Loans
Qualifying and Applying
If you wish to receive a loan, you must meet all financial aid eligibility requirements, including enrollment in at least 6 credits in an eligible degree or certificate program. (View a list of ineligible programs and courses.) You must also complete the routine financial aid application process before completing additional steps in the loan process.
Federal Direct Education Loans
Waubonsee students now obtain their loan funds directly from the federal government. There is a 1 percent Origination Fee with Direct Loans. However, this is reduced to 0.5 percent due to a 0.5 percent rebate. To retain the rebate, the borrower must make 12 on-time payments. There is a 0.25 percent interest rate reduction for the direct deposit of payments from a designated bank account.
Loans can be either subsidized or unsubsidized.
- Subsidized loans are based on financial need. Subsidized loans charge no interest until the student ceases to be enrolled at least half-time. The maximum subsidized loan is $3,500 for freshmen and $4,500 for sophomores per academic year. Students can request additional unsubsidized loans up to the maximums using the Loan Adjustment Request (pdf). Once the student submits this request, he/she may be contacted to set up an appointment with the loan advisor.
- Unsubsidized loans do not require financial need. Interest is charged starting the date the loan is disbursed. The maximum unsubsidized loan per academic year is $2,000 for a dependent student. If the dependent student's parents cannot qualify for a Parent Loan, this increases to $6,000. The maximum unsubsidized loan per academic year for an independent student is $6,000.
Interest rates on Direct Loans beginning July 1, 2009, were 5.6 percent for subsidized and 6.8 percent for unsubsidized.
Parent Loan (PLUS)PLUS is a Federal Direct Loan that is not based on financial need. To apply, the parent completes the Parent PLUS Loan Form and selects a participating lender. Approval of a Parent Loan requires a credit check by the lender. Loans are limited to the difference between the total cost of attendance and any other financial aid the student is receiving.
Additional Steps to Receiving a Direct Loan
To receive a direct loan, you must first apply for financial aid and indicate that you are interested in being considered for student loans. You will then need to complete these additional steps:
- Receive a notification that you have been awarded. Under Financial Aid Tools on the student tab of mywcc, select "View Awards" then "Award for Aid Year." For 2010-2011, accept the Terms and Conditions and Accept the Award Offer.
- If you do not already have a Department of Education PIN number, apply for one at www.pin.ed.gov. You will need a PIN number to sign your Promissory Note.
- After you have accepted your award offer in mywcc, allow three business days to pass before completing steps four and five. If you try to complete these steps earlier, you will receive an error message.
- If you have not previously completed an Entrance Interview (Mapping Your Future) for a student loan at Waubonsee, complete Entrance Counseling at www.studentloans.gov. This website has an abundance of information for borrowers, including repayment information, account summaries, and electronic statements and bill payment.
- Complete the electronic Master Promissory Note at www.studentloans.gov. You will need the names, addresses and phone numbers of two references, one of whom must reside at an address different than yours. The MPN must be completed if you are a new borrower or have previously borrowed using a private lender like Sallie Mae. If you have previously borrowed from a private lender, information about consolidating your previous loan with a Direct Loan is available at www.loanconsolidation.ed.gov.
- Register for at least 6 credits in eligible courses. (View a list of ineligible programs and courses.) A minimum of 6 eligible credits is required for the loan to credit to your student account and then disburse. If you drop below 6 eligible credits prior to the date of loan disbursement, the loan will no longer credit to your account. Your remaining classes could be canceled unless you make a payment or have other financial aid.