Washington and Lee University

Washington and Lee University

Loans

Low interest, deferred repayment education loans are a standard component of financial assistance packages.  Need must be established for these loans, but students may choose not to accept a loan or to borrow less than the amount offered.  

FEDERAL STAFFORD LOAN (SUBSIDIZED)

  • The student is the borrower.
  • Loan funding is provided by the United States Department of Education.
  • Eligibility is determined by the Financial Aid Office using federal eligibility guidelines.
  • Depending on need, graduate students may be eligibile to borrow up to $8,500
  • The interest rate is 6.8%.
  • While the student is enrolled half-time or more, interest is paid by the federal government.
  • Both entrance and exit loan counseling are required and are provided online.
  • A 1.5% origination fee will be deducted from the loan prior to disbursement.
  • Loans are disbursed to Washington and Lee twice during the period of the loan (usually coinciding with semester billings) by electronic funds transfer.
  • Loans are automatically reported to a national credit bureau, and the loan becomes a part of the student's credit history.
  • Monthly repayment commences six months following graduation or withdrawal from school and may not exceed ten years.  Deferment or cancellation of repayment may be available under certain conditions.
  • No prepayment penalties; however, penalties are assessed for delinquency or default.
  • Separate application is required to obtain a Stafford Loan.  The Financial Aid Office will provide instructions on completing this application process.

FEDERAL STAFFORD LOAN (UNSUBSIDIZED)

Terms are the same as for the Stafford Loan (Subsidized) with the following exceptions:

  • Eligible student borrowers either may not qualify for the Subsidized Stafford Loan or may not qualify for the maximum Subsidized Stafford Loan
  • Interest is not paid by the government while the student is enrolled, and the accrued interest is added to the loan principal.
  • Depending on the determination of eligibility, students may borrow up to $20,500.  The combined annual loan limit of Subsidized and Unsubsidized Stafford Loan cannot exceed $20,500 for graduate students

FEDERAL GRADUATE PLUS LOAN

  • The student is the borrower.
  • Loan funding is provided by the United States Department of Education.
  • Students may borrow up to the cost of attendance minus other financial assistance received (e.g. loans, scholarships, work-study, etc.).  The amount of eligibility is determined by the Financial Aid Office using federal elgibility guidelines.
  • Qualification for the loan and the actual amount of loan approved is determined by the lender.  Credit based loan borrowers may be denied if they have adverse credit history.
  • The interest rate is 7.9%.
  • A 4% origination fee is deducted from loan principal prior to disbursement.
  • Loan proceeds are disbursed to Washington and Lee twice during the period of the loan (usually coinciding with semester billings) by electronic funds transfer.
  • Monthly repayment commences six months following graduation or withdrawal from school and may not exceed ten years.  Deferment or cancellation of repayment may be available under certain conditions.
  • No prepayment penalties; however, penalties are assessed for delinquency or default.
  • Consolidation with the Stafford Loans may be arranged to reduce monthly repayment and extend the repayment period beyond ten years.
  • Separate application is required to obtain a Grad PLUS Loan.  The Financial Aid Office will provide instructions on completing this application process.

FEDERAL PERKINS LOAN PROGRAM

  • The student is the borrower.
  • A separate application is not required.
  • Eligibility is determined by the Financial Aid Office according to University and federal guidelines.
  • Financing is provided through a combination of federal and Washington and Lee funds.
  • The interest rate is 5%, and the interest is paid by the federal government while the student is enrolled at least half-time or more.
  • Both entrance and exit loan counseling are required and provided by the Financial Aid Office.
  • Loan funds are disbursed twice annually to coincide with semester billings.  The student must sign the loan promisory note provided by the Financial Aid Office prior to the loan being credited to the tuition account.
  • Monthly repayment commences nine months following graduation or withdrawal from school and may not exceed ten years.  Deferment, postponement, or cancellation of repayment are available for certain conditions.
  • No repayment penalties; however, penalties are assessed for delinquency or default.
  • Consolidation with other federal education loans may be arranged to reduce monthly payments and extend the repayment period beyond ten years.

NON-FEDERAL EDUCATION LOANS

In addition to participation in the federal loan programs, some private lending institutions offer non-federal supplemental education loans.  They share these general characteristics:

  • Parent or student borrower must be creditworthy.
  • Lender may require student to apply with a co-signer.
  • Amount borrowed cannot exceed cost of attendance minus any other financial assistance.
  • Lender may add fees to the loan principle.
  • Interest rate is variable and adjusted quarterly (based on current prime rate or LIBOR).
  • Repayment usually begins within sixty days of disbursement.  Deferment of principal and interest while student is in school; deferred interest accrues and is added to principle (capitalization).
  • Non-federal education loans are not eligible for federal loan consolidation.
  • In cases where the loan application does not require school certification and the student is receiving other financial aid, the borrower should contact the Financial aid Office since adjustment to other aid may be required.

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