Types of Loans
UWF participates in 4 different federal loan programs - the Perkins Loan, Federal Direct Loan, Federal Direct Parent PLUS Loan and Federal Direct PLUS Loan for Graduate Students.
Perkins Loan
The Perkins Loan is a campus-based program, which means that the University has a set allocation each academic year, and once the funds are depleted, no additional awards can be made. The Perkins loan is available to undergraduate and graduate students. The interest rate is fixed at 5%, and repayment begins 9 months after graduating, withdrawing, or dropping below half-time status. Repayment is made to the University or its designated servicer. The Perkins Loan has provisions for cancellation for those students that enter certain areas of specialization after graduation. Additional information can be found on-line at
www.studentaid.ed.gov.
Federal Direct Loan
The Federal Direct Loan Program enables a student to borrow money directly
from the federal government to help with educational expenses. The Financial Aid
Office will process this loan for you, and Student Accounts will disburse the
funds. Repayment is made to the Direct Loan Servicing Center.
There are 4 types of Direct Loans: Subsidized, Unsubsidized, Parent PLUS and Graduate PLUS. Subsidized and Unsubsidized loans are for the student; the Parent PLUS loan is a loan for the parent of a dependent student. The Graduate PLUS loan is a loan for graduate and professional students. Loan type and amounts are determined when the student completes the financial aid application process. There are also annual loan limits and aggregate loan limits that students are bound by.
Subsidized/Unsubsidized Annual Loan Limits:
Freshman $3500
Sophomore $4500
Junior $5500
Senior $5500
Graduate $8500
Students may be able to borrow additional unsubsidized loan funds depending upon their cost of education. Contact the Financial Aid Office to inquire about additional eligibility.
The aggregate loan limit is defined as the total amount of money a student may borrow. Dependent, undergraduate students may borrow up to $31,500. Independent, undergraduate students may borrow up to $57,500. Graduate students may borrow up to $138,500 (inclusive of the undergraduate amounts). For the undergraduate student a maximum of $23,000 can be subsidized. Of the graduate student total, only $65,500 can be subsidized.
Over a four-year period beginning July 1, 2008, the interest rate on subsidized loans made to undergraduate students will be reduced. The applicable interest rates for loans made during this period are as follows:
| First disbursement of a loan: | Interest rate on the
unpaid balance |
|
|---|---|---|
| Made on or after | And made before | |
| July 1, 2008 | July 1, 2009 | 6.0 percent |
| July 1, 2009 | July 1, 2010 | 5.6 percent |
| July 1, 2010 | July 1, 2011 | 4.5 percent |
| July 1, 2011 | July 1, 2012 | 3.4 percent |
These changes apply to subsidized loans first disbursed on or after July 1 of each year through June 30 of the next year. This change does not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same.
These interest rates apply only to subsidized loans; any unsubsidized loan for the same undergraduate borrower would continue to be made at the current fixed interest rate of 6.8%. The 6.8% interest rate also applies to all graduate subsidized and unsubsidized loans.
UWF encourages students to borrow wisely and conservatively. While the loans are available to help you, borrow money that is needed to cover your educational expenses only. Try to avoid borrowing at the maximum levels each year because this could lead to unmanageable debt after graduation.
Students have the ability to track their federal financial aid history through the National Student Loan Data System (NSLDS). This website provides student loan detail for all loans a student has borrowed.
A subsidized loan is need-based and accrues no interest while you are attending school at least half-time. If you do not qualify for a subsidized loan, we will process an unsubsidized loan. An unsubsidized loan does accrue interest from the time the loan is disbursed. You have the option to pay the interest every 90 days or let it capitalize. We encourage you to pay the interest, if possible, to avoid additional interest charges. Both loans have a 6-month grace period before repayment begins, and you can prepay the loan at any time without penalty.
Federal Direct PLUS LoanAs mentioned above, the Parent PLUS loan is a loan for parents. The parent will borrow money for the student's educational expenses. The loan amount is determined by the student's cost of education minus other types of financial aid awarded. Repayment may be deferred until six months after the student ceases half-time enrollment; however, interest will accrue and be added to the principal balance of the loan. The interest rate on a PLUS loan is fixed at 7.9 percent. A parent must be able to pass a credit check in order to qualify. The application is available on-line in .pdf format. In order to view this information, you will need the free Adobe Acrobat Reader® software. If you do not already have Adobe Acrobat Reader®, click on the following link: adobe.com/products/acrobat/readstep2.
