Financial Aid

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Loans

Western Michigan University participates in Federal Direct, private and university funded loan programs. Loans are an excellent way to finance your education. Undergraduate and graduate students, and parents of dependent students may borrow money to pay towards education expenses. The money that is borrowed needs to be repaid with interest with a variety of repayment options available. Loan amounts are based on cost of attendance, class level, enrollment status, dependency status, other resources, and for some loans, need.

To determine eligibility for most loan programs, you must file an application every year. For more details on the specific programs, click on the respective links below.

Federal Direct Student Loan Programs
Options for International Students
Alternative Loans
Short Term Loans
FAQ's

Federal Direct Student Loan Programs

Federal Perkins Loan

Contact Information

Perkins Loan Office
Western Michigan University
1903 West Michigan Avenue
Kalamazoo, MI 49008-5210
(269) 387-4262
ECSI
181 Montour Run Road
Corapolis, PA 15108
(888) 549-3274
www.ecsi.net

Description/Benefits

Federally funded (limited funding)
Need-based
5 percent fixed interest rate
Awarded to exceptionally needy students
Funds may not be available for students who apply after April 1 for the upcoming aid year
Awarded by WMU as Federal Perkins on award notice
This is a loan you must repay to Western Michigan University
Complete the Return of Disbursed Federal Loans if you wish to cancel your loan or return funds you do not need. If funds are returned within 30 days of the disbursement date any interest will be waived.
The annual loan limit is $4,000 for undergraduate students and $6,000 for graduate students.
The aggregate loan limit is $20,000 for undergraduate students and $40,000 for graduate students (including loans received as an undergraduate).
Additional information available on the Federal Perkins MPN Information Sheet

Eligibility

Undergraduate, graduate student or teacher certification
Award eligibility based upon EFC, enrollment and other resources
Award may be adjusted or canceled if EFC changes or student receives additional resources
See Maintaining Your Eligibility for other eligibility criteria
Complete the Financial Aid Adjustment Form to decline or reduce the loan
Requires completion of Federal Perkins Master Promissory Note (MPN)

Repayment

Repayment deferred and interest waived while enrolled at least half time
Begin to repay loan nine months after you cease to be enrolled at least half time. During this nine-month "grace period" interest will not accrue on loan. Once the grace period expires, your loan will accrue interest and you will begin to repay your loan. For sample repayment amounts, see Federal Loan Repayment Chart
If you drop to less than half time, withdraw, drop out, graduate or simply do not return to school, this information will be reported to the servicer and they will begin to count your grace period. You are responsible for notifying WMU immediately if your enrollment changes as described above.
Payments will be made to Western Michigan University (holder of the loan)
Payments will be made through ECSI.
For information about Federal Perkins Loan deferments or cancellation of your loan, visit ECSI website at www.ecsi.net
To obtain information about consolidating your Federal Perkins Loan with your Federal Direct Loans, visit loanconsolidation.ed.gov/ or call 1-800-557-7392. Federal consolidation allows you to refinance all of your federal loans into one loan and you will have one payment each month.
It is important that you maintain a "very important Perkins file" and keep copies of your award notices and your MPN in one place as they provide the details of your loans, and your rights and responsibilities as a student loan recipient.

Federal Direct Subsidized Loan

Contact Information

Direct Loan Servicing Center
(repayment information)
(800) 848-0979
www.dlssonline.com/
Direct Loan Consolidation Center
(consolidation)
(800) 557-7392
WMU Financial Aid Office
Phone: (269) 387-6000
e-mail: finaid-info@wmich.edu

