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).
- File a FAFSA online at studentaid.gov. Once your file is complete, the Financial Aid Office will send you a financial aid offer.
- 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.
- 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.
Private Educational Loans/Alternative Loans
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.
Consider Other Financial Aid First
Before applying for a private education loan, students should explore other ways to pay for college:
- Scholarships and grants – These generally do not have to be repaid.
- Federal financial aid – Complete the FAFSA to determine your eligibility for federal grants, work-study, and federal student loans.
- Payment plans and other resources – Consider available school payment options and personal resources.
- Private education loans – Consider a private loan if you still have a gap between your financial aid and your education costs.
- Private loans should generally be considered after other financial aid options have been explored.
Before You Borrow
A private education loan is a financial commitment that you will have to repay – with interest. Before borrowing, consider:
- How much you actually need to borrow. Check to see what the maximum and minimum amounts are that you can borrow per year.
- The interest rate and whether it is fixed or variable.
- When repayment begins.
- How long you will have to repay the loan.
- Whether you will need a cosigner.
- Whether the lender offers cosigner release.
- Whether there are interest rate deductions or other incentives if you make your payments on time
- Whether the loan has fees or the interest is capitalized.
- Whether the lender offers deferment or forbearance options and whether it is possible to consolidate the loan with other loans.
- If needed, whether you can borrow money to cover past-due balances from a previous semester?
- How much your estimated monthly payment will be and how the payment will fit into your expected income after graduation.
- Keep in mind that a lower monthly payment may result in paying more interest over the life of the loan if the repayment period is longer.
What are the Eligibility Requirements for Alternative Loans?
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
Do I Have to Choose a Lender on WSU Tech’s Preferred Lender List?
No.
WSU Tech provides a preferred lender list as a resource to help students and families research private education loan options. The lenders on the list have been selected through a review process conducted by WSU Tech.
You are not required to borrow from a lender on our preferred lender list. You may choose any lender that offers a private education loan to WSU Tech students.
If you choose a lender that is not on our preferred lender list, WSU Tech will process the loan as long as the lender participates in the required private education loan certification and disbursement process.
We encourage you to compare lenders and carefully review the terms and conditions of any private education loan before choosing a lender.
WSU Tech Preferred Private Education Lenders
WSU Tech’s 2026–27 preferred lender list includes:
- Sallie Mae
- Skyward Credit Union – Student Choice
- KHEAA – Advantage Education Loan / Advantage Parent Loan
The lenders offer different loan products, eligibility requirements, interest rates, and repayment options. There is no single “best” lender for every student. Compare the options below and choose the loan that best fits your circumstances.
Important: Interest rates, terms, eligibility requirements, and benefits may change. The information below reflects information provided by the lenders in response to WSU Tech’s 2026–27 Request for Information. Review the lender’s current disclosures and loan agreement before borrowing.
Sallie Mae
Loan Products
Sallie Mae offers private education loans for a variety of students and families, including:
- Undergraduate students
- Technical/trade students
- Certificate students
- Continuing education students
- Graduate students
- Parents, family members, and other creditworthy individuals helping a student pay for education
Sallie Mae’s Undergraduate Loan is available to undergraduate, technical/trade, continuing education, and certificate students. Its Parent Loan is available to parents, family members, and other creditworthy individuals who want to help a student pay for education.
Interest Rates
Sallie Mae offers both fixed and variable interest rates.
For the rates provided to WSU Tech in July 2026:
Undergraduate Loan
- Variable APRs: 3.62%–16.83%
- Fixed APRs: 2.19%–17.49%
Parent Loan
- Variable APRs: 4.62%–14.87%
- Fixed APRs: 4.89%–15.49%
Variable rates can change over the life of the loan.
Key Features
- No origination fees.
- No prepayment penalty.
- Minimum loan amount of $1,000.
- Undergraduate students may choose interest repayment, fixed $25 monthly payments, or deferred repayment while in school.
- Undergraduate loans generally have a six-month grace period.
- Parent Loans do not have a grace period.
- Undergraduate repayment terms generally range from 10–15 years.
- Parent Loan repayment terms generally range from 5–20 years.
- 0.25 percentage point interest-rate reduction with qualifying automatic payments.
- Cosigner release may be available for eligible Undergraduate Loan borrowers.
- Parent Loans do not offer cosigner release.
- Student death and total/permanent disability protections may be available.
- Monthly FICO Scores are available to borrowers and cosigners at no cost.
