Federal Direct Student Loans

Federal Direct Student Loans are borrowed directly from the federal government, and eligibility is determined by the Free Application for Federal Student aid (FAFSA). There is not a separate application for Federal Student Loans. Federal Direct Loans are offered to help pay educational expenses so please, only borrow what you need. 

Even if you are ineligible for need-based aid, you will still qualify for the lower-interest Direct Unsubsidized Loan and a Direct PLUS Loan for Parents.

For more information about Federal Direct Student Loans including interest rates, and origination fees CLICK HERE.   

Eligibility: 

  • Students who complete the FAFSA are applying for all aid programs in which they may be eligible, including direct loans.  
  • Student loans are offered on a student's Financial Aid Offer if they completed a FAFSA and are eligible. 
  • Federal Direct Student loans are not required but are offered to help cover educational expenses. 
  • Students must be enrolled at least half the time to be eligible for Federal Student Loans.  Warren Wilson College defines half-time as 6 credit hours.  

In order for us to process your Direct Loan, you must complete a three-step process:

  1. Accept the direct loans on the "Financial Aid Offer" tab of Net Partner.
  2. Complete Entrance Counseling.  This is a twenty-minute online tutorial designed to acquaint first-time Direct borrowers with the rights and responsibilities for this educational loan. * If you have previously borrowed at Warren Wilson College through the Federal Direct Loan Program, you are not required to complete Entrance Counseling again. However, it is highly recommended that you do so!
  3. Complete a Master Promissory Note (MPN) with the Federal Department of Education. * If you have previously borrowed at Warren Wilson College through the Federal Direct Loan Program, you will not need to complete a new MPN.

Important Information About Student Loans

Please click on this link to view student loan interest rates on studentaid.gov

For Direct Subsidized and Unsubsidized Loans for undergraduate students disbursed on or after July 1, 2022 and before July 1, 2023, the fixed interest rate is 4.99%.

For Direct Unsubsidized Loans for graduate and professional students disbursed on or after July 1, 2022 and before July 1, 2023, the fixed interest rate is 6.54%.

Please note: graduate students are ineligible to receive Direct Subsidized Loans.

Federal Direct Parent PLUS Loans (Parents Only)

PLUS Loan Applications for 2022-2023 are now available

 

Federal Direct Parent PLUS Loans are available to parents (biological or adoptive) of dependent students. Federal Direct Parent PLUS Loans can be used to help cover the remaining balance on the student's account. PLUS Loan borrowers are subject to a credit check process on www.studentaid.gov to determine eligibility. The parent who wishes to apply for the PLUS Loan must have an FSA ID to begin the application process. Federal Direct Parent PLUS Loans are subject to an origination fee which is deducted from the loan amount therefore, you may wish to increase the amount requested to accommodate this fee. Students must complete a FAFSA to be eligible for the parent to apply for a Federal Direct PLUS Loan. For more information regarding the Federal Direct Parent PLUS Loan, CLICK HERE. For Direct PLUS Loans first disbursed on or after July 1, 2022 and before July 1, 2023, the fixed interest rate is 7.54%.

 

STEPS TO APPLYING:  

  1.  Complete the Federal Direct Parent PLUS Loan application
  2.  Complete the Master Promissory Note or MPN.
  3.  The WWC Financial Aid Office will contact you once we have received and processed the application.  
  4.  Federal Direct Parent Plus Loans are accepted on behalf of the parent and student once the application and Master Promissory Note are completed. 

 

Determining your PLUS Loan Amount:

Parents have two options when completing the application. Parents can select to have the maximum amount awarded up to the student's cost of attendance or you can select the amount you wish to have processed to the student's aid offer.  

  1. Determine which option you wish to utilize in the online application. 
  2. Communicate with your student to view billing information online after June 1st.  
  3. Complete the application with the amount you wish to borrow.

   

If you need to change the amount you wish to borrow after your application has been submitted you will need to contact the WWC Financial Aid Office. 