Description/Benefits

Federally funded
Need-based
The fixed interest rate for loans in the deferment or six-month grace period as of July 1, 2008 is as follows:
- 6.0 percent for undergraduate loans first disbursed July 1, 2008, and after
- 6.8 percent for graduate loans first disbursed July 1, 2006, and after
- 6.8 percent for undergraduate loans disbursed July 1, 2006 through June 30, 2008
2 percent origination fee minus 1.5 percent rebate, subtracted prior to disbursement, effective July 1, 2008
Awarded by WMU as Federal Direct Subsidized on award notice
Subject to annual and aggregate loan limits
This is a loan you must repay to the U.S. Department of Education
Complete the Return of Disbursed Federal Loans if you wish to cancel your loan or return funds you do not need. If funds are returned within 30 days of the disbursement date any interest will be waived.
After you have accepted your subsidized loan, you will receive a "Federal Direct Loan Disclosure Statement" from the Direct Loan Servicing Center or WMU. The Disclosure Statement identifies anticipated disbursement dates, gross and net disbursement amounts, and loan fee amounts for all your Federal Direct Loans for the academic year.

Eligibility

Completed Federal Direct Master Promissory Note (MPN) required for first-time borrowers
Direct Loan Entrance Counseling required for first-time borrowers at WMU
Award eligibility based upon EFC, cost of attendance, enrollment and other resources
Award will be canceled if enrolled less than half time
Award may be adjusted or canceled if there is a change to EFC, cost of attendance, enrollment, graduating in August or December or receipt of additional resources
Undergraduate, graduate student or teacher certification
Must be enrolled at least half time
Completed Financial Aid Adjustment Form required to accept the loan

Repayment

Repayment deferred and interest waived while enrolled at least half time
Begin to repay loan 6 months after you cease to be enrolled at least half time. During this 6 month "grace period", interest will not accrue on loan. Once the grace period expires, your loan will accrue interest and you will begin to repay your loan. For sample repayment amounts, see Federal Loan Repayment Chart
Complete an exit counseling session so you are aware of all the information you will need to know about repaying your loan.
If you drop to less than half time, withdraw, drop out, graduate or simply do not return to school, this information will be reported to the servicer and they will begin to count your grace period. You are responsible for notifying WMU immediately if your enrollment changes as described above.
Payments will be made to the U.S. Department of Education (holder of the loan)
For detailed information about repayment, deferments, forbearance, and other frequently asked questions, go to www.dlssonline.com/
To obtain information about consolidating your Federal Direct loans, visit loanconsolidation.ed.gov or call 1-800-557-7392. The interest rate for a Direct Consolidation Loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
It is important that you maintain a "very important papers file" and keep copies of your award notices, MPN, Borrower's Rights and Responsibilities and the Direct Loan Disclosure Statement in one place as they provide the details of your loans, and your rights and responsibilities as a student loan recipient.

Federal Direct Unsubsidized Loan

Contact Information

WMU Financial Aid Office
Phone: (269) 387-6000
e-mail: finaid-info@wmich.edu
Direct Loan Servicing Center
(repayment information)
(800) 848-0979
www.dlssonline.com/
Direct Loan Consolidation Center
(consolidation)
(800) 557-7392

Description/Benefits

Federally funded
Non need-based
The fixed interest rate for loans in the deferment or six-month grace period is as follows:
- 6.8 percent for undergraduate and graduate loans first disbursed July 1, 2006, and after
Interest starts accruing upon disbursement
2 percent loan origination fee minus 1.5 percent rebate, subtracted prior to disbursement, effective July 1, 2008
Awarded by WMU as Federal Direct Unsubsidized loan on award notice
Subject to annual and aggregate loan limits
This is a loan you must repay to the U.S. Department of Education
Complete the Return of Disbursed Federal Loans if you wish to cancel your loan or return funds you do not need. If funds are returned within 30 days of the disbursement date any interest will be waived.
After you have accepted your unsubsidized loan, you will receive a "Federal Direct Loan Disclosure Statement" from the Direct Loan Servicing Center or WMU. The Disclosure Statement identifies anticipated disbursement dates, gross and net disbursement amounts, and loan fee amounts for all your Federal Direct Loans for the academic year.

