Loans

 

Federal Subsidized and Unsubsidized Stafford Loans

a. You must apply for financial aid each year to be eligible for these loans (see How to Apply for appropriate forms). The difference between Federal Stafford Subsidized loans and Federal Unsubsidized loans is the financial need of the student. In addition, the federal government only pays the interest on the Stafford Subsidized Loan while the student is in school.Your Award Letter indicates the maximum for which you may apply through these programs.

b. The amount you qualify for is also dependent on the number of credits you earn. The aggregate borrowing limits are set by the federal government. These funds disburse in two equal installments (Fall/Spring). Federal Stafford Loans are disbursed to the College via electronic funds transfer (EFT) or paper checks depending on the lender. You must be enrolled at least half-time and be maintaining satisfactory academic progress at the time funds are disbursed.

c. Depending on the lender, an origination fee and/or insurance premium fee are deducted from your Stafford loans (your loan is charged a transaction fee, therefore, paying a little less than the amount requested). The origination fee and insurance premiums are deducted proportionately from each disbursement. Repayments of both types of loans are deferred until six months after the student falls below half-time enrollment or graduates. The maximum repayment period is ten years. Lenders offer the option of graduated or income-sensitive repayment and some offer a two-percentage point interest reduction and/or other incentives for on-time repayment.

APPLY FOR FEDERAL STAFFORD LOAN

STAFFORD COUNSELING REQUIREMENT

ENTRANCE COUNSELING

EXIT COUNSELING

FEDERAL PERKINS LOANS

a. You must apply for financial aid each year to be eligible for these loans (see How to Apply for appropriate forms). The Perkins Loan is fixed at 5% and is awarded to all students who are either U.S. Citizens or permanent residents. Full-time enrollment is required to be eligible for the Federal Carl Perkins Loan. The award amounts are based on financial and scholastic eligibility.

b. The award amounts are $500-$4,000 and vary year to year.

d. HOW TO APPLY FOR THE FEDERAL CARL PERKINS LOAN?

The promissory note and disclosure form must be completed through the Business Office every semester you are eligible for the loan. The Business Office will mail the promissory loan to you in early August. The promissory loan will also be available to you during Orientation and/or Registration.

e. DISBURSEMENT:

Disbursement of these funds will be credited directly to your College account at the beginning of each semester, once you have completed a promissory note with the Business Office.

f. REPAYMENT:

Repayment begins nine months after you cease to be enrolled as a full-time undergraduate student. The maximum repayment period is ten years and may be deferred.

WHITTIER COLLEGE STUDENT LOAN

a. The Whittier student loan is an interest free loan awarded to all students who are either U.S. Citizens or permanent residents. Full-time enrollment is required to be eligible for the Whittier College Student Loan. The award amounts are based on financial and scholastic eligibility. Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for this loan.

b. The award amounts are $500-$4,000 and vary year to year.

c. There is no interest on the Whittier College Student Loan.

d. HOW TO APPLY FOR THE WHITTIER COLLEGE STUDENT LOAN?

The promissory note and disclosure form must be completed through the Business Office every semester you are eligible for the loan. The Business Office will mail the promissory loan to you in early August. The promissory loan will also be available to you during Orientation and/or Registration.

e. DISBURSEMENT:

Disbursement of these funds will be credited directly to your College account at the beginning of each semester, once you have completed a promissory note with the Business Office.

f. REPAYMENT:

Repayment begins six months after you cease to be enrolled as a full-time undergraduate student. The maximum repayment period is ten years and may be deferred.

PARENT PLUS LOAN

The Federal Parent Loan (PLUS) is a low interest federal loan for all biological or adoptive parents who are U.S. Citizens or permanent residents. Non-custodial parents are also encouraged to apply. Dependent students must also be U.S. citizens or permanent residents and the student must be enrolled at least half-time.

You must be credit worthy to receive the PLUS loan; however, many lenders offer a second review of your credit should the loan be denied the first time. In fact, you may apply for the Federal Parent Loan with a co-signer.

AMOUNT OF ELIGIBILITY:

Parents are able to borrow up to the cost of attendance minus any financial aid the student has received. Be aware that there may be fees deducted from the loan, which will reduce the amount disbursed to your student’s Whittier College account.

INTEREST RATE:

The interest rate is fixed at 8.5%

DISBURSEMENT:

The Federal PLUS Loan funds will be sent in via EFT (Electronic Funds Transfer) and will be applied directly to your student’s Whittier College account. The first disbursement will arrive in the fall semester with the second disbursement in the spring unless it is the student’s final term and then there will be one disbursement. 

REPAYMENT:

Repayment on the PLUS loan begins 60 days after the final disbursement. There is no prepayment penalty and you may have 10 years to pay the loan back. There are various deferment and repayment options; including the opportunity to pay interest only payments. Contact your lender regarding various repayment options

WHAT IF I AM DENIED?

In the event that you are denied the Federal Parent Loan, your student is eligible to receive an additional Federal Unsubsidized Stafford Loan.

APPLY FOR THE FEDERAL PARENT (PLUS) LOAN