General Information
Subsidized Loans
Unsubsidized Loans
Annual Loan Limits
Repayment
Interest Rate
Origination Fees

General Information

General Information

CWU is a William D. Ford Direct Lending Institution. This means that you will be offered federally guaranteed student loans through the Financial Aid Office. Direct Loans are funded by the U.S. Treasury. Direct Loan Programs include the Federal Direct Subsidized Student Loan, Federal Direct Unsubsidized Student Loan, Parent Loan for Undergraduate Students (PLUS), and PLUS Loans for Graduate Students.
All first-time Direct Loan student borrowers must:

1. Complete Loan Entrance Counseling Sign an electronic Master Promissory Note (MPN) before funds can be disbursed to the student’s account. The Master Promissory Note is valid for multiple disbursements over a ten-year period. In most cases, you will be required to sign only one note during your college career.

Subsidized Loans

The subsidized loan is awarded up to the lesser of your calculated Financial Need or annual loan limit.  Subsidized loans do not accrue interest while you are in school, during your 6-month grace period, or during deferment.  See chart on the next page for interest rate in repayment. 

Unsubsidized Loans

Every undergraduate is eligible for at least $2,000 of unsubsidized loans, you may be offered an unsubsidized loan up to the lesser of your maximum loan eligibility or Cost of Attendance. These loans charge interest while you are in school. Each quarter you will receive a notice from the Direct Loan Servicer informing you of the interest you have been charged. We recommend that you pay it each quarter; however, you may let it accrue until you enter repayment.

Annual Loan Limits

• $5,500 if you’re a freshman, $3,500 may be subsidized.      
• $6,500 if you’re a sophomore, $4,500 may be subsidized.
• $7,500 if you’re a junior or senior, $5,500 may be subsidized.
• $5,500 if you’re a post-baccalaureate, $5,500 may be subsidized.
• $7,500, $5,500 may be subsidized if you are a post baccalaureate pursuing Teacher Certification or doing preparatory work for a masters.
• $20,500 if you are enrolled in a master’s program, Beginning in 2013: there are no subsidized graduate loans.

Repayment

Repayment on Direct Student Loans will begin six (6) months after you graduate, leave school or drop below half-time enrollment. Use the Loan Estimator to calculate your estimated payment .Due to recent legislative changes your Federal Student/ Parent loans may be assigned to one of several new contracted loan services. If your loan(s) is/ are assigned to a contracted servicer, they will contact you directly with more information.

Interest Rate

2013: Federal Direct and Post-Baccalaureate undergraduate subsidized loans taken during the 2012-2013 award year carry 0% interest while in school and will be charged 3.4% interest when in repayment. All unsubsidized loans will carry an interest rate of 6.8% starting at the time of disbursement.

Origination Fees

Federal Direct Student Loans are charged a 1% origination fee.