Direct Loan Program | Washburn Tech

Loan Options

When post-secondary students apply for financial aid, Washburn Tech may include loans as part of the award offer. A loan is money that is borrowed and must be repaid with interest when you graduate or drop below half-time enrollment. Washburn Tech participates in the following loan programs.

Subsidized, Unsubsidized & PLUS Loans

The Federal Direct Subsidized Loan and Federal Direct Unsubsidized Loan are two types of low-interest student loans offered under the U.S. Department of Education's Federal Direct Loan program. Subsidized loans are need-based while Unsubsidized loans are not based on financial need. The U.S. Department of Education is the lender for both of these loans, which are available to dependent and independent students.

Subsidized Loans

Federal Subsidized Loans are based on need. To be eligible, you must be a U.S. citizen or eligible non-citizen and you must be enrolled in Washburn Tech at least half-time.

Students must have financial need based on FAFSA.
Repayment is required after graduation or drop below half-time enrollment.
No interest accrues on this loan while you are enrolled at least half-time.
You cannot be in default on any federal student aid.

Unsubsidized Loans

Federal Unsubsidized Loans are not based on financial need. To be eligible, you must be a U.S. citizen or eligible non-citizen and you must be enrolled in Washburn Tech at least half-time.

Repayment is required after you graduate or drop below half-time enrollment.
Interest accrues on this loan from the date the funds are disbursed to the school.
Interest can be paid as it accrues but is not required while enrolled at least half-time.
If interest payments are not made, interest will capitalize and add to the amount borrowed.

Parent PLUS Loans

The PLUS loan program is available to parents of dependent students. An eligible parent borrower for a federal PLUS loan is a student's natural mother or father, adoptive parent or legal guardian. An eligible parent borrower must meet the same citizenship or residency requirements that a student borrower is required to meet.

This loan assists with the student's educational expenses not covered by scholarships, grants, and/or student loans.
It is not based on need and requires repayment.
Interest accrues on this loan from the date the funds are disbursed to the school.

Dependent & Independent Students

The subsidized and unsubsidized loan programs are available to both dependent and independent students. Eligibility for the subsidized Stafford loan is based on financial need while eligibility for the unsubsidized loan is not based on financial need.

If your financial need is not great enough, you may not be eligible for the entire amount of the subsidized Stafford loan. In this situation the amount not received in the subsidized Stafford loan may be received in the unsubsidized Stafford loan program.

Dependent Students: The maximum amount a dependent student can borrow per academic year is $5,500, no more than $3,500 from the subsidized loan program. If a parent applies to a PLUS loan on behalf of their dependent student and is denied, the student may apply for an additional $4,000 from the unsubsidized program.

Independent Students: The maximum amount an independent student can borrow per academic year is $9,500, no more than $3,500 from the subsidized loan program. Under the subsidized loan program the government pays the interest due until the student enters repayment, six months after ceasing at least half-time enrollment. Under the unsubsidized loan program, the student is responsible for interest that accrues from the date of the first disbursement.

Paying It Back

Repayment on the Subsidized and the Unsubsidized loan begins six months after the student ceases to be enrolled at least half-time. The minimum monthly payment is $50 per loan. The interest rate on both loans is fixed at 4.66%.

Repayment on the PLUS loan begins 60 days after the first disbursement has been made. The interest rate is fixed at 7.21%.

Origination Fee

In all federal loan programs, a loan origination fee is charged. The origination fee for the subsidized and unsubsidized loan program is 1.073% and the origination fee for the PLUS loan is 4.292%.