With the first day of school right around the corner, there are some steps you can take now to ensure your student completes the financial aid process. You can also help your student be better prepared by learning some of the financial aid terminology that is often used. Click here to view and increase your knowledge surrounding financial aid.
Types of Loans
A student’s financial aid award may include grants, waivers, scholarships and loans. Remember, loans are the only type of award the student and/or parent (if accepting the Parent Plus Loan) are required to pay back. Before accepting a loan, it is very important that you and your student learn and understand the various types of loans that are offered. Each loan has its own interest rate, a maximum amount per academic year, and repayment plan. The student’s financial need, determined by the Free Application for Federal Student Aid (FAFSA), determines the type of loan(s) they will receive. Filling out the FAFSA each year will determine your student’s eligibility for loans.
- If your student is awarded a Federal Direct Loan, it will be presented to them as a Subsidized or Unsubsidized loan. The amount your student is awarded per academic year will depend on their dependency status, grade level, financial need, and total amount borrowed to date. The benefit of the Subsidized Direct Loan is that it will not collect any interest while your student is enrolled in college at least half-time or during the six month grace period. An Unsubsidized Direct Loan will collect interest throughout your student’s education and during their six month grace period. Students will be required to begin replaying both types of direct loans six months after they graduate or if they fall below half-time enrollment.
- The Perkins Loan is an institutional need-based loan where the amount awarded to your student varies per year. The Perkins loan will not accrue interest while the student is enrolled in college at least half-time or during their nine month grace period. (Note: Unless there is Congressional action taken this year, the Federal Perkins Loan program will be discontinued. First time Federal Perkins Loan borrowers for the 2015-2016 academic year must accept their Perkins loan, sign their Master Promissory Note (MPN) and complete their Entrance Counseling on or before September 30, 2015. If receiving a Perkins Loan, please visit our loan site under “types of loans” and select the Perkins Loan option for more information and resources.)
- Parent Plus Loan (PPL) is very different from any other loan awarded to your student primarily because, if accepted, it will fall under the parent’s name instead of the student’s, meaning parents will be responsible for the loan payments. Unlike other loans, there is no grace period for the PPL and parents must apply for the loan. To fill out the Parent Plus Loan application, you and your student will need to follow the steps outlined on page 2 of this handout.
Each loan listed above has its own acceptance process, and each is awarded based on the student’s financial need calculated using their FAFSA application. For more information on the types of loans that may be offered to your student, click here. For an overview of each loan acceptance process, click here.
Important Dates to Keep in Mind
- Charges will be applied to student accounts (tuition, mandatory fees, dining and housing for on-campus living students) during the month of August.
- August 19th Financial Aid disburses to student accounts if students have completed the necessary steps to receive their aid
- August 21st Financial Aid Direct Deposits are sent
- August 24th
- Classes begin
- Financial Aid Refund Checks mailed to student’s home address on file
- Fall Semester tuition and fees are due
- September 9th First Late Fee will be charged at 3% for unpaid tuition and fees
- September 23rd Second Late Fee will be changed at 5% for unpaid tuition and fees
- October 7th Third Late Fee will be charged at 7% for unpaid tuition and fees
Students enrolled in the 2015 summer session have the set deadline of June 30th, 2015 to accept, sign their MPN and complete the Entrance Counseling.
Student Financial Services staff are happy to help with any of your financial aid questions. Please contact us Monday-Friday from 8 a.m.-5 p.m. at 509-335-9711 or firstname.lastname@example.org. You can also schedule an appointment to meet with an SFS advisor at WSU Pullman on Monday-Friday from 8 a.m.-4 p.m. by visiting finaid.wsu.edu.