Office of Financial Aid

Undergraduate Student Loans

Undergraduate Student Loans

You should complete the Free Application for Federal Student Aid (FAFSA) to be considered for all of the following student loans:

  • Federal Perkins Loan
  • Federal Stafford Loan (subsidized and unsubsidized)
  • Federal Direct Parent Loan
  • Alternative Loans

Note: If we confirm your eligibility for the Federal Stafford Loan Program we will send you an Award Notification with details of the offer and instructions about how to begin the loan process.

Special Notice: If you have a student loan, you have the right to cancel all or a portion of the loan within 14 days of disbursement by contacting the Office of Financial Aid.

It is the borrower’s responsibility to repay any federal loans disbursed, in full, regardless of completion of their educational program (graduation) or employment opportunities.


Federal Perkins Loan

Federal Perkins Loans have a fixed interest rate of 5%. They are offered to students with exceptional need, with priority given to early applicants who receive the Federal Pell Grant. Applicants who have completed the FAFSA process are automatically considered. Students may obtain a Federal Perkins Loan without security or endorsements. Awards vary each academic year depending on the student's financial need and resources. There is a nine month grace period, after graduation or after ceasing to be enrolled in college at least half-time, before repayment begins. You may be allowed up to 10 years to repay. You may, at any time, repay the loan balance and any interest due without penalty.

If you fall behind on your payments, Fort Lewis College may demand immediate repayment of the entire loan plus interest. If you default on the Federal Perkins Loan, and we are unable to collect, the federal government will take action to recover the loan. Borrowers should contact Educational Computer Systems, Inc. (ECSI), 181 Montour Run Road, Coraopolis, PA 15108, www.ecsi.net, 1-888-549-3274, for information on deferment, cancelation, or forbearance.


Federal Stafford Loan

Students who completed the FAFSA are automatically considered for Stafford loans. There are two distinct Stafford loan programs. The subsidized program is based on financial need and the borrower does not pay interest while enrolled at least half-time. The unsubsidized program does not have this in-school subsidy and is not need-based; therefore all eligible students may apply for and receive these funds. Under the unsubsidized program, interest may accumulate or capitalize until the borrower is out of school. Capitalizing increases the amount of the principal. The borrower may make interest-only payments to avoid capitalization. The interest rate for subsidized and unsubsidized Federal Stafford Loans for undergraduates disbursed after July 1, 2014 is 4.66%. These loans are disbursed through the College. The amounts that undergraduate students may borrow per academic year depends on the amount of credits earned. See the chart below.

ANNUAL UNDERGRADUATE STAFFORD LOAN LIMITS

Dependent Students

Dependent Students Whose Parents are Denied a Federal Loan

Independent Students

Grade Level

Earned Credit Hours

Base Amount

Additional Unsubsidized

Base Amount

Additional Unsubsidized

Base Amount

Additional Unsubsidized

Freshman

0-29

$3,500

$2,000

$3,500

$6,000

$3,500

$6,000

Sophomore

30-59

$4,500

$2,000

$4,500

$6,000

$4,500

$6,000

Junior/Senior

60 or more

$5,500

$2,000

$5,500

$7,000

$5,500

$7,000

PLUS (parent) Loan: Limited to Cost of Attendance minus other financial aid such as grants, scholarships, work-study, student loans, etc.

A dependent undergraduate borrower may accumulate a maximum of $31,000 in outstanding federal loan debt. The undergraduate independent borrower may accumulate outstanding federal student loan debt of up to $57,500. The Office of Financial Aid sends you an award letter when we confirm your financial aid eligibility. You need to accept loans through the student WebOpus account on the Fort Lewis College website. It may take up to four weeks, during peak volume periods, to transmit data to the US Department of Education.

First time Fort Lewis College borrowers must complete loan entrance counseling online before we can disburse their loan funds. First time borrowers at Fort Lewis College must also complete a Master Promissory Note (MPN) online. Available computers on campus may be used for this purpose. After the initial MPN, a promissory note will not be required for subsequent loans.

The US Department of Education will transmit the loan proceeds to the school after you sign your MPN. Loans are disbursed in two equal installments. Disbursement will occur by the first day of classes each term, when enrollment is confirmed. The College automatically credits the money to your bill and refunds the balance, if any, to you. Origination fees of 1.073% will be deducted from the loan upon disbursement. Origination fees are subject to change.

Direct Loan 150% Loan Limit Rule

As of July 1st, 2013, any first-time borrower, (which is defined as someone who has no outstanding balance on a FFELP or Direct loan when receiving a Direct loan on or after July 1, 2013), will only be able to obtain Federal Direct Subsidized loans for a maximum of 150% of the published program length in which they are enrolled. Additionally, the subsidized loans that had been borrowed up to the 150% point will lose further government subsidy and interest will begin to become the student's responsibility if they do not graduate by the 150% point (and continue to be enrolled in the same or a shorter undergraduate program). From that point forward, these subsidized loans will become unsubsidized loans.

Here are a few facts that you need to know:

  1. Students may receive Direct Subsidized loans for no more than 150% of the length of the current academic program. For example, a student enrolled in a four-year program will have six years’ worth of subsidized loan eligibility.
  2. Once a student reaches the 150% mark in a particular program, their future subsidized loan eligibility in that program will end. They may, however, be eligible for unsubsidized loans.
  3. A student who reaches the 150% limitation will have their interest subsidy end for all outstanding subsidized loans if the student does not graduate and continues to be enrolled in the same or a shorter undergraduate program. Repayment does not begin, but like unsubsidized loans, the student (rather than the government) would become responsible for interest that accrues from this point forward.
  4. Unlike other measures in determining continued aid eligibility, this provision is not affected by the total dollar amount borrowed. Any and all periods of subsidized loan borrowing will count against the 150% time limit.
  5. This policy is in addition to, and not in place of, the lifetime aggregate loan limits that are currently in place.

 For more information go to the U.S. Department of Education at:

 http://ifap.ed.gov/eannouncements/attachments/051613DirectSubsidizedLoanLimit150PercentAnnounce1Attach.pdf

 


Federal Direct Parent Loan

Federal Direct Parent Loans are for parents who wish to borrow to help pay for their student's education. You must complete the FAFSA before applying for a Federal Direct Parent Loan. Federal Direct Parent Loan applicants are subject to credit checks. Parents may borrow up to the cost of attendance budget, minus any other financial aid, each year. Repayment begins within 60 days after the loan has been completely disbursed. The interest rate for Federal Direct Parent Loans disbursed after July 1, 2014 is 7.21%.

The US Department of Education funds Federal Direct Parent Loans. Accepting the Federal Direct Parent Loan will be done through the student's WebOpus account on the Fort Lewis College website. The parent will need to complete an authorization form prior to certification and transmission of Federal Direct Parent Loan information to the US Department of Education. If a parent is denied a Federal Direct Parent Loan, a dependent student may be considered for an additional portion of the unsubsidized Stafford loan. Origination fees of 4.292% will be deducted from the loan upon disbursement. Origination fees are subject to change.


Alternative Loans

Private loans have no government subsidy. These college loans require a more stringent qualification of credit worthiness, and have a higher interest rate than federal student loans. The Office of Financial Aid advises all students to use the Stafford loan program first and completion of the FAFSA is strongly encouraged.

 

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