Loans
Western State College of Colorado participates in the Federal Direct Loan program. Direct loans are low-interest loans for students and parents to help pay for educational costs. The lender is the U.S. Department of Education rather than a bank or other financial institution.
Direct Stafford Loans
Subsidized Loan
The federal government pays the interest on a subsidized loan while the student is in school and through the six-month grace period after the student leaves school. The interest rate for the 2011 – 2012 school year is 3.4%. The graduate level subsidized loan interest rate is 6.8%.
Unsubsidized Loan
The student is responsible for the interest while the student is in school and through the six-month grace period after the student leaves school. The interest is ‘simple’ interest, based on the principal of the loan only. Interest payments can be deferred until repayment begins six months after leaving school. The interest rate for the 2011 – 2012 school year is 6.8%. For current interest rates and repayment information go to: https://studentloans.gov.
Accepting, Modifying or Declining Stafford Direct Loan Funds
- Go to your Western online account at http://www.western.edu/inside/students
Click on ‘College Services/WOL’ and login. Go to the ‘Financial Aid’ section, click on ‘Award’, then select ‘Award by Aid Year’. Select the appropriate aid year, then hit ‘Submit’. Choose the 5th tab 'Accept Award Offer' to see the offered Direct Loan amounts, then accept, modify or decline the amount offered.
The amount you choose will be divided into two equal halves per semester. If accepting any loan amount, the following items must be completed before the loan funds will disburse.
Both Entrance Counseling and a Master Promissory Note (MPN) must be completed online at https://studentloans.gov.
Once both steps are completed, the funds will disburse to your student account at the beginning of the semester. Please see the information on eRefund below.
The Perkins Loan
The Perkins Loan is offered to eligible high-need students on a first-come, first-serve basis. The loan is interest-free while the student is in school and through a nine-month grace period after the student leaves school. The interest rate on the Perkins Loan is fixed at 5.0% and the student has a maximum of ten years to repay the loan.
Students accepting a Perkins Loan must sign a separate promissory note in the Financial Aid Office prior to or during the first week of class for the funds to disburse.
The Direct PLUS Loan for Parents
The federal government established the PLUS Loan program as a financing tool for parents to assist with their student’s educational cost. The interest rate is 7.9% and repayment begins 60 days after the second disbursement. This happens usually in March for a student that starts in the fall and continues through to the spring semester.
A parent can request a loan up to the cost of attendance (COA) minus all other aid. The PLUS Loan is a non-need, credit-based loan, as the parent borrower must pass a credit check. If the borrower is denied the PLUS Loan, the student may have additional unsubsidized Stafford Loan eligibility.
Instructions for Parents Who Wish to Apply for a PLUS Loan
If a parent is planning to utilize the Direct PLUS Loan program he or she must complete the PLUS request process on the following website: https://studentloans.gov
‘Sign In’ to the site with the four digit FAFSA PIN, then click on ‘Request a PLUS Loan’ and follow the instructions. Be sure to specify how excess funds will be disbursed: to the parent or to the student.
Make sure that the electronic Master Promissory Note (MPN) has been signed. Loan funds will not disburse until the Master Promissory Note has been done. https://studentloans.gov.
The MPN is a separate step from the loan request process and must be completed. Once all steps have been done, Western will receive an electronic transmission of funds that will disburse into the student’s account and be accessible the first day of class.
The Direct PLUS Loan for Graduate Student
The PLUS Loan is a non-need, credit-based loan available to graduate or professional students as an additional funding source. A student’s Stafford loan eligibility should be exhausted before borrowing from the PLUS program. Repayment begins 60 days after the loan has been fully disbursed, but in-school deferments are available. See the Financial Aid Office for details about the application process.
eRefund Program
Western will refund any excess funds* due to the student by direct deposit into the student’s specified bank account. Paper checks will no longer be issued after the Summer 2011 Term.
Students expecting a refund should sign up for the eRefund program by going to their Western Online Account (WOL) at: http://www.western.edu/inside/students.
Click on ‘College Services/WOL’ and login. Go to the ‘Student’ section, click on ‘Financial Services and Cashiering’, then select ‘Account Summary by Term’ or ‘Account Summary’. Scroll to the bottom and click on ‘Manage My Student Account’, then ‘Click here to enroll in eRefund’.
To enroll, have your bank account and routing information. The process of authenticating a student’s bank account can take up to 10 days.
*Excess funds: a credit balance resulting from any financial aid that covers more than the costs charged by Western.
Alternative Loans
Students and parents are welcome to apply for alternative or private loans. These types of loans are credit-based and typically have higher interest rate as well as larger fees than the federal loans. If you are interested in learning more about alternative loan options click through to be taken to another website or contact the Financial Aid Office.