Eligibility

Undergraduate, graduate student or teacher certification
Must be enrolled at least half time
Completed Financial Aid Adjustment form required to accept the loan
Completed Federal Direct Master Promissory Note required for first-time borrowers
Loan Entrance Counseling required for first-time borrowers at WMU
Award eligibility based upon EFC, enrollment and other resources
Award will be canceled if enrolled less than half time
Award may be adjusted or canceled if there is a change to cost of attendance, enrollment, graduating in August or December or receipt of additional resources
See Maintaining Your Eligibility for other eligibility criteria

Repayment

Accrued interest billed quarterly and may be deferred (will be added to principal balance)
Begin to repay loan six months after you cease to be enrolled at least half time. During this six-month "grace period", interest will accrue on loan. Once the grace period expires, you will begin to repay your loan. For sample repayment amounts, see Federal Loan Repayment Chart
Complete an exit counseling session so you are aware of all the information you will need to know about repaying your loan.
If you drop to less than half time, withdraw, drop out, graduate or simply do not return to school, this information will be reported to the servicer and they will begin to count your grace period. You are responsible for notifying WMU immediately if your enrollment changes as described above.
Payments will be made to the U.S. Department of Education (holder of the loan)
For detailed information about repayment, deferments, forbearance, and other frequently asked questions, go to www.dlssonline.com/
To obtain information about consolidating your Federal Direct loans, visit loanconsolidation.ed.gov or call 1-800-557-7392. The interest rate for a Direct Consolidation Loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
It is important that you maintain a "very important papers file" and keep copies of your award notices, MPN, Borrower's Rights and Responsibilities and the Direct Loan Disclosure Statement in one place as they provide the details of your loans, and your rights and responsibilities as a student loan recipient.

Federal Direct Graduate PLUS Loan

Program Name/Contact

WMU Financial Aid Office
Phone: (269) 387-6000
e-mail: finaid-info@wmich.edu
Applicant Services Department
(credit checks, appeal information, endorser questions)
(800) 557-7394
Federal Direct Loan Servicing Center
(repayment information)
(800) 848-0979
www.dlssonline.com/
Federal Direct Loan Consolidation Center
(consolidation)
(800) 557-7392.

Description/Benefits

Federally funded
Non need-based
Graduate student is the borrower
The fixed interest rate for loans in the deferment or six-month grace period is 7.9 percent for loans first disbursed July 1, 2006, and after
4 percent loan origination fee minus a 1.5 percent rebate, subtracted prior to disbursement
Awarded by WMU as Federal Graduate PLUS on award notice
Awarded up to cost of attendance minus other financial aid received
This is a loan you are responsible to repay to the U.S. Department of Education
Complete the Return of Disbursed Federal Loans if you wish to cancel your loan or return funds you do not need. If funds are returned within 30 days of the disbursement date any interest will be waived.
After you have accepted your Federal Graduate PLUS, you will receive a "Federal Direct Loan Disclosure Statement" from the Direct Loan Servicing Center.
The Disclosure Statement identifies anticipated disbursement dates, gross and net disbursement amounts, and loan fee amounts for all your Direct Graduate PLUS Loans for the academic year.

Eligibility

Graduate students only
Independent student
Must be enrolled at least half time
Completed Federal Direct Graduate PLUS Loan Application required by parent borrower (biological or adoptive mother or father)
Completed Federal Direct Graduate PLUS Master Promissory Note (MPN) required for first-time parent borrowers and the student
First-time borrowers must complete online Loan Entrance Counseling .
Graduate student borrower must meet credit worthiness standards (if denied credit, will be notified by Direct Loan Servicing Center.)
Borrower may appeal extenuating circumstances, or obtain an endorser. See Federal Direct Graduate PLUS Loan Information Sheet on the Federal Direct Graduate PLUS application for details.
Award eligibility based upon EFC, cost of attendance, enrollment and other resources
Award will be canceled if enrolled less than half time
Award may be adjusted or canceled if there is a change to EFC, cost of attendance, enrollment or additional resources
See Maintaining Your Eligibility for other eligibility criteria

