Whitworth University administers federal student and PLUS loans through the Federal Direct Loan Program. Borrowers complete the necessary processes, and Whitworth facilitates the funding directly from the federal government. Below are links to webpages that will provide additional information on the Federal Direct Loan Program.
For new borrowers or previous borrowers with no outstanding balances as of July 1, 2013, please read the Time Limitation on Direct Subsidized Loan Eligibility.
All federal loans will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders and schools determined to be authorized users of the data system. You can always view your federal student loan history on National Student Loan Data System for Students (NSLDS) at https://www.nslds.ed.gov/nslds/nslds_SA.
Federal Direct Student Loans
These loans are government-insured student loans. Students must file a FAFSA in order for the financial aid staff to determine eligibility. There are two types of Federal Direct Student Loans.
- Subsidized loans are need-based loans subsidized by the federal government, which ensures that all interest charges during both academic years and periods of deferment are paid by the government. The fixed interest rate on this loan for the 2018-19 academic year is 5.04 percent. Students have six months from the day they are no longer enrolled at least half time (see below) to begin repayment. Interest is not charged while students are in school.
- Unsubsidized loans are non-need-based loans that are not subsidized by the federal government. Students are responsible for all interest charges during academic years and periods of deferment. Students can defer interest payments until they begin repayment. The interest rate on this loan for the 2018-19 academic year is fixed at 5.04 percent for undergraduate students and 6.59 percent for graduate students. Students have six months from the day they are no longer enrolled at least half time (see below) to begin repayment on both principal and interest.
According to federal regulations, institutions are to disclose to students the average amount a student would borrow on the Federal Direct Student Loan programs as well as the Federal Direct Graduate PLUS Loan for graduate students. The following chart indicates those average amounts reflected by student programs for the 2016-17 academic-year.
|Student type by program and the average number of years to complete the respective program||Total average amount borrowed on all federal loan programs||Average monthly payment on the *Federal Standard Repayment Plan over a maximum of 10 years with a maximum interest rate of 6.8%|
|Traditional day undergraduate students for four years of study||$26,440||$304|
|Evening undergraduate students for two years of study||$20,378||$234|
|MIM/MBA students for two years of study||$30,906||$356|
|GSE students for two years of study||$26,544||$305|
|Graduate studies in theology students for two years of study||$29,516||$340|
|MIT students for the entire program||$37,181||$428|
*The Standard Repayment Plan is the most aggressive payment plan offered by the Federal Direct Loan Servicing Center. Other available repayment plans would reduce the monthly payments.
Enrollment Status Information that has an Impact Upon Loan Repayment
- Undergraduate students must be enrolled in six credits or more to be considered half-time.
- Graduate students must be enrolled in three credits or more to be considered half-time.
- The Stafford exit loan counseling process will be required once a student is no longer enrolled at least half time.
Online Federal Direct Loan Processes
- Complete Federal Direct Student Loan Electronic Master Promissory Note: studentloans.gov/myDirectLoan/index.action
- You will need your Federal Student Aid ID (FSA ID) in order to complete this process.
- Complete Federal Direct Student Loan Entrance-Loan Counseling Process: studentloans.gov/myDirectLoan/index.action
- Allow 30 minutes to complete the process.
- Read all text carefully.
- Print your "Borrowers Rights and Responsibilities" for your records.
- Print the "Verification" page that indicates that you have completed and passed the quiz. You may need this page as proof of completing this process. Please retain it in your records.
- Complete Federal Direct Student Loan Exit-Loan Counseling Process: studentloans.gov/myDirectLoan/index.action
- You will need your Federal Student Aid ID (FSA ID) in order to complete this process.
