Loans for Graduate Students

Federal Stafford Loan

Graduate students are eligible for Federal Stafford Student Loans and may borrow up to $20,500 per academic year. Loan disbursements are split equally over the semesters in an academic year. For example, if you are planning to attend fall and spring semester, you will receive two loan disbursements: one for fall and one for spring. If you are attending fall, spring, and summer semesters you will receive three equal disbursements.

This loan is a low-interest award for undergraduate and graduate students. A Stafford Loan is available to students with little or no financial need and is divided into two different loan programs: subsidized and unsubsidized. The difference between the two is the subsidized loan is awarded on the basis of financial need and the federal government will pay the interest on the loan while you are attending school at least part-time. However, the unsubsidized loan accrues interest while you're in school.

• no principle payment while in school
• capped interest rate of 8.25%   
  (Note:  Effective July 1, 2006 all new Stafford Loans are fixed at 6.8%)

• 6 month grace period following graduation
• requires half-time enrollment

The amounts awarded on the Federal Stafford Loans are based on a student's academic level and status as either a dependent or independent of their parents as determined on the FAFSA.

Students awarded a Stafford Loan will be required to sign a Master Promissory Note during the first academic year that the funds are borrowed. The loan amount will be applied directly to the student's account once a Promissory Note has been signed and the student has completed Stafford Loan Entrance Counseling.

FAFSA Application Form

• To apply for the Stafford Student Loan, complete a Free Application for Federal Student Aid (FAFSA)

Subsidized and Unsubsidized Stafford Loans

There are two types of Federal Stafford loans, subsidized and unsubsidized.  Students are not required to make payments on either type of loan while enrolled at least half-time at an eligible educational institution.  However, students may choose to make regular or interest-only payments while enrolled.

Subsidized Stafford Loans are awarded to students who demonstrate financial need.  These loans are interest free while the student is enrolled at least half-time (4 credit hours for graduate students) at an eligible educational institution or during authorized grace and deferment periods.  Interest is charged when the loan is in a repayment or forbearance status.

Unsubsidized Stafford Loans are awarded regardless of a student's demonstrated financial need.  These loans generate interest charges as soon as they are disbursed.  The interest charges may be deferred during enrollment (at least half-time), grace, and deferment periods, but they will be capitalized (added to the outstanding loan balance).

Fees

All Federal Stafford Loans may be subject to an origination (1.5%) and insurance fee (1%) of up to 2.5%, taken from the value of the loan at the time it is disbursed to the school.  The loan amounts listed above and on Financial Aid Award Notices represent the gross amount of the loan (amount before fees have been paid).  The fees charged by each lender should be considered when choosing a loan provider.  The Higher Education Reconciliation Act will adjust Stafford Loan origination fees according to the chart below:

Repayment

Loan repayment usually begins 6 months after the student graduates, leaves school, or drops below half-time enrollment.  Repayment will initially be scheduled for fixed monthly payments over a 10 year period.  Other repayment options are also available.

Private Educational Loans

Private educational loans are provided by a select group of large lenders that are similar to the Federal Stafford Loans. These loans are not backed by the federal government, but are provided specifically for students financing their education. Most of these "alternative" loans typically have the following conditions:

• no principal payment while in school
• a variable interest rate
• 6 month grace period following graduation
• enrollment requirements vary from one credit hour or more

Many students will look at these private educational loans to pay for study abroad programs or to make-up the costs of any other educational needs not covered by other financial aid awards. For more information, please contact our Financial Aid Office or you're welcome to look at a list of providers for graduate loans. (You will need the Adobe Acrobat plugin.)

Federal Graduate PLUS Loan

The Federal PLUS Loan is available to Graduate students with a yearly maximum equal to your cost of attendance minus any other financial aid you receive. To be eligible, a credit check is required to determine that an applicant does not have an adverse credit history. Other requirements include completion of a FAFSA, half-time enrollment (4-6 credit hours) and you must have applied for your annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate PLUS loan. Federal PLUS Loans disbursed on or after July 1, 2006 have a fixed interest rate of 8.00% for graduate students. The loans may also be subject to an origination (1.5%) and insurance (1.0%) fee of up to 2.5%, taken from the value of the loan at the time it is disbursed to the school. Borrowers should consider the fees charged by each lender when choosing a loan provider.

Click here to view our Loan Lender Resource List.  You will be able to review all of the terms, conditions, and services offered by each lender and compare them.  You will also be able to access online applications for each of these lenders.

PLEASE NOTE:  You are not required to select a lender from this list.  We have compiled this list as a resource for students.  If you choose to work with a different lender, please complete a master promissory note with that lender.  You may apply electronically from many lender websites.  Remeber to include the Westminster College school code, 003681.

Alternative Educational Loans

Alternative student loans are private loans offered to students to assist with educational expenses.  Since the loans are privately funded, the terms and conditions will vary based on the lender.  This also means that interest rates and fees are not federally regulated and are therefore set by the individual lenders.  Students are highly encouraged to carefully review the details of private loans before applying.  We also encourage students to use the PLUS loan before an alternative loan as it is usually more beneficial.

Eligibility for an alternative student loan is determined by the lender.  A student may need a co-signer in order to be approved.  Once the loan has been approved by the lender, the Westminster College Financial Aid Office will need to certify the loan amount.

Alternative Loan Amounts

The amount available to be borrowed in alternative loan funding will vary by student.  The certified loan amount cannot exceed the student's Cost of Attendance less any other financial aid received.  If the amount approved by the lender is higher than the allowable maximum, it will be reduced by the school.

Applying for an Alternative Loan

Students should contact the lender of their choice for application instructions.  Most lenders have online applications.  We advise students to pursue all other sources of funding before applying for an alternative loan.  While we do not recommend the use of any specific lender, a resource list is available with the names of lenders commonly used by our students.  Please be sure to carefully review all terms and conditions before completing an application.

Click here to view our Loan Lender Resource List.  You will be able to review the terms, conditions, and services offered by each lender and compare them.  You will also be able to access online applications for each lender.