Repayment

Interest begins accruing upon disbursement
Repayment of principal and interest begins 60 days after loan is fully disbursed.
For sample repayment amounts, see Federal Loan Repayment Chart
Payments will be made to the U.S. Department of Education (holder of the loan)
Payments will automatically be deferred if you are enrolled at least half-time. For detailed information, go to www.dlssonline.com/
For detailed information about repayment and other frequently asked questions, go to www.dlssonline.com/
To obtain information about consolidating your Federal Direct loans, visit loanconsolidation.ed.gov or call 1-800-557-7392.
The interest rate for a Direct Consolidation Loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
It is important that you maintain a "very important papers file" and keep copies of your award notices, MPN, Borrower's Rights and Responsibilities and the Direct Loan Disclosure Statement in one place as they provide the details of your loans, and your rights and responsibilities as a student loan borrower.

Federal Direct PLUS Loan for Undergraduate Students

Contact Information

WMU Financial Aid Office
Phone: (269) 387-6000
e-mail: finaid-info@wmich.edu
Applicant Services Department
(credit checks, appeal information, endorser questions)
(800) 557-7394
Federal Direct Loan Servicing Center
(repayment information)
(800) 848-0979
www.dlssonline.com/
Federal Direct Loan Consolidation Center
(consolidation)
(800) 557-7392

Description/Benefits

Federally funded
Non need-based
Parent borrows on behalf of student
The fixed interest rate for loans in the deferment or six-month grace period is as follows:
- 7.9 percent for loans first disbursed July 1, 2006, and after
4 percent loan origination fee minus 1.5 percent rebate, subtracted prior to disbursement
Awarded by WMU as Federal PLUS on award notice
Awarded up to cost of attendance minus other financial aid received
This is a loan your parent must repay to the U.S. Department of Education
Complete the Return of Disbursed Federal Loans if you wish to cancel your loan or return funds you do not need. If funds are returned within 30 days of the disbursement date any interest will be waived.
After you have accepted your Federal PLUS, you will receive a "Federal Direct Loan Disclosure Statement" from the Direct Loan Servicing Center. The Disclosure Statement identifies anticipated disbursement dates, gross and net disbursement amounts, and loan fee amounts for all your Direct PLUS Loans for the academic year.

Eligibility

Undergraduate students only
Dependent student
Must be enrolled at least half time
Completed Federal Direct PLUS Loan Application required by parent borrower (biological or adoptive mother or father)
Completed Federal Direct PLUS Master Promissory Note (MPN) required for first-time parent borrowers and the student
Parent borrower must meet credit worthiness standards (if denied credit, will be notified by Direct Loan Servicing Center. Borrower may appeal extenuating circumstances, obtain an endorser or student may apply for an unsubsidized loan). See Federal Direct PLUS Loan Information Sheet located on the Federal Direct PLUS Application for details.
Award eligibility based upon EFC, cost of attendance, enrollment and other resources
Award will be canceled if enrolled less than half time
Award may be adjusted or canceled if there is a change to EFC, cost of attendance, enrollment or additional resources
See Maintaining Your Eligibility for other eligibility criteria

Repayment

Interest begins accruing upon disbursement
Repayment of principal and interest begins 60 days after loan is fully disbursed. For sample repayment amounts, see Federal Loan Repayment Chart
Payments will be made to the U.S. Department of Education (holder of the loan)
For detailed information about repayment and other frequently asked questions, go to www.dlssonline.com/
To obtain information about consolidating your Federal Direct loans, visit loanconsolidation.ed.gov or call 1-800-557-7392.
The interest rate for a Direct Consolidation Loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.
It is important that you maintain a "very important papers file" and keep copies of your award notices, MPN, Borrower's Rights and Responsibilities and the Direct Loan Disclosure Statement in one place as they provide the details of your loans, and your rights and responsibilities as a parent loan borrower.

Alternative Loans

Recommended Private Alternative Loan Lenders

Choosing how to finance your education is one of the most important decisions you will make - and the impact of that decision will follow you well beyond graduation. In an effort to help you make informed choices, we have selected three Recommended Lenders for you to consider. These lenders promise WMU students better rates and exemplary customer service.

