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 of your choice. The information provided on the "Preferred Lender List" may assist you in your lender decision. This list can be reviewed at any time. You may also read "Tips for Choosing a Lender" to help you with this selection.
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. Maximum loan eligibility for the year is:
- $3500 as a freshman
- $4500 as a sophomore
- $5500 as a junior and senior, with a maximum total loan amount for undergraduate students of $23,000
Features include:
- Fixed interest rates
- Our preferred lenders offer no or low fees and repayment benefits
- 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 6.0% for 2008-09. 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 2008-09. 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 2008-09
- Quick credit pre-approval
- Up to 3% in origination fees subtracted from loan proceeds
- Payments beginning approximately 45 days after the second disbursement
- Interest only payments available
- Tax deductible 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. 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 private education loans, click on "Private Education Loans."
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.