Loans are financial assistance that must be repaid through the federal government and private lenders. Each loan program has specific eligibility criteria, repayment plans, cancellation and deferment conditions. The Free Application for Federal Student Aid (FAFSA) must be completed to be considered for all federal educational loans.
Federal Educational Loans
Several loan programs are available to UW-Stevens Point students. In some cases, eligibility is based on financial need, while other loans are available to students regardless on need. Educational loans must be repaid. Repayment of Direct and Perkins educational loans begins six to nine months (the grace period) after you graduate or fall below half-time enrollment (less than six credits per semester for undergraduate students). Payments may be deferred for additional schooling, Peace Corps, VISTA, military service, disability, or for full-time teaching in a teacher shortage area. If approaching repayment, contact your servicer for additional information. See more information on
Federal Loan Programs
Federal Subsidized Direct Loan
Available to undergraduate students. To be eligible, students must
complete the Free Application for Federal Student Aid (FAFSA) and show
financial need. The loan is interest free as long as the student is
enrolled at least half time at a fixed interest rate of 3.73% for loans disbursed
between July 1, 2021 and June 30, 2022. Currently, an origination fee of
1.057% is charged at each disbursement
. The origination fee will be deducted from each
semester's loan amount. All first-time loan
borrowers are required to complete the Entrance Loan Counseling and the
Direct Loan Master Promissory Note. These requirements can be completed
The repayment period begins 6 months after the student is no longer
enrolled at least half-time. Depending on when the loan was disbursed,
interest may accrue during those 6 months of grace period, and will be
payable by the borrower rather than subsidized by the federal
The maximum amount that dependent students can borrow per year:
- Freshman (0-29 credits) - $3,500
- Sophomore (30-59 credits) - $4,500
- Junior/Senior (60+ credits) - $5,500
A new borrower on or
after July 1, 2013 becomes ineligible to receive additional Direct
Subsidized Loans if the period during which the borrower has received
such loans exceeds 150 percent of the published length of the borrower's
Read more for detailed information.
Federal Unsubsidized Direct Loan
Available to undergraduate and graduate students. This loan is not based
on need. However, the student must complete the FAFSA. Loans disbursed between July 1, 2021 and June 30, 2022 have an interest rate of 3.73% for undergraduate students
and 5.28% for graduate students. The student is responsible for the
interest while in school. A 1.057% origination fee will be deducted from
each semester's loan amount.
All first-time loan borrowers are required to complete the Entrance Loan Counseling and the Direct Loan Master Promissory Note. These requirements can be completed online at
Academic Year Borrowing Limits
|Time Frame||Subsidized Amount Limit||Additional Unsubsidized||Total Annual Maximum|
|Time Frame||Subsidized Amount Limit||Additional Unsubsidized||Total Annual Maximum|
Unsubsidized Total Annual Maximum
Federal Parent PLUS Direct Loan
Parent Plus loans are unsubsidized loans for the parents of a dependent
student. PLUS loans help pay for education expenses up to the cost of
attendance minus all other financial assistance. Interest is charged
during all periods. Between July 1, 2021 and June 30, 2022 the interest rate is 6.28% with a 4.228% origination fee.
Requirements to receive a Parent PLUS Loan:
- You must be the student's biological or adoptive parent or the
student's stepparent, if the biological or adoptive parent has remarried
at the time of application.
- Your child must be a dependent student who is enrolled at least
half-time at a school that participates in the Direct Loan Program.
- Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done).
- Parents and their dependent child must be U.S. citizens or eligible non-citizens,
- Must not be in default on any federal education loans or owe an over-payment on a federal education grant.
Steps to Apply for a Federal PLUS Direct Loan:
In order to apply for a Federal Plus Direct Loan:
- A current FAFSA must be on file for the student
- The parent must go to studentaid.gov and log in with their FSA ID and Password, and choose ‘Apply for a Direct
Plus Loan.’ Then choose ‘Direct Plus Application for Parents.”
- Your credit will be approved or denied instantly. The results of
the Plus Loan request will be transmitted to UW-Stevens Point from the
processing center within 48 hours.
