Student Loan Information

A loan is a type of financial aid that requires repayment. Student loans may be awarded to undergraduate and graduate students. Loans can be need-based or non-need-based, so financial need may not be required for some loan programs. Information included on the Free Application for Federal Student Aid (FAFSA) is used to determine eligibility for Federal Direct Loans (Subsidized and/or Unsubsidized) and the Federal Parent Loan for Undergraduate Students (PLUS). Students may also consider other Private/Alternative Loans for additional funding.

Federal Direct Student Loans (Subsidized & Unsubsidized)

Direct Subsidized Loan

Need-Based: The Federal Direct Subsidized Loan is based on financial need, as determined by the results of your FAFSA.

The loan is considered “subsidized” because the government pays the interest for you while you are enrolled in school at least half-time (6 credit hours each semester) and during periods of authorized deferment. This loan disburses in two equal amounts (once during the fall semester and once during the spring semester for fall/spring students).

Direct Unsubsidized Loan

Not Based on Financial Need: The Federal Direct Unsubsidized Loan is not based on financial need, and the government does not subsidize this loan.

As a result, you are responsible for all interest that accrues during school, grace periods, and deferment periods. You may choose to make interest payments while in school or capitalize the interest (add it to your loan principal) until repayment. This loan disburses in two equal amounts (once during the fall semester and once during the spring semester for fall/spring students).

Federal Direct Parent PLUS Loans (Parents Only)

Direct PLUS loans can help pay for education expenses not covered by other financial aid. The U.S. Department of Education makes Direct PLUS Loans to eligible parents through schools participating in the Direct Loan Program. (We also offer PLUS loans for graduate or professional students.)

A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent borrower.

Private Educational Loans/Alternative Loans

Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.

For more information on Direct Subsidized and Unsubsidized Loans, visit Subsidized and Unsubsidized Loans | Federal Student Aid

  • You must be a degree-seeking student who is admitted with full-standing to a degree-bound program at WSU Tech.
  • You must be enrolled at least half-time (6 credit hours as an undergraduate student or five credit hours as a graduate student).
  • You must be a U.S. citizen, permanent resident of the U.S., or permanent resident of an eligible trust territory.
  • You must not be in default on any student loans and must not owe a refund on any Title IV Program, such as a Pell Grant, FSEOG, Federal Perkins Loan, Federal Work Study, Federal Subsidized Direct Loan, Federal Unsubsidized Direct Loan, Federal PLUS Loan or Consolidation Loan.
  • You must be maintaining Satisfactory Academic Progress toward your degree. (Use current link: 3-13 SAP Formal Policy.pdf , until new SAP page is created).
  1. File a FAFSA online at studentaid.gov. Once your file is complete, the Financial Aid Office will send you a financial aid offer.
  2. To accept your student loans, log into your myWSUTech portal, under the “Financial Aid” dropbox, choose “Financial Aid Award”. For each loan type offered on your Financial Aid Offer, use the dropdown box to accept, reduce, or decline the loan funds. You should borrow only what you need.
  3. If you are accepting subsidized and/or unsubsidized student loans for the first time, complete your Loan Agreement (Master Promissory Note/MPN) and Loan Entrance Counseling at studentaid.gov.

WSU Tech does not endorse any specific loan lenders; however, you may contact the Financial Aid Office to get information about lenders that our students have used over the past 2 years.

You may also check with your local bank to see if they offer private education loans or do an online search for “private education loans” to compare interest rates and terms. We encourage you to be diligent in your search for the best loan for you.

You may select any lender of your choice but be advised that delays may occur as some lenders do not process with us electronically.

After you accept a Federal Direct Subsidized or Unsubsidized Loan as part of your financial aid, our office will continue the loan process by submitting the accepted Federal Direct Loan information to the Federal Common Origination and Disbursement (COD) system for origination.

However, for first-time borrowers, an entrance counseling session is required and a valid Loan Agreement (Master Promissory Note/MPN) for Direct Subsidized/Unsubsidized Loans must also be on file with the COD before our office can make any Federal Direct Loan disbursements to students.

