The Financial Assistance Office at WNC supports the Nevada Attorney General's Office with regards to college student loan conduct. Please read the WNC College Student Loan Code of Conduct for more information.

What are Loans?

Student loans are money that must be repaid. Loans are legal obligations. You are required to repay ALL Student Loans regardless if you didn't like the education you received, didn't get a job in your field of study or because you are having financial difficulty.

Before you take out a student loan, think about the amount of money you are borrowing and the amount of money you are going to repay over the years - - with interest!!!! Loans are legal obligations. Think about it!!!!

Be conservative. Only borrow what you absolutely need!!!!!

Types of Loans

• Federal Direct Stafford Loans (Subsidized and Unsubsidized)
  
  
  • Direct Subsidized Stafford Loan - This loan is need-based aid (need is determined by your FAFSA). The federal government pays the interest while you are enrolled in at least six (6) credit hours. Interest does not accrue during the grace period or any authorized deferment periods.
  
  
  • Direct Unsubsidized Stafford Loan - This loan is non-need based aid. Interest begins to accrue immediately from the date the loan is disbursed, like a credit card purchase. You are responsible for the interest that accrues on the loan. Students are encouraged to pay the interest while in college.
    
    If you do not pay the interest that is accruing on the Unsubsidized loan while you are in college and when the Unsubsidized loan goes into repayment, your lender will take the principle that you borrowed, all the interest that was not paid, add them together and then determine what your payment will be with interest!!! You will be interested on your interest!!!!
  
  
  • Direct Parent Loan for Student (PLUS) - This loan is a low-interest student loan for the parents of dependant students and for graduate/professional degree students. Unlike Subsidized and Unsubsidized loans, this type of loan requires the borrower to pass a credit check. Interest begins to accrue from the date the loan is disbursed, just like a credit card purchase!!
    
    Parents can apply online at: www.studentloans.gov. You must also turn in a Federal PLUS loan Request form found at: here

How Much Can I Borrow Each Academic Year?

Annual (Yearly) loan limits are regulated by the government and are as follows:

Class Standing	Credits Earned	Base Eligibility	Additional Unsubsidized Eligibility
Freshman	0-29 credits	$3,500	$6,000 ($2,000 Dependent Students)
Sophomore	30 or more credits	$4,500	$6,000 ($2,000 Dependent Students)
Junior/Senior *	60 or more credits	$5,500	$7,000 ($2,000 Dependent Students)

* Funding only applies to students in the Bachelor of Technology program.

What is an Academic Year?

A typical academic year is the Fall and Spring semesters. You can use your loan to help pay for the Summer semester, however, if you have borrowed all you are eligible for between the Fall and Spring semesters, you will not have any money left to borrow in the summer.

How Much Can I Borrow for a Lifetime?

Aggregate (lifetime) loan amounts are set by the federal government. Undergraduate levels are as follows:

Dependent Students	$31,000 (of which no more than $23,000 can be subsidized)
Independent Students	$57,500 (of which no more than $23,000 can be subsidized)

The aggregate amounts are Lifetime limits from earning an Associates and/or Baccalaureate (Bachelor) degree.

Be careful when Borrowing Loans!!!!! This is all you have to work with!!!!

Interest Costs and Loan Fees

Interest Rates

Subsidized loan (when you go into repayment)

On or after July 1, 2011 and before July 1, 2012	3.4%
On or after July 1, 2012	6.8%

The Unsubsidized loan is 6.8% (accruing immediately once loan is disbursed).

The PLUS is fixed at 7.9% (accruing immediately once loan is disbursed).

Fees

Fees for the Subsidized and Unsubsidized (taken out immediately of each disbursement)

2011-2012 adacemic year

.5% (1% minus .5% rebate)

Fees for the PLUS (taken out immediately of each disbursement)

2011-2012 adacemic year

2.5% (4% minus 1.5% rebate)

Loan fees and Interest rates change EVERY fiscal year (July 1 - June 30).

THERE IS NO PENALTY FOR PAYING YOUR FEDERAL DIRECT STAFFORD LOAN(S) EARLY!!!

Steps to Apply for a Federal Direct Stafford Loan

• 1. Complete and submit the Free Application for Federal Student Aid (FAFSA).
• 2. Complete your WNC financial aid file.
• 3. Accept your Stafford Loan on your MyWNC.
• 4. Complete a Master Promissory Note (MPN) at www.studentloans.gov. Sign in with your federal PIN and choose Complete MPN from the menu on the left side of the page.
• 5. Complete the Entrance counseling at: www.studentloans.gov. Sign in with your federal PIN and choose Complete Entrance Counseling from the menu on the left side of the page. MUST COMPLETE EVERY YEAR.
• 6. Must complete the Exit counseling at: www.studentloans.gov in the last semester you are in attendance at WNC.
• 7. Loan Orientation is no longer required!!!!

FOR MORE INFORMATION ON DIRECT FEDERAL STAFFORD LOANS GO TO: http://www.direct.ed.gov/student.html

Awarded Loan Amounts

The loan amount is determined by several factors including number of credits enrolled in, dependency status, grade level in school and other aid awarded. WNC will award the MAXIMUM amount you are eligible for (see annual loan limits). If you decline all or some of your student loan award and later find you need additional money, you must complete the Federal Stafford Loan Request Form and submit it to the financial assistance office.

Loan Disbursements

Federal regulations require loans to be disbursed in two equal payments. One in the Fall semester and one in the Spring semester. The first disbursement begins 10 days prior to the first day of class.

IF you are a First Time Freshman AND First Time Borrower (that means the borrower has never attended college or does not have transfer credits AND has never borrowed a loan). You will have a 30 day delay on your first disbursement.

Loans for one semester will still have the two disbursements, one 10 days prior to the start of the semester and the second disbursement midway through the semester.

Exit Counseling

The federal government requires that student borrowers complete the Exit counseling in their final semester of school. This can be completed at: www.studentloans.gov.

National Student Loan Data System

• This is a National data bank that houses every federal stafford loan ever borrowed. You can:
  • Track your loans from disbursement to payoff
  • Track your total student loan indebtedness
  • Track your loan status & interest rate
  • www.nslds.ed.gov

Loan Default - Consequences of Default!!!!

• Full amount of loan is due Including collection costs and all interest that has accrued
• You are subject to federal & state offsets
• Wages and tax refund may be garnished
• Credit will be tarnished
• Will Lose deferment & forbearance options
• Will Lose eligibility for future financial aid
• May lose eligibility for certain federal or state jobs
• May lose professional license

Private Education Loan

There are several lenders that provide education loans. All private education loans are credit based.

• Available through private lending institutions.
• Loans are credit based.

It is in the best interest of the borrower to review each lender's interest rates and types to ensure the borrower chooses the best one for his or her needs.