Educational Loans

Educational loans must be repaid after ceasing at least half-time enrollment. For most loans interest begins and the first payment is due 6 to 9 months after that point. No interest is charged while the student attends school at least half-time when borrowing from the Perkins and Subsidized Stafford loan programs. Payment may be deferred up to 3 years for additional schooling, and in some cases for Peace Corps, VISTA, military service, disability or full-time teaching in a teacher-shortage area.

Perkins Loan (PERK)

Given to the students with high need, these loans are repayable at a 5% interest rate within ten years and have cancellation features for teaching handicapped or low-income students. Students must sign a promissory note which explains fully all the terms of the loan.

Subsidized Stafford Loan (STFD)

Tips on Choosing the Best Lender for Your Stafford Loan(s)

These loans are secured from a commercial lender and carry an interest rate for undergraduate students that is fixed at 6% for loans disbursed after January 30, 2008 with 2% origination fees. For loans disbursed on or after July 1, 2009, the interest rate reduces to 5.6%. At UWSP, students are will be informed along with their award letter the requirements of completing their Master Promissory Note and Entrance Loan Counseling. Origination fees of 1.5% are deducted from each disbursement. Students are encouraged to choose a lender that offers electronic funds transfer (EFT). This will greatly speed the delivery of the loan to the campus and eliminate any chance for errors in handling. Students are also advised to seek a lender that will provide the best prompt-repayment interest reduction incentives. We seek out the best of these lenders for placement on our "Special Opportunity Lender List," which we make available at the time of awarding a Stafford loan. However, you are free to borrow from any lender you choose, who is eligible to make educational loans.

Go to http://www.simpletuition.com/uwsp/home for lender comparisons.

Unsubsidized Stafford Loan (USTFD)

These loans are similar to the regular Stafford loans mentioned above, except that the interest begins to accrue immediately, and is fixed at 6.8%. As with regular Stafford loans, students are encouraged to utilize the services of a lender that processes their loans by the (EFT) method and offers an interest-reduction prompt-repayment incentive program.

Go to http://www.simpletuition.com/uwsp/home for lender comparisons.

Federal Parent PLUS Loan (PLUS)

Parent Loans for Undergraduate Students (PLUS) are in the same family of loans as the Stafford, so they are federally regulated. These loans are secured from a commercial lender and carry an interest rate that is fixed at 8.50%. As the name suggests, this loan is taken out in the parent(s) name(s) and is a loan to assist with your dependent student's undergraduate education. A dependent student is defined by Federal Student Aid regulations. If your student was required to submit parental information on the Free Application For Federal Student Aid, they are dependent.

Though the standard procedure is for repayment to start after the loan is fully disbursed, most Wisconsin lenders allow forbearance on a year by year basis as long as the student is enrolled at least half-time. If you are interested in this option, you should use this as one of the bases for choosing a particular lender.

For lender comparisons, go to http://www.simpletuition.com/uwsp/home.

When you have finished comparing PLUS lenders, click on the 'Apply' button for any lender and you will be taken to the Great Lakes Higher Education Corporation FastPLUS website. Once there, additional information about the PLUS will be available as well as a PLUS FAQ section.  You will also have the option to start the PLUS application process from this web site.

The Great Lakes Higher Education Corporation's FastPLUS website may be accessed directly from UWSP's financial aid website by selecting "Quicklinks/FastPLUS" off of the main navigation.

How to obtain a Parent PLUS loan:
Before a parent applies for a Parent PLUS loan, the student needs to have applied for financial assistance by completing the Free Application for Federal Student Aid (FAFSA). 

To obtain a Parent PLUS Loan, the parent borrowing on behalf of the student needs to go to our web page www.uwsp.edu/finance, click on the heading “Quicklinks” and select “FastPLUS”. The parent borrower will be directed to supply their social security number and a password; also, the parent will need their pin number if they want to electronically sign the Master Promissory Note (MPN) for first time PLUS borrowers. (A pin number is a personal identification number assigned by the federal government for electronically signing the FAFSA.)

At the FastPLUS website, the parent borrower will be guided through the process for completing the Parent PLUS loan application. A credit check is required*. The Financial Aid Office receives notification of the Parent PLUS request after the credit check is completed; school certification of the loan is then sent electronically to Great Lakes Higher Education Corporation (GLHEC). A revised financial aid award is generated for the student via email or mail showing the Parent PLUS loan amount. GLHEC electronically sends the dollars to the school to be applied against the student’s account.  

