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.
Loans – Definition
Student loans are money that must be repaid. Loans are legal obligations. Students are required to repay ALL student loans regardless of whether they didn’t like the education received, ability to get a job in a preferred field of study, or financial difficulty.
Before taking out a student loan, it is wise to think about the amount of money being borrowed and the amount of money to be repaid over the years, with interest. Loans are legal obligations.
Be conservative. Only borrow what is absolutely needed.
Types of Loans
- Federal Direct Stafford Loans (Subsidized and Unsubsidized)
- Direct Subsidized Stafford Loan – This loan is need-based aid (need is determined by FAFSA). Eligibility is determined based on credits taken, degree program declared, and past borrowing. Interest is subsidized while in school attending at least half time (six units).
- 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. The borrower is responsible for the interest that accrues on the loan. Students are encouraged to pay the interest while in college.If the borrower does not pay the interest that is accruing on the Unsubsidized loan while in college and when the Unsubsidized loan goes into repayment, the lender will take the principle borrowed, all the interest that was not paid, add them together and then determine what the payment will be with interest!
- Direct Parent Loan for Student (PLUS) – This loan is a low-interest student loan for the parents of dependent 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. A WNC Federal PLUS Loan Request form can be found here. Parents must complete this WNC PLUS request form every year.
How Much Can I Borrow Each Academic Year?
Annual (Yearly) loan limits are regulated by the government and are as follows:
|Additional Unsubsidized Eligibility|
|Freshman||0-29 credits||$3,500||$6,000 ($2,000 Dependent Students)|
|Sophomore||30 – 59 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
On or after July 1, 2017 and before July 1, 2018
The Subsidized loan is 4.45% (when you go into repayment).
The Unsubsidized loan is 4.45% (accruing immediately once loan is disbursed).
The PLUS is fixed at 7% (accruing immediately once loan is disbursed).
On or after July 1, 2018 and before July 1, 2019
The Subsidized loan is 5.045% (when you go into repayment).
The Unsubsidized loan is 5.045% (accruing immediately once loan is disbursed).
The PLUS is fixed at 7.595% (accruing immediately once loan is disbursed).
THERE IS NO PENALTY FOR PAYING YOUR FEDERAL DIRECT STAFFORD LOAN(S) EARLY!!!
Steps to Apply for a Federal Direct Stafford Loan
- Complete and submit the Free Application for Federal Student Aid (FAFSA).
- Complete your WNC financial aid file.
- 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.
- 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. ENCOURAGED TO COMPLETE EVERY YEAR.
- Log on to the National Student Loan Data System (NSLDS) at https://nslds.ed.gov/nslds/nslds_SA/ and print a summary report of your financial aid history. You must attach your financial aid history summary to your Loan Request Form. If this is the first time you have requested financial aid, you must attach a printout of the NSLDS web page proving you have accessed your NSLDS account.
- Complete and submit the Student Loan Request Form.
- Must complete the Exit counseling at: https://nslds.ed.gov/nslds/nslds_SA/ in the last semester you are in attendance at WNC.
- If you decide to cancel your loan(s), you need to submit to the Financial Assistance office a completed Loan Revision Request form and/or return the loan funds to your lender. To avoid penalty, you must cancel your loans as soon as possible or no later than 14 days after disbursement of funds.
FOR MORE INFORMATION ON DIRECT FEDERAL STAFFORD LOANS GO TO:https://studentaid.ed.gov/sa/
Federal regulations require loans to be disbursed in two equal payments. One in the Fall semester and one in the Spring semester. Beginning with the Spring 2019 semester, Federal Student Loans will begin disbursing after the Financial Assistance Census Date.
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 after the Financial Assistance Census Date and the second disbursement midway through the semester.
If you are enrolled in all online classes, the financial assistance office could verify participation and attendance, prior to disbursing financial aid funds.
The federal government requires that student borrowers complete Exit Counseling. Exit Counseling is required before you withdraw, graduate or drop below half-time attendance (even if you plan to transfer to another school). This can be completed at: https://nslds.ed.gov/nslds/nslds_SA/.
National Student Loan Data System (NSLDS)
- 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
- As part of receiving a Direct Stafford Loan, loan disbursement information is reported to the National Student Loan Database (NSLDS) and is accessible to view by authorized agencies, lenders, and other institutions.
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.