- If the Plus loan is approved, the parent who requested the loan,
will need to complete a Master Promissory Note (MPN) under parent
borrows at studentaid.gov (this is listed as Complete Loan Agreement for a PLUS Loan (MPN). If
MPN is not completed by the parent, the loan will not disburse.
- If the parent is denied the PLUS Direct Loan,
the student is eligible for a special additional Unsubsidized Loan. The
amount depends on the student's grade level and cannot exceed the total amount certifiable in a PLUS Direct Loan (in other words, we cannot authorize more than the cost of education). The school will be notified if the parent is denied the PLUS Direct Loan. Written confirmation from the student is needed to authorize the additional Unsubsidized loan.
Note: Prior to applying for a Federal Plus Direct Loan, the student should confirm they
have accepted or declined your federal loans in their accesSPoint.
Please view our PLUS Loan FAQ's for additional questions.
Federal Graduate PLUS Direct LOAN
Graduate students may apply for loans from a non-need-based program called Graduate PLUS Direct Loan. The graduate student may borrow an amount up to the cost of attendance minus other financial aid. The interest rate for the Graduate PLUS Direct Loan is 6.28% for loans disbursed between July 1, 2021 and June 30, 2022 and interest begins to accumulate on the date of the first loan disbursement. The Graduate PLUS Direct Loan currently has a 4.228% origination fee.
Graduate students may apply for the Graduate PLUS Direct Loan at
and are required to complete a separate Entrance Loan Counseling for this loan.
Review your options,
between Graduate PLUS Direct Loan
and Private Educational Loans.
For more information on the Direct Loan interest rates and other loan features, please see the Department of Education's Federal Student Aid
Perkins Loan [This loan program has ended and is no longer available]
Non-Government Private Educational Loans
Private Educational Loans
Some lending institutions offer competitive private loan programs to assist students with paying for their college education. It is extremely important from a personal finance standpoint that you first exhaust ALL other financing options such as grants, scholarships, and federal Direct Loan eligibility prior to considering a Federal Parent PLUS, Grad PLUS, or a private educational loan. We advise you to only borrow what is truly needed to pay for qualified educational expenses. When borrowing to finance your education, you should give serious consideration to the loan amounts needed throughout your entire education. You will want to make sure you can comfortably afford your student loan indebtedness based on your expected income after graduating.
Steps for Applying for a Private Educational Loan:
- Have a completed FAFSA (aid application) on file to be considered for the best types of assistance possible prior to taking out an alternative loan. Go to the
FAFSA website to complete an application if you haven't already done so.
- You may
private educational loans on
FASTChoice, an online comparison tool, or go directly to your chosen lender website. Before FASTChoice offers the list of various lenders, a brief informational tutorial on private loans is presented. Complete the private educational loan application, the master promissory note, and the self-certification form and submit all information directly to the lender, NOT to the Office of Financial Aid and Scholarships. Most lenders require co-signer information. Should the lender approve your application, the school will then receive a notification requesting certification of the private educational loan. You may begin applying May 1 for the upcoming school year.
- A Private Education Loan Applicant Self-Certification form is required. Section 2 of that form asks for "Cost of Attendance" and "Estimated Financial Assistance". This information is calculated from your processed FAFSA and financial aid award notification. To obtain those figures, log in to accesSPoint Self Certification. If the information is unavailable, please contact our office.
- Make sure you have accepted your aid offer as the private educational loan will not disburse without this first being satisfied. All other financial assistance, including scholarships, are subtracted from your cost of attendance to determine unmet need. If there is unmet need, the private educational loan will be electronically certified through a weekly process. The student applicant will receive a revised award email notification identifying the private educational loan on their award along with other aid.
Please be aware, regulations require a delay in the disbursements of private educational loans. The lender is required to hold the disbursement for at least six business days prior to the date of the first disbursement. Dropping credits, withdrawing from school, etc. will change the cost of education. When the cost is reduced, the student may be billed and expected to return part or all of the entire loan immediately.
Private educational loans will be certified for the lower amount of either the unmet need or the amount of the credit approval. For example, if credit is approved for $2000 and there is only need of $1000, the loan will be certified by the school for $1000. If credit is approved for $2000 and the need is $3000, the loan will be approved for $2000.