Financial Aid

What is a Federal Stafford Loan?

Federal Stafford Loans are a form of federal financial aid that must be repaid upon dropping below half-time enrollment or graduating. Depending upon your income, the loan may be subsidized (which means you will not be charged interest while you are in school) or unsubsidized (which means you will be charged interest while you are in school). The loan may have a 1% default fee and has a 10 year standard repayment period. The interest rate will be fixed, but will vary based upon when the loan is disbursed (see chart below). In addition, there may be an origination fee which will be based upon when the loan is disbursed (see chart below) Obtain more information.

Undergraduate Subsidized

Loans Distributed Between:	Intrest Rate	Origination Fee
7/1/2007 - 6/30/2008	6.8%	1.5%
7/1/2008 - 6/30/2009	6.0%	1.0%
7/1/2009 - 6/30/2010	5.6%	0.5%
7/1/2010 - 6/30/2011	4.5%	0.0%
7/1/2011 - 6/30/2012	3.4%	0.0%

Undergraduate Unsubsidized

Loans Distributed Between:	Intrest Rate	Origination Fee
7/1/2007 - 6/30/2008	6.8%	1.5%
7/1/2008 - 6/30/2009	6.8%	1.0%
7/1/2009 - 6/30/2010	6.8%	0.5%
7/1/2010 - 6/30/2011	6.8%	0.0%
7/1/2011 - 6/30/2012	6.8%	0.0%

How do I apply for a Stafford Loan?

1. Complete the FAFSA
   Federal Stafford Loan is a form of