There are various types of loan programs available to students attending Wilberforce University. Unlike grants and scholarships, loans must be repaid and are an obligation that must be taken seriously. It is important to know what type of loan you have borrowed, who your lender is and how much you have borrowed. Outlined below are the various loan programs and their stipulations. Remember that all loans except the PLUS Loan are borrowed in the student's name and it is the student's responsibility to know the rights and responsibilities regarding his/her loans. Not repaying your loan can seriously damage your future. Defaulted loans not only endanger the future of financial aid at Wilberforce University, but can also seriously impede the student's future by damaging the student's credit rating and prohibiting the receipt of future financial aid. Student loans are a valuable asset and should pose no problem as long as the student borrows sensibly and knows the terms of his/her loan.
Federal Perkins Loan Program
Federal Perkins Loans administered through the University and awarded to students that demonstrate financial need. Perkins Loans carry a fixed interest rate of 5% for the duration of the ten-year repayment period. The Perkins Loan Program has a nine-month grace period, so that borrowers begin repayment in the tenth month upon graduating, falling below half-time status, or withdrawing the university. Because the Perkins Loan is subsidized by the government, interest does not begin to accrue until the borrower begins to repay the loan. The loan limits for undergraduates are $4,000 per year with a lifetime maximum loan of $20,000. For graduate students, the limit is $6,000 per year with a lifetime limit of $40,000 (including undergraduate loans). Perkins Loan Funding at Wilberforce is limited. Annual awards range from $500-$3000.
Federal Stafford Subsidized Loan Program
Federal Family Educational Loan Programs - FFELP) These loan, like all student loans, must be repaid. Subsidized Stafford loans are based on demonstrated financial need. The interest and payments on subsidized Stafford loans are deferred while student are enrolled. Repayment begins 6 months after a student ceases to be enrolled on at least a half-time basis. Students can borrow up to $3, 500 for their first year of attendance, $4,500 for your second year, and $5,500 in your junior and senior year. Students can borrow an aggregate of $23,000 for their undergraduate study. Graduate students may borrow up to $8500 in subsidized Stafford loans per academic year.
Federal Stafford Unsubsidized Loan Program
Federal Family Education Loan Program (FFELP) Unsubsidized Stafford loans are non -need based loans. Interest on unsubsidized Stafford loans accrues while student are enrolled. Repayment begins 6 months after a student ceases to be enrolled on at least a half-time basis. If a dependent student does not qualify for subsidized Stafford loans, the dependent student may borrow from this program at the same loan limits as the Federal Subsidized Stafford Loans. Additionally, Dependent students may borrow up to $2000 in unsubsidized loans for undergraduate study. Independent and qualified Dependent freshmen and sophomores students may borrow up to $6000 per academic year. The undergraduate loan limit for independent and qualifying dependent students in their third year and beyond is $7000 per academic year. The unsubsidized loan limits for Graduate students is $12,000 per academic year.
Federal Parent Loan For Undergraduate Students (FPLUS)
Parents of dependent children who do not have adverse credit histories can borrow up to the difference of their children's cost of attendance and financial aid awarded. Loans are made co-payable to your school and your parents and have variable interest rates not to exceed 12%. There may be deferment options available to parents depending on their lender. Approval for a Federal PLUS Loan is required.
Alternative (Private) Loan
Alternative loans are private loans offered through banks and organizations. Private student loans are for students (at the age of majority), parents of students, other guardians or credit-worthy related co-signers or "co-makers". While many alternative student loan programs require strict, non-negative credit and evidence of repayment capacity, individuals can sometimes borrow from $2,000 up to $15,000 and more per academic year based on cost of attendance minus other financial aid. Rates, repayment plans, and borrowing limits vary for each organization or bank.