Federal Direct Loans

There are two types of Federal Direct Loans for undergraduate students: Subsidized and Unsubsidized. Eligibility for a subsidized loan is based on financial need, as determined by the FAFSA. The interest that accrues during periods of enrollment for a subsidized loan is paid by the federal government. If a student does not qualify for a need-based subsidized loan, they automatically qualify for the same loan limit through the unsubsidized loan. The interest that accrues during periods of enrollment for an unsubsidized loan is added to the principal.

The subsidized loan limits are $3,500 per year for freshmen, $4,500 per year for sophomores, and $5,500 per year for juniors and seniors. All students can opt to borrow up to $2,000 as an unsubsidized loan in addition to the initial need-based award. The total aggregate loan amount that undergraduates may borrow is $31,000. The interest rate for both the subsidized and unsubsidized loans are determined by July 1 for the upcoming school year by the federal government. The current interest rate is 6.39%. Please note, there is an approximately 1% origination fee that the government withholds upon each loan disbursement.

Student Loan Repayment Calculator

Graduate and professional students are not eligible to receive Direct Subsidized Loans. 

The unsubsidized annual loan limit for graduate and professional students is $20,500. Students enrolled in the Doctor of Pharmacy program are eligible for up to $33,000 per year.

The total aggregate loan limit for graduate and professional students is $138,500. The total aggregate loan limit for the Doctor of Pharmacy program is $224,000. The interest rate for the unsubsidized loan is determined by July 1 for the upcoming school year by the federal government.  The current interest rate is 7.94%. Please note, there is an approximately 1% origination fee that the government withholds upon each loan disbursement.

Student Loan Repayment Calculator

The promissory notes for the Federal Direct Subsidized and Unsubsidized loans, as well as the Parent Plus Loan and Grad Plus Loan, are electronically signed at www.studentaid.gov. Sign in using your FSA ID.

Entrance Counseling: All first time borrowers are required to complete online entrance counseling. Without the counseling completed, the University cannot disburse loan proceeds. Click www.studentaid.gov to access the Federal Student Aid website. Sign in with your FSA ID.

Exit Counseling: Upon graduating, withdrawing from college, or going below half-time status in any semester, borrowers are required to complete an exit counseling session. Go to www.studentaid.gov to access the Federal Student Aid website. Sign in with your FSA ID.

It is the policy of Western New England University to administer its student loan program in a manner which provides the maximum benefit to its student borrowers. In order to avoid even the appearance of impropriety, neither Western New England University nor any employee of Western New England University, will solicit or accept any benefit from a student lending institution as consideration for any advantage provided to the lending institution in relation to its educational loan activities.

The following principles and prohibitions apply to the student loan program at Western New England University:

1. Western New England University shall not engage in any revenue sharing arrangement with any student lending institution.
2. No employee of Western New England University shall accept on his or her behalf, anything of value from a student lending institution.
3. No employee of Western New England University shall serve as a member or participant of a board of a student lending institution, unless the participation is unrelated in any manner to educational loans or the employee has no direct involvement with, or benefits from, the functions of the University financial aid office.
4. No employee, representative or agent of a student lending institution shall be authorized by Western New England University to be identified to the public as an employee, representative or agent of Western New England University.
5. No employee, representative or agent of a student lending institution shall provide staffing services to Western New England University’s financial aid office.

Western New England University shall not provide a lender list that:

1. Is used to deny or impede a borrower’s choice of lender
2. Contains the names of fewer than one student lending institutions
3. Includes student lending institutions that have offered a benefit to Western New England University or its student borrowers in exchange for inclusion on the list.

No lender list shall be provided unless it contains the following:

1. A disclosure in plain language of the process by which Western New England University selects student lending institutions for the lender list including the method and criteria utilized and the relative importance of each criterion.
2. A clear statement that the borrower has the right and ability to select the educational loan provider of the borrower’s choice, is not required to use any of the lenders on the list and will suffer no penalty or unnecessary delay for choosing a lender not on the lender list.

Inclusion on the lender list shall be determined solely by considering the best interests of the borrower. Any student lending institution placed on the list shall provide assurance to Western New England University and to borrowers that the advertised benefits upon repayment will continue to inure to the benefit of the borrower regardless of whether the lending institution’s loans are sold.

The list shall not include any student lending institution that to Western New England University’s knowledge after reasonable inquiry has an agreement to sell its loans to another lending institution unless the existence of the agreement is clearly disclosed. Favorable placement on the list shall not be provided to any student lending institution for a particular type of loan in exchange for benefits provided to Western New England University or its students in connection with a different type of loan. The contents of any lender list shall be reviewed and updated at least annually.

Western New England University shall inform student borrowers and prospective borrowers of all financing options available under Title IV of the Higher Education Act of 1965 including information on terms and conditions of available loans under that Title IV or under State law that are more favorable to the borrower.

Western New England University shall not direct in any manner, potential borrowers to electronic promissory notes or other loan agreements that do not provide a reasonable and convenient alternative for the borrower to complete such documents with any federal approved student lending institution offering the relevant loan in this State.

If you qualify for the Federal Direct Stafford Loans (Subsidized & Unsubsidized), please be aware that the federal government charges a loan fee. The Federal Direct Stafford Loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment (IBR) and income-contingent repayment (ICR) plans, and loan forgiveness benefits, which other student loans are not required to provide; and Federal Direct Stafford Loans are available to students regardless of income.

Private student loans are not federal student loans. Private loans are credit based and may have, either a variable or fixed interest rate. Private student loans can offer variable interest rates that can increase or decrease over time, depending on market conditions. Private student loans have a range of interest rates and fees; students should determine the interest rate of, and any fees associated with the private student loan before accepting the private loan. The student should contact the lender of the private student loan if they have any questions about the private student loan. The private student loan interest rate may depend on the borrower’s credit rating. The student has the ability to choose any lender.