After you have successfully completed your entrance counseling session and MPN, any future Federal Direct Loan offers that you accept will be linked to your original, completed MPN. This MPN is valid for up to 10 years from the date the first loan disbursement was made.

Complete Direct Loan Entrance Counseling
Sign my Loan Agreement (Master Promissory Note)

Loans for Parents

Federal Direct Parent PLUS Loans

Federal Direct Parent PLUS Loans are federal loans that parents of dependent undergraduate students can borrow to help pay for their student’s education expenses not covered by other financial aid.

A parent may borrow as little or as much as they may need for each dependent student enrolled in school (up to the cost of education minus financial aid/resources). The parent borrows the Direct Parent PLUS Loan in their own name (not the student’s name), and the parent is legally responsible for repaying the funds. A parent’s eligibility is based on a credit review.

If a parent borrower is unable to secure a PLUS loan, the dependent, undergraduate student will automatically be offered additional unsubsidized loan funds to help pay for his or her education.

The maximum additional funds that can be borrowed by freshman or sophomore students in addition to their current financial aid is up to $4,000 per academic year.

Apply for a Federal Direct Parent PLUS Loan

Overview

Alternative loans are available to students who are not eligible for financial aid or who need additional funds to meet educational expenses. Your eligibility is determined by the cost of attendance minus other financial aid/resources, and/or the annual loan maximum amount determined by your loan lender.

Because alternative loans are not guaranteed by the federal government, they must be insured privately. In most cases, this extra cost is passed to the borrower in the form of higher fees and interest rates. In addition, the lender will review your credit history, as well as other factors, to determine whether or not they will lend to you. You may be denied by one lender and approved by another because of the different ways they interpret your information.

Who Needs an Alternative Loan?

Alternative loans are not for everyone. They are expensive and should only be considered when all other resources (such as Federal Direct or Parent PLUS loans) have been exhausted.

For example, a freshman dependent student can borrow up to $5,500 under the Direct Loan Program. If this student is not eligible for grants or other aid and cannot make up the difference through working, there may not be funds available to cover tuition and fees, books, and housing or other educational expenses. If no other resources are available, this student may want to consider an alternative loan.

What Are the Eligibility Requirements for Alternative Loans?

  • What is the interest rate and what is it based on?
  • When do I need to begin repaying the loan?
  • Can principal and interest be deferred?
  • When is the interest capitalized?
  • How much is the loan origination fee?
  • What is the maximum amount I can borrow per year?
  • What is the minimum amount I can borrow per year?
  • Can I make payments on the web?
  • Can I consolidate the loan with other loans?
  • Can I borrow money to cover past-due balances from a previous semester?
  • Are there interest rate deductions or other incentives if I make my payments on time?

What Should You Ask Before Deciding on an Alternative Loan?
Requirements vary according to the lender. However, common requirements state that loan recipients must be:

  • Undergraduate students in a degree or certificate program
  • Enrolled at least part time
  • Creditworthy borrowers or borrowers with creditworthy cosigners
  • U.S. citizens, permanent residents, or eligible non-citizens
  • Making satisfactory academic progress

INTEREST RATES

TYPE OF LOAN INTEREST RATE* ORIGINATION FEE* INTEREST TYPE Accrues Interest During School/Grace Period
Direct Subsidized Loan Before 07/01/2025: 6.53%
On or After 07/01/2025 6.39%		 Before 10/01/2026: 1.057% Fixed No**
Direct Unsubsidized Loan (Undergraduate Students) Before 07/01/2025: 6.53%
On or After 07/01/2025 6.39%		 Before 10/01/2026: 1.057% Fixed Yes
Direct Unsubsidized Loan (Graduate Students) Before 07/01/2025: 8.08%
On or After 07/01/2025 7.94%		 Before 10/01/2026: 1.057% Fixed Yes

*Due to the Sequestration of Federal Student Aid Programs, interest rate and origination fees may be subject to change.

