Academics

Why is the WLC PLUS Partner Program a Sensible Option?

Interest paid while enrolled
Your Federal Direct PLUS loan has a fixed interest rate of 6.41% for loans disbursed in the 2013-2014 academic year. Wisconsin Lutheran College has made a commitment to pay a portion of the interest once a year in June for a maximum of four years while your student is enrolled full time at WLC. Upon entering repayment, you may earn a 0.25% interest rate reduction when you sign up for auto-debit payments.
Fees and Interest Rate
The fixed interest rate for PLUS loans borrowed for 2013-2014 is 6.41%. (The fixed rate for 2014-2015 will be determined in June 2014.)
A 4.288% fee is subtracted from each disbursement (subject to change by U.S. Department of Education).
No payments until the spring semester of the student's first year
Because this is a PLUS loan for parents, half of the principal (minus 4.288% fee) is disbursed at the beginning of the fall semester and half (minus 4.288% fee) is disbursed at the beginning of the spring semester. The first payment will be due approximately 60 days after the second disbursement. This means you have several months to save more money before the first payment is due.*
* If necessary, you may request to defer payment until the student is out of college. However, the total cost of the loan will be significantly higher because of the delay in making payments.
No prepayment penalties
You can make additional payments on the loan at any time while the student is in school or out. In fact, you can make larger payments every month than what is minimally required, or you can make lump sum payments at any time to help reduce the amount of the loan.
Lower monthly payments than typical payment plan options
Using a conventional tuition payment plan, a family that owes $12,000 on their child's college education for the coming year would be expected to make 10 monthly payments of $1,200 each, starting August 1, 2014. Borrowing a $12,000 PLUS loan would result in payments of about $149 a month, or more if your budget allowed, and payments would start in the spring term of 2014. That’s less due each month and more time to prepare for the monthly payments.

PLUS monthly payments for families

Assumes a constant 7.9% interest rate and the same amount borrowed yearly

Anticipated
Annual PLUS
Loan Amount
Year 1
(starts
Spring '15)
Year 2
(starts
Spring '16)
Year 3
(starts
Spring '17)
Year 4
(starts
Spring '18)
$3,000 $50 $100 $150 $200
$6,000 $75 $150 $225 $300
$9,000 $112 $224 $336 $448
$12,000 $149 $298 $447 $596
Post Graduation Repayment
Families who borrow the PLUS loan each year will have four loans (one for each year of school) when their student graduates. Each loan has its own separate 10-year repayment period at a separate fixed interest rate. You can prepay the PLUS loan at any time without penalty, while the student is in school or out, in lump sum or in higher monthly payments.
Additional Information
The PLUS loan is in one parent's name and requires a credit check and US citizenship or eligible non-citizenship status. The federal credit criteria for approval are based upon not having an adverse credit history.

Questions? Contact the WLC Financial Aid Office
phone: (414) 443-8856
fax: (414) 443-8540
e-mail: financial.aid@wlc.edu