Federal Direct PLUS Loan for Graduate Students
The Grad PLUS loan is a federal loan allowing a graduate student to borrow up to the total cost of education minus any other financial aid. The interest rate is fixed
at 7.9%, and repayment is generally deferred while in school.
In order to qualify for the Grad PLUS, the student must meet basic eligibility requirements:
An application can be obtained here and submitted to the Financial Aid Office to process. There is an additional entrance and exit counseling requirement for a Grad PLUS loan that is different from the Subsidized/Unsubsidized Direct Loan requirement. Also, there is a Master Promissory Note that must be completed that is different from the Subsidized/Unsubsidized Master Promissory Note.
Master Promissory Note
The Master Promissory note (MPN) is a promissory note that can be used to secure loans for multiple academic years. As a student borrower under the Direct Loan Program, you will only sign one MPN for all of your loans at UWF. The electronic MPN site
http://dlenote.ed.gov allows you to complete and sign a MPN over the web as an alternative to using a paper MPN. We will be electronically notified when you have completed the process.
Entrance/Exit Counseling
The federal government requires you to complete entrance counseling prior to disbursement of your first Federal Direct Loan. Entrance counseling explains your rights and responsibilities as a borrower. After you review the information if you still have questions, please contact a loan officer in the Financial Aid Office.
Complete entrance counseling (http://www.dl.ed.gov).
Exit counseling is required at the time you graduate, withdraw, or drop below half-time enrollment. Exit counseling will review the same rights and responsibilities as entrance counseling but will also give you important information regarding the repayment of your Direct Loan. Understanding the repayment provisions of your loan will help you avoid default. Failure to complete exit counseling prior to leaving school will result in a HOLD on your academic record. This hold prevents the release of grades, transcripts and diploma, registration for future terms, and receipt of additional financial aid.
Complete exit counseling (http://www.dl.ed.gov).
Loan Consolidation
Loan consolidation enables a borrower to take all of their existing student
loans and consolidate them into one monthly payment. Loan consolidation is not
for everyone, but can be very beneficial. Several companies offer loan
consolidation. If you are considering consolidation, review the information on
Direct Loan Consolidation at the following website
http://www.loanconsolidation.ed.gov/. Please contact
Direct Lending,
or the company of your choice directly, for additional information and to answer any questions.
Alternative/Private Loans
Although it is not
required, you are encouraged to exhaust all federal loan eligibility prior to
applying for a private/alternative loan.
In the event you do not qualify for financial aid, have reached the aggregate
loan limit, or need aid in excess of what you have been awarded, you may apply
for a private loan, often referred to as an alternative loan. With this type of
loan, you are applying through a private lender, and the Financial Aid Office
only certifies your enrollment and cost of education. A credit check is done
by the lender to
determine approval. The lender determines interest rate, processing fees, and
repayment. The Financial Aid Office has information and/or applications for
several lenders; however, you have the right to select any lender of your
choice, and we will process the application for you.
We have elected not to publish specific information on individual loans/lenders due to the fact that borrower benefits are subject to change without notice. Detailed information regarding a specific loan can be found on the lender website or by contacting them directly. Due to legislative and economic changes in the student loan industry, we recommend that you contact a lender prior to submitting a loan application to determine if they are accepting applications from UWF students. There are certain lenders who have chosen to accept applications only for students attending specific institutions.
The lenders listed below are some of the lenders that have provided loans to our students in the past, and we are familiar with their customer service. We also have an electronic process with these lenders to certify loans and receive funds electronically; however, we do not recommend any of these lenders over another lender you may choose on your own. Selecting an alternate lender may result in additional processing time if there is a paper application, paper certification, and/or paper check.
Private loans are disbursed using the same method as other types of financial aid – Higher One Debit card, ACH to bank account, or paper check.
Lenders For Undergraduate and Graduate Students (in alphabetical order)
Wachovia 1-877-689-0763
www.wachovia.com
*** These lenders require satisfactory academic progress.
Lenders For Graduate Students Only
MBA Loans 1-888-440-4MBA
www.salliemae.com/mbaloans
*** These lenders require satisfactory academic progress.
All lenders will conduct a credit check. Keep in mind that multiple credit inquiries do reduce a borrower’s credit score.
Every effort has been made to ensure that the information on this web site is
accurate. However, due to frequent changes in Federal and State regulations, and
revisions to the University of West Florida operating policies, the information
is subject to change without notice.
Financial Aid Office | Bldg. 18,
Main Lobby | 11000 University Pkwy. | Pensacola, FL 32514
(850) 474-2400 | fax (850) 474-3145 |
finaid@uwf.edu |
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