Federal Stafford Loan 2012-13
You must be enrolled in at least 6 credits to receive Stafford Loans
Subsidized— Federal Subsidized Stafford Loans are need-based loans that must be repaid. 6.8% fixed interest rate, 1% origination fee, federal government pays interest while enrolled at least half time, 6 month grace period
Unsubsidized— Federal Unsubsidized Stafford Loans are non-need-based loans that must be repaid. 6.8% fixed interest rate, 1% origination fee, interest is charged from the time you receive the funds, 6 month grace period
Annual Stafford Loan limits
| Year in School | Credit Hours |
Dependent
Subsidized+Unsubsidized |
Independent or dependent w/PLUS denial
Subsidized+Unsubsidized |
|
Freshman |
0-23.9 |
$3,500 + 2,000 |
$3,500 + $6,000 |
|
Sophomore |
24-55.9 |
$4,500+ 2,000 |
$4,500 + $6,000 |
|
Junior |
56-87.9 |
$5,500+ 2,000 |
$5,500 + $7,000 |
|
Senior |
88-120 |
$5,500+ 2,000 |
$5,500 + $7,000 |
Aggregate Subsidized Loan Limit
$23,000
Combined Aggregate Subsidized & Unsubsidized
Dependent—$31,000 Independent—$57,500
To check your current Federal Loan balance you can go to: www.NSLDS.ed.gov
You will need your FAFSA Pin to login.
PLUS Loans
The Federal Stafford PLUS Loan (Parent Loan for Undergraduate Students) is a parent loan.
The borrower in this program is the parent of a dependent undergraduate student.
Repayment begins 60 days after the second disbursement of the loan and continues while the student is enrolled. The maximum repayment period is 10 years.
For more information or to apply for the Parent PLUS loan, please visit www.studentloans.gov
Private Loans
Private educational loans are credit-based consumer loans that can be used to pay any post-secondary education-related expenses, including tuition, fees, room and board, books, and transportation. Always consider your lowest-cost options first, including grants, scholarships, and federal student loans. After exhausting loan opportunities available from the federal aid programs, some students may consider private loan programs as an additional source of funding. Iowa Wesleyan College maintains a list of suggested private loan lenders that we believe offer strong customer service, competitive loan terms and easy loan processing. Eligibility for private loans is based on credit-worthiness and ability to repay, not on financial need. While private loans are borrowed by the student, most private loans require a co-signer and offer deferment of principal payments while the student is enrolled.
Students may borrow from any lender they choose and are not required to use a lender on Iowa Wesleyan’s preferred lender list. Iowa Wesleyan College will process loans from any eligible lender you select. Loans will be disbursed in two equal payments at the beginning of the fall and spring terms or summer terms if applicable.
Preferred Lender List Disclosures
In an effort to provide better counseling services to our students, Iowa Wesleyan College has entered into a preferred lender arrangement (PLA). Federal and state law mandates that we must provide the following disclosures in association with this process:
Lender Selection:
Affiliation: Lenders chosen for this list are not affiliated with one another.
Federal Financial Aid Options: Federal and state law also mandates that Iowa Wesleyan disclose the maximum amounts of Federal Grant and Loan assistance that are available. Maximum eligibility for Federal financial aid is based on the results of the FAFSA and is outlined on the student's award. Federal financial aid has better terms and conditions than private student loans and we strongly encourage students to utilize those resources first. The following is a list of maximum awards in each program:
- Pell Grant - $5,550
- SEOG - $4,000 (Award amounts are dependent on federal funding with a typical Iowa Wesleyan award maximum being $1,000)
- TEACH Grant - $4,000
- Stafford Loan - $5,500 (first year class); $6,500 (second year class); $7,500 (third and fourth year class and above); Independent students can receive an additional $4,000 (first and second year class) or $5,000 (third year class and above) Life time aggregate for Stafford loan = $31,000 for dependent students and $57,500 for independent students.
- Perkins Loan - $5,500 (Award amounts are dependent on federal funding with a typical Iowa Wesleyan award maximum being $2000 for students with exceptional need)
- PLUS Loan - a credit-based loan for parent borrowers with a maximum determined by the difference between cost of attendance and the student's financial aid award
State Financial Aid Options: Click on State Scholarships and Grants for information on financing options that are available in the state of Iowa.
Favorable Terms and Conditions of Title IV Loans: If it is necessary to finance your education with loans, a Federal Direct Stafford loan should be your first choice. Stafford loans are fixed rate student loans guaranteed by the government. They can be used to pay for educationally related expenses. Stafford loans have a number of benefits all designed to help make paying for college more affordable. One of the most important Stafford loan benefit is the fixed interest rate. Subsidized Federal Direct loans have a fixed rate of 6.8% for the 2012-2013 academic year. Unsubsidized Federal Direct Loans have a fixed rate of 6.8%. The interest rate will remain fixed for the life of the loan until repayment is complete.
Another benefit of Stafford loans is that the repayment plans are designed to provide flexibility for any budget. Once you complete school and enter repayment, you will have the option to pick from a number of helpful plans:
- Standard Repayment - A fixed amount each month based on your principle and interest.
- Graduated Repayment - Lower payments at the beginning of repayment then, over time, payments increase.
- Income Based Repayment - Monthly payments are based on yearly income and loan amount.
- Extended Repayment - For loans totaling more than $30,000, this plan offers a choice of fixed or graduated payments over a period of up to 25 years.
Preferred Lender List
The Financial Aid Office is utilizing FASTChoice, a loan comparison tool offered by Great Lakes Higher Education Corporation which allows students to compare up to three different loans side-by-side. By clicking on the following link, you will be directed away from the Iowa Wesleyan College website. We encourage you to bookmark this page for future reference. EnterFASTChoice now to view private loan products that are a part of Iowa Wesleyan College’s preferred lender list.