For a complete list of federal loan servicers, visit: studentloans.gov/myDirectLoan/additionalInformation.action
Federal Direct Parent Loans (PLUS)
Federal Direct Parent Loans are loans borrowed by parents for dependent students who are enrolled at least half time. The interest rate as of July 1, 2018, for Federal Parent Loans will be 7.59 percent. A parent can be a student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. Federal Direct Parent Loans are loans that do require credit approval. Interest is charged at the time of disbursement. The parent can choose to pay the interest or defer it as long as the student remains in school at least half time. Repayment begins within 60 days from when the student is no longer enrolled.
To read more about the Federal Parent Loan Program visit: studentaid.ed.gov/sa/types/loans/plus?src=search
Parents who are interested in borrowing a Federal Parent Loan for the 2018-19 academic year should complete the following checklist:
- Determine how much to borrow; visit our online 2018-19 Cost Estimator. We encourage parents to apply for the total amount of parent loan needed for the entire academic year. By doing just one parent loan for the academic year, a parent's credit will only be checked once and the funds are guaranteed. Parent loans borrowed for the academic year are disbursed according to the number of terms the student is attending, once the student's financial aid file is complete. (Interest is charged only on the amount disbursed.) An origination fee (4.264%) is deducted from each disbursement. Once you know the net amount you require, divide that number by 0.95736 to determine the gross amount you must apply for in order to receive that net amount after the origination fee is taken off the top.
- Using your FSA ID, log into studentloans.gov and complete the 2018-19 Parent Loan Request process. Parent borrowers will be notified immediately if they are approved or denied for the loan.
- Complete an electronic PLUS Master Promissory Note, available at studentloans.gov for parents borrowing for the first time for a student.
- Indicate the amount you want to borrow based on Step 1 in theonline request process. (Whitworth does not calculate how much is owed to determine the loan amount.) The parent borrower determines the amount to borrow by entering one of the following in the request process:
- an amount owed for the year (factoring in loan fees);
- an amount that works with other resources; or
- MAX - Whitworth will calculate the maximum the parent is eligible for based on his/her student's cost of attendance minus other financial aid resources. This amount may or may not exceed the amount owed.
- Print, complete and return the Parent Loan Self-Certification Form. This form is required for all new loans and for all parent borrowers. Whitworth must confirm parent borrowers meet all parent loan eligibility requirements before disbursing funds to a student's account.
Denied borrowers will be given the following options during the online process:
- Find an endorser/co-signer. The endorser should not have any adverse credit history and is required to complete an online addendum.
- Request the additional Federal Direct Unsubsidized Loan for the student. Students are eligible for additional unsubsidized loan funds if the parent is denied a parent loan.
- First- and second-year students can borrow an additional $4,000
- Third- and fourth-year students can borrow an additional $5,000
- Appeal/Challenge the Credit Decision. Parent borrowers who choose to appeal the credit decision, and are approved, will be required to complete PLUS credit counseling before the school can disburse any funds on his/her behalf. PLUS credit counseling can be completed at studentloans.gov.
If you have questions related to online processes for the Federal Parent Loan, please contact U.S. Department of Education Applicant Services at 800.557.7394.
If you have questions related to loan processes at Whitworth University, please contact the financial aid office at 509.777.3215.Helpful Links:
Federal Direct Graduate Parent (PLUS) Loans
The Federal Direct Graduate PLUS Loan Program is similar to Federal Direct Parent Loans. To be considered for a Graduate PLUS Loan, students must first apply with a FAFSA to determine eligibility for the Federal Direct Unsubsidized Student Loan Program. This loan is not based on financial need. The student must show creditworthiness, and interest is charged while the student attends school. Principal and interest repayment begins within 60 days of the date that the student is no longer enrolled at least half time.
To apply for a Graduate PLUS Loan, a student must complete the Federal Direct Graduate Parent Loan Request Form online at studentloans.gov. The student must log in to access the request process using his or her FAFSA login information.
If the student is approved for the loan, s/he must complete the following two online processes.
Borrowers who choose to appeal/challenge the credit decision, and are approved, will be required to complete additional PLUS credit counseling before the school can disburse any funds on his/her behalf. PLUS counseling can be completed at studentloans.gov.