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Graduate Student Loan Information
What is a student loan?
A student loan is a low-interest loan that a student obtains while enrolled in school. Student loans must be repaid by the borrower, and the repayment period typically begins six months after the student graduates or ceases enrollment. The Department of Student Financial Assistance advises all students to borrow only what is absolutely necessary to pay college expenses.
Loan limits reflect the gross amount a student is eligible to be awarded. This gross amount is reduced by an origination fee charged by the Department of Education, resulting in the actual net amount received by the student.
Students may access the National Student Loan Database System (NSLDS) to check their total amount of loans borrowed. A Personal Identification Number (PIN) is required to access such information (this is the same PIN used to submit the FAFSA).
NEW! Beginning July 1, 2012 Graduate students will only be eligible to receive Unsubsidized Stafford Loans.
Interest Rate: 6.8%
"Unsubsidized" means a student is responsible for paying the interest from the time the loan is disbursed. While enrolled in school at least 1/2 time, a student can defer interest payments and capitalize the interest.
"Capitalization" is the process by which interest is added to the loan balance, increasing the loan's size and cost. To reduce the cost of borrowing, consider making interest payments while in school.
What action must a graduate student take to receive a loan?
Independent graduate students have to complete the Free Application for Federal Student Aid (FAFSA) and meet other eligibility criteria (admittance into an eligible graduate degree
program, maintaining Satisfactory Academic Progress, and enrollment of at least half-time).
The student will be sent an Award Notification to their WKU Email Account (if registered) or to the email account on record with the university/reported on
FAFSA (if not registered). The Award Notification will provide the amount of loan eligible
to borrow based on the student’s cost of attendance.
If interested a graduate student could then go through a pre-approval process to apply for addtional funds through the Grad Plus.
The following steps must be followed before loan funds can be approved or disbursed:
- Complete the Pre-Approval process by going to www.studentloans.gov, signing in with your Personal Identification Number (PIN) , selecting “Request a PLUS Loan”, selecting loan type of “Grad Plus” and proceeding as indicated.
- Complete the Master Promissory Note (if one is not already on file with Direct Lending) by going to www.studentloans.gov, signing in with the Personal Identification Number (PIN) , selecting “Complete Master Promissory Note”, selecting loan type of “Grad Plus” and proceeding as indicated.
- If the loan was approved, the Department of Education will notify WKU and WKU will award the Grad Plus loan on the graduate student's behalf and will proceed with certifying the loan.
- The student must complete a Grad Plus Master Promissory Note (if one is not already on file with Direct Lending) by going to www.studentloans.gov, signing in with the student Personal Identification Number (PIN), clicking on “Sign Master Promissory Note” and proceeding as directed.
- The student must complete an Entrance Counseling session (if a first-time borrower) by going to www.studentloans.gov, signing in with the student Personal Identification Number (PIN) , clicking on “Entrance Counseling” and proceeding as directed.
Grad Plus loan funds are disbursed at the beginning of each semester (if guaranteed prior to the start of the semester). For those guaranteed after the start of the semester, the loan funds are credited in the next applicable refund cycle.