Feedback
If you have additional questions regarding private loans, please contact the Financial Aid Office at Iowa Wesleyan College.
Preferred Lender Arrangements are required to be reviewed annually to ensure that competitive products that are in the best interest of the student borrower are being offered. Please provide us with feedback regarding any positive and/or negative aspects that may have been experienced when working with a particular lender. Feedback can be sent to: financialaid@iwc.edu or please call 319-385-6242
Student Loan Exit Counseling
Federal regulations require that students who benefited from a student loan must complete student loan exit counseling when they graduate or drop below ½ time status. To complete this requirement go to www.nslds.ed.gov . The Financial Aid Office will receive electronic notification when this requirement has been met.
ESTIMATED MONTHLY PAYMENTS FOR DIRECT LOAN PROGRAM AND
FFEL PROGRAM LOANS
| Non-Consolidation Borrowers1 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Debt When Loan Enters Repayment | Standard | Extended Fixed | Extended Graduated | Graduated | ||||
| Per Month | Total | Per Month | Total | Per Month | Total | Per Month | Total | |
| $5,000 | $58 | $6,904 | N/A | N/A | N/A | N/A | $40 | $7,275 |
| $10,000 | 115 | 13,809 | N/A | N/A | N/A | N/A | 79 | 14,550 |
| $25,000 | 288 | 34,524 | N/A | N/A | N/A | N/A | 198 | 36,375 |
| $50,000 | 575 | 69,048 | 347 | 104,109 | 284 | 112,678 | 396 | 72,749 |
| $100,000 | 1151 | 138,096 | 694 | 208,217 | 568 | 225,344 | 792 | 145,498 |
| Debt When Loan Enters Repayment | Income Contingent2 Income = $25,000 | Income-Based2 Income = $25,000 | ||||||
|---|---|---|---|---|---|---|---|---|
| Single | Married/HOH3 | Single | Married/HOH3 | |||||
| Per Month | Total | Per Month | Total | Per Month | Total | Per Month | Total | |
| $5,000 | $37 | $8,347 | $36 | $11,088 | N/A | N/A | $39 | $8,005 |
| $10,000 | 75 | 16699 | $71 | $22,158 | 110 | 13,672 | 39 | 16,081 |
| $25,000 | 186 | 41,748 | 178 | 55,440 | 110 | 45,014 | 39 | 60,754 |
| $50,000 | 247 | 93,322 | 189 | 122,083 | 110 | 109,623 | 39 | 92,704 |
| $100,000 | 247 | 187,553 | 189 | 170,153 | 110 | 118,058 | 39 | 97,020 |
| Consolidation Borrowers4 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Debt When Loan Enters Repayment | Standard | Extended Fixed | Extended Graduated | Graduated | ||||
| Per Month | Total | Per Month | Total | Per Month | Total | Per Month | Total | |
| $5,000 | $61 | $7,359 | N/A | N/A | N/A | N/A | $38 | $7,978 |
| $10,000 | 97 | 17,461 | N/A | N/A | N/A | N/A | 69 | 19,165 |
| $25,000 | 213 | 51,123 | N/A | N/A | N/A | N/A | 172 | 55,491 |
| $50,000 | 394 | 118,264 | 394 | 118,264 | 688 | 126,834 | 344 | 126,834 |
| $100,000 | 751 | 270,452 | 788 | 236,528 | 344 | 253,660 | 688 | 286,305 |
| Debt When Loan Enters Repayment | Income Contingent2 Income = $25,000 | Income-Based2 Income = $25,000 | ||||||
|---|---|---|---|---|---|---|---|---|
| Single | Married/HOH3 | Single | Married/HOH3 | |||||
| Per Month | Total | Per Month | Total | Per Month | Total | Per Month | Total | |
| $5,000 | $40 | $9,414 | $38 | $12,294 | N/A | N/A | $39 | $7,818 |
| $10,000 | 80 | 18,828 | $77 | 24,587 | 110 | 17,638 | 39 | 22,414 |
| $25,000 | 201 | 47,069 | 189 | 61,588 | 110 | 59,451 | 39 | 52,725 |
| $50,000 | 247 | 106,630 | 189 | 137,766 | 110 | 91,388 | 39 | 78,816 |
| $100,000 | 247 | 187,553 | 189 | 170,153 | 110 | 117,343 | 39 | 97,020 |
1 Payments were calculated using a fixed interest rate of 6.8% for Direct Subsidized and Unsubsidized Loans disbursed on
or after July 1, 2006.
2 Assumes a 5% annual income growth (Census Bureau).
3 HOH is Head of Household, Assumes a family size of two.
4 Payments are calculated using the maximum interest rate for consolidation loans, 8.25%.
No matter which loan program you choose, remember to borrow only what you absolutely need--what you borrow today you will need to pay back after you graduate or withdraw (with interest)! You may not need to borrow as much, if at all, if you are able to cut costs (personal, miscellaneous) or work. Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover their college costs. The result is lower debt and loan payments that will be easier to manage after graduation.
It is better to live like a student when you are a student than to live like a student after you graduate.
If you have borrowed student loans before, you can view your lenders and the amount of federal loans YOU have borrowed to date on the National Student Clearinghouse Loan Locator at http://www.nslds.ed.gov/nslds_SA/
Loan Consolidation
- Allows you to combine your federal loans so that you make only one monthly payment.
- You can consolidate any or all of your federal loans - you choose which ones to consolidate.
- There is no cost to you to consolidate.
- You can usually lower the interest rate on your Stafford Loans if you consolidate during your grace period.
- The Student Loan Servicer will assist you with the loan consolidation process.
- Applications and information about consolidation are available at your Student Loan Servicer.
