Types of Loans
UWF participates in 4 different federal loan programs - the Perkins Loan, Federal Direct Loan, Federal Direct Parent PLUS Loan and Federal Direct PLUS Loan for Graduate Students.

Perkins Loan
The Perkins Loan is a campus-based program, which means that the University has a set allocation each academic year, and once the funds are depleted, no additional awards can be made. The Perkins loan is available to undergraduate and graduate students. The interest rate is fixed at 5%, and repayment begins 9 months after graduating, withdrawing, or dropping below half-time status. Repayment is made to the University or its designated servicer. The Perkins Loan has provisions for cancellation for those students that enter certain areas of specialization after graduation. Additional information can be found on-line at www.studentaid.ed.gov.

Federal Direct Loan
The Federal Direct Loan Program enables a student to borrow money directly from the federal government to help with educational expenses. The Financial Aid Office will process this loan for you, and Student Accounts will disburse the funds. Repayment is made to the Direct Loan Servicing Center.

There are 4 types of Direct Loans: Subsidized, Unsubsidized, Parent PLUS and Graduate PLUS. Subsidized and Unsubsidized loans are for the student; the Parent PLUS loan is a loan for the parent of a dependent student. The Graduate PLUS loan is a loan for graduate and professional students. Loan type and amounts are determined when the student completes the financial aid application process. There are also annual loan limits and aggregate loan limits that students are bound by.

This chart, courtesy of the National Association of Student Financial Aid Administrators (NASFAA), displays annual loan limits:

Dependent Students (Except Students Whose Parents Cannot Borrow PLUS)	Base amount	Additional unsubsidized loan amount
		Effective July 1, 2008
Freshman	$3,500	$2,000
Sophomore	$4,500	$2,000
Junior or senior	$5,500	$2,000

Independent Undergraduate Students and Dependent Students Whose Parents Cannot Borrow a PLUS Loan	Base amount	Additional unsubsidized loan amount
		Effective July 1, 2008
Freshman	$3,500	$6,000
Sophomore	$4,500	$6,000
Junior or senior	$5,500	$7,000

Graduate and Professional Students	Base amount		Additional unsubsidized loan amount
$8,500		$12,000

 

The aggregate loan limit is defined as the total amount of money a student may borrow. Dependent, undergraduate students may borrow up to $31,000. Independent, undergraduate students may borrow up to $57,500. Graduate students may borrow up to $138,500 (inclusive of the undergraduate amounts). For the undergraduate student a maximum of $23,000 can be subsidized. Of the graduate student total, only $65,500 can be subsidized.

Over a four-year period beginning July 1, 2008, the interest rate on subsidized loans made to undergraduate students was reduced. The applicable interest rates for loans made during this period are as follows:

First disbursement of a loan:		Interest rate on the unpaid balance
Made on or after	And made before
July 1, 2009	July 1, 2010	5.6 percent
July 1, 2010	July 1, 2011	4.5 percent
July 1, 2011	July 1, 2012	3.4 percent

These changes apply to subsidized loans first disbursed on or after July 1 of each year through June 30 of the next year. This change does not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same.

These interest rates apply only to subsidized loans; any unsubsidized loan for the same undergraduate borrower would continue to be made at the current fixed interest rate of 6.8%. The 6.8% interest rate also applies to all graduate subsidized and unsubsidized loans.

UWF encourages students to borrow wisely and conservatively. While the loans are available to help you, borrow money that is needed to cover your educational expenses only. Try to avoid borrowing at the maximum levels each year because this could lead to unmanageable debt after graduation.

Students have the ability to track their federal financial aid history through the National Student Loan Data System (NSLDS). This website provides student loan detail for all loans a student has borrowed.

A subsidized loan is need-based and accrues no interest while you are attending school at least half-time. If you do not qualify for a subsidized loan, we will process an unsubsidized loan. An unsubsidized loan does accrue interest from the time the loan is disbursed. You have the option to pay the interest every 90 days or let it capitalize. We encourage you to pay the interest, if possible, to avoid additional interest charges. Both loans have a 6-month grace period before repayment begins, and you can prepay the loan at any time without penalty.

 Federal Direct PLUS Loan

As mentioned above, the Parent PLUS loan is a loan for parents. The parent will borrow money for the student's educational expenses. The loan amount is determined by the student's cost of education minus other types of financial aid awarded. Repayment may be deferred (upon request) until six months after the student ceases half-time enrollment; however, interest will accrue and be added to the principal balance of the loan. The interest rate on a PLUS loan is fixed at 7.9 percent. A parent must be able to pass a credit check in order to qualify. The application is available on-line in .pdf format. In order to view this information, you will need the free Adobe Acrobat Reader® software. If you do not already have Adobe Acrobat Reader®, click on the following link: adobe.com/products/acrobat/readstep2.