Limits for Direct Subsidized & Unsubsidized Loans

The federal government sets both annual and aggregate (total) limits on the amount of Federal Direct Subsidized/Unsubsidized Loans that you may borrow. Your eligibility may be less than the federal loan limits. Federal guidelines require that all financial assistance, including loan funds, cannot exceed the cost of attendance.

Undergraduate Students

Dependent students may not borrow more than $31,000 (unless a parent has been denied a Parent PLUS Loan) while earning their undergraduate degree(s). Independent students and dependent students whose parent has been denied a Parent PLUS Loan may not borrow more than $57,500. The annual amounts, according to grade level, are listed in the tables below.

Undergraduate Dependent Students (Whose Parents Have Not Been Denied a Parent PLUS Loan)

GRADE LEVEL Base Amount (maximum that may be subsidized) Additional Unsubsidized TOTAL
Freshman
(0-29 credit hours)

$3,500

$2,000

$5,500
Sophomore
(30-59 credit hours)

$4,500

$2,000

$6,500
Junior
(60-89 credit hours)

$5,500

$2,000

$7,500
Senior (and beyond)
(90+ credit hours)

$5,500

$2,000

$7,500
Maximum Aggregate Limit for Dependent Students

$23,000

$8,000

$31,000

Undergraduate Independent Students & Dependent Students Whose Parents Have Been Denied a Parent PLUS Loan

GRADE LEVEL Base Amount (maximum that may be subsidized) Additional Unsubsidized TOTAL
Freshman
(0-29 credit hours)

$3,500

$6,000

$9,500
Sophomore
(30-59 credit hours)

$4,500

$6,000

$10,500
Junior
(60-89 credit hours)

$5,500

$6,000

$12,500
Senior (and beyond)
(90+ credit hours)

$5,500

$6,000

$12,500
Maximum Aggregate Limit for Dependent Students

$23,000

$34,500

$57,500

STUDENT LOAN REPAYMENT

Repayment Plans

When it comes to repaying your student loans, you can select a repayment plan that is right for you and your financial situation.

For the repayment plan examples, we used the U.S. Department of Education’s Repayment Estimator. We encourage you to log in to the Loan Simulator using your FSA ID and receive more accurate estimates based on your actual loan amounts.

Click through the toggles to learn more about repayment plan options.

Fixed payment repayment plans include the Standard Repayment Plan, the Graduated Repayment Plan, and the Extended Repayment Plan. These plans determine your monthly payment amount based on your total loan balance, interest rates, and a set repayment period.

Standard Repayment Plan

With the standard repayment plan, you pay a fixed amount each month until your loans are paid in full for up to 10 years (up to 30 years for Consolidation Loans).

Monthly Payments:

  • Fixed monthly payment that ensures your loans are paid off within 10 years (up to 30 years for Consolidation Loans).

Eligibility Requirements

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • All PLUS Loans (Direct or FFEL)
  • All Consolidation Loans (Direct or FFEL)

Other Considerations

  • Your loans will automatically be placed on the Standard Repayment Plan unless you decide to choose and qualify for another repayment plan.
  • This plan works best for someone who has a steady monthly income and can afford the standard payment.
  • As this plan allows you to pay your loan in full within the 10-year period (up to 30 years for Consolidation Loans), payments may be higher than it would be for other plans because your loans would be paid in the shortest amount of time. For that reason, you may pay the least in overall interest.

Graduated Repayment Plan

With the graduated repayment plan, your payments start out lower and gradually increase every two years until your loans are paid in full for up to 10 years (up to 30 years for Consolidation Loans).

Monthly Payments:

  • Payments start low and increase, usually every two years.
  • Ensures your loans are repaid within 10 years (up to 30 years for Consolidation Loans)

Eligibility Requirements

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • All PLUS Loans (Direct or FFEL)
  • All Consolidation Loans (Direct or FFEL)

Other Considerations

  • This plan works well for borrowers with a low income who anticipate an increase over time.
  • Increases in payment every two years can be significant.
  • You may pay more interest over the life of the loan due to lower initial payments.

