A student must complete a Free Application for Federal Student Aid (FAFSA) (and enter the William Peace University school code: 002953) for the appropriate academic year before applying for a federal loan. Based on your FAFSA report, the Office of Financial Aid will determine the maximum amounts and types of loans that may apply to you.
Federal Direct Student Loan Program
The Federal Direct Student Loan Program consists of subsidized and unsubsidized loans. Repayment of Federal Direct Loans are deferred while you are attending WPU on a half-time or full-time basis. Completion of the FAFSA determines your eligibility for Federal Direct Loans.
The Federal Direct Subsidized Loan is awarded according to demonstrated financial need. Interest is paid by the federal government as long as you are enrolled at least half-time at WPU. You must begin repayment of the loan six months after leaving school or dropping below half-time.
The Federal Direct Unsubsidized Loan is awarded regardless of your demonstrated need. Interest begins accruing from the date of first disbursement. By making interest payments while in school, you can avoid capitalization of the interest. When interest is capitalized, it is added to the principal amount of the loan upon which further interest charges are based.
WPU’s 2017 Draft Cohort Default Rate was 7.8%. The average for North Carolina was 10.5% and the National average was 10.1%. Approximately 88% of students attending WPU receive student loans to assist with their educational expenses.
Federal Direct Loan Limits
If you are a dependent undergraduate student enrolled in a degree-seeking program, you may borrow per year up to:
- $5,500 as a first-year student ($3,500 of which may be a subsidized loan)
- $6,500 as a sophomore (min 30 credit hours earned) ($4,500 of which may be a subsidized loan)
- $7,500 as a junior or senior (min 60 credit hours earned) ($5,500 of which may be a subsidized loan)
The maximum amount a dependent undergraduate student may borrow is $31,000 ($23,000 of which may be subsidized loan).
If you are an independent undergraduate student or dependent student whose parents have been denied access to a Federal PLUS Loan, you may borrow per year up to:
- $9,500 as a freshman ($3,500 of which may be in subsidized loans)
- $10,500 as a sophomore ($4,500 of which may be in subsidized loans)
- $12,500 as junior/senior ($5,500 of which may be in subsidized loans)
The maximum amount an independent student may borrow is $57,500.
Federal Direct Parent Plus Loans (for parents of dependent students)
Federal Direct PLUS Loans are federally sponsored loans that parents can obtain to help pay the cost of education for their dependent undergraduate children. In order to obtain a PLUS loan, the student must first complete the Free Application for Federal Student Aid (FAFSA). In order for your parent’s PLUS loan to be disbursed to your student account, your parent will complete the PLUS application and Master Promissory Note (MPN) with the US Department of Education online at https://studentaid.gov. Parents may borrow up to the cost of attendance less any other aid received by the student annually. Based on the student’s FASFA information, the Office of Financial Aid will determine the maximum amount of PLUS loan eligibility. Parents may opt to borrow less than the maximum amount awarded.
If upon applying for this loan, the pre-screening reveals that your parents would be denied for the loan, you will then be automatically eligible for a Federal Direct Unsubsidized Loan for up to $5,000. This loan will be added to your financial award upon notification of a parents denied application.
Origination fees set by federal statue are charged by the U.S. Department of Education and are deducted from the loan proceeds.
The information of students and parents is submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
Alternative Loan (loan in the student’s name)
Alternative education loans (also known as private education loans) are loans that are often used to help bridge the gap between your cost of attendance and the amount of federal, state and institutional financial aid that you are awarded. Alternative loans are credit based loans that are offered by private lenders.
William Peace University strongly encourages all students to complete the FAFSA and evaluate their financial aid award before applying for an alternative loan. Federal loans should always be the first option to consider when borrowing money to finance an education. If you are considering an alternative loan, you should carefully evaluate a loan program to determine if it best meets your needs.
ELM Select allows students to compare private loans from a list of our historical lenders all in one place and apply. Please click HERE to begin your search.
Code of Conduct for Education Loans
Officials are prohibited from:
- Revenue-sharing arrangements with any lender
- Receiving gifts from a lender, a guarantor, or a loan servicer
- Contracting arrangements providing financial benefit from any lender or affiliate of a lender
- Directing borrowers to particular lenders, or refusing or delaying loan certifications
- Offers of funds for private loans
- Call center or financial aid office staffing assistance
- Advisory board compensation