Federal Direct Loan Program

These fixed rate federal loans for students enable you to borrow for college now and repay after college. No income or credit history is required.

Features include:

• Fixed interest rate for Direct Loans borrowed by undergraduate students in 2017-2018 is 4.45%.
• A 1.066% origination fee (Subject to change by the U.S. Department of Education)
• Repayment begins 6 months after student drops below half time status or after graduation
• Standard 10 year repayment plan with other repayment options available
• A 0.25% interest rate reduction when you pay via auto-debit during repayment

Your FAFSA determines the type of loan you can receive. Your loan eligibility for the year is reflected on your financial aid award. You will be eligible for a subsidized loan, an unsubsidized loan, or a combination of both.

Subsidized Loan:

Federal government pays your interest while you are enrolled at least half time for any loans disbursed on or after July 1, 2012.

Unsubsidized Loan:

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).

Interest rate for Graduate/Professional students who borrow Direct Unsubsidized Loans in 2017-2018 is 6%.

Maximum annual loan eligibility is:

Maximum total undergraduate loan eligibility is:

Private education loans are specific consumer loans in the student's name offered by private lenders to help pay education expenses for the year. These need to be researched very carefully as they are not federal loans. Our office recommends borrowing Federal Direct Subsidized, Unsubsidized and PLUS loans first before borrowing a private education loan. Students from Minnesota may also want to check out the Minnesota SELF Loan program.

Features include:

• Cosigner is usually required
• Must undergo credit check
• Variable interest rates may change monthly or quarterly
• Fixed interest rates offered by some lenders

Tips for Selecting a Private Education Loan

1. Where can you find a Private Education Loan?

Some banks and credit unions offer private education loans. Details regarding these programs are provided when you click on the 'Start Now' button below. You can borrow from a lender on this list or from any other lender of your choice.

• CU Student Loans
• Discover Student Loans
• Minnesota SELF Loans (must be a Minnesota resident)
• Sallie Mae Smart Option Loan
• Thrivent Federal Credit Union Private Student Loan
• Wells Fargo Collegiate Loan
• Wells Fargo Graduate Loan

2. What are the interest rates and fees charged private education loans?

Each lender determines the interest rate and fee structure for its own loan programs. They will typically base the interest rate on a benchmark such as prime or LIBOR plus a specific percent margin. As prime or LIBOR go up or down, so does your interest rate.

3. When does repayment begin and how long does it last?

Many private education loan programs start the payments 6 months after college graduation (or after leaving school). Interest accrues while you are still in school. Typical repayment plans last anywhere from 7-25 years. You may save money by starting immediate repayment on the principal and interest of the loan or by making interest only payments while you are in school. To save even more money, consider paying the loan off as fast as possible!

Remember to borrow only what is needed when using a private education loan. Compare loan programs to determine the program that is best for you.

Applying for a Private Education Loan

1. Determine the amount of loan needed for the entire school year. Be sure to borrow your maximum Direct Subsidized/Unsubsidized Loans first.
2. Determine the private education loan that you plan to use.
3. Sign the promissory note and complete the requirements of the lender for that loan program.

Private Loan Options

If you prefer to borrow from a lender of your choice, go to the lender's website to apply for the loan.

Private Lender Selection Disclosure

Wisconsin Lutheran College officials select private 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 list includes three or more lenders and is reviewed annually to ensure that the lenders continue to meet our criteria. Borrowers can select a lender from the list or any other lender of their choice.

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.