Undergraduate Loans
Loans for Undergraduate Students
Up to 2% of the total amount of the Federal Direct Subsidized Loan, Federal Direct Unsubsidized Loan, and up to 5% for the Federal Direct PLUS Loan mentioned below may be deducted by the Department of Education. In addition, if a student graduates or ceases to attend half-time, they are required to complete an exit loan counseling session for their federal student loans.
For information and resources about student loan repayment, or to submit a complaint relating to your student loan or student loan servicer, please visit or contact the Student Loan Advocate at loanadvocate@wsac.wa.gov.
Aggregate Loan Limits: Undergraduate students cannot take out a total of more than the following aggregate amounts during their time in school–
- Undergraduate Dependent Federal Direct Subsidized and Unsubsidized limit: $31,000
- Undergraduate Independent Federal Direct Subsidized and Unsubsidized limit: $57,500
Federal Direct Subsidized Loan
Eligibility: Available to undergraduate students with financial need as determined by the Free Application for Federal Student Aid (FAFSA).
Amounts: Annual amounts are based upon the cumulative number of credits a student has earned. The following chart lists the requirements:
| Class | Credits | Annual Amount |
|---|---|---|
| Freshmen | 00 – 29 | $3,500 |
| Sophomore | 30 – 59 | $4,500 |
| Junior/Senior | 60+ | $5,500 |
Renewal: Must re-apply for financial aid annually and maintain satisfactory academic progress.
Terms: The interest rate is fixed at the time of disbursement, and loan fees are charged according to Federal laws. Interest is deferred while the student is enrolled at least half-time, and for the first six months after ceasing half-time enrollment. Repayment of loan begins six months after the student graduates, leaves school, or drops below half-time enrollment. See more information on and .
Apply: Complete the required to review your responsibilities and rights as a borrower, and to agree to the terms and conditions under which you must repay the loan.
Accept Loan: Student loan borrowers at ÐÓ°ÉÔ°æ must sign and submit the annual Financial Aid Terms and Conditions to accept their loan.
Federal Direct Unsubsidized Loan
Eligibility: Not need-based
Amount: Annual amounts are based upon the cumulative number of credits a student has earned toward their academic program. Additional amounts are available to independent students and dependent students whose parents are unable to borrow a Federal Direct PLUS Loan. The chart below reflects the maximum annual loan limit a student may receive for each grade level. If a student is not eligible for a subsidized loan, they may receive an unsubsidized loan up to the full annual limit listed below. If a student is eligible for a subsidized loan, those funds are included in the annual limit, and subtracted from the amounts below when determining the annual unsubsidized loan limit.
| Class | Credits | Annual Amount Dependent Students | Annual Amount Independent Students |
|---|---|---|---|
| Freshmen | 00 – 29 | $5,500* | $9,500* |
| Sophomore | 30 – 59 | $6,500* | $10,500* |
| Junior/Senior | 60+ | $7,500* | $12,500* |
*If student is eligible for a subsidized loan, those funds are included in the annual limit and subtracted from the amounts above when determining their annual unsubsidized loan amount.
Renewal: Must re-apply for financial aid annually and maintain satisfactory academic progress.
Terms: The interest rate is fixed at the time of disbursement, and loan fees are charged according to Federal laws. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan. Borrowers are responsible for the interest during all periods, regardless of enrollment or loan status. Interest payments can be deferred while the student is in school and during the grace period, but interest will continue to accrue and will be capitalized (added to the principal balance of the loan). Repayment of principal and interest begins six months after the student graduates, leaves school, or drops below half-time enrollment. See more information on and .
Apply: Complete the required to review your responsibilities and rights as a borrower, and to agree to the terms and conditions under which you must repay the loan.
Accept Loan: Student loan borrowers at ÐÓ°ÉÔ°æ must sign and submit the annual Financial Aid Terms and Conditions to accept their loan.
Federal Direct Parent PLUS Loan (PLUS)
(for parent of dependent undergraduate student)
Eligibility: Not need-based. Borrower must be the biological or adoptive parent (or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time in an eligible degree program; must not have an adverse credit history (a credit-check will be performed); and must be a U.S. citizen or eligible noncitizen and meet all other for federal student aid.
Amount: The maximum amount is the student’s estimated cost of attendance minus financial aid.
Renewal: Parent PLUS loan application is required annually. In addition, the student must re-apply for financial aid annually and maintain satisfactory academic progress.
Terms: The interest rate is fixed at the time of disbursement, and loan fees are charged according to Federal laws. Interest on PLUS loans accrues from the date of disbursement and continues throughout the life of the loan. Parent borrowers are responsible for the interest during all periods, regardless of the student’s enrollment status or loan status. Repayment of principal and interest begins 60 days after the date the final disbursement of the loan is made. Parent borrowers may request a deferment while the student is enrolled at least half-time, but interest will continue to accrue and will be capitalized (added to the principal balance of the loan). See more information on and .
Apply: The parent must complete the online (includes a credit check) and sign the .
Private Loans
Private loans are available to help pay for education related expenses. However, before a student pursues these alternative loans, the student should be sure to apply for federal financial aid if they have not already done so. The federal financial aid loan programs may have terms and conditions that are more favorable than the provisions of the private education loans.
Private loans are available from many lenders. Each of these lenders will have their own terms and conditions for borrowing and repayment. ÐÓ°ÉÔ°æ suggests that you do research to determine which lender is the best fit for you. ÐÓ°ÉÔ°æ is not able to recommend any particular lenders, but provides a historic list based on several prior years.
Private loans decisions are based on the credit scores of the student borrower and most will require a cosigner. The cosigner may be a parent, or other creditworthy individual. The amount available may be based on both the student’s credit and on the student’s budget.
about these types of loans and review a comparison of several lenders with whom ÐÓ°ÉÔ°æ students have worked.