Institutional Loans
Wheelock College Loan
Wheelock College offers a limited number of loans to students who demonstrate exceptional financial need. There are no fees or interest charges during the student's full-time undergraduate enrollment at Wheelock or during the six-month grace period following graduation (or withdrawal) from Wheelock. After that point, the program enters repayment and carries a 5% interest rate. Loan amounts vary between $1,500 and $3,000 per academic year. To apply for this loan, students must complete the financial aid application process.
Federal Loans
Federal Stafford Loan - General
The Federal Stafford loan program is
a government regulated loan with interest fixed at 6.8%. To be eligible
a student must be enrolled at least half-time in a degree or certificate
program. This loan has a six-month grace period after graduation or
after the student drops below half-time status. The repayment period
is ten years, and the aggregate undergraduate limit (total amount
a student can borrow while an undergrad) is capped at $23,000. Students
must file a FAFSA to be eligible for a Stafford loan.
The annual limits for an undergraduate dependent student’s Stafford Loan are proscribed by federal statute and are dictated by the students’ academic year as follows:
| First year status | $3,500 |
| Second year status | $4,500 |
| Third year status | $5,500 |
| Fourth year status | $5,500 |
Subsidized Stafford Loans
If a student provides evidence of financial need through the FAFSA, he or she will be awarded the Subsidized Stafford loan. The term “subsidized” reflects that the government pays any interest that may accumulate on this type of Stafford loan while the student is in school at least half-time or in deferment. Essentially, a Subsidized Stafford Loan is interest-free while the student is in school. Upon entering repayment the normal 6.8% interest rate applies.
Unsubsidized Stafford LoansStudents who do NOT demonstrate financial need for the Federal Subsidized Stafford Loan may still qualify for the Federal Unsubsidized Stafford Loan. This non-need-based loan program carries the same annual borrowing limits per year, interest rate, fees, and repayment terms as the subsidized loan program. However, interest WILL accrue on the loan while the student is in-school, and during grace and deferment periods. This interest can be paid or capitalized on to the principal balance of the loan.
A Note on Stafford LoansDepending on their need, some students may receive both Subsidized AND Unsubsidized loans. For example, if a freshman student demonstrates only $1,000 of need via the FAFSA, she will receive a $1,000 Subsidized loan, and the remainder of her Stafford eligibility in the form of $2,500 of Unsubsidized loans, thereby bringing her up to the $3,500 limit for a freshman. This ensures that all students can borrow their federally proscribed limit in Stafford loans regardless of need.
Stafford Loans for Independent StudentsIn addition to the normal annual loan limits for dependent students, any student filing the FAFSA as an independent will be allowed to borrow additional Unsubsidized funds through the Stafford program. These limits are listed below, and are cumulative with the normal undergraduate limits.
| First year status | $4,000 |
| Second year status | $4,000 |
| Third year status | $5,000 |
| Fourth year status | $5,000 |
As a final note for the Stafford loan program, if a parent attempts to borrow the Federal PLUS Loan and is denied, a dependent student may qualify for the same additional Unsubsidized Federal Stafford Loans an independent student would. In such cases, the student must provide the financial aid office with a copy of the parent's PLUS Loan denial. Any student receiving an independent student’s level of Stafford loans is extended a higher lifetime borrowing limit of $46,000 to compensate for the increased loan totals per year.
Federal Perkins Loan
The Federal Perkins Loan is a low-interest
(5%) loan for undergraduate students with exceptional financial need.
No interest or fees are charged and no repayment is required while
a student is enrolled at least half-time (six credits per quarter)
or during the nine-month grace period following graduation or withdrawal
from school. Funds are awarded by Wheelock College and are limited.
Undergraduate award amounts range from $1,000 to $3,000 annually.
