Student Loans
Need Based Loans
William D. Ford Federal Direct Subsidized Loan Program
William D. Ford Federal Direct Loans (Direct Loans) are made directly to you by the United States government through the U.S. Department of Education. This program takes the place of student loans obtained from a private lender, such as a bank, yet most of the terms are the same. Direct loans are made to students who are admitted as degree seeking students attending school at least half time. The U.S. Department of Education is the lender; it delivers the loan money to you through the school.
A student qualifies for a Direct Loan based on financial need, as determined under federal regulations. Although the UWEC Financial Aid Office determines the amount you may borrow based on the results of your financial aid application, there are limits as to the annual amount you may borrow depending on your grade level as shown below:
Maximum Annual Loan Limits
First-Year Undergraduate Student $2625 per year ($3500 beginning fall 07)
Second-Year Undergraduate Student $3500 per year ($4500 beginning fall 07)
Third-Year and Above Undergraduate Student $5500 per year
The cumulative undergraduate limit is $23,000.
Graduate Student $8500 per year
The cumulative undergraduate and graduate limit is $138,500.
The Department of Education's Direct Loan Web Site provides an Interactive Budgeting Worksheet and Calculator that allows you to estimate your financial needs and create a budget for school and living expenses.
The interest rate on a Direct Loan is fixed at 6.8%. The federal government does not charge you interest while you're enrolled in school at least half time, during the six-month grace period, or during deferments. You begin repaying your loan six months after you graduate, leave school, or drop below half-time enrollment status. The actual length of the repayment period and monthly payment depends on the amount of the loan you owe, the interest rate, and the loan repayment option selected.
Although there is no interest on the Direct Loan while you are in school or during the six month grace period, there is a loan fee charged which is 1 1/2 percent of the amount you borrow. The loan fee is subtracted from the loan money before it is applied to your account.
Federal Perkins Loan
Federal Perkins Loans are low interest loans for both undergraduate and graduate students with exceptional financial need. Although this loan is made with government funds, UWEC is the lender. The Financial Aid Office determines your eligibility for a Perkins Loan based on when you apply, your level of need and the funds available. You can borrow up to:
Maximum Annual Loan Limits
$4000 per year as an undergraduate
The undergraduate cumulative limit is $20,000.
$6000 per year as a graduate
The undergraduate and graduate cumulative limit is $40,000.
The interest rate on a Perkins loan is fixed at 5%. You are not charged interest as long as you are enrolled on at least a half time basis. Once you graduate, leave school or drop below half-time status, you have a nine month grace period . At the end of your grace period, you must begin repaying your loan.
How to Apply For a Loan at UWEC
To apply for a Direct Loan or a Federal Perkins Loan, you must first complete the Free Application for Federal Student Aid.
Once UWEC has received the results of your application, we will send you an award letter which will inform you of your eligibility for a loan. You should complete the award letter either accepting your loan or, if you want to borrow a lesser amount, indicating the amount you want on the award letter. Return the award letter to the UWEC Financial Aid Office.
You will then be sent a Promissory Note which you must sign and return to the UWEC Business Office.
Your loan will be applied against your university charges. If there is loan money left over once your current semester bill is paid in full, you will be able to pick up a check for the difference at the Business Office.
