
-
- A Graduate PLUS Loan may be deferred as long as the student is enrolled at least half-time.
- Graduate PLUS Loan repayment begins within 60 days after final disbursement of the loan.
- The minimum monthly payment is $50 and the repayment term is up to 10 years.
- You can pre-pay the loan in whole or part without penalty.
- You must have no unresolved defaults or overpayments owed on a Title IV educational loan or grant.
- You must not have an adverse credit history. You can have an eligible co-signer on your loan, if needed.
- You must complete a PLUS Borrower’s Entrance Counseling PRIOR to the disbursement of your loan by the school.
Interest Rates and Fees
- The fixed interest rate is 7.9% for new loans disbursed on or after July 1, 2006.
- There are no application fees.
- Loan fees may consist of an origination fee up to 4.0%. An upfront interest rebate of up to 1.5% may be included to encourage timely repayment of Direct Loans
How to Apply for a Federal Graduate PLUS Loan
1. File a FAFSA online at http://www.fafsa.ed.gov/. Once your file is complete, the Office of Financial Aid will send you a financial aid award notice.
2. Accept any Federal Stafford Loans that are offered to you. To accept your student loans, login to myWSU. Look for Student Self-Service and under Financial Aid select "Accept/Decline Financial Aid Awards". Keep in mind that you should borrow only what you need.
The amount awarded is based on initial computations and our knowledge of additional resources available to you. If any changes or corrections are made to the information used in determining your financial need, the loan amount is subject to change and/or cancellation. You must report all scholarships and outside aid to our office. Adjustments will be made based upon notification of additional resources not listed on your award letter.
- Complete the appropriate year's Federal Direct Graduate PLUS Loan Application form on our Forms page. It can be printed from there or can be obtained at the Office of Financial Aid in 203 Jardine Hall. Send the completed application to the Office of Financial Aid. Upon approval of the federal credit check, you will be notified of the outcome by the federal processor. Credit checks for the academic year begin in early July.
If the Federal Direct PLUS loan is approved, a Master Promissory Note (eMPN) must be signed using your FAFSA PIN number.
o Go to the MPN website and read the instructions. Then, click on the blue â€Proceed to PIN Site Registration†button and enter your information. Once the note has been completed, our office will retrieve the information and continue processing the loan. This can be done at any time.
o You must complete a PLUS Borrower’s Entrance Counseling PRIOR to the disbursement of your loan.
All loan funds are disbursed in two equal amounts. Funds are disbursed prior to the beginning of each semester and applied to charges on your account.
How Much Can I Borrow?
A common question for graduate students who wish to pursue a Federal Direct PLUS loan is, â€how much can I borrow?†To answer this question, a brief description of how we determine eligibility will help.
Students who have been awarded financial aid also have a budget as part of their award package. The student budget or cost of attendance represents a ceiling or cap in the total amount of financial aid our office can provide. Graduate students may borrow PLUS loan funds up to your budget minus all other financial aid and resources.
See example below:
|
Cost of attendance: this figure is for illustration purposes only |
$24,800 |
|
Total financial aid: offered in other loans, fellowships, Work-Study, etc. |
-$22025 |
|
Resources: such as tuition/fee waivers, outside scholarships, etc. |
-$1000 |
|
Remaining PLUS eligibility: |
$2775 |
We encourage all Graduate Federal Direct PLUS loan borrowers to review costs and to borrow only that amount that will help ensure your success. If you have any questions about the PLUS loan or other financial aid matters, please call us at (316) 978-3430 or email finaid@wichita.edu.
Options if a Graduate PLUS loan is Denied
If your PLUS loan is denied due to the result of your credit review, you will receive notification from the Direct Loan Servicing. You may choose from the following options:
-
You may try to have a credit status override completed by the Direct Loan Servicing Center. Please contact the Direct Loan Servicing Center at 1-800-557-7394.
-
You may provide documentation to the Direct Loan Servicing Center if you have extenuating circumstances. Your request for a PLUS loan will be reviewed again by the servicer.
-
You may have a third party endorser cosign the PLUS loan application with you. The Direct Loan Servicing Center will send you a packet of information for this option. If additional information is needed, please contact the Direct Loan Servicing Center at 1-800-557-7394.
Please Note: You must complete a Borrower’s Entrance Counseling PRIOR to the disbursement of your loan by the school.
Click here to begin your Graduate PLUS loan entrance counseling
Alternative Loan Programs
Alternative loans are available to students who are not eligible for financial aid or who need additional funds to meet educational expenses. The student's eligibility is determined by the cost of attendance minus other financial aid or the annual loan maximum amount as determined by the lender.
Because alternative loans are not guaranteed by the federal government, they must be insured privately. This extra cost is passed on to the borrower in the form of higher fees and interest rates. In addition, the lender will look at your credit history as well as other factors to determine whether or not they will lend you money. You may be denied by one lender and approved by another because of the different ways they interpret your information.
What Is the Difference between a Graduate PLUS loan and an Alternative Loan?
A Graduate PLUS loan may be an option for you. Please click here for a comparison chart.
Who Needs An Alternative Loan?
Alternative loans are not for everyone. They are expensive and should only be considered when all other resources (such as Stafford or Graduate PLUS loans) have been exhausted.
For example, a graduate student can borrow up to $20,500 under the Stafford Loan Program. If this student is not eligible for other aid and cannot make up the difference through working, there may not be funds available to cover registration fees, books and housing. If no other resources are available, this student may want to consider an alternative loan.
What Should You Find Out Before Deciding On An Alternative Loan?
- What is the interest rate and what is it based on?
- When does repayment begin?
- Can principal and interest be deferred?
- When is the interest capitalized?
- How much is the loan origination fee?
- What is the maximum amount I can borrow per year?
- What is the minimum amount I can borrow per year?
- Can payments be combined with
- Can payments be made through electronic transfer?
- Can the loan be consolidated with other loans?
- Can I borrow money to cover past due balances from a previous school term?
- Are there interest rate deductions or other incentives for borrowers who make their payments on time?
Select Your Alternative Loan Lender
What Are The Eligibility Requirements For Alternative Loans?
Requirements vary according to the lender. However, common requirements state that loan recipients must be:
- Graduate students in a degree or certificate program
- Enrolled at least half-time
- Creditworthy borrowers or borrowers with creditworthy cosigners
- Making satisfactory academic progress
Our institution does not endorse any lenders; however, we are providing a list of lenders who have established electronic processing with our institution. You may select another lender or choose a paper application process but be advised that delays may occur as these lenders do not process with us electronically.
Click here to view lenders and to apply for an Alternative loan
Applications can also be obtained by calling the lender. You can usually apply for a loan over the telephone or by using the lender's Web site.
If you have any questions about the loan, please contact the lender. Your Financial Aid counselor can assist you in determining the correct amount to borrow.
Be a Smart Consumer
These loans are a last resort. It is important to keep all borrowing within reasonable bounds - never borrow more than you believe you will be able to repay.