Please note the loan amount requested will be divided among the terms the student is attending. For example: if a parent is approved for $4000 and the student is attending the academic year, $2000 is sent for fall semester and $2000 is sent for spring semester. Repayment of the Parent PLUS loan begins after the final disbursement of your loan (after the spring semester loan is disbursed in the aforementioned example).  

*If the parent is denied the Parent PLUS loan, the student is eligible for a special additional Unsubsidized Stafford Loan. The amount depends on the student’s grade level and cannot exceed the total amount certifiable in a PLUS loan (in other words, we cannot authorize more than the cost of education). The school will be notified if the parent is denied the PLUS loan.  Written confirmation from the student is needed to authorize the additional Unsubsidized Stafford loan.

Graduate PLUS LOAN

A federal loan for graduate students. Identical terms to the PLUS loan described above except the graduate student is the borrower rather than their parent(s). Click here to activate your Grad PLUS loan. You will be directed to complete a Graduate PLUS Master Promissory Note (MPN). You may also reach this site by going to www.uwsp.edu/finance, under ‘Quicklinks’ select ‘Fast Plus-Grad' (Graduate Plus MPN).

Alternative Loans (OLOAN)

Some lending institutions have a private alternative educational loan program to assist students with completing their college education. Before borrowing from a private alternative educational loan program you should apply for federal student loans that are guaranteed, regulated, and more advantageous than private alternative educational loans. Private alternative educational loan lenders recommend that you exhaust your federal aid eligibility options first. Private alternative educational loans are meant to supplement federal student aid, not substitute for it. Since private alternative educational loans are outside of the Stafford and PLUS loan family, loan program terms will vary between lenders.

Before Borrowing An Alternative Loan: At UWSP we require an applicant to apply and complete the Free Application for Federal Student Aid (FAFSA), prior to being certified for a private alternative educational loan. Much of the information needed to certify and disburse a private alternative educational loan is gathered as part of the student aid application process. Review the SLA 2009 Guide to Alternative Loans and UWSP's Loan Overview and Comparison Page.

An alternative loan (private) is a loan of last resort. Just because a lender indicates you are credit approved for a certain amount does not mean you will automatically receive the loan. An alternative loan cannot exceed your cost of education; therefore, in order for the school to complete the certification section of the alternative loan you need to do the following:

Steps for Applying for an Alternative Loan:
1. Have a completed FAFSA (aid application) on file to be considered for the best types of assistance possible prior to taking out an alternative loan that is not regulated by the federal government. The school completes a certification section on the alternative loan and that information is obtained from the FAFSA. Go to www.uwsp.ed/finance and click on the “Application Process” if you haven’t already completed an application.

2. Student goes to website of lender and completes alternative (private) loan application and master promissory note, submitting directly to lender, DO NOT submit the application or promissory note to the Financial Aid Office. Most lenders require co-signer information. Should the lender credit approve your application, the school receives an email notification request for alternative loan certification.

3. Other financial assistance is taken into consideration (grants, scholarships, work and federal regulated loans) and subtracted from your cost of attendance to determine any unmet need. If student has unmet need then the alternative loan will be electronically certified in a weekly batch process. The student applicant will receive an email award notification showing the alternative loan listed along with other aid. Make sure you have accepted your aid offer as the alternative loan will not disburse. To accept your aid offer, go to: http://www.uwsp.edu/finance, select “Quicklinks”, and “Accept My Award”.

4. The alternative loan will be split evenly among the terms the student is attending; if student is attending fall and spring the loan will be disbursed between the two semesters. If the student is attending summer, fall and spring, the loan will be disbursed in thirds among the three terms. This is for the student’s protection. Dropping credits, withdrawing from school, etc will change the cost of education. When the cost is reduced, the student may be billed and expected to return part or all of the entire loan immediately. Students in a semester abroad program may request most of the loan to be disbursed for that travel term and it will be considered if the other aid doesn’t equal the cost.

5. The loan will be certified for the amount of unmet need or amount credit approved, whichever is the lowest amount. If student is credit approved for $2000 and unmet need is $1000, the loan will be approved for $1000. If student is credit approved for $2000 and unmet need is $3000, the loan will be approved for $2000.

An alternative (private) loan should only be considered as a last resort. Interest rates can change quarterly and terms and conditions of the loan can change with little or no notice.