Students are Required to Know and Understand the Following Stafford Direct Loan Information:
- You must have a complete financial aid file at WCC—this means you have completed your FAFSA, submitted requested forms and/or documents to our office, and received an alert with an award notice or Stafford direct loan eligibility letter. You must be enrolled in an eligible degree or certificate program and taking a minimum of 6 credits (half-time) which apply to your program in each quarter you wish to receive a loan.
- A new federal reporting requirement now means that a student must be enrolled for classes at WCC before we can actually process their loan. For example, if a student plans to start winter quarter 2015 and wants to apply for a loan where winter quarter will be the initial quarter of their loan for the 2014-2015 year, then they would have to be enrolled for winter quarter 2015 classes before we would be able to process the loan. Please keep this in mind as you begin the loan process for an upcoming quarter.
- Your student loan eligibility is determined using your FAFSA information, WCC’s cost of attendance, other financial aid and scholarship awards, your grade level, dependency status and annual maximum loan limits. This loan eligibility may be a combination of subsidized and unsubsidized Stafford loan amounts.
- Grade or borrower level is based upon your earned credits for your current degree or certificate at WCC, it is not based on number of calendar years or quarters you have attended school. To be considered a level two or second year borrower you must have 46 or more college level credits that apply to your program of study. You may be required to complete a program completion plan with an enrollment planner to document this.
- Your student loan will be disbursed equally over your requested enrollment period. Typically this is all the quarter(s) you plan to attend WCC for at least 6 credits, for example between summer 2014 and spring 2015.
- Outstanding tuition and fees will be deducted from loan disbursements as allowed by federal regulations. Any remaining amount will be disbursed to the student via Higher One, WCC's electronic funds distribution partner.
- Like all other financial aid, no loan funds will be disbursed to the student before the quarter begins.
- Generally loan processing time and disbursement of funds is 1.5 to 2 weeks, however for future quarters, no loan funds will be disbursed to the student before the quarter begins.
- If you are a first year student and a first time borrower, your first loan disbursement cannot be released any earlier than 30 days after the start of your first quarter. If this applies to you, you will be notified. This is a federal regulation and cannot be waived. Please plan accordingly.
- Student loans must be disbursed in a minimum of 2 disbursements. If your loan is for one quarter only, you will receive half of the loan at the beginning of the quarter and the second half at the mid-point of the quarter. If this applies to you, you will be notified. This is a federal regulation and cannot be waived. Please plan accordingly.
- For students completing the remainder of their program in less than one academic year, we are required to prorate your loan based on the number of credits you will take to complete your degree or certificate.
- Interest rates for direct loans first disbursed between 7/1/2014 and 6/30/2015 are 4.66% for subsidized and/or unsubsidized undergraduate students. PLUS rate is 7.21% for the same time frame.
- Effective July 1, 2013, the Moving Ahead for Progress in the 21st Century Act limits the benefits of the direct loan subsidy to an aggregated period of no more than 150% of program length for new borrowers. Once that limit has been exceeded, a student may borrow only unsubsidized loans, and will begin to incur interest charges on outstanding subsidized loans. Additional information is available in this Department of Ed publication. Please note for this law, a new borrower is defined as one who did not have an outstanding balance of principal or interest on a Direct or FFEL Program Loan on July 1, 2013.
- Currently there is a 1.072% origination fee charged by the Department of Education for loans disbursed on or after 12/1/2013 and before 10/1/2014. This fee will increase on 10/1/2014 to 1.073% for loans disbursed on or after 10/1/2014 and before 10/1/2015. There is no longer a rebate (reduction) to this origination fee. This fee is deducted, by the Department of Education, from each loan disbursement you receive. Parent PLUS loans have an origination fee of 4.288% which following the same dates above will increase to 4.292%.
- This is a student loan and must be repaid.
- You have the right to cancel your student loan at any time. If your loan funds have been disbursed to you, you have 14 business days to return the funds to WCC to be refunded back to the loan program on your behalf. Contact the Financial Aid Office if you have any questions.
- All loan recipients are required to complete the Stafford Loan Exit Counseling when they graduate, leave WCC, or drop below 6 credits (half-time) enrollment. Loan exit counseling is completed at StudentLoans.gov
- The average loan debt for a student attending 2 years at WCC is $7,960.
Annual Maximum Loan Limits
Dependent Student (students that were required to use parent(s) information on their FAFSA)
Level 1 borrower $5,500 of which no more than $3,500 can be subsidized
Level 2 borrower $6,500 of which no more than $4,500 can be subsidized
Level 1 borrower $9,500 of which no more than $3,500 can be subsidized
Level 2 borrower $10,500 of which no more than $4,500 can be subsidized
Lifetime Maximum (Aggregate) Loan Limits
Dependent Undergraduate Students
$31,000—no more than $23,000 of this amount may be in subsidized loans
Independent Undergraduate Students
$57,500—no more than $23,000 of this amount may be in subsidized loans