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WLC Plus Partner Program

How does Wisconsin Lutheran College help families with students in the traditional undergraduate program meet the price of attendance? One way we help middle income families is with the WLC PLUS Partner Program! The WLC PLUS Partner Program is Wisconsin Lutheran College's unique commitment to you to help pay a portion of the interest on your Federal Direct PLUS loan.

  • Rather than facing the family contribution as two lump-sum payments (half for the fall, half for the spring) or a high monthly payment, which is typically what happens at most colleges, the Federal Direct PLUS loan enables you to approach college costs as a monthly expense – a reasonable monthly expense. You can budget the PLUS loan payments in with your regular monthly bills … and can save money in the process.

    What is the WLC PLUS Partner Program?

    It begins with you, the parent, borrowing a Federal Direct PLUS loan. The Partner Program is Wisconsin Lutheran College's commitment to you to help pay a portion of the interest on your PLUS loan. WLC will pay a designated amount of the charged interest for a maximum of four years while your son or daughter is enrolled at Wisconsin Lutheran College. You might call it a "value-added" Federal Direct PLUS Loan.

    You can borrow a Federal Direct PLUS loan up to the cost of attendance (minus financial aid) for any one year or all four years of your son or daughter's education at Wisconsin Lutheran College. The amount borrowed can vary from year to year. A credit check is required. The loan repayment term is up to ten years. To keep interest at a minimum, you may begin monthly payments once the entire loan for the year is disbursed.

    The WLC PLUS Partner Program will help you fit the cost of paying for college into your family's budget. In addition, it enables you to plan for all four years, knowing that funding will be available for each year if you need it.


    How Much Will it Save Our Family?

    Savings are realized with the WLC PLUS Partner Program over the traditional PLUS program. The table below illustrates the interest payments that Wisconsin Lutheran College will make on your behalf under the Partner Program.

    Examples of WLC Total Interest Payments Over All Four Years

    Annual Direct PLUS    
    Loan Amount   
    Year One
    Freshman*
       
    Year Two
    Sophomore
        
    Year Three  
    Junior
       
    Year Four  
    Senior
        
    Total Over
    Four Years**
       
    $3,000*** $45 $90 $90 $90 $315
    $6,000 $90 $180 $180 $180 $630
    $12,000 $180 $360 $360 $360 $1,260
    $20,000 $300 $600 $600 $600 $2,100
    over $20,000 $300 $600 $600 $600 $2,100


    * 1st year of the loan has disbursements in September and February. WLC will pay one-half of the 3% interest since the full loan is not disbursed until February.
    ** 2nd-4th years are based on loan still outstanding throughout the year as of June 30.
    *** Minimum PLUS Loan for which WLC pays interest

  • PLUS PARTNER PROGRAM DETAILS

    Interest Paid While Enrolled

    Your Federal Direct PLUS loan has a fixed interest rate of 5.30% for loans disbursed in the 2020-2021 academic year. Upon entering repayment, you may earn a 0.25% interest rate reduction when you sign up for auto-debit payments.

    Wisconsin Lutheran College will pay up to the first 3% of charged interest on the disbursed amount of any Federal Direct PLUS Loan ranging from $3,000 to $20,000 except in the first year* for any loan outstanding at June 30. 

    * Because the loan servicer will not charge interest for a full year until second semester, WLC will pay up to one-half of the 3% interest in the first year.

    Payments To Your Servicer: Payments will be made to your servicer at the end of each academic year (June 30) for the outstanding balance at June 30 while your student remains enrolled at WLC. The servicer will apply the payment first to any outstanding interest and then to the principal balance.


    Fees and Interest Rate

    5.30% fixed interest rate for PLUS loans borrowed for 2020-2021 (2021-2022 rate will be announced in June 2021).

    A 4.228% fee is subtracted from each disbursement (subject to change by U.S. Department of Education).


    Payment Schedule

    Because this is a PLUS loan for parents, half of the principal (minus 4.228% fee) is disbursed at the beginning of the fall semester and half (minus 4.228% 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. You will have 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 eight monthly payments of $1,500 each, starting August 1, 2021. Borrowing a $12,000 PLUS loan would result in payments of about $142 a month, or more if your budget allowed, and payments would start in the spring term of 2021. That's less due each month and more time to prepare for the monthly payments.


    Anticipated Direct PLUS Estimated Payments for Families - Interest and Principal*

    Annual Direct PLUS Loan Amount          Year 1 (starts Spring 2021)          
    $3,000$50
    $6,000$71
    $12,000$142
    $20,000$237


    *Assumes a constant 7.5% interest rate and payments occurring over 10 years with a minimum payment of $50

    Annual Program Review: The 2021-2022 PLUS Partner Program terms are guaranteed for PLUS loans borrowed and disbursed in 2021-2022. Wisconsin Lutheran College reserves the right to change these program terms for PLUS loans borrowed in future years.


    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.