Student Loans are financial obligations that must be repaid. Pay careful attention to the terms and conditions of any loan you accept to help pay for school. Do not borrow more than you need or can repay comfortably after leaving school. A comparison of various loans may be found on the Student Loan Program Chart . Additional information regarding loan programs and repayment is available online in the UW Student Guide or you may contact our office.

Most student loans have the following characteristics:

• They are interest-free while the student is in school on at least a half-time basis and during the grace period (six to nine months after leaving school). Interest begins to accrue during the repayment period (Exception: Federal Direct Unsubsidized Stafford/Ford Loan, the Federal Direct PLUS Loan and the the Federal Direct Graduate PLUS Loan, on which interest begins to accrue when the loan is disbursed).
• Repayment on student loans may be deferred temporarily if you return to school half-time or join the Armed Service, Peace Corps, VISTA, comparable volunteer organizations, or become a law enforcement officer.
• You may have up to ten years to repay the loan, depending on the total amount borrowed or less than ten years, if by making minimum payments your loan is paid off sooner. The Federal Direct Stafford/Ford Loan and Federal Direct Unsubsidized Stafford/Ford Loan have other repayment options which may allow you a more flexible time period for repayment .

Federal Perkins Student Loan, Health Professions/Primary Care Loan, and Nursing Student Loan (5% interest) are awarded directly by our office to qualified students, based on financial need. (Parents' information is required for Health Professions/Primary Care Loans--Medical, Dental and Pharmacy--regardless of dependency status). The award amounts range from $200 to $4,000 (up to $2,500 plus tuition, for the Health Professions/Primary Care Loan). The Student Fiscal Services Office, 129 Schmitz, collects the promissory notes (either electronic or paper) and prepares the loan for disbursement. Collection of loan payments after you leave school is handled by the University's loan servicer. Funds are limited in these programs.

Federal Direct Subsidized Stafford/Ford Loans are awarded to students who demonstrate financial need. Interest is deferred while the student is enrolled in school on at least a half-time basis and during the grace period. Students may receive both Subsidized and Unsubsidized loans  for the same academic period.

Students who do not qualify for need-based assistance may qualify for Federal Direct Unsubsidized Stafford/Ford Loans . Unlike the Federal Direct Subsidized Stafford/Ford Loan, interest accrues on this loan during the time of enrollment, during the grace period and during periods of repayment or deferment. The borrower can make interest payments while in school or can request that the servicer add the interest to the principal of the loan (this is called "capitalization"). If the borrower does not make an interest payment as scheduled, the interest is automatically capitalized.

Federal Direct Parent Loan for Undergraduate Students (PLUS) enables parents to borrow for their dependent undergraduate children. These loans are based on credit, not on need. However the maximum amount borrowed may not exceed the difference between the school's determination of the cost of attendance and assistance received, including scholarships and other benefits. Students must first apply for a Federal Pell Grant and/or Federal Direct Stafford/Ford Loan before they can be considered for a Federal Direct PLUS Loan. Repayment on the Parent Loan begins 60 days after the full amount borrowed for the school year has been disbursed. Loans borrowed through the Federal Direct Loan Programs are borrowed directly from the federal government. The University will coordinate all paperwork for you . Repayment arrangements are handled by the Direct Loan Servicer (a servicer contracted by the federal government).

Federal Direct Graduate PLUS Loan (GPLUS) lets graduate and professional students borrow a loan to cover the difference between the school determination of the cost of attendance and other assistance received. These loans are based on credit and not on need. Students must first apply for a Federal Direct Stafford/Ford Loan before they can be considered for the GPLUS loan. Repayment on the GPLUS begins 60 days after the full amount borrowed for the school year has been disbursed. However, repayment of the principal can be deferred when the student is enrolled at least half-time. Interest is a fixed 7.9%  for details on rates and fees). Interest accrues on this loan during the time of enrollment and during periods of repayment or deferment and we recommend you pay the interestę¢•ven while you are in school. Loans borrowed through this loan program are borrowed directly from the federal government. The University will coordinate all paperwork for you . Repayment arrangements are handled by the Direct Loan Servicer ( a servicer contracted by the federal government).