Federal Stafford Loans

Federal Direct Subsidized and Unsubsidized Stafford Loans are federal student loans offered by the U.S. Department of Education for eligible students to help cover the cost of higher education.

All Stafford Loans:

  • Enter repayment six months after graduation or when you cease attending a place of higher education at least half time
  • Are set at a fixed-interest rate
  • Have an origination fee deducted from the loan funds by the Department of Education

For more information on the current interest rates and origination fees, see studentaid.gov.

Subsidized Stafford Loans: Unsubsidized Stafford Loans:
  • Are available to students with financial need*
  • Are subsidized by the Department of Education, which pays the interest on the loans while the student is enrolled in school at least half time
  • Are available to students regardless of financial need*
  • Accrue interest at the point the loan is disbursed onto your student account (typically 10 days before semester begins)

*Financial need is defined as the cost of attendance minus all financial aid.

Annual Loan Limits

Freshmen Sophomore Junior and Senior
Dependent Student Total $5,500 $6,500 $7,500
Independent Student Total $9,500 $10,500 $12,500
Maximum Subsidized Portion (Based on Financial Need) $3,500 $4,500 $5,500
Additional Unsubsidized if Parent PLUS loan is denied $4,000 $4,000 $5,000

Loans cannot exceed the cost of attendance less other financial aid.

Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits)

Dependent Student Total $31,000
Independent Student Total* $57,500
Maximum Subsidized Portion
(Based on Financial Need)		 $23,000

*And Dependent Students whose parents cannot borrow from the PLUS loan program

Federal PLUS Loans*

  • Federal Parent PLUS Loans: PLUS Loans are available for parents of undergraduate students who are assisting their students in paying for school. Loans are based on credit approval and amounts vary up to the cost of attendance. Apply online.

Direct Parent PLUS loans are federal loans provided by the U.S. Department of Education that parents of dependent undergraduate students can apply for to help pay education expenses.

Here are some quick facts about Parent PLUS Loans:

  • The U.S. Department of Education is the lender.
  • The borrower must not have an adverse credit history.
  • The maximum loan amount is the student’s cost of attendance minus any other financial aid received.
  • They are approved based on a soft credit check of the parent.
  • They have an origination fee deducted from the loan funds by the Department of Education.
  • Repayment begins within 60 days of disbursement of the loan and can be deferred while the student is enrolled at least half time by request.** To learn more about Parent PLUS Loan repayment, visit Direct Parent PLUS Loans.

*Plus loans applications become available in May for the following academic year.

**Note: If your loan is deferred, interest will accrue on the loan during the period of deferment. You may choose to make interest-only payments during the deferment period, but are not required to. To set up interest only payments, contact your servicer.

Application Process

The application is available online at studentaid.gov. Parents must log in using their FSA ID and password (not the student’s). You should be notified right away on whether you are approved or denied. Once your application is submitted, it will be sent directly to Warner Pacific within 24 hours.

Applications are aid-year specific and must be completed each year you wish to borrow a Parent PLUS loan.

The loan amount can be specified during the application process as one of the following:

  • Maximum amount (the student’s cost of attendance minus all other financial aid)
  • Specific amount (where the parent chooses the loan amount)
  • Unknown amount (contact financial aid counselor)

Once the application is complete, parents will also need to complete a PLUS Master Promissory Note at studentaid.gov (only needs to be completed once per child).

What if I am denied?

In some cases, when a parent is denied, they may still be able to receive a PLUS loan by:

  • Obtaining an endorser who does not have an adverse credit history. An endorser code should be provided at the time you complete the application.
    • You will also need to complete a PLUS Master Promissory Note for each endorsed loan.
  • Appealing the credit decision by documenting to the Department of Education’s satisfaction extenuating circumstances relating to their adverse credit history.

If either is true, parents will also need to complete PLUS Counseling at studentaid.gov before disbursements of the loan can be made.

If a parent is unable to obtain an endorser or appeal, the student may be eligible for additional unsubsidized loans to help pay for his or her education.

Interest Rates Fees Loan Transfer Policy
Interest rates are fixed for the life of the loan. To find the current interest rates, visit studentaid.ed.gov. There is a loan fee on all Direct PLUS Loans. The fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. For current loan fee information, visit studentaid.ed.gov. A PLUS loan made to a parent cannot be transferred to the child. The parent is responsible for repaying the loan.

Private Education Loans

Private (or alternative) loans are loans that are not part of the federal financial aid program.

Here are some quick facts about private loans:

  • Interest rates and fees vary greatly and may depend on the borrower’s credit-worthiness.
  • They have both fixed and variable-interest rate options.
  • Generally, students are required to have a cosigner.
  • Loan amounts cannot exceed the cost of attendance minus all other financial aid.
  • They can be in the student or parent’s name.
  • They have no loan origination fee.
  • Repayment deferment options may vary.
  • Interest begins accruing at the point the loan is disbursed onto your student account (this is typically ten days before semester begins).

Where do I find a private loan?

These resources will help you make an informed decision about the most appropriate loan for you:

  • Check with your personal bank or credit union
  • Try Fast Choice to view and compare lenders that have provided private loans to Warner Pacific students in the past.
    • Please note that you are not required to select a lender on this list.
  • You can also visit ConsumerAffairs.com for helpful tips on how to choose a student loan lender.

Your financial aid counselor cannot recommend any private lender but can help you understand your options.

Other Resources

Loan Codes of Conduct