Student Loan Information
Federal Direct Student Loans 2018-2019 Interest Rates
- Subsidized Student Loan - fixed rate 5.05%*
- Unsubsidized Student Loan - fixed rate 5.055%*
- Parent PLUS Loan — fixed rate 7.6%* (parents may borrow up to the cost of attendance for a dependent student).
*All loans disbursed prior to July 1, 2013 carry a variable interest rate which is capped at 8.25% for student loans and 10.5% for parent loans.
Most federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.
Direct Subsidized Loans and Direct Unsubsidized Loans
- First Disbursement Date Loan Fee
- On or after 10/1/18 and before 10/1/19 1.062%
- On or after 10/1/17 and before 10/1/18 1.066%
Direct PLUS Loans
- First Disbursement Date Loan Fee
- On or after 10/1/18 and before 10/1/19 4.248%
- On or after 10/1/17 and before 10/1/18 4.264%
Eligibility for Federal Student Loans
In order to receive student loan funds, enrollment of at least half time (six semester hours) is required.
All first time loan borrowers are subject to a mandatory thirty day delay on the first loan disbursement. Students can expect the funds to disburse thirty days from the semester start date if all required deadlines have been met.
A Master Promissory Note is a binding document between the student and the lender in which the student agrees to the obligation of repaying the borrowed loan funds. A Master Promissory Note will be valid for ten years. Students are only required to sign one Master Promissory Note unless there is a change in lenders and/or schools.
Students should be aware of their rights and responsibilities as a loan borrower. Eastern WV CTC submits all student and parent loans to the National Student Loan Data System (NSLDS), as required by federal regulation, and the information will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
Subsidized loans are need-based aid and interest does not accrue as long as the borrower is enrolled in six or more credit hours. Unsubsidized loans are not need-based and the interest will accrue on a quarterly basis. Quarterly interest statements are mailed directly from the Loan Servicer. Although payments are not required while enrolled at half time, borrowers are able submit payments toward interest charges at any time.
The deadline to accept and complete the requirements for student loan processing is October 25th for the fall term and March 25th for the spring term.
- A) Freshman ..................$5,500.00*
- B) Sophomore................$6,500.00*
*For dependent undergraduate students, the loan limit includes both subsidized and unsubsidized loans.
For Independent students, the student has additional unsubsidized loan eligibility of:
- A) Freshman ..................$4,000.00
- B) Sophomore................$4,000.00
Note on Loan Limits: Loan amounts combined with other financial aid resources (such as grants and scholarships) cannot exceed a student's Cost of Attendance Budget for the aid year.
When borrowing student loans, try to limit the amounts to direct costs, such as tuition, fees, and books. Remember that each dollar borrowed now, is a loan against future earnings.
Students may borrow an aggregate maximum of $23,000 in subsidized loans and an aggregate maximum of $34,500 in unsubsidized loans or a combined total of $57,500 as an undergraduate student.
Federal Direct loans provides a six month grace period after graduation or after enrollment decreases below halftime status before repayment starts. Learn about the advantages of "Income-Based Repayment" in this new video from IBRinfo. All students who graduate, drop to less than half time enrollment, withdraw or cease attendance, must complete student loan exit counseling.
Handouts and Brochures
- Get Ready for Repayment
- Repayment Brochure
- Income-Driven Repayment Plans
- Deferment and Forbearance Information
- How to Avoid Delinquency and Default on Your Student Loans
Department of Education Student Loan Servicers
A complete list of Department of Education student loan servicing agencies is available at studentaid.ed.gov. Students may access the National Student Loan Data System (NSLDS) to retrieve the name of the agency servicing their student loans at https://nslds.ed.gov/.
Effective February 28, 2016, please use the following information to contact the FSA Student Loan Ombudsman Group.
- Online assistance: https://studentaid.ed.gov/sa/repay-loans/disputes/prepare
- Telephone: 877-557-2575 * Fax: 606-396-4821
- Mail: FSA Ombudsman Group, PO Box 1843, Monticello, KY 42633