Federal Perkins Loan
The Federal Perkins Loan is a low interest federal loan for eligible students. Repayment of a Perkins loan begins 9 months after you are no longer enrolled at least half-time at an eligible institution. The monthly minimum payment is $40. The maximum repayment period is ten years, but the actual amount of your payments and the length of the repayment period depend upon the size of your debt. No interest is charged until the repayment period begins.
The interest rate is fixed at 5% per year on the unpaid balance. Repayment of a Federal Perkins Loan that is not delinquent or in default can be deferred if you are enrolled at least half-time at an eligible institution. Other Federal Perkins Loan deferment provisions are listed in the Student Guide, available at the Financial Aid Office or on the Web. Repayment of a Federal Perkins Loan may be canceled if you have a permanent and total disability or if you die. Certain circumstances such as full-time employment in specific fields designated as teacher shortage areas, full-time teaching in a designated school serving students from low-income families or service as a full-time law enforcement or corrections officer may qualify for the cancellation of a Federal Perkins Loan.
Entrance & Exit Loan Counseling
Students who have accepted a Federal Perkins loan at WOU must complete an online entrance loan counseling prior to loan disbursement, and exit counseling prior to departure from WOU.. Complete Federal Perkins loan entrance & exit counseling at www.mappingyourfuture.org. Questions about Perkins loan counseling should be directed to the WOU Business Office at 503-838-8201.
Additional information about cancellation provisions for the Federal Perkins Loan and Master Promissory Notes are available from WOU's Business Office. You may contact the Business Office at (503) 838-8201. Students awarded a Federal Perkins Loan on their financial aid award letter will be required to sign a promissory note prior to receiving their loan.
Federal Direct Loan Program
Student Loans are available to both undergraduate and graduate students. A student must complete a Master Promissory Note (MPN) and entrance counseling before receiving a Federal Direct Loan. Information about interest rates and fees can by found by clicking here.
Federal Direct Subsidized Stafford Loan If you are eligible for a Federal Direct Subsidized Stafford Loan, the federal government pays your interest while you're in school at least half-time and for some loans, during grace periods and periods of deferment. You must have "need" to qualify for the subsidized loan.
Federal Direct Unsubsidized Stafford Loan These loans are available to students who do not qualify for "need" based Federal Direct Subsidized Loans or who are not eligible for the full Federal Direct Subsidized Loan amount. The amount of the loan cannot be more than the difference between the cost of attendance and any financial assistance you will receive from the school and any outside source (including the subsidized Federal Direct Stafford Loan). Interest accrues on the Federal Direct Unsubsidized Loan while you are in school and during the six-month grace period before repayment begins.
Additional Federal Direct Unsubsidized Stafford Loan Additional Direct Unsubsidized Loans may be available for independent students, and for dependent students whose parents do not pass a credit check and therefore are unable to borrow under the Federal Direct Parent Loan for Undergraduate Students (PLUS) Program.
Entrance & Exit Loan Counseling
If you decide to accept a loan, you are making a commitment to repay it. Loan counseling is required by WOU's Financial Aid Office to help you understand your loan obligations. Students receiving the Federal Direct Loan for the first time at WOU must complete an online entrance loan counseling session at www.studentloans.gov. When a student departs WOU, they must complete exit counseling at www.studentloans.gov (this data system only reflects federal loans, not private loans).
Federal Direct Parent Loan for Undergraduate Students (PLUS)
Available to parents of dependent undergraduate students. The interest rate is fixed at 7.9%. Repayment begins within 60 days after the final disbursement of that loan's academic period. The borrower is charged a 4% origination fee. The loan maximum cannot exceed the total cost of attendance (budget) minus any other financial aid received (including any subsidized, unsubsidized and additional unsubsidized Federal Direct Loans the student is receiving).
Estimated PLUS loans will be included in the financial aid award for eligible dependent students. To be eligible for the direct PLUS loan, a parent will be required to complete the parent PLUS Loan application and Master Promissory Note (MPN) online at www.studentloans.gov. The application cannot be completed more than 90 days prior to the disbursement of the loan or the credit check will need to be repeated. Because of this, applications for each new school year (fall term) will become available online on or after July 1. Parents will be notified directly by the Direct Loan servicer if they are eligible to receive the PLUS loan. If the parent does not pass the credit check and the PLUS loan is denied, the credit check may be challenged, additional information and documentation may be provided or an endorser may sign for the loan with the parent.
If the parent decides not to pursue the denied PLUS loan, the student may apply for an additional unsubsidized loan. Prior to that additional loan being awarded, the parent must notify Western Oregon University in writing that they no longer wish to continue the application process for the PLUS loan.
Federal Direct Graduate PLUS Loans
Available to students admitted and enrolled in a graduate program who have eligibility for additional funding after receiving Stafford loans and any other financial assistance. The interest rate is fixed at 7.9%. Repayment begins within 60 days after the final disbursement of that loan's academic period. The borrower is charged a 4% origination fee. The loan maximum cannot exceed the total cost of attendance (budget) minus any other financial aid received (including any subsidized and unsubsidized Federal Direct Loans the student is receiving).
To apply for the Graduate PLUS loan, the graduate student will need to complete the Graduate PLUS loan application (includes a credit check), Master Promissory Note (MPN) and a special Graduate PLUS Loan counseling session online at www.studentloans.gov. Applicants will be notified directly by the Direct Loan servicer if they are eligible to receive the PLUS loan. If the applicant does not pass the credit check and the Graduate PLUS loan is denied, the credit check may be challenged, additional information and documentation may be provided or an endorser may sign for the loan with the applicant.
Alternative Student Loans Alternative student loans are credit-based loans obtained directly through a financial institution. The Financial Aid Office will certify the loan amount within the cost of attendance upon the loan being approved by the financial institution. Students should investigate private loan options carefully to see if there is a loan that is right for them. Although WOU does not recommend any particular lender, we have developed a worksheet with questions to consider when shopping for an alternative student loan. WOU never recommends that a student obtain a "direct to consumer" student loan as these loans generally charge high fees and interest.
Financial Aid Office