Extended Repayment Plan

With the Extended Repayment Plan, you must have more than $30,000 in outstanding Direct Loans.

Monthly Payments:

  • Payments can be fixed or graduated.
  • Ensures your loans are paid fully within 25 years.

Eligibility Requirements:

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • All PLUS Loans (Direct or FFEL)
  • All Consolidation Loans

Other Considerations

  • Your monthly payment will be lower than the Standard or Graduated Repayment.
  • You will pay more in interest over the life of the loan due to the longer repayment term.
  • This is not a qualifying repayment plan for Public Service Loan Forgiveness (PSLF).

Income-driven repayment (IDR) plans include Income-Based Repayment (IBR) Plan, Income-Contingent Repayment (ICR) Plan, Pay as You Earn (PAYE) Plan, Saving on a Valuable Education (SAVE) Plan.

IDR repayment plans base your monthly payment on your income and family size. You must certify your income and family size with your loan servicer annually and your servicer will calculate your monthly payment amount.

Income Based Repayment (IBR) Plan

With the Income-Based Repayment (IBR) plan, monthly payments are generally equal to 15% of your discretionary income (10% if you are a new borrower). The remaining balance after 25 years can be forgiven (but the forgiven amount will be taxable).

To initially qualify for this plan and to continue to make income-based payments under this plan, you must have a partial financial hardship, which means that your calculated payment amount under IBR must be less than what you would pay under the Standard Repayment Plan with a 10-year repayment period.

Monthly Payments:

  • Payments can be either 10% or 15% of your discretionary income but never more than what you would pay under the 10-year Standard Repayment Plan

Eligibility Requirements:

  • Direct Subsidized and Unsubsidized Loans
  • Subsidized and Unsubsidized Federal Stafford Loans
  • Direct or FFEL Consolidation Loans that do not include PLUS Loans (Direct or FFEL) made to parents.

Other Considerations:

  • Payments will be lower, but you will pay more in interest because you are taking longer to repay your loans.
  • Under the Healthcare and Education and Reconciliation Act of 2010, anyone who qualifies for IBR and has a new loan in 2012 but none older than 2008, their IBR payment amount will be based on 10% of your discretionary income rather than 15%.
  • You must reapply every year.

Income-Contingent Repayment (ICR) Plan

Income-Contingent Repayment Plans base the monthly payments on the borrower’s income and family size, as well as the total loan amount.

Monthly Payments:

  • Payment can be 20% of your discretionary income but never more than what you would pay on a fixed payment plan over 12 years, adjusted to your income.

Eligibility Requirements:

  • Direct Subsidized and Unsubsidized Loans
  • Direct Consolidation Loans (including loans that repaid parent PLUS Loans)

Other Considerations

  • Payments may be lower (or they could be higher than the Standard Plan amount), but you will often pay more in interest because you are taking longer to repay your loans.
  • This plan is designed to help borrowers with unmanageable payments relative to their income.

Pay As You Earn (PAYE) Plan

Pay as you Earn Plan is an income-driven repayment plan where monthly payments are based on a percentage of your discretionary income.

To initially qualify for this plan, you must be a new borrower on or after October 1, 2007, and must have received a direct loan disbursement on or after October 1, 2011.

Monthly Payments:

  • Can be 10% of your discretionary income but never more than what you would pay under the 10-year Standard Repayment Plan.

Eligibility Requirements:

  • Direct Subsidized and Unsubsidized Loans
  • Direct PLUS Loans made to students.
  • Direct Consolidation Loans that do not include PLUS (Direct or FFEL) made to parents.

Other Considerations:

  • Payments will be lower, but you will pay more in interest because you are taking longer to repay your loans.

Saving on a Valuable Education (SAVE) Plan

A federal court issued an injunction preventing the U.S. Department of Education from implementing parts of the Saving on a Valuable Education (SAVE) Plan and other IDR plans, including—for example—SAVE’s monthly payment formula and loan forgiveness under the SAVE, PAYE, and ICR Plans. Refer to StudentAid.gov/saveaction  for more information.

