Federal Loans

The U.S. Department of Education administers the Federal Family Education Loan Program (FFELP) more commonly known as the Stafford loan program. To be eligible a student must be enrolled at least half-time in a degree or certificate program. This loan has a six-month grace period after graduation or after the student drops below half-time status. The repayment period on average is ten years. The aggregate undergraduate limit (total amount a student can borrow while an undergraduate) for a dependent student is capped at $31,500 and for an independent student at $57,500.  Students must file a FAFSA to be eligible for a Stafford loan.  Most students are eligible for a Subsidized and/or Unsubsidized loan for the 2010-2011 academic year.

Subsidized Stafford Loans

If a student provides evidence of financial need through the FAFSA, he or she will be awarded the Subsidized Stafford loan. The term "subsidized" reflects that the government pays any interest that may accumulate on this type of Stafford loan while the student is in school at least half-time or in deferment. Essentially, a Subsidized Stafford loan is interest-free while the student is in school.   Loan amounts are divided and disbursed per semester.  The Undergraduate interest rate for 2009 - 2010 is 5.6%.  Fees on average are 1.5%, and they are subtracted from amount borrowed, for example a $3500 loan will credit as $3447 to the student's account ($3500 - 1.5% =$3447).

Unsubsidized Stafford Loans

Students who do NOT demonstrate financial need for the Federal Subsidized Stafford loan may still qualify for the Federal Unsubsidized Stafford loan. This non-need-based loan program carries the same annual borrowing limits per year, fees, and repayment terms as the subsidized loan program. However, interest WILL accrue on the loan while the student is in-school, and during grace and deferment periods.  The rate is 6.8% fixed for the life of the loan. Fees on average are 1.5%, and they are subtracted from amount borrowed, for example a $3500 loan will credit as $3447 to the student's account ($3500 - 1.5% =$3447).  Loan limits are shown below.  Borrowers can choose to make interest payments by checking off the appropriate box on the Master Promissory Note.  You may choose to capitalize the interest (add interest charges to the amount owed) but this will significantly increase the total amount of your debt burden at repayment.  See loan limits below. 

Undergraduate students who borrow their maximum grade level Subsidized Loan can now also borrow an additional $2000 in Unsubsidized Loan.  Also, if the parent of an Undergraduate student is denied a federal PLUS loan, the student may borrow additional amounts (see below** for limits) in Unsubsidized loan. 

Federal Loan Limits

The Department of Education sets annual and aggregate (i.e. lifetime) limits on the amount of debt a student can obtain from the federal government. The chart below summarizes the current limits for the Federal Stafford Loan.

Instructions to Complete Your Federal Stafford Loan Online:

Students who borrow a Federal Stafford loan for the first time at Wheelock College must complete mandatory Entrance Loan Counseling and a Master Promissory Note (MPN) before receiving the first disbursement of any loan proceeds. Please see below for the instructions.  If you do not complete this process, it is assumed that you will not plan to borrow with this loan and it will be cancelled.

1. To complete the Stafford Loan Entrance Counseling, visit www.mappingyourfuture.org. Once you have completed the Entrance Counseling, you will receive a confirmation number and we will be electronically notified that you have completed the counseling.
2. Stafford Promissory notes will be available for e-signature one week after Wheelock College receives notification of your completion of your Entrance Counseling.  To complete your Federal Stafford Loan MPN go to the American Student Assistance home page.  Click on the "Log on to ASA Direct"  (in orange in the middle of the page).  Once you arrive at the ASA Direct website, choose the "Are you a first time user?" option to create a login ID and password.  ***Please note, your FAFSA PIN is required.  If you do not have a PIN you can click on the link to obtain a PIN through the Department of Education, or go to www.pin.ed.gov.

Choosing a Lender

Wheelock College participates in the FFELP process, so your Federal Stafford loan will be funded by a private lending institution. There are a variety of banks and lenders who offer Stafford loans for financing education costs for undergraduate students and their families.  Wheelock has a formal process to review the Stafford loan offerings of most of the major lenders. Based on this review, we have chosen the lenders below who offer borrower benefits, reliability, electronic delivery of loan proceeds to ensure timeliness of the loan process as well as superior customer service. Be assured that Wheelock receives no benefits, financial or other, from these lenders for being chosen to be on our preferred lender list.

You are under no obligation to borrow your Stafford loan from one of these lenders. If you would like to borrow from a lender who is not on this list, you can simply select the lender of your choice and apply directly with that lender. You and the lender will be responsible for getting your loan information to us including a completed copy of the Master Promissory Note and a Certification Request.

Federal Perkins Loan
The Federal Perkins Loan is a low-interest rate (5%) loan for undergraduate students with exceptional financial need. No interest or fees are charged and no repayment is required while a student is enrolled at least half-time (six credits per quarter) or during the nine-month grace period following graduation or withdrawal from school. Funds are awarded by Wheelock College and are limited. Undergraduate award amounts range from $1,000 to $3,000 annually.