Students are free to explore lenders not on the recommended lender list. WMU will certify a private, alternative educational loan from any lender a student chooses. The University does not receive any incentives, financial or otherwise, from the lending institutions for their placement on the Recommended Lender List.

As you make your decision, review the private alternative lender chart to determine which loan best meets your needs. When determining how much to borrow, plan to borrow as little as possible. The long-term cost is an important factor. If you have questions regarding financial aid, please contact Bronco Express at 269-387-6000. For more information about a particular private alternative loan, please contact the lender.

Frequently Asked Questions

I am unable to file a FAFSA. Can I still apply for a private alternative loan?

Yes. WMU urges students to complete the FAFSA, but it is not required. Log on to www.fafsa.ed.gov for more information.

My parents are not applying for a Federal PLUS loan. Can I apply for a private alternative loan?

Yes. You will need to cancel the Federal PLUS loan offered on your award notice.

Can my cost of attendance be increased?

If you have additional costs related to flights, child care or study abroad, please contact Bronco Express, 269-387-6000, and make an appointment to see a counselor prior to applying for a private alternative loan. We can determine if your cost of attendance can be increased.

A variety of interest rates are listed for each lender. What are they based on?

Lenders base interest rates on your credit history and your ability to repay the loan. Contact your lender for more information.

What will my monthly payment amount be?

The payment amount varies based on your interest, the amount you borrow and your total indebtedness. Contact your lender for more information.

Will my loan be sold?

Some lenders will sell your loan. Contact your lender for more information.

What happens if I cannot make my payments?

Contact your lender to determine if there are any forbearance or deferment options.

Can I consolidate my private loans with federal loans?

No. private loans cannot be consolidated with federal loans

International Student Options

Private lenders have Loan Options for International Students if the student obtains a cosigner that is a U.S. Citizen

Funds Disbursement

If the lender you choose approves your loan and sends us a check, it will be Co-payable to you and Western Michigan University. You will be contacted when the check is received and you will have to come to the Financial Aid Office in the Faunce Student Services building to sign the check. The check will be applied to your student account to pay any outstanding charges on your account. If the alternative loan check is more than your account balance, a refund of the difference will be issued to you in the form of a check mailed to your local address (or billing address) or electronically deposited into your checking account if you have signed up for Direct deposit.

Short-term Loans

Short-term loans are available on a limited basis for books at the beginning of each term, or for emergency situations throughout the term (considered on an individual basis). To apply for the Short Term Loan, please see a Student Services Representative at Bronco Express in the Bernhard Center.

Eligibility Criteria

Registered for classes for the term
Not available for WMU employees
No past due charges on billing account
WMU account is not and has never been in collection
No outstanding "non-sufficient funds" (NSF) checks
No history of three or more NSF checks
Not in default on a federal loan
No monetary registration hold
If "current balance due" is not zero, financial aid for the current term is pending and the student meets the criteria listed below:
Financial aid pending for current term must be sufficient to cover current balance due
All requested financial aid documents have been submitted
If receiving a Federal Direct student loan - need signed master promissory note and entrance counseling completed
If receiving a Federal Perkins loan need signed master promissory note
If receiving a Federal Direct Parent Loan - need signed master promissory note, approved credit check and authorization by the parent that short-term loan may be paid by the Federal Direct PLUS
Meet the enrollment requirements for programs awarded.
Meet the Satisfactory Academic Progress requirements for financial aid purposes

Books/ Emergency

Books

Up to $300 credit if:
- current term tuition and room and board balance paid in full, or
- if current term's financial aid is pending and it is sufficient to cover balance owed.
Up to $150 credit if:
- you still owe a balance for current term and not a financial aid recipient or
- current term's financial aid is pending and it is not sufficient to cover balance owed.

