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Financial Aid Handbook & Policies

Federal Direct Loans

The loan amounts listed on your award letter are your maximum eligibility for federal loans. Loans can be a valuable resource, but borrow only what is absolutely necessary because loans must be repaid. Loan repayments become a burden when amounts exceed 8% of your monthly adjusted gross income. Consider all other sources, including part-time employment, before borrowing.

First-time borrowers must complete a Master Promissory Note (MPN) and Entrance Counseling before funds can be released - both may be completed at www.studentloans.gov. 

Please contact the Financial Aid Office from your STARS account if you wish to reduce your loan amount. Remember that you may return/cancel a loan disbursement through WIU within 30 days of receiving the disbursement, but you must first repay any refund that resulted from loan proceeds. You have 120 days to return and cancel a loan disbursement through your loan servicer (can be found using the National Student Loan Data System).

Types of Direct Loans

The subsidized Direct Loan is based on your EFC, the cost of attendance at WIU and your financial need. Repayments of both principal and interest are deferred until six months after leaving school or dropping below half-time enrollment status. 

The unsubsidized Direct Loan is based only on the cost of attendance minus any other aid. Unsubsidized Direct Loans are not based on financial need. The principal, but not the interest, is deferred until after leaving school. 

Interest rates depends on when your loan was disbursed:

    7/1/2009 to 6/30/2010 7/1/2010 to 6/30/2011 7/1/2011 to 6/30/2012
Subsidized Loans Undergraduate 5.6% 4.5% 3.4%
Graduate* 6.8% 6.8% 6.8%
Unsubsidized Loans Undergraduate 6.8% 6.8% 6.8%
Graduate 6.8% 6.8% 6.8%

*Please note graduate students will no longer be eligible to receive Federal Direct Subsidized Loans after 07/01/2012. However, annual loan limits for graduates will not change.

Direct Loan Annual Loan Limits

The combination of subsidized and unsubsidized Direct Loans cannot exceed federal loan limits as indicated below:

Dependent student:
$3500 freshman + $2000 unsubsidized
$4500 sophomore + $2000 unsubsidized
$5500 junior + $2000 unsubsidized
$5500 senior + $2000 unsubsidized

Independent student:
$3500 freshman + $6000 unsubsidized
$4500 sophomore + $6000 unsubsidized
$5500 junior/senior + $7000 unsubsidized

Graduate student:
$8500 unsubsidized+ $12,000 unsubsidized

Direct Loan Aggregate Loan Limits

$31,000 dependent undergraduate ($23,000 maximum subsidized)
$57,500 independent undergraduate ($23,000 maximum subsidized)
$138,500 graduate ($65,500 maximum subsidized)

The following is an example of a typical repayment plans using the current 6.80% fixed interest rate (figures are rounded). Note that the current average loan debt of a May 2010 WIU graduate was $21,560.

Total Stafford Loan Dept Number of Payments Monthly Payment Interest Charges Total Repaid
$3,500
89
$50
$966
$4,466
$5,500
120
$63
$2,095
$7,595
$8,500
120
$98
$3,238
$11,738
$17,500
120
$201
$6,667
$24,167
$19,000
120
$219
$7,238
$26,238
Federal Direct Loan Information For Graduate Students

Eligibility for Direct Stafford Loan at the graduate level requires admission to WIU in a regular graduate degree program. The following information is applicable to graduate students, students combining graduate study with teacher certification, an approved post baccalaureate certificate and students working on a second baccalaureate degree program:

Enrollment Status
Loan Limits
Six (6) hours for graduate credit. Unsubsidized loan - $8,500
Additional unsubsidized loan - $12,000
Six (6) hours prerequisite undergraduate courses alone or combined with less than 6 hours of graduate courses. Unsubsidized loan - $5,500
May be eligible for additional unsubsidized loan - $7000 unless taking 6 hours graduate (see #1 above)
Note: Graduate students taking pre-requisite course work are limited to 12 months of course work taken in a singe consecutive 12 month period.
Six (6) hours of required course work in a teacher certification program or approved post-baccalaureate certificate program. Unsubsidized loan - $5,500
May be eligible for additional unsubsidized loan - $7,000
Six (6) hours of required undergraduate course work in a second baccalaureate program. Unsubsidized loan - $3,500, $4,500, or $5,500 (depending on number of hours required to complete the program)
May be eligible for additional Unsubsidized Stafford loan of $6,000 to $7,000.

Please note the following important information concerning student graduate loans:

  • Individual amounts will vary according to financial need, prior loan history and federal regulations.
  • Graduate loans are processed assuming an enrollment status of nine (9) hours of graduate credit. Please notify the Financial Aid Office if your status will include more or less than nine hours of graduate credit, both graduate and undergraduate hours, or you will be in a teacher certification or second baccalaureate program.
  • Audit hours are not considered in the enrollment status in processing your student loan.