Financial Aid: Loans
Each year students and parents search for ways to pay for college. More and more families are turning to loans to help cover the costs. The Wisconsin Lutheran College Financial Aid Office recommends that you look at loans as a last resort to pay for college and not as your first option. High loan debt after college graduation can change a person's lifestyle during repayment. If you do need a loan(s), this website can provide you with more information.
Regardless of which loan program you borrow from, you will need to select a lender. You may select the lender of your choice. The information provided on the "Tips for Choosing a Lender" may assist you in your lender decision.
Listed below are the most common loan options available.
Federal Stafford Loans (for Students)
These low interest loans enable students to borrow for college now and repay after college. No income or credit history is required. Maximum loan eligibility for the year is:
- $5,500 (maximum $3,500 subsidized) as a freshman
- $6,500 (maximum $4,500 subsidized) as a sophomore
- $7,500 (maximum $5,500 subsidized) as a junior and senior
Dependent undergraduate students may borrow a maximum total loan amount of $31,000 (maximum $23,000 subsidized). Independent undergraduate students are eligible for a maximum total loan amount of $57,500 (maximum $23,000 subsidized).
Features include:
- Fixed interest rates
- Low fees
- Repayment begins 6 months after you drop below half time or after graduation
- Interest may be tax deductible
- Up to 10 years to repay
Your FAFSA determines the type of Stafford loan you can receive (i.e.: subsidized, unsubsidized or a combination of both).
Subsidized Loan:
Interest rate is fixed at 5.6% for 2009-10. Federal government pays your interest while you are enrolled at least half time and during your 6 month grace period.
Unsubsidized Loan:
Interest rate is fixed at 6.8% for 2009-10. Interest accrues and can either be paid periodically while you are in school or capitalized (added to the principal of your loan to repay later).
To apply for your Stafford loan, click on "Stafford."
Federal PLUS Loans (for Parents)
The PLUS Loan program enables parents to borrow funds to pay the education expenses of each child who is a dependent undergraduate enrolled at least half time. Borrowers have up to 10 years to repay.
Features include:
- Fixed interest rate of 8.5% for 2009-10
- Quick credit pre-approval
- Up to 4% in fees subtracted from loan proceeds
- Payments beginning approximately 45 days after the second disbursement
- Interest only payments available
- Tax deductible interest
- Can request postponement of payments of payments until after student's graduation
* Bonus Benefit for WLC families-The PLUS Partner program: WLC pays a portion of the interest.
To apply for your PLUS Loan, click on "PLUS."
Private Education Loans (for Students)
Private education loans are specific consumer loans in the student's name offered by private lenders to help pay education expenses. These need to be researched very carefully as they are not federal loans. The information provided on the "Private Education Loan Options" (pdf) list may assist you in your loan decision. You may also read "Tips for Choosing a Private Education Loan" to help you with this selection. Our office would always recommend using a PLUS loan before a private education loan.
- Interest rates and fees usually higher than those available with federal loan programs
- Variable interest rates that may change monthly or quarterly
- No interest rate cap
- Must undergo credit checks
- Student usually needs a co-signer
For more information on how private education loans work and to apply for a private loan, click on "Private Education Loan Application."
How Loan Funds Are Applied To Your Bill
One-half of your loan funds (minus fees if any) will arrive no earlier than ten days before the start of the first semester. The other half of your loan funds (minus fees if any) will arrive no earlier than ten days before the start of second semester.
Loan funds arrive via electronic funds transfer (EFT) and are applied directly to the student bill. However, some lenders may issue loan funds by check payable to the borrower and to Wisconsin Lutheran College. In such cases, the business office requires the borrower to endorse the check before funds can be applied to the bill.
Feel free to contact the WLC Financial Aid Office at (414) 443-8856 or by emailing financial.aid@wlc.edu if you have any questions.
Lender Selection Disclosure
Wisconsin Lutheran College officials select preferred lenders based on the best interest of the students. The criteria includes but is not limited to benefits offered to the borrower, customer service provided to the borrower, ease of applying for loans and timely processing. The lists include at least three lenders and are reviewed annually to ensure that the lenders continue to meet our criteria. Borrowers can select a lender from the list or any other lender.
Wisconsin Lutheran College prohibits officials from accepting benefits (financial or other) from lenders. These prohibitions include: participating in revenue-sharing arrangements where Wisconsin Lutheran College would receive revenue for recommending lenders to students; accepting gifts of more than minimal value including trips and entertainment; allowing contracting arrangements related to education loans; assigning students to a specific lender or refusing to certify a loan from a specific lender; accepting offers of funds for private loans; accepting assistance with office staffing from a lender; and receiving anything of value from a lender, guarantor or group for serving on an advisory board except for reimbursement of reasonable expenses incurred for serving on the board. Wisconsin Lutheran College is allowed to accept training materials, training sessions, assistance with entrance and exit loan counseling sessions as long as the presenter does not promote the services of a specific lender and philanthropic contributions as long as they are not related to education loans.