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
The University makes loans to you based upon your need at a low interest rate of 5% per year. Minimum payments of $40 per month must be paid back by you 10 months after you graduate or when you cease attending college at least on a half-time basis. The amount Wilberforce University can award each year is determined by the proceeds collected from previous borrowers. Interest and payments are deferred while you are enrolled in school on at least a half-time basis.
Federal Stafford Loan Program
(under the Federal Family Educational Loan Programs - FFEL) This loan, like all student loans, must be repaid whether or not you complete your program. Based on demonstrated financial need, you can borrow up to $2, 625 for your first year of attendance, $3,500 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 at low interest rates depending on when they first borrowed from the program. Applicable fees will be deducted from your loan before it is mailed to your school. These loans are made by lenders such as banks and credit unions.
Federal Stafford Unsubsidized Loan Program
(under the Federal Family Education Loan (FFEL) Program) If a dependent student does not qualify for the subsidy benefits to be paid by the federal Government (Subsidized), the dependent student may borrow from this program at the same loan limits as these of the Federal Subsidized Stafford Loans. Dependent students whose parents have been denied a Parent Loan for undergraduate students (PLUS) Loan may borrow from both the subsidized and unsubsidized Stafford Loans as long as the annual and aggregate limits for both programs are not exceeded. Independent and qualifying dependent freshmen and sophomores may borrow up to $4000 for a program of studies at least an academic year in length. The loan limit for independent and qualifying dependent student is $5000 per academic year.
The William D. Ford
Direct Stafford Subsidized, Direct Unsubsidized, Plus Loan
These have the same loan limits, interest rates and repayment and deferment conditions in most instances as the FFEL Loan Programs. These loans are made directly by the federal government based on the same eligibility requirements as the FFEL Loan Programs. Once a Direct Loans are made, they are managed and collected by the U.S. Department of Education's Direct Loan Service Center.
Federal Supplemental Loan For Students (FSLS)
Independent students in need of additional funds can borrow up to $4,000 per year at the freshman and sophomore level at variable interest rates not to exceed 10% annually and up to $5,000 annually if they are juniors or seniors. Minimum payments of $50 per month begin immediately.
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 effective financial aid awarded. Loans made copayable to your school and your parents have variable interest rates not to exceed 12% and a 4% origination fee. There are no deferment options for payments. Preapproval for a PLUS Loan.
Federal Consolodation Loan Program
Borrowers who have a minimum debt of at least $7,500 and who are not in a delinquent or default status on their payments may consolidate loans made in the above loan programs. The interest rate at which your loans are consolidated will be based on either 9% or the weighted average of current loans to be consolidated whichever is the greater of the two. The total amount of your outstanding loan will determine the amount and length of your repayments.
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