Types of Loans
- Subsidized Stafford Loans is "need based." The federal government pays the interest to the lender as long as you are enrolled at least half time and during the "grace period" and authorized periods of deferment. Interest will begin to accrue when you enter repayment.
- Unsubsidized Stafford Loans has no interest subsidy. The loan principal can be deferred, but you must pay the interest monthly or quarterly while enrolled or choose to defer the interest and have the interest added to the loan principal. This is known as "interest capitalization."
- PLUS Loans are loans that parents may be eligible for to help cover the educational cost of their dependent student. There is no interest subsidy on these loans. The parent does generally have to pass a credit check to receive this loan. The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid the student will receive.
Other Important Information
- The Stafford Loan interest rate is currently fixed at 6.8 percent. The federal PLUS Loan is fixed at 8.5 percent.
- An origination fee of up to two percent and a default fee of up to one percent may be deducted by the lender out of the loan proceeds.
- Repayment begins six months after graduation, withdrawal from college, or enrollment at less than half-time.
- All loans are disbursed in two equal installments, usually one in the fall and one in the spring.
- First time borrowers at WNC are required to complete entrance counseling before the loan can be released. All students are required to complete online exit counseling before the second half of their disbursement will be processed.
- If you are a first year, first time borrower, there is a 30-day hold on the disbursement of your loan funds. The 30-day count begins on the first day of the semester.
- If you decide to borrow for one semester only, the loan must be disbursed in two equal installments with the second installment coming at the midpoint of the semester.
- It is the student's responsibility to read and to know the Satisfactory Academic Progress policy.
Remember, only borrow what you need!
Loan Default
Implications of loan default: If you don't pay back the loan as you agreed to do in your promissory note, you may be in default. A defaulted loan is serious. This can severely impact your credit status. If you default on any federal student loan, the federal government may take some serious actions against you. You might:
- lose wages and tax refunds
- be sued
- lose eligibility for other student aid
- be unable to get loans from any other source for purchases like a home or car
- lose federal job opportunities
- have your car and other property repossessed and sold to pay your loan debt
- have your defaulted loan reported to the credit bureau
The Application Process
The Stafford Loan process at WNC begins after a student completes the Free Application for Federal Student Aid and has received a Student Aid Report from the FAFSA Processing Center. To process the estimated loan offered the student needs to complete all five steps:
STEP 1: Complete the Free Application for Federal Student Aid (FAFSA) form
All WNC Students must apply for Federal Financial Aid if they would like to receive a Stafford Loan or if their parent(s) would like to apply for a Parent Loan for their undergraduate student (PLUS Loan). If you are chosen for verification you will also need to supply the Financial Assistance Office with additional documentation to become complete. The FAFSA form is available at www.fafsa.ed.gov.
STEP 2: Loan Orientation Workshop and Loan Request Form
All WNC Stafford Loan borrowers are required to attend a Loan Orientation Session prior to their loan being certified. You will need to submit the completed Loan Request Form (PDF) at this session, (so make sure to complete it prior to your session). Parents of dependent students do not need to attend a loan orientation, but they must complete and turn in a PLUS loan request form to the Financial Assistance office.
- Carson Campus - Sessions are held on the first Wednesday of each month at 3:30 p.m.
- Fallon Campus - Sessions are held on the last Wednesday of each month at 3:30 p.m.
Please make sure to sign up for one of these sessions with the Financial Assistance Office by calling 775-445-3264 or the Fallon campus at 775-423-7565 x2221. If our scheduled sessions conflict with your schedule, please call us for an appointment.
STEP 3: On-line Loan Counseling
Click on the link below to begin your required online loan counseling. All Federal Stafford Loan borrowers at Western Nevada College must complete the required ENTRANCE Loan Counseling prior to the first loan disbursement.
In addition, students must complete the required EXIT Loan Counseling prior to the second loan disbursement. Our office will be notified upon your completion. Please click link below.
STEP 4: Select a Lender & Complete the Master Promissory Note
The following website has a list of lenders for the Federal Stafford and PLUS Loan programs. These lenders have been selected on the basis of their savings benefits and/or superior customer service for borrowers. Some savings benefits may occur up front when you first borrow your loan. These benefits are in the form of waived origination and/or default fees. Other benefits take place when it is time to repay your loan. Repayment benefits may include reductions to the interest rate or principal balance as payments are made on time. Please review each benefit carefully before choosing your lender. In addition to using the savings calculator, visit each lender's website for more specific details. If the lender you prefer is not on the list, please contact WNC Financial Assistance. Your lender options are not limited to this list.
http://www.simpletuition.com/wnc/home
