Students are Required to Know and Understand the Following Federal Direct Student Loan Information:
- You must have a complete financial aid file at WCC—this means you have completed your FAFSA, submitted requested forms and/or documents to our office, and received a notification with an award notice or federal student loan eligibility letter. You must be enrolled in an eligible degree or certificate program and taking a minimum of 6 credits (half-time) which apply to your program in each quarter to receive a loan.
- A new federal reporting requirement now means that a student must be enrolled for classes at WCC before we can actually process their loan. For example, if a student plans to start winter quarter 2019 and wants to apply for a loan where winter quarter will be the initial quarter of their loan for the 2018-2019 year, then they would have to be enrolled for winter quarter 2019 classes before we would be able to process the loan. Please keep this in mind as you begin the loan process for an upcoming quarter.
Your student loan eligibility is determined using your FAFSA information, WCC’s cost of attendance, other financial aid and scholarship awards, your grade level, dependency status and annual maximum loan limits. This loan eligibility may be a combination of subsidized and unsubsidized federal student loan amounts.
Grade or borrower level is based upon your earned credits for your current degree or certificate at WCC, it is not based on number of calendar years or quarters you have attended school. To be considered a level two or second year borrower you must have 46 or more college level credits that apply to your program of study. You may be required to complete a program completion plan with an enrollment planner to document this.
Your student loan will be disbursed equally over your requested enrollment period. Typically this is all the quarter(s) you plan to attend WCC for at least 6 credits, for example between fall 2018 and spring 2019.
Outstanding tuition and fees will be deducted from loan disbursements as allowed by federal regulations. Any remaining amount will be disbursed to the student via BankMobile, WCC's electronic funds distribution partner.
Like all other financial aid, no loan funds will be disbursed to the student before the quarter begins.
Generally loan processing time and disbursement of funds is 1.5 to 2 weeks, however for future quarters, no loan funds will be disbursed to the student before the quarter begins.
If you are a first year student AND a first time borrower, your first loan disbursement cannot be released any earlier than 30 days after the start of your first quarter. If this applies to you, you will be notified. This is a federal regulation and cannot be waived. Please plan accordingly.
Student loans must be disbursed in a minimum of 2 disbursements. If your loan is for one quarter only, you will receive half of the loan at the beginning of the quarter and the second half at the mid-point of the quarter. If this applies to you, you will be notified. This is a federal regulation and cannot be waived. Please plan accordingly.
For students completing the remainder of their program in less than one academic year, we are required to prorate your loan based on the number of credits you will take to complete your degree or certificate.
The interest rate is determined annually for all federal student loans, this change takes effect each year on July 1st. Interest rates for federal loans first disbursed between 07/1/2017 and 6/30/2018 are 4.45% for subsidized and/or unsubsidized undergraduate students. PLUS rate is 6.0% for the same time frame. Interest rates for federal loans first disbursed between 07/1/2018 and 6/30/2019 will increase and are 5.05% for subsidized and/or unsubsidized undergraduate students. PLUS rate increases to 7.6% for the same time frame.
Effective July 1, 2013, the Moving Ahead for Progress in the 21st Century Act limits the benefits of the direct loan subsidy to an aggregated period of no more than 150% of program length for new borrowers. Once that limit has been exceeded, a student may borrow only unsubsidized loans, and will begin to incur interest charges on outstanding subsidized loans. Additional information is available in this Department of Ed publication. Please note for this law, a new borrower is defined as one who did not have an outstanding balance of principal or interest on a Direct or FFEL Program Loan on July 1, 2013.
Currently there is a 1.066% origination fee charged by the Department of Education for loans disbursed on or after 10/1/2017 and before 10/1/2018. This fee will change on 10/1/2018; however this rate isn’t available yet. This fee is deducted, by the Department of Education, from each loan disbursement you receive. Parent PLUS loans currently have an origination fee of 4.264% which will also decrease following the same dates indicated above.
This is a student loan and must be repaid.
You have the right to cancel your student loan at any time. If your loan funds have been disbursed to you, you have 14 business days to return the funds to WCC to be refunded back to the loan program on your behalf. Contact the Financial Aid Office if you have any questions.
All loan recipients are required to complete the Federal Student Loan Exit Counseling when they graduate, leave WCC, or drop below 6 credits (half-time) enrollment. Loan exit counseling is completed at StudentLoans.gov
The average annual loan debt for a student attending 2 years at WCC is $5615.00.
Annual Maximum Loan Limits
Dependent Student (students that were required to use parent(s) information on their FAFSA)
Level 1 borrower $5,500 of which no more than $3,500 can be subsidized
Level 2 borrower $6,500 of which no more than $4,500 can be subsidized
Level 1 borrower $9,500 of which no more than $3,500 can be subsidized
Level 2 borrower $10,500 of which no more than $4,500 can be subsidized
Lifetime Maximum (Aggregate) Loan Limits
Dependent Undergraduate Students
$31,000—no more than $23,000 of this amount may be in subsidized loans
Independent Undergraduate Students
$57,500—no more than $23,000 of this amount may be in subsidized loans
Students Accepted in the BAS – IT Networking degree (4-year degree)
Students in a BAS degree are typically considered to be Level 3 or Level 4 borrowers
(3rd or 4th year student) and as such have different maximum loan limits.
Please see the award notification that you received for detailed information.