Loans

Waubonsee Community College and the Financial Aid Office care about your financial well-being during your time in college—and after. Learn steps to smart borrowing! 

To receive a loan you must: 

• Complete the FAFSA (Free Application for Federal Student Aid) every award year
• Meet all financial aid eligibility requirements including:
  • Enrollment in at least 6 credits in an eligible degree or certificate program.
• Complete the financial aid application process at Waubonsee Community College which includes:
  • Providing transcripts from any previous colleges you attended.

Note: If you cannot obtain an academic transcript from a previously attended college or university because you owe a balance, you must submit a student account statement showing the balance.

Only non-Pell eligible students are initially offered a loan. If your aid offer does not include a loan, you can submit a Direct Loan Request in mywcc.

Direct Loan funds come directly from the U.S. Department of Education. Once awarded a loan, the student must attend an Entrance Counseling session and complete a Master Promissory Note found on the studentaid.gov website.

Effective July 1, 2022 through June 30, 2023, the interest rates for Direct Loans is 4.99% and July 1, 2021 through June 30, 2022 the interest rate is 3.73% for both Subsidized and Unsubsidized.

Processing of any Direct Loans includes an origination fee that is deducted from the total amount disbursed. From October 1, 2020 to September 30, 2022 the Direct Loan origination fee is 1.057%.   

Direct Loans must be repaid and there are several repayment options. 

• Subsidized loans are based on financial need which is the difference between the Cost of Attendance and the Expected Family Contribution (EFC) derived from the Free Application for Federal Student Aid. Subsidized loans charge no interest while a student is in school at least half-time (six hours), during the grace period, and during in-school deferment periods. The maximum subsidized loan is $3,500 for freshmen and $4,500 for sophomores per academic year.

• Unsubsidized loans are based on the difference between the Cost of Attendance and any other financial aid the student is receiving.  The Expected Family Contribution is not used in determining the loan amount.

• The maximum loan amounts available per academic year are shown in the table below. Loans are based on a student's grade level and whether a student is dependent or independent. The table shows the subsidized maximums and the maximums including unsubsidized loans.

• Waubonsee students are awarded up to the subsidized loan maximum for their grade level. Additional loan up to the maximum can be requested through a Waubonsee Loan Adjustment Request in the Financial Aid Forms area in mywcc.

PLUS is a Federal Direct Loan that is not based on financial need. To apply, the parent completes the Parent PLUS Loan Form, which can be obtained by contacting the Financial Aid Office.

Approval of a Parent Loan requires a credit check by the U.S. Department of Education and the completion of a Direct PLUS Loan Master Promissory Note. Loans are limited to the difference between the total cost of attendance and any other financial aid the student is already awarded. There are no grace periods for PLUS loans and payments are required immediately following the disbursement of a PLUS loan.

Effective July 1, 2020 through June 30, 2021, the interest rate for PLUS Loans is 5.30% and loans disbursed July 1, 2021 through June 30, 2022 the interest rate is 6.28%.

Processing of any PLUS loan includes an origination fee that is deducted from the amount disbursed. From October 1, 2020 to September 30, 2021, the Direct Loan origination fee is 4.228% and from October 1, 2021 to September 30, 2022 the origination fee will be published later this year.   

Private Loans are funded by commercial banks and other lenders, unlike Direct Loans which are funded by the U.S. Department of Education.

After applying for a private loan, contact the Financial Aid Office for the Private Loan Student Information Form. Once the form is completed and submitted, Waubonsee will certify the loan with the lender.

The certification of a private loan does not hold your registration and you are responsible for setting up a payment plan. 

Entrance Counseling

Students who accept a Federal Direct Loan are required to complete Entrance Counseling at studentaid.gov. This helps you to understand your rights and responsibilities regarding your loan. Once Entrance Counseling is complete, the origination will go out and retrieve the Master Promissory Note (MPN). You must complete the Entrance Counseling before WCC can offer bookstore vouchers or disburse loans.  

Exit Counseling

Each student who borrows a subsidized or unsubsidized loan under the Federal Direct Loan Program will be required to complete Exit Counseling by going to studentaid.gov. Exit Counseling provides information which includes interest rates, repayment plan options, loan consolidation, loan forgiveness and loan discharge. Exit Counseling is required each time a student drops below half-time enrollment, graduates, or withdraws from school.

The Loan Code of Conduct applies to the officers, employees and agents of Waubonsee Community College.

The Waubonsee Community College Loan Code of Conduct prohibits:

• Revenue-sharing arrangements with any lender.
• Directing borrowers to use a particular lender or delaying loan certifications.
• Offers of funds for private loans to students in exchange for providing concessions or promises to the lender for a specific number of FSA loans, a specified loan volume or a preferred lender arrangement.

Financial Aid Office staff are prohibited from:

• Receiving gifts from a lender, guaranty agency or a loan servicer.
• Accepting compensation for any type of consulting arrangement or contract to provide services to or on behalf of a lender relating to education loans and for service on an advisory board, commission or group established by lenders or guarantors, except for reimbursement for reasonable expenses.