Admissions & Financial Aid Loans
Federal Direct Student, PLUS, and PRIVATE loans
FEDERAL DIRECT LOANS
Federal Direct Loan Program
Through the Federal Direct Loan Program, the Department of Education acts as the lender on behalf of the student. The Federal Direct loan is processed and originated through Wabash College. If the student chooses to utilized the Federal Direct Loan, the student will sign their Master Promissory Note (MPN) and complete Entrance Counseling. The Federal Direct loan eligibility amount will vary based upon the student's year in school. Principal payments are deferred until six months after the student is no longer enrolled. There are two types of Federal Direct loans, subsidized and unsubsidized. Federal Direct loans disbursed on our after July 1, 2019 are fixed at 4.53%. There is a 1.062% origination fee charged for all Federal Direct loans.
This type of Federal Direct loan is need-based. The government pays the interest on this type of loan while the student is in school, during the six-month grace period, and during eligible deferment periods.
This type of Federal Direct loan is not need-based. The student is responsible for all of the interest that accrues on the loan, including when the student is in school.
PLUS LOAN APPLICATION PROCESS
Parent PLUS loans are government loan programs for parents that may be available to help cover the cost of education. These loans are taken out by the parent and must be repaid with interest. Parent PLUS loans disbursed on or after July 1, 2019 are fixed at 7.08%. There is a loan origination fee of 4.236%. Borrowers can begin repayment 60 days after the loan is fully disbursed or you have the option to defer payments while your son is enrolled in school. Applications for this loan are available at studentloans.gov.
Once you (the parent) have logged in to this website, you will select the "Parent Borrower tab" click the link that says "Apply for a PLUS loan" and simply follow the instructions. Information about the loan you are requesting will be sent to our office within 1-2 business days.
Information about Title IV, HEA loans (Federal Direct and PLUS loans) will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
PRIVATE ALTERNATIVE STUDENT LOAN
- Students are strongly encouraged to pursue all other types of aid, including federal loans, before applying for a private loan as grant money is free and federal loans have a lower, fixed interest rate.
- Students can apply for this type of loan on their own if credit-worthy. If not, a credit-worthy cosigner will be required.
- Students can borrow up to total cost of attendance minus other aid received.
- Payments are deferred as long as the student remains enrolled at least half time. Interest does accrue while in school. It is strongly encouraged to pay the interest while in school.
Disclosures lenders must provide to borrowers
Laws require students to complete the Private Education Loan Applicant Self-Certification Form in order to ensure borrowers understand the risks of private student loans and how to exhaust their federal loan eligibility before borrowing private loans. This form is available through the lender's website. Students will need to promptly complete and return any disclosures sent to them by their lender.
APPLYING FOR A PRIVATE LOAN
Listed below are two application tools that will provide access to multiple lenders. Both INvestEd Marketplace and FASTChoice will allow you to compare lenders and rates for possible alternative loans. As a borrower, you have the option to select any lender you choose. We recommend that you select a lender included in one of the tools below in order to ensure your loans are processed as quickly and smoothly as possible. Please understand that we will process a loan with a lender that is not listed. If you have any questions regarding the process used to select the lenders included in the INvestEd Marketplace or in FASTChoice, please contact our office.