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Stafford Loans

Graduate PLUS Loans

Alternative or Private Loans

Other Loan Sources

Loan Counseling

Helpful Links

For Mailing Payments

Loan Repayment Resources

 

 Stafford Loans

There are two types of Stafford Loans, subsidized and unsubsidized.

  • You must have financial need to receive a subsidized Stafford Loan.
  • Financial need is not required to obtain an unsubsidized Stafford Loan.
  • The US Department of Education will pay (subsidize) the interest that accrues on subsidized Stafford Loans during certain periods.
  • Students must pay all interest on unsubsidized Stafford Loans.
  • Students must be enrolled at least half-time to be eligible for Stafford Loans.
  • As of July 1, 2006, the interest rate on Stafford Loans is a fixed 6.8%.
  • Repayment of Stafford Loans is between 10 and 25 years, depending on the amount owed and the type of repayment plan selected.
  • Annual loan limit for subsidized Stafford Loan is $8,500.
  • Annual loan limit for subsidized and unsubsidized Stafford Loans combined is $42,722 for a 10-month academic year, $44,944 for an 11-month academic year, and $47,167 for a 12-month academic year.
  • Aggregate loan limit for subsidized Stafford Loan is $65,500.
  • Aggregate loan limit for subsidized and unsubsidized Stafford Loans combined is $224,000.
  • Master Promissory Notes may be completed at https://studentloans.gov/myDirectLoan/index.action

The Budget Control Act (BCA) of 2011 (Pub. L. 112-25) was signed into law on August 2, 2011. This act makes two changes to the William D. Ford Direct Loan (Direct Loan) Program. 

  1. Loss of Subsidized Loan Eligibility for Graduate and Professional Students. Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.
  2. Terminates the authority of the Department of Education to offer any repayment incentives to Direct Loan borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or origination fee, effective for loans first disbursed on or after July 1, 2012. As a result of this change, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012.

 Graduate PLUS Loans

Graduate and professional degree students may obtain PLUS Loans to help pay for their own education.

  • Financial need is not required to obtain a PLUS Loan.
  • Students must be enrolled at least half-time to be eligible for PLUS Loans.
  • The student borrower must pay all interest on a PLUS Loan.
  • As of July 1, 2006, the interest rate on Federal Direct PLUS Loans is a fixed 7.9%.
  • Repayment of PLUS Loans is between 10 and 25 years, depending on the amount owed and the type of repayment plan selected.
  • The PLUS Loan has no annual or aggregate limit. The PLUS Loan is limited to Estimated Cost of Attendance minus any other aid.
  • Master Promissory Notes may be completed at https://studentloans.gov/myDirectLoan/index.action.
  • A credit check is required. If the credit check comes back as denied, the student may appeal if there is an error or obtain an endorser.  
    • The student will be mailed instructions on how to appeal the denial or obtain an endorser. The phone number to appeal a credit decision is 800-557-7394.
    • To use the endorser process, go to the studentloans.gov website. Click on the “Complete a PLUS Request Process” hyperlink and complete that process. It will use the same credit check results and give a denial. Then the option of printing the endorser addendum or having the endorser complete it online, if he/she has a federal PIN, is available.

Common reasons for a denied credit check are:

  • Bankruptcy (Chapters 7,11, or 12 within the past 5 years)
    Note: Department Policy does not consider Chapter 13 bankruptcy adverse.
  • Voluntary surrender within the last 5 years
  • Repossession within the last 5 years
  • Foreclosure proceedings started
  • Foreclosure within the last 5 years
  • Deed in lieu of foreclosure
  • Accounts currently 90 days or more delinquent
    Note: Accounts currently reported, as 90 days or more delinquent, which are over 5 years old since the last reported delinquency, are not considered adverse.
  • Wage garnishment within the last 5 years
  • Defaulted loan that has been claim paid
  • Lease or contract on secured real estate
  • County/state/federal tax lien within the past 5 years

See Student Aid on the Web, Funding Education Beyond High School, The Guide to Federal Student Aid, and Your Federal Student Loans for details on federal aid and loan repayment.

 Alternative or Private Loans

Students are encouraged to always apply for federal student aid first to determine what they may qualify for in Title IV loans or other assistance. Federal student loans may have more favorable terms/conditions than private education loans.

Students are required to notify the PNWU Office of Financial Aid if they receive any funding; loan, grant, scholarship, etc.

This link will take you to a list of private loan lenders that have made loans to PNWU students in the past. In addition, some students have obtained private loans from the Washington Osteopathic Medical Association.

Federal student loans are not available for expenses incurred by medical students after they graduate, such as expenses associated with finding a residency. There are private student loans for these expenses.  Private Residency and Relocation Loan helps medical and dental students with the expenses associated with finding a residency, including interview travel expenses and relocation costs, as well as board exam expenses. Any student interested in more information about these types of loans should contact the Financial Aid department at (509) 452-5100.

 Other Loan Sources

 Loan Counseling

Entrance counseling is required of new student loan borrowers. Counseling may be completed online at the StudentLoans.gov website.

Students will be notified of the requirement to complete exit counseling prior to graduation or when a borrower ceases attendance on at least a half-time basis. Exit counseling may be completed online at the NSLDS website.

 Helpful Links

 For Mailing Payments

Use the address below for mailing payments. You can make payments at any time on your loans. Be sure to include your Social Security Number (SSN) on your check. Mail payments to the following address:

US Department of Education
Direct Loan Payment Center
P.O. BOX 530260
Atlanta, GA 30353-0260

Please note that this address is a US Postal Service box. Payments cannot be submitted via a private package delivery or courier service such as United Parcel Service (UPS) or Federal Express (Fed Ex). If overnight delivery to the department is desired, then you must use the overnight delivery services available from the US Postal Service.

Make check, money order, or Eurocheck payable to US Department of Education

 Loan Repayment Resources