Emergency

Up to $500 if
- account balance is paid in full or
- if current term's financial aid is pending and it is sufficient to cover balance owed.
Individual circumstances considered if you still owe a balance for current term
Need documentation of bills owed, eviction notice, etc.
Funds requested are for education-related expenses (rent, medical, utilities, transportation, food or child care)
Loans are not approved for credit card bills, long distance telephone charges or cable television
Checks are issued to the vendor and the student; available in 24 hours at Bronco Express in the Bernhard Center

Repayment

Loans are generally due in 30 days but no later than the last day of your enrollment for the academic year.
If not paid by the due date, will incur a service charge at 1.5 percent a month on the unpaid balance.
Delinquency in the repayment of a short-term loan will prevent future registration or release of transcripts

Frequently Asked Questions

How much should I borrow to cover this year's expenses?

We encourage students and parents to borrow only what they need and are comfortable with repaying in the long run. Determine your estimated expenses for the period of time and subtract any grants, scholarships or other resources such as savings or earnings from work. The difference is the amount you may need to borrow in a student and/or parent loan. As you are borrowing funds each year, be conscious of your total loan debt in relation to your future payment obligation and reevaluate every time you borrow.

How do I determine which is the best loan to borrow?

When making the decision to borrow a particular type of loan, consider the following questions:

What is the maximum and minimum I can borrow in this program?
Who is responsible for paying the interest while the student is enrolled in school?
What is the interest rate?
If the interest is the responsibility of the borrower, does the interest need to be paid quarterly, yearly, at graduation?
How much is the interest payment?
When does the borrower need to begin repaying the principal balance of the loan?
What is the minimum monthly payment?
How long can I repay the loan?
Can I make payments on the loan before it is due and/or pay the amount off earlier without penalty?
What are the choices if my income changes when I'm repaying the loan?

How much total loan debt should I borrow?

As you are borrowing funds each year, be conscious of your total loan debt in relation to your future payment obligation. Take into consideration your current need for funds, projected future earnings, and how much you will need to live when you graduate. Then estimate your anticipated level of debt in relation to the monthly payment obligation. Remember, failure to make payments on time may affect your credit rating and ability to borrow for other purposes. Reevaluate your future expenses each time you borrow funds.

What is meant by interest in relation to loans?

Interest is an amount charged to the borrower for the privilege of using the lender's money. Interest is calculated as a percentage of the principal balance of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan.

Should I consolidate my loans?

Consolidation is a good way to manage your loan debt repayment. By bringing all your federal loans together into one payment amount, you will more easily manage your monthly loan repayment and may reduce your monthly payments. Consolidation loans currently are based on a fixed interest rate whereas individual loans may have a variable interest rate that may or may not be capped at a maximum interest rate. There are some drawbacks so students must carefully review all information from the lender.

What are my responsibilities as a loan borrower once I am no longer enrolled in school?

For Federal Direct and Federal Perkins loan borrowers, complete an exit counseling session so you are aware of all the information you will need to know about repaying your loan. Make your monthly payments on time, even if you are not billed. Stay in contact with the servicer of your loan at all times. Notify them immediately of your address, name change, enrollment change, and/or if you are having difficulty making payments. Open correspondence and return phone calls immediately.

What if I am having trouble repaying my loan?

If you have extenuating circumstances or know you will be unable to make your monthly payment, communicate with the servicer of your loan immediately. Avoid the costs and consequences of delinquency (late payments) and default (no payments). Under certain conditions, you may be eligible for a forbearance, a deferment or cancellation.

What is meant by capitalization of interest?

When interest on your loans continues to accumulate and is not paid, the accrued interest will be capitalized - added to the principal. You will then be paying interest on the accrued interest and the disadvantage is you pay more interest over the life of the loan. Interest may be capitalized quarterly, yearly or at graduation.

What can I do if I am continuing my education and re-enrolling in classes at another school other than Western after my repayment period has begun?

Inform your servicer of your plans. The servicer will determine if you are eligible for an "In-School Deferment" that allows your payments to be delayed. Once you no longer meet the conditions of the deferment, your repayment period begins immediately.

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