LOAN PROGRAMS
Federal Loans
Effective with the 2010-2011 academic year all federal loans at Westfield State College will be Federal Direct Loans. All Federal Direct Loans require a valid FAFSA.
Federal Subsidized Direct Loan*-
• Need based, long-term federal loan, for which the Federal government will pay the interest while students are enrolled, as well as during deferment periods.
• Repayment of both principle and interest begins six months after a student graduates, withdraws, or drops below half-time enrollment.
• The interest rate for 2010-2011 will be fixed at 4.5%
• Current Subsidized Loan limits are: $3500 for freshmen, $4500 for sophomores, $5500 for juniors and seniors, and $8500 for graduate students.
• This must be repaid.
Federal Unsubsidized Direct Loan*-
• Federal Loan available to students regardless of calculated need.
• Interest begins to accrue immediately and accumulates during deferment periods. Paying toward interest while the student is enrolled is optional, but advised.
• The interest rate is fixed at 6.8%.
• Loan limits are the same as those for the Federal Subsidized Direct Loan.
• This must be repaid.
Additional Unsubsidized Direct Loan*–
• Dependent students may borrow an additional $2000 per year in Unsubsidized Direct Loan per year. In most cases the additional $2000 is reflected in the financial aid award letter.
• This must be repaid.
*More information on Direct Student Loan processing will be provided beginning in May. First time borrowers will be required to complete Entrance Counseling, and all student borrowers will be required to sign a Direct Loan Master Promissory Note.
Federal Direct PLUS Loan –
If your Federal Direct Loan is not sufficient to cover your educational costs, your parent may wish to consider borrowing a Federal Direct PLUS Loan at a fixed rate of 7.9%, based on approved credit.
Perkins Loan –
• Need based, long term, low interest (5%) Federal loan awarded by the Financial Aid Office.
• Available to undergraduate students enrolled at least half-time pursuing their first bachelor’s degree.
• Awards range from $1000 to $4000.
• This must be repaid.
MEFA – The Massachusetts Educational Financing Authority – is a not-for-profit self-financing state authority dedicated to serving students and families residing in, or attending college in, Massachusetts. In addition to savings plans and free financial aid seminars, MEFA offers both parent and student fixed-rate loans based on approved credit. More information and applications are available at www.mefa.org.
Private Student Loans
Westfield State College does not endorse any private educational loan lender over another. In the 2009-10 academic year, lenders our students used were:
Chase Bank
Citizens Bank
Citibank
Digital Federal Credit Union
Discover
EdAmerica
MAFCU Federal Credit Union
Massachusetts Education Finance Authority (MEFA)
Mass Mutual Federal Credit Union
Millbury Federal Credit Union
New Jersey Class Loan
NMTW Community Credit Union
PNC Bank
Rhode Island Student Loan Authority
Sallie Mae
Student Loan Finance Corporation
Suntrust
UMassFive Credit Union
US Bank
Wachovia
Wells Fargo
Worcester Credit Union
Due to recent legislative changes, student applying for a private education loan will be provided a series of disclosures by their lender and be required to complete the Private Education Loan Applicant Self-Certification Form. These new requirements extend the amount of processing time students should expect when borrowing private loans to fund their education. It is very important that students and families plan accordingly.