Loans

A loan must be repaid with interest. A FAFSA must be filed to be evaluated for loan assistance for all but the Minority Teacher Loan. Requiring a FAFSA will help ensure that students are taking advantage of the best financial aid programs including federal grants and loans prior to borrowing an alternative loan.

A minimum enrollment status of half-time (undergraduate 6 credits/graduate 4 credits, except for some alternative loan programs) is required to participate in all loan programs. Awards are for one academic year and require that the student complete a FAFSA or Renewal FAFSA each year to be considered for continuing eligibility.

Notice: NASFAA Creates Handout for Students with Credit Crunch Questions.

Type of Loans	Eligibility	Terms
Federal Perkins Loan	Award based on financial need. Funds are limited and awarded first-come, first-served. Continuing students must have a cumulative gpa of 2.25 to receive consideration. A gpa is not considered for first-time freshmen.	Interest rate is 5%. Interest is deferred until the beginning of the repayment period. A cumulative maximum of $40,000 for combined undergraduate and graduate education. Complete Master Promissory Note (MPN) online from the "online loan applications" link found on our home page. Can't sign MPN until loan has been awarded and for 3-4 days after student has accepted the award via PAWS account. Repayment begins 9 months after the borrower graduates, leaves school, or drops below half-time status. Repayment can be deferred or canceled under certain conditions. Contact the Bursar's Office (414) 229-4914 with any questions. A minimum repayment of $120 every 3 months with a maximum repayment period of 10 years. (Low-income students can apply for an extension of up to 10 years.)
Minority Teacher Forgivable Loan	Junior and Senior status. Wisconsin Minority students and can be awarded regardless of need.	Interest rate is 5%. Interest is deferred until the beginning of the repayment period. Repayment begins 9 months after the borrower graduates, leaves school, or drops below half-time status. Repayment must be completed in 48 months. If the borrower teaches at an eligible school, a portion of the loan may be forgiven. Contact the College of Education at (414) 229-4725 for further information.
Federal Nursing Student Loan	Award based on financial need. Must complete the verification process for financial aid. Must be a junior, senior, second degree candidate, or a graduate student.	Interest rate is 5%. Interest is deferred while enrolled at least half-time in the School of Nursing. Awards range from $200-$4,000 per academic year. Sign Master Promissory Note (MPN) online from the "online loan applications" link found on our home page. Can't sign MPN until loan has been awarded and for 3-4 days after student has accepted the award via PAWS account. Repayment begins 9 months after the borrower graduates, leaves the School of Nursing, or drops below half-time status. A minimum quarterly repayment of $120 with a maximum repayment period of 10 years. The Federal Nursing Student Loan Program does not allow loan cancellation for nursing employment after graduation. However, the borrower may enter into an agreement with the Secretary of Health and Human Services (HHS) to serve as a registered nurse in a nursing-shortage area. In such cases, the government will repay part of the outstanding debt.
FFEL Subsidized Stafford Loan	Award is based on financial need.	Loans disbursed between July 1, 2006 and June 30, 2008 have a fixed interest rate of 6.8% Loans disbursed between July 1, 2008 and June 30, 2009 for undergraduate students only have a fixed interest rate of 6.0%. Loans for graduate students have a fixed interest rate of 6.8% Loans disbursed between July 1, 2009 to June 30, 2010 for undergraduate students only have a fixed interest rate 5.6%. Loans for graduate students have a fixed interest rate of 6.8% Loans disbursed prior to July 1, 2006, will continue to have a variable interest rate capped at 8.25%. No interest charged as long as borrower is enrolled at least halftime. First-time borrowers that have been offered a FFEL Stafford Loan should complete a master promissory note (MPN) online from the "online loan applications" link found on our home page. In addition to completing a MPN, first-time Stafford loan recipients must also complete entrance loan counseling before any loan proceeds can be disbursed. This is comprised of an online tutorial and quiz. Borrowers needing to complete entrance loan counseling will be directed to an online site after they have begun completing their MPN. Once they have successfully passed the quiz, they will be allowed to complete their MPN. The maximum awards differ by grade level, dependency status, and length of academic program. Repayment begins 6 months after the borrower graduates, leaves school, or drops below half-time status. Repayment may be deferred or modified under certain conditions. There are three repayment plans available.
FFEL Unsubsidized Stafford Loan	Not a need-based loan.	Loans disbursed on or after July 1, 2006 have a fixed interest rate of 6.8%. Loans disbursed prior to July 1, 2006, will continue to have a variable interest rate capped at 8.25%. The loan plus need-based aid may not exceed the total cost of attendance. Interest is charged from the date of the first disbursement. Interest may be paid while in school or paid later. First-time borrowers that have been offered a FFEL Unsubsidized Stafford Loan should complete a master promissory note (MPN) online from "online loan applications" link found on our home page. In addition to completing a MPN, first-time Stafford loan recipients must also complete entrance loan counseling before any loan proceeds can be disbursed. This is comprised of an online tutorial and quiz. Borrowers needing to complete entrance loan counseling will be directed to an online site after they have begun completing their MPN. Once they have successfully passed the quiz, they will be allowed to complete their MPN. The maximum awards differ by grade level, dependency status, and length of academic program. Repayment begins 6 months after the borrower graduates, leaves school, or drops below half-time status. Repayment may be deferred or modified under certain conditions. There are three repayment plans available.
FFEL Grad PLUS	Loans available to students pursuing a graduate degree. Requires FAFSA be filed. Awarded regardless of need.	Loans have a fixed interest rate of 8.5%. Graduate student must reapply for the Grad PLUS loan annually, but a new FFEL PLUS Master Promissory Note (MPN) is not required. Entrance Counseling is required for first time Grad PLUS borrowers with loans disbursing after July 1st, 2008. For details on how to apply for the FFEL Grad PLUS, see the "online loan applications" link found on our homepage. The borrower or cosigner must be credit worthy. Annual maximum limited to student's cost of attendance minus any other financial aid. In-school deferment is available.
FFEL Parent PLUS	Loans available to parents of dependent, undergraduate students. Awarded regardless of need. Effective with the 2008-09 academic year, requires the filing of a FAFSA	Loans disbursed on or after July 1, 2006 have a fixed interest rate of 8.5%. Loans disbursed prior to July 1, 2006, will continue to have a variable interest rate capped at 9%. Parent must reapply for the PLUS loan annually, but a new FFEL PLUS Master Promissory Note (MPN) is not required. A FAFSA must be submitted before a PLUS loan will be processed For details on how to apply for the FFEL PLUS, see the "online loan applications" link found on our homepage. The parent borrower or cosigner must be credit worthy. If parent is denied PLUS, student may be eligible for unsubsidized loans. Annual maximum limited to student's cost of attendance minus any other financial aid. Repayment begins 30 days after the loan is fully disbursed. Effective for loans disbursed on or after July 1, 2008, repayment may be deferred for up to six months following students enrollment on at least a halftime basis.
Alternative Loans	Requires enrollment at an eligible post secondary institution. Effective with the 2008-2009 academic year, requires the filing of a FAFSA. Consider only after all other financing options have been exhausted.	Numerous lending institutions throughout the country offer students a variety of alternative loan programs. These are not subsidized by the government. Students may use these loans to cover educational expenses determined by the Financial Aid Department but not covered by other financial aid programs. Annual maximum limited to student's cost of attendance minus any other financial aid. These are considered consumer loans and are not offered by UWM. Many allow for deferred payment. For a list of potential lenders, contact the Financial Aid Office in Mellencamp 162, or click on this link: Alternative Loans. Some private/alternative loan lenders require interest only payments during the school period while student is enrolled.