Student Loan Processes
Federal Student Loan Processes
UWM participates in the Federal Family Education Loan (FFEL) Program. In order to borrow loan funds through the FFEL Program, all borrowers will need to have an active FFEL Master Promissory Note (MPN). We also suggest that you have your lender code available to complete the online process.
Selecting a lender from which to borrow a Federal Stafford, Parent PLUS, or Grad PLUS loan has become increasingly complex. In an effort to help UWM students and families navigate the process, a "Suggested Lender List" is provided. Although a "Suggested Lender List" is provided, you should keep in mind that:
- lenders have not been ranked
- lenders are listed in random order on our website and in alphabetical order on printed materials;
- only lenders that submitted a response to our Request for Information were evaluated; there are thousands of participating lenders - you are encouraged to compare our list to other lenders to find the lender that is best for you;
- Potential savings in many cases are tied to repayment method. For example, a lender may offer an interest rate reduction if repayment is by auto-debit (automatic withdrawal from your checking or savings account.) Therefore, a borrower must compare benefits carefully.
- Lenders on this list have signed a statement affirming that they meet the standards listed.
CLICK HERE to see the standards.
YOU ARE NOT REQUIRED TO USE A LENDER THAT APPEARS ON THE SUGGESTED LENDER LIST.
Stafford Loan Borrowers - In addition to completing a FFEL MPN, a first-time Federal Stafford loan borrower is required to complete entrance loan counseling before any Stafford Loan funds can be disbursed. Selecting this link will direct you to the MPN site and then redirect you to the online Entrance Loan Counseling site if there is no record that this requirement has yet been completed. Once you have completed entrance loan counseling, you will be returned to your online FFEL MPN. Please complete the FFEL MPN using your social security number. If you have not already completed a FAFSA for the appropriate year, please do so as soon as possible at http://www.fafsa.ed.gov.
The 2009/2010 FAFSA is required to borrow Stafford loan funds for Fall 2009, Spring 2010 and Summer 2010.
Stafford Loan Eligibility Chart
The chart below shows the annual loan limits for a Federal Stafford loan. These limits are based on grade level. A dependent undergraduate student whose parent is denied a Parent PLUS loan becomes eligible for independent undergraduate student loan limits (combination of subsidized and unsubsidized loans). If a parent is denied the Parent PLUS loan, a dependent undergraduate student becomes eligible for an additional unsubsidized Stafford loan of up to $4000 for a freshman/sophomore or $5000 for a junior/senior. The unsubsidized loan in combination with other aid cannot exceed cost of attendance.
| Dependent Students (Except students whose parents cannot borrow PLUS) | Base Amount (subsidized loan) |
Additional unsubsidized loan amount prior to July 1, 2008 | Additional unsubsidized loan amount effective July 1, 2008 |
|---|---|---|---|
| Freshman | $3,500 | $0 | $2,000 |
| Sophomore | $4,500 | $0 | $2,000 |
| Junior/Senior | $5,500 | $0 | $2,000 |
| Independent Undergraduate Students (and dependent students whose parents are denied a PLUS loan) | Base Amount (subsidized loan) |
Additional unsubsidized loan amount prior to July 1, 2008 | Additional unsubsidized loan amount effective July 1, 2008 |
|---|---|---|---|
| Freshman | $3,500 | $4,000 | $6,000 |
| Sophomore | $4,500 | $4,000 | $6,000 |
| Junior/Senior | $5,500 | $5,000 | $7,000 |
| Graduate/Professional Students | Base Amount (subsidized loan) | Additional unsubsidized loan amount |
|---|---|---|
| $8,500 | $12,000 |
In addition to increases in the annual loan limits, effective July 1, 2008, the aggregate (career) loan limits have also been revised:
Undergraduate dependent students - Up to $31,000 (no more of $23,000 of which can be subsidized.)
Undergraduate independent students - Up to $57,500 (no more of $23,000 of which can be subsidized.)
Graduate and Professional student remains the same at a total undergrad and graduate level borrowing of $138,500 (no more than $65,500 of which can be subsidized.)
Perkins/Nursing - Students that have been offered either a Federal Perkins or Federal Nursing Loan need to have an active master promissory note. If you received Perkins or Nursing loan funds for attendance at UWM during the previous year, you do NOT need to complete a new MPN. New borrowers will not be able to complete the promissory note until after the school has notified the servicer that the student is eligible to participate in one of these loan programs. In order for that to occur, the student must first accept the award via the PAWS account. Within 3-4 days after accepting the award, the student will see a "TO DO " item indicating the need to complete the MPN.
Federal Parent PLUS, Federal Graduate PLUS and Alternative Loan Processes
Federal Parent PLUS Loans - Federal loan available to parents of dependent, undergraduate students to help them pay for their child's college education. Apply for the 2009-2010 school year starting May 1, 2009. You will select this link to be directed to the online FFEL PLUS Application/Credit Pre-approval and the MPN site. A FAFSA must be submitted before a PLUS loan can be processed. The FAFSA can be filed at http://www.fafsa.ed.gov
Federal Grad PLUS - Federal loan available to Graduate students as of July 1, 2006. The Grad PLUS loan is a government-sponsored loan with a fixed interest rate of 8.5%. The loan begins accruing interest when it is fully disbursed. The Graduate student is both the borrower and the student and must be credit worthy as determined by the lender. Student borrower must also be a U.S. citizen or eligible non-citizen, be enrolled at least half-time in a graduate level program and not be in default on any other federal loan. Students can borrow up to the cost of attendance less any other financial aid, which means a FAFSA must be on file. Apply for the 2009-2010 school year starting May 1, 2009. All first-time Grad PLUS borrowers must complete entrance loan counseling before loan proceeds disburse. Graduate students are encouraged to consider this loan in lieu of the Alternative Loan options.
Alternative Loans - Numerous lending institutions throughout the country offer students a variety of alternative loan programs. These loans are not subsidized by the government and may be used to cover educational expenses not covered by financial aid. Beginning with the 2008-2009 academic year, a FAFSA is required, as most will qualify for a Federal Stafford Loan which is a better program; alternative loans should be considered as a last resort after exhausting all other options. Apply for the 2009-2010 school year starting June 1, 2009. The link here will take you to a tutorial that will provide you with some important information regarding alternative loans. At the end of the tutorial, you will be directed to a website that lists some of the more common alternative loans offered in Wisconsin. If you wish to borrow from a different lender, please check with them to see if they offer an online application. Please note that some lenders may require interest only payments while you are at school.
ADDITIONAL ALTERNATIVE LOAN INFORMATION FOR MINNESOTA RESIDENTS (SELFLOAN)
The SELF loan program is an educational alternative/private loan provided by the Minnesota Office of Higher Education. This program is unique to Minnesota and the Office of Higher Education is the only lender in the program. Minnesota residents attending eligible post-secondary institutions in-state, out-of-state, and nonresidents attending eligible post-secondary institutions within Minnesota are eligible to apply. The loan amount you are allowed to borrow depends on your grade level. For minimum loan amount, maximum and cumulative SELF limits, repayment, eligibility criteria and interest rate information visit www.selfloan.org. All SELF applications are certified by the school and require a completed application by a credit-worthy co-signer. IMPORTANT!!! The SELF loan does not offer a grace period or deferment options to borrowers. For further information about the SELF loan program, please visit the Frequently Asked Questions Page via www.selfloan.org. You are encouraged to exhaust all eligibility for federal aid programs before you consider alternative/private loans.