Federal Direct PLUS Loan for Graduate Students
The Grad PLUS loan is a federal loan allowing a graduate student to borrow up to the total cost of education minus any other financial aid. The interest rate is fixed at 7.9%, and repayment is generally deferred while in school.

In order to qualify for the Grad PLUS, the student must meet basic eligibility requirements:

1. Complete the FAFSA and UWF's Institutional Financial Aid Application. While it is not required, it is our recommendation that you borrow your maximum subsidized and unsubsidized loan limits prior to applying for a Grad PLUS.
    
2. Be enrolled in a minimum of 6 Semester Hours.
    
3. Be a US Citizen or Eligible Non-Citizen.
    
4. Maintain Satisfactory Academic Progress Standards.
    
5. Pass a required credit check.

An application can be obtained here and submitted to the Financial Aid Office to process. There is an additional entrance and exit counseling requirement for a Grad PLUS loan that is different from the Subsidized/Unsubsidized Direct Loan requirement. Also, there is a Master Promissory Note that must be completed that is different from the Subsidized/Unsubsidized Master Promissory Note.

Master Promissory Note
The Master Promissory note (MPN) is a promissory note that is used to secure loans for multiple academic years. As a student borrower under the Direct Loan Program, you will only sign one MPN for all of your Direct Loans at UWF. The electronic MPN site http://dlenote.ed.gov allows you to complete and sign a MPN over the web as an alternative to using a paper MPN. The Financial Aid Office will be electronically notified when you have completed the process.

Entrance/Exit Counseling
The federal government requires you to complete entrance counseling prior to disbursement of your first Federal Direct Loan. Entrance counseling explains your rights and responsibilities as a borrower. After you review the information if you still have questions, please contact the Financial Aid Office.

Complete entrance counseling (www.dl.ed.gov).

Exit counseling is required at the time you graduate, withdraw, or drop below half-time enrollment. Exit counseling will review the same rights and responsibilities as entrance counseling but will also give you important information regarding the repayment of your Direct Loan. Understanding the repayment provisions of your loan will help you avoid default. Failure to complete exit counseling prior to leaving school will result in a HOLD on your academic record. This hold prevents the release of grades, transcripts and diploma, registration for future terms, and receipt of additional financial aid.

Complete exit counseling (www.dl.ed.gov).

Loan Consolidation
Loan consolidation enables a borrower to take all of their existing student loans and consolidate them into one monthly payment. Loan consolidation is not for everyone, but can be very beneficial. Several companies offer loan consolidation. If you are considering consolidation, review the information on Direct Loan Consolidation at the following website http://www.loanconsolidation.ed.gov/. Please contact Direct Lending, or the company of your choice directly, for additional information and to answer any questions.

Alternative/Private Loans

Although it is not required, you are encouraged to exhaust all federal loan eligibility prior to applying for a private/alternative loan. In the event you do not qualify for financial aid, have reached the aggregate loan limit, or need aid in excess of what you have been awarded, you may apply for a private loan, often referred to as an alternative loan. With this type of loan, you are applying through a private lender, and the Financial Aid Office only certifies your enrollment and cost of education. A credit check is done by the lender to determine approval. The lender determines interest rate, processing fees, and repayment.

Helpful Hints in the Alternative Loan Process  

You have the right to select any lender of your choice, and we will process the application for you. We do not recommend specific lenders and have elected not to publish specific information on individual loans/lenders due to the fact that borrower benefits are subject to change without notice.  Interest rates and loan terms vary greatly among lenders; you should look at all options in selecting a private loan. The best way to locate a lender is to do an internet search for "private student loans". Detailed information regarding a specific loan can be found on the lender website or by contacting them directly.  Due to legislative and economic changes in the student loan industry, we recommend that you contact a lender prior to submitting a loan application to determine if they are accepting applications from UWF students.  There are certain lenders who have chosen to accept applications only for students attending specific institutions.

A comparison tool that may be beneficial to you in your search for a private loan is Overture Technologies Student Loan Marketplace. This tool allows you to make an informed decision in selecting the best private loan for your individual situation. Their website allows you to compare personalized private loan rates and terms from multiple lenders, side-by-side. You securely submit your school and personal information, and the Marketplace will present personalized loan products and terms for you to sort and compare based on one credit check. Your personal information is kept private, so only the lender that you select will contact you. If you select your lender using the Student Loan Marketplace, we will certify the loan electronically in the same way we would certify a private loan you apply for directly with a lender. You can visit the Student Loan Marketplace by clicking here.  

Private loans are disbursed using the same method as other types of financial aid - your Higher One Debit card or ACH to your bank account.

All lenders will conduct a credit check. Keep in mind that multiple credit inquiries do reduce a borrower’s credit score.

Every effort has been made to ensure that the information on this web site is accurate. However, due to frequent changes in Federal and State regulations, and revisions to the University of West Florida operating policies, the information is subject to change without notice.