Loans

Federal Direct Subsidized and Unsubsidized Loans are federal student loans offered by the U.S. Department of Education to help eligible students cover the cost of higher education. To be eligible, students must complete the Free Application for Federal Student Aid (FAFSA), must be degree seeking, enrolled at least half-time (six hours) and meet the requirement for Satisfactory Academic Progress (SAP). Eligibility is also determined based on the results from the FAFSA.

Types of federal direct student loans

• Direct Subsidized Loans – the U.S. Department of Education pays the interest while you are in school at least half-time and for the first six months after your leave school (referred to as a grace period). Subsidized student loans may not exceed financial need (determined by your FAFSA results).
• Direct Unsubsidized Loans – interest will accrue while you are in school and all other periods. You can choose to pay the interest that accrues even when you are not required to make a payment.

Interest Rates and Fees

Interest is additional money you pay as a cost of borrowing money. The interest rate for a federal undergraduate student loan varies based on the first disbursement date of the loan (changes each academic year). Interest rates are set by federal law and are a fixed rate. A fixed rate will not change for the life of the loan.

Federal student loans have a loan fee, which is a percentage of the total loan amount. This means the net amount of the loan will be less than the amount you actually borrow.

For current interest rates and fees, please visit https://studentaid.gov/understand-aid/types/loans/interest-rates.

Annual Limits and Aggregate Limits

Annual Loan Limits (part-time enrollment requires proration of the annual loan amount; half-time enrollment is required for federal student loans)

• Dependent Undergraduates:
  • $5,500 for Freshmen ($3,500 maximum subsidized)
  • $6,500 for Sophomores ($4,500 maximum subsidized)
  • $7,500 for Juniors/Seniors ($5,500 maximum subsidized)
• Independent Undergraduates (and Dependent Undergraduates whose parents are unable to obtain Parent PLUS Loan):
  • $9,500 for Freshmen ($3,500 maximum subsidized)
  • $10,500 for Sophomores ($4,500 maximum subsidized)
  • $12,500 for Juniors/Seniors ($5,500 maximum subsidized)

Aggregate Loan Limits

• Dependent Undergraduates:
  • $31,000 ($23,000 maximum subsidized)
• Independent Undergraduates (and Dependent Undergraduates whose parents are unable to obtain Parent PLUS Loan):
  • $57,500 ($23,000 maximum subsidized)

Repayment

Once you graduate, drop below half-time enrollment, or leave school, you have a six-month grace period (if not previously used). Repayment begins when your grace period ends.

Exit Counseling

Student borrowers of federal student loans who are graduating, leaving school, or dropping below half-time enrollment (6 hours) are required to complete loan exit counseling.

How to Apply

The following loan documents are required if you plan to borrow a federal direct student loan:

• Federal Direct Subsidized/Unsubsidized Student Loan Data Sheet - complete on Finances tab by logging into your MyWC portal at https://mywc.westminster-mo.edu (complete one data sheet for the total loan amount and be sure to mark both subsidized and unsubsidized if you have both loan types).
• Entrance Counseling - complete by logging into https://studentaid.gov (under "Loans and Grants"; select "Loan Entrance Counseling"; then select "Start" - beside "I am an Undergraduate Student"); this is required the first year you borrow.
• Master Promissory Note (MPN) for Federal Direct Student Loan - complete by logging into https://studentaid.gov (under "Loans and Grants"; select "Master Promissory Note (MPN)"; then select "Start" beside "I'm an Undergraduate Student"); this is required the first year you borrow and expires after 10 years.

More Info

Loan rights and responsibilities and in-depth information regarding federal student loans is available at https://studentaid.gov/understand-aid/types/loans.

Federal Direct Parent PLUS Loans are federal student loans offered by the U.S. Department of Education to help parents of dependent students pay for education expenses not covered by other financial aid. For parents to be eligible to apply, students must complete the FAFSA, be degree seeking, be enrolled at least half-time (six hours), and meet the requirement for Satisfactory Academic Progress. Eligibility is not based on financial need, but a credit check is required. To qualify, borrowers cannot have an adverse credit history.

Who can apply

You qualify as a parent for purposes of receiving a Direct Parent PLUS loan on behalf of a dependent undergraduate student if you are:

• A biological parent of the student
• A legal adoptive parent of the student
• The spouse of the student’s biological or legal adoptive parent (the student’s stepparent), and you are considered to be a parent in accordance with the instructions on the FAFSA form for purposes of reporting your income and assets on the FAFSA form

Interest Rates and Fees

Interest is additional money you pay as a cost of borrowing money. The interest rate varies based on the first disbursement date of the loan (changes each academic year). Interest rates are set by federal law and are a fixed rate. A fixed rate will not change for the life of the loan. Interest begins accruing as soon as the loan is disbursed.

