Government-sponsored student loans are an important element of many financial aid packages. These loans provide significant amounts of funding, usually with low-interest rates for loan repayment and with generous repayment time frames. All application requirements and loan specifications will be disclosed with your financial aid package.

Federal Perkins Loan

Program provides for deferred interest, low-cost loans for undergraduates. Current interest rate is 5.0 percent, with 10 years for repayment.

• The Federal Perkins loan is a federally sponsored education loan that offers a low, fixed interest rate of 5%.
• The interest for this loan is paid by the United States Government while the student borrower is enrolled at least half-time.
• This loan goes into repayment 9 months after the student borrower graduates or ceases to be enrolled at least half-time.
• The standard repayment period is ten years, but there is no penalty for early payoff.
• In order to receive a federal Perkins loan, you will need to complete an online Promissory Note.

Federal Stafford Loan

• The Federal Direct Stafford loan is a federally sponsored education loan that offers a low, fixed interest rate of 4.5% for the 2010-2011 year.
• A net origination fee of .5% is deducted from the loan amount parents borrow.
• Direct Stafford loans are obtained direct from the United States Government.
• The interest for this loan is paid by the United States Government while the student borrower is enrolled at least half-time.
• These loans go into repayment 6 months after the student borrower graduates or ceases to be enrolled at least half-time.
• The standard repayment period is ten years, but there is no penalty for early payoff.

Promissory Note and Entrance Counseling Requirements for Federal Direct Stafford Loans

In order to receive a Federal Direct Stafford loan, you will need to complete an online Master Promissory Note (using your FAFSA PIN) and Entrance Interview session. Ohio Wesleyan University is a participant in the Online Student Loan Entrance Counseling service provided by the Department of Education. This service enables participants to complete entrance counseling requirements anytime on the website. The purpose of these sessions is to help you to understand your rights and obligations as a student loan borrower. Click the link above to go to the Federal Direct Loan website. Once on the site, go to the Manage My Direct Loans section to complete a Federal Direct Stafford loan promissory note and entrance counseling requirements.

Exit Counseling Requirements for Federal Direct Stafford Loans

Ohio Wesleyan University is a participant in an Online Student Loan Exit Counseling service. The Federal government requires that students complete student loan exit counseling prior to graduating or ceasing at least half-time attendance. This service enables participants to complete exit counseling requirements anytime on the website. The purpose of these sessions is to help you to understand your rights and obligations as a student loan borrower. Click the link above and follow the instructions at the site to complete a Federal Direct Stafford loan exit counseling requirement.

Federal Direct Parent Loan (PLUS)

The Federal Direct PLUS loan is a federally sponsored education loan that offers a low, fixed interest rate of 7.9%.

A net origination fee of 2.5% is deducted from the loan amount parents borrow.

This loan allows parents to borrow up to the full cost of attendance (less other financial aid received) for their dependent student.

These loans typically go into repayment 60 days after full disbursement, but parents may delay repayment while the student is enrolled with an approved Direct PLUS forbearance.

The standard repayment period is ten years, but there is no penalty for early payoff.

In order to receive a Direct PLUS loan, you will need to submit the Free Application for Federal Student Aid (FAFSA) to Ohio Wesleyan and complete an online application (credit check) and Master Promissory Note. Click the link above to go to the Federal Direct Loan website. Once on the site, go to the Manage My Direct Loans section to apply for a Federal Direct PLUS.

Additional Information on Government Loans

• The total subsidized and unsubsidized amount cannot exceed $5,500 for the freshman year, or $9,500 for independent students.
• First-time borrowers need to complete an entrance interview and complete a promissory note prior to receiving any disbursements through this program.
• All borrowers must complete an exit interview when they cease attendance or drop below half time.

Important Information Regarding Federal Direct Student Loans

You must be enrolled at least part-time (six credit hours) per semester during the academic year and summer to be eligible to borrow the Federal Direct Loan. It is important during the academic year to notify the Registrar’s Office if you drop below six credits or withdraw from Ohio Wesleyan.

You are obligated to repay your loans even in the event that you do not complete your program of study or do not complete the program within the regular time for program completion, are unable to obtain employment or dissatisfied with the school or education received.

You may be eligible to reduce your taxable income by up to $2500 for interest paid during the tax year on your student loans. To determine your eligibility you should consult a qualified tax adviser or the Internal Revenue Service online , or by calling (800) 829-1040.

Private Loans

Private student loans help bridge the gap between the actual cost of education and the limited amount the government allows you to borrow in its programs.

Private loans are offered by private lenders and there are no federal forms to complete.

Eligibility for private student loans often depends on your credit score.

It is better to apply for a private loan with a cosigner even if you could qualify for a loan on your own.

In order to receive a Private Student Loan, you will need to complete an on-line application and promissory note.

Lender List Information and Agreements

• The lenders and loan options presented in FASTChoice were selected for the excellent terms and benefits they provide to borrowers.
• To determine which lenders and loan options to display, Ohio Wesleyan University sent a Request for Information (RFI) to 25 of the major lenders. Through this request process, lenders were asked about their services, borrower benefits, method of processing, etc. After receiving responses from these lenders, a committee at OWU (including student representation) reviewed the submitted responses and scored the lenders based on their responses. The lenders listed in FASTChoice represent those lenders Ohio Wesleyan University views as exceptional choices for our students.
• All of the information provided on the Loan Options page is reviewed on regularly to ensure that the benefits that lenders offer continue to adhere to our criteria. Any loan options that no longer adhere to our criteria are removed, and new loan options that meet our criteria are added. At least three lenders will be presented to you at all times.
• We maintain professional relationships with all lenders. Our officials are prohibited from accepting financial or other benefits in exchange for displaying lenders and loan options in FASTChoice. These include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution’s financial aid office; allowing lenders to place our institution’s name or logo on any of their products; and owning lenders’ stock (for those college officials who make loan decisions for our institution).

Read about OWU’s Code of Conduct governing student loan practices.