With the SAVE Plan, your payments are limited to 10% of your discretionary income. Payments are recalculated annually based on your income and family size. May be eligible for loan forgiveness after 20 years for undergraduate loans and 25 years for graduate loans.

Eligibility Requirements:

  • Direct Subsidized and Unsubsidized Loans
  • Direct PLUS Loans made to students Direct Consolidation Loans that do not include PLUS Loans (Direct or FFEL) made to parents.

Monthly Payments:

  • Limited to 10% of your discretionary income
  • Payment amount is recalculated annually.

Other Considerations

  • You will usually pay more over time than under the Standard Repayment Plan.
  • You may be responsible for paying income tax on loan forgiveness.

Public Service Forgiveness

This program will forgive any remaining student loan debt after 10 years of payments for people who work in qualifying public service positions. Qualifying positions may include military service, public safety, public education, social work, public defenders and more.

To be eligible you must have made 120 monthly payments on or after October 1, 22007,in the Direct Loan Program. You must also be employed in a public service job during the time the qualifying payments are made and at the time the loan is forgiven. For additional information, visit studentaid.gov.

Direct Loan Forgiveness for Teachers

This program is intended to encourage individuals to enter and continue working in the teaching profession. Individuals who teach full time for five consecutive, complete academic years in elementary or secondary schools serving low-income students and meet other qualifications may be eligible for up to $17,500 of forgiveness. For additional information, visit studentaid.gov.

Federal Employee Student Loan Program

The federal student loan repayment program permits federal agencies to repay federal student loans as a recruitment or retention incentive for candidates or current employees of the federal agency. For additional information, visit opm.gov/oca/pay/StudentLoan.

Rural Opportunity Zones

Rural Opportunity Zones are fifty counties that have been authorized to offer one or both of the following financial incentives to new full-time residents:

  1. Know who and how much you owe: You can find all of your outstanding federal loans by visiting studentaid.gov. The National Student Loan Data System (NSLDS) tracks your federal loans until they are paid in full. For information on private loans borrowed for educational purposes, you may obtain a free copy of your credit report at AnnualCreditReport.com
  2. You can change your repayment plan at any time by contacting your loan servicer.
  3. Notify your loan servicer if your name, address, or telephone number changes to ensure you receive timely communications.
  4. If you are in school at least part-time, unemployed, in the military or meet other eligibility criteria, you may be eligible to postpone your payments for a period of time by applying for a deferment.
  5. If you do not qualify for a deferment, you may be eligible to request a forbearance. Forbearance may temporarily lower or suspend your loan payments. Forbearance is allowed based on the discretion of your lender/loan servicer.

Direct loan consolidation allows borrowers to combine multiple federal student loans into one loan. This results in one single monthly payment with one loan holder. This option would often be best for borrowers who are looking for monthly payment relief and who would not qualify for the Income-Based Repayment Plan. For more information, to apply for consolidation, visit studentaid.gov/consolidation

Other Considerations:

  • The overall total cost of repayment could significantly increase.
  • You could lose borrower benefits offered under repayment plans for the original loans.

Student Loan Delinquency and Default | Federal Student Aid

Repayment Plan Examples

Standard Repayment Plan Example:
(Direct Loan at 5% interest rate)

LOAN AMOUNT MONTHLY PAYMENT MONTHS IN REPAYMENT TOTAL INTEREST PAID TOTAL AMOUNT PAID
$20,000 $212 120 months (10 years) $5,456 $25,456

Graduated Repayment Plan Example:
(Direct Loan at 5% interest rate)

LOAN AMOUNT MONTHLY PAYMENT MONTHS IN REPAYMENT TOTAL INTEREST PAID TOTAL AMOUNT PAID
$20,000

First Monthly Payment: $120

Last Monthly Payment: $360

 120 months (10 years)

$6,863

$26,863