Federal loans have a loan fee, which is a percentage of the total loan amount. This means the net amount of the loan will be less than the amount you actually borrow

For current interest rates and fees, please visit https://studentaid.gov/understand-aid/types/loans/interest-rates.

Maximum Loan Amount

The maximum loan amount you can receive is the school’s cost of attendance minus any other financial aid received.

Repayment

Borrowers have the option of requesting a deferment as part of the online parent PLUS application. If a deferment is requested, you will not need to make payments while your child is enrolled at least half-time (interest will accrue). If a deferment is not requested, repayment begins within 60 days after the full disbursement of the loan.

What if I have an adverse credit history

If denied for the parent PLUS Loan, your child will be eligible to borrow the independent undergraduate annual loan amount (annual loan limits can be found under Federal Direct Subsidized/Unsubsidized Student Loans).

Parents with an adverse credit history may be able to appeal the decision (requires additional documentation provided to the U.S. Department of Education) or obtain an endorser. Both options require PLUS Credit Counseling. Additional information on adverse credit history can be found at https://studentaid.gov/understand-aid/types/loans/plus/parent#adverse-credit.

How to Apply

Complete the Parent PLUS Loan application by logging in with your parent FSA ID at https://studentaid.gov/plus-app/parent/landing.

Upon approval of your PLUS Loan, you will also need to complete a Master Promissory Note (under “Loans and Grants”; select “Master Promissory Note (MPN)”; then select Start (beside “I’m a Parent of an Undergraduate Student”)

More Info

Loan rights and responsibilities and in-depth information regarding federal student loans is available at https://studentaid.gov/understand-aid/types/loans.

Private education loans are an alternative borrowing option for students or parents/sponsors to assist with educational and living expenses not covered by other financial aid. Private loans are funded by banks, credit unions, and other private lending institutions.

Before students apply for a private loan, the Financial Aid Office recommends students complete the Free Application for Federal Student Aid (FAFSA) at https://studentaid.gov/h/apply-for-aid/fafsa and apply for the maximum Federal Direct Student Loan amount they are eligible to receive.

The Financial Aid Office also recommends that parents consider applying for the Federal Direct Parent PLUS Loan before the student applies for a private loan.

Private loans are not federally funded. The interest rates are fixed or variable and are typically more than the interest rates of federal educational loans.

Private loans are credit-based loans and in most cases, a credit worthy cosigner is required. Private loans cannot be consolidated with Federal Direct Loans.

The Missouri Family Education Loan Program (MOFELP) is a private education loan program designed to provide borrowing options for Missouri students who have financial need but may not meet the traditional credit requirements for private loans. Funds are limited for each academic year and are available on a first come, first served basis for eligible qualified borrowers. The MOFELP Loan is an interest free loan with zero fees and an annual loan limit of $500-$5,000 (aggregate limit of $20,000). The MOFELP Loan requires a $5 monthly keep-in-touch payment.

Student borrower requirements

To be eligible to borrow the MOFELP Loan, students must:

• Be enrolled full-time (unless enrolled in summer term or final semester prior to degree completion).
• Be making Satisfactory Academic Progress (SAP).
• Have an EFC of $20,000 or less for the current academic year.
• Be at least 17 years of age.
• Be a United States citizen.
• Be a permanent Missouri resident.
• Not have a Bachelor’s degree.
• Have a composite score of at least 21 on ACT or SAT equivalent; or have an overall cumulative GPA of 2.5 or higher on a 4.0 scale (or the equivalent on another scale) earned at the participating school, another accredited higher education institution (for transfer students only), or high school (incoming first semester freshman only).
• Must receive maximum loan amounts for which the student is eligible for Federal Direct Subsidized/Unsubsidized Loans.
• Not have a conviction for fraud.
• Must have certified financial need.
• Must not at any time have been more than 60 days delinquent on any MOFELP loan payment.
• Must have a two-year credit history (or have a cosigner with a two-year credit history that also must be a permanent Missouri resident, be at least 18 years of age, and not have a conviction for fraud)

Who can apply

Applications are available at https://mslf.mohela.com/DL/secure/borrower/findformlist.aspx.

Submit your completed application to the Financial Aid Office at Westminster College. Questions can be directed to financialaid@wcmo.edu.

If mailing the completed application, send to:
Westminster College
Attn: Financial Aid Office
501 Westminster Avenue
Fulton, MO 65251.

*MOFELP criteria may be subject to change.