Student and Parent Loans
To ensure Westminster College has adequate time to process loan applications prior to the beginning of the academic year, all student and parent loan documents and processes should be completed by July 1.
Federal Direct Subsidized and Unsubsidized Stafford Loans
The Federal Direct Subsidized Stafford Loan is a need-based loan to the student, and eligibility is determined by the FAFSA. The Federal Direct Subsidized Stafford Loan has a fixed interest rate of 6.80%. The Federal government pays the interest while the student is enrolled in college at least half-time. Repayment begins 6 months after you graduate or drop below half-time enrollment. You will have up to 10 years to repay this loan, with a minimum monthly payment of $50. A 1% Origination Fee will be deducted from the gross loan amount prior to disbursement to the College. In most cases, one disbursement will be made each semester.
The Federal Unsubsidized Stafford Loan is the non-need based version of the Federal Direct Stafford Loan. The terms of this loan are identical to the Subsidized Stafford Loan except you will accrue interest beginning at the time of disbursement at a fixed interest rate of 6.80%. You may defer payments on the loan while you are enrolled in college at least half time, but the interest continues to accrue and will capitalize.
First-time Federal Direct Stafford Loan borrowers must complete the following steps:
Repeat Federal Direct borrowers must complete the following:
Direct Stafford Loans Borrowing Chart (Subsidized & Unsubsidized)
Subsidized Base Loan Amount
Additional Unsub. Loan Amount (as of July 1, 2008)
||For All Undergrad.
||For Graduate Students
||For Dependent Undergrad.*
||For Independent Undergrad.**
||For Graduate Students|
|Third Year and Beyond
Subsidized Loan Debt Limit
|Total Loan Debt Limit (Sub.+Unsub.)|
||$65,000; Limit includes Direct Loans received as an undergraduate
(only $23,000 can be Subsidized)
(only $23,000 can be Subsidized Loan)
(only $65,500 can be Subsidized Loan); Limit includes Direct Loans received as an undergraduate
*Excluding students whose parents are unable to obtain a PLUS Loan.
Federal Direct PLUS Loan
**Or dependent students whose parents are unable to obtain a PLUS Loan.
Parents of dependent students are eligible to apply for the credit-based Federal Direct PLUS Loan. The loan amount varies, but the maximum parents may borrow is the cost of attendance minus the student’s total financial aid. The fixed interest rate is 7.90%, and interest begins accruing as soon as the loan is disbursed. Repayment begins within 60 days after the full disbursement of the loan. A 4% Origination Fee will be deducted from the gross loan amount prior to disbursement to the College. In most cases, one disbursement will be made each semester. The FAFSA is required to apply for the Federal Direct PLUS Loan.
First-time Federal Direct PLUS Loan borrowers must complete the following steps:
Repeat Federal Direct PLUS Loan borrowers must complete the following:
Students who file the FAFSA by February 15 and are determined to qualify for the Pell Grant will be considered for the Federal Perkins Loan on a first come, first serve basis subject to appropriations. Repayment of this loan begins 9 months after the borrower graduates, or drops below half-time enrollment. At the time of repayment, interest will begin accruing on this loan at a fixed rate of 5%. Westminster College will be the lender for the Federal Perkins Loan. In most cases, one disbursement will be made each semester.
First-time Federal Perkins Loan borrowers at Westminster College must complete the following steps here:
Repeat Federal Perkins Loan borrowers at Westminster College must complete the following steps here:
Westminster Grant/Loan Award (new students are not eligible for this award):
- CLICK HERE to Complete the Grant/Loan Award Promissory Note
Private, or alternative, loans are offered by private lenders to assist students with educational and living expenses not covered by other financial aid and should only be used as a last resort after all federal loan options have been exhausted. Before students apply for a private, or alternative, loan, the Financial Aid Office recommends students complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov and apply for the maximum Federal Direct Stafford Loan they are eligible to receive before applying for a private, or alternative, loan. The Financial Aid Office also recommends that parents consider applying for the Federal Direct PLUS Loan before the student applies for a private, or alternative, loan.
Private, or alternative, loans are not federally funded. The interest rates on these loans are often variable, are not capped and are tied to the prime rate or LIBOR index based on the credit review; therefore, they are generally more expensive than Federal educational loans.
Alternative loans are credit-based loans and in most cases, a credit worthy co-applicant is required. Alternative loans cannot be consolidated with Federal Direct Stafford Loans.
The Commonly Used Lender List was created based on particular services and benefits each lender provides and that the Financial Aid Office considers important. The Financial Aid Office recommends that you select a lender from this list, but you may select any educational loan lender of your choice.
Office of Financial Aid
501 Westminster Avenue
Fulton, MO 65251
(800) 475-3361 or (573) 592-5364