 

 

  • Borrowing limits: Parents are only eligible to borrow up the cost of attendance. However, the parent may decline this loan or reduce the amount by contacting the WWC Financial Aid Office. Parent PLUS Loan funds can be used for educational expenses, so borrow only what is needed. 
  • The maximum eligibility amount per academic year is the school’s estimated cost of attendance minus the combined total of all other financial aid.
  • Disbursement: PLUS loan proceeds are sent directly to the college in two disbursements of fall and spring. The funds are sent by electronic funds transfer (EFT). The WWC Student Accounts Office will credit loan funds to the student’s account and any excess will be refunded to the parent or the student, whoever is designated on the PLUS Application completed online.
  • Repayment: Repayment of this loan begins after full disbursement. The parent borrower may be eligible for deferment options which they may discuss with the servicer.   

Private student loans are consumer loans that are designed to supplement financial aid and cannot, when combined with other aid, exceed the cost of attendance established by the college. A student must apply with a bank or lending entity of their choice and have their application credit-approved before they are eligible to borrow this type of loan. In most cases, a student will be awarded a better interest rate if they have a co-signer for their loan. These loans are NOT backed by the Federal Government and should only be utilized as a last resource to fund your education.

Federal Direct Grad PLUS Loans (Graduate students only)

The Federal Direct Grad PLUS Loan is available to Graduate students who complete the FAFSA.  Grad PLUS borrowers are subject to a credit check process to determine eligibility.  An origination fee is deducted from the loan amount therefore, you may wish to increase your total loan amount to cover this fee.

For more information on Grad PLUS Loans CLICK HERE. For Direct PLUS Loans first disbursed on or after July 1, 2022 and before July 1, 2023, the fixed interest rate is 7.54%.

 

STEPS TO APPLYING:  

  1.  Complete the Federal Direct Grad PLUS Loan application
  2.  Complete the Master Promissory Note or MPN.
  3.  The WWC Financial Aid Office will contact you once we have received and processed the application.  
  4.  PLUS Loan funds are accepted on behalf of the student once the application and master promissory note is completed.  

 

Determining your PLUS Loan Amount:

Grad borrowers have two options when completing the application.  Students can select to have the maximum amount awarded up to the cost of attendance for the program or you can select the amount you wish to have processed. 

  1. Determine which option you wish to utilize in the online application. 
  2. Complete the Master Promissory Note (MPN)  
  3. You may contact the Financial Aid Office or Student Accounts office to help determine the amount.  

   

If you need to change the amount you wish to borrow after your application has been submitted you will need to contact the WWC Financial Aid Office. 

 

 

  • Borrowing limits: Students are only eligible to borrow up the cost of attendance. However, the parent may decline this loan or reduce the amount by contacting the WWC Financial Aid Office. Grad PLUS Loan funds can be used for educational expenses, so borrow only what is needed. 
  • The maximum eligibility amount per academic year is the school’s estimated cost of attendance minus the combined total of all other financial aid.
  • Disbursement: Grad PLUS loan proceeds are sent directly to the college in two disbursements of fall and spring. The funds are sent by electronic funds transfer (EFT). The WWC Student Accounts Office will credit loan funds to the student’s account and any excess will be refunded to the student. 
  • Repayment: Repayment of this loan begins after full disbursement. The parent borrower may be eligible for deferment options which they may discuss with the servicer.   

If you borrowed Federal Subsidized and/or Unsubsidized loans while at Warren Wilson College and have recently graduated or are not enrolled at least half-time at WWC, you will receive an Exit Package from the Financial Aid Office with the details of your loans.

You can visit www.studentaid.gov to complete Exit Counseling. You can view your loan history at www.studentaid.gov.

Please note that Subsidized loans disbursed after July 1, 2012 will begin to accrue interest during the six month grace period.

Repayment

Students should be sure to contact their loan servicer to discuss repayment options after graduation or dropping below at least half-time enrollment.

Why Consolidate?

If you have Federal Direct loans with multiple lenders, you should seriously consider consolidation of your student loans.  Loan consolidation is provided by the U.S. Department of Education to help make payments more manageable by combining all of your Federal Direct student loans into one monthly payment with one lender. For more information on loan consolidation click here.