Loan Terms to Know

Loan Disbursement: You will usually receive your loan in two installments, called disbursements. The Office of Financial Aid will determine the number of disbursements you will receive. Once Wichita State University receives the loan funds, the money must be disbursed within three business days. Federal regulations require recipients to return funds back to the lender if they were not disbursed within three business days.

Fees: The U.S. Department of Education charges an origination fee for the loan amount borrowed.

Repayment: The repayment period begins six months after you graduate or drop below half-time attendance. Half-time attendance is 6 credit hours for undergraduates and 5 credit hours for graduates during the regular academic year. 

Interest Rates: Federal Subsidized and/or Unsubsidized Direct loans made on or after July 1, 2017 will have a fixed interest rate of 4.45% for undergraduate students and a fixed interest rate of 6.0% for graduate students. 

Loan Deferment:  This is a temporary suspension of loan payments for specific situations such as re-enrollment in school, unemployment, or economic hardship. You have to apply for a deferment to your loan servicer (the organization that handles your loan), and you must continue to make payments until you’ve been notified your deferment has been granted.

 Forbearance: This is a temporary postponement or reduction of payments for a period of time because you are experiencing financial difficulty. You can receive forbearance if you’re not eligible for a deferment. Unlike deferment, whether your loans are subsidized or unsubsidized, interest accrues, and you’re responsible for repaying it. Your loan holder can grant forbearance in intervals of up to 12 months at a time for up to 3 years. You have to apply to your loan servicer for forbearance, and you must continue to make payments until you've been notified your forbearance has been granted.

Grace Period:  This is the period of time before the borrower must begin or resume repaying a loan. An “initial grace period” is one that immediately follows a period of enrollment and immediately precedes the date repayment is required to begin for the first time.