Who May Need a Cosigner?
A cosigner is not necessarily required. A cosigner may be required if the applicant does not qualify on their own, is under the age of majority, or does not meet applicable citizenship requirements.
Apply for Sallie Mae Private Education Loan
Student Choice
Loan Product
Skyward Credit Union offers the Student Choice private education loan for undergraduate students. The lender also offers a separate private-loan refinance/consolidation product.
Skyward has been in the student loan business for 11 years and describes its education loans as a way to help fill the funding gap after scholarships, grants, and federal loans have been exhausted.
A Local Credit Union Option
One potential benefit of choosing Skyward’s Student Choice loan is the opportunity to work with a credit union and have access to in-person banking support.
Students may apply without already being a credit union member; however, membership is required before the loan can be funded.
Interest Rates
For undergraduate Student Choice loans:
- Fixed rates: 4.24%–8.25%
- Variable rates: 4.49%–8.50%
Rates are subject to the lender’s current pricing and the borrower’s credit qualifications.
Eligibility
Students generally must:
- Be eligible for credit union membership.
- Attend an approved college or university.
- Be enrolled at least half-time, except during the summer term.
- Be continually enrolled in a degree-granting program.
- Meet the school’s Satisfactory Academic Progress requirements.
- Be a U.S. citizen or permanent resident.
- Meet the credit union’s underwriting requirements.
A co-borrower may be necessary and may help the borrower qualify for a lower rate.
Skyward does not allow less-than-half-time students or non-degree students to apply for the Student Choice loan.
Key Features
- No origination fee.
- Minimum loan amount: $1,000.
- Maximum loan amount: $50,000 per program; up to $75,000 for undergraduate and graduate programs with a co-borrower.
- Six-month grace period for undergraduate and graduate loans.
- Fixed-rate repayment term: 10 years.
- In-school options include full deferment, interest-only payments, or principal and interest payments.
- 0.25 percentage point interest-rate reduction with automatic payments.
- Economic hardship forbearance may be available for up to 12 months, in six-month increments.
- Other forbearance options may be available, including in-school and military forbearance.
Important Consideration
Skyward currently does not offer a loan forgiveness program in the event of a student’s death or disability. Borrowers or co-borrowers experiencing extenuating circumstances are encouraged to contact Skyward to discuss their situation.
Apply for Student Choice Private Education Loan
The Advantage Education Loan is offered through the Kentucky Higher Education Student Loan Corporation (KHESLC), a nonprofit education lender. KHESLC describes its Advantage programs as financing options designed to supplement, rather than replace, federal financial aid.
Loan Products
The Advantage portfolio includes:
- Advantage Education Loan – student borrower
- Advantage Parent Loan – parent/eligible adult borrower
- Advantage Grad Loan
- Advantage Medical Loan
For WSU Tech students, the primary products to highlight are the Advantage Education Loan and Advantage Parent Loan.
Interest Rates
For the Advantage Education Loan and Advantage Parent Loan:
- Fixed interest rates: 3.18%–11.49%
- 0.25 percentage point interest-rate reduction with automatic payments
Rates are subject to the lender’s current pricing and the borrower’s credit qualifications.
Eligibility
The Advantage Education Loan requires the student to:
- Be enrolled at an eligible school.
- Be at least the age of majority in the student’s state of permanent residence.
- Be a U.S. citizen or meet the lender’s residency requirements.
- Have acceptable income and credit history or an approved cosigner.
- Meet the lender’s credit requirements.
The Advantage Parent Loan is available to a parent or stepparent of an eligible student who meets the lender’s eligibility and credit requirements.
Credit Requirements
For the Advantage Education and Parent Loans, the RFI response lists:
- Minimum FICO score: 660
- Minimum income: $2,000 per month
- Maximum debt-to-income ratio: 45%
An approved cosigner may be used when applicable.
Key Features
- Minimum loan amount: $1,000.
- Annual borrowing may not exceed the school’s certified cost of attendance minus other financial aid.
- No origination fee.
- No prepayment penalty.
- No insufficient-funds fee.
- No default fee.
- No late fee.
- Six-month grace period.
- Ten-year repayment term.
- Repayment options include immediate principal and interest, interest-only, or deferred repayment.
- 0.25 percentage point interest-rate reduction with automatic payments.
- Cosigner release may be requested after 12 months of payments.
· Death and permanent disability benefits may release the borrower and cosigner, if applicable, from the remaining debt.
· Satisfactory Academic Progress is not required for the Advantage Education/Parent Loan.
· A prior balance may be covered if it falls within the lender’s stated eligibility period.
Servicing
The Advantage loans are serviced by ARC Servicing. The lender states that its loans are not sold and that servicing remains with the organization.
Apply for Advantage Private Education Loans
| Feature | Sallie Mae | Skyward Credit Union – Student Choice | KHEAA – Advantage |
|---|---|---|---|
| Student Loan Product | Sallie Mae Undergraduate Loan | Student Choice | Advantage Education Loan |
| Parent Loan | Yes – Parent Loan | No | Yes – Advantage Parent Loan |
| Fixed Rates | 2.19%–17.49% APR for Undergraduate; 4.89%–15.49% APR for Parent |
4.24%–8.25% | 3.18%–11.49% |
| Variable Rates | 3.62%–16.83% APR for Undergraduate; 4.62%–14.87% APR for Parent |
4.49%–8.50% Undergraduate | Not listed for Advantage Education/Parent Loan |
| Minimum Loan | $1,000 | $1,000 | $1,000 |
| Origination Fee | None | None | None |
| Prepayment Penalty | None | Not reported | None |
| Cosigner | May be required depending on credit/eligibility | May be required | May be required |
| Cosigner Release | Available for eligible Undergraduate Loan borrowers; not available for Parent Loan | None | Request may be made after 12 months of payments |
| Grace Period | 6 months for Undergraduate; none for Parent | 6 months | 6 months |
| In-School Repayment Options | Interest payments, $25 fixed payments, or deferred repayment for Undergraduate | Full deferment, interest-only, or principal & interest | Immediate principal & interest, interest-only, or deferred |
| Repayment Term | Generally 10–15 years Undergraduate; 5–20 years Parent | 10 years fixed-rate option | 10 years |
| Autopay Discount | 0.25% | 0.25% | 0.25% |
| Satisfactory Academic Progress Required? | No | Yes | No |
| Less Than Half-Time Students | Yes, if certified by WSU Tech | No | See lender eligibility requirements |
| Non-Degree Students | Yes, including qualifying trade/certificate students | No | See lender eligibility requirements |
| Death/Disability Benefit | May be available | No forgiveness program currently offered | Yes, subject to lender requirements |
| Prior Balance | May cover eligible prior enrollment costs up to 365 days | No | May cover an eligible prior balance within 180 days of the loan period and subsequent enrollment |
| Unique Consideration | Wide range of student and parent loan options; online tools and resources | Credit union option with local/in-person banking relationship | Nonprofit education lender; loans are not sold |
What Should I Compare?
When comparing private education loans, pay particular attention to:
Interest rate: A lower interest rate can reduce the total cost of borrowing. If comparing variable-rate loans, remember that the rate can change.
Repayment period: A longer repayment period may lower your monthly payment but can increase the total amount of interest you pay.
Cosigner requirements: If you need a cosigner, understand that the cosigner is responsible for the loan if you do not repay it. Ask whether cosigner release is available and what requirements must be met.
In-school payments: Some loans allow you to defer payments while you are in school, while others offer interest-only or reduced payments. Making payments while in school may reduce the amount of interest that accumulates.
Borrower protections: Compare deferment, forbearance, death/disability provisions, and other borrower benefits.
Fees: Look for origination fees, late fees, prepayment penalties, and other charges.
Eligibility: Make sure you meet the lender’s enrollment, citizenship/residency, credit, and other eligibility requirements.
A Note About Your Choice of Lender
WSU Tech’s preferred lender list is provided as a resource for students and families. WSU Tech does not require students to select a lender from this list and does not endorse one lender over another.
Students have the right to select a private education loan lender of their choice. If you choose a lender that is not included on WSU Tech’s preferred lender list, we will work with that lender as long as it meets applicable requirements for processing private education loans.
We encourage students and families to research multiple lenders and compare the terms of each loan before making a borrowing decision.
Borrow responsibly. Compare the total cost of the loan—not just the monthly payment.
Questions?
If you have questions about how a private education loan may fit into your financial aid package, contact the WSU Tech Financial Aid Office.
Please note: WSU Tech Financial Aid staff can explain how private education loans work and answer questions about the school’s loan certification process. For questions about interest rates, eligibility, repayment terms, or other lender-specific requirements, contact the lender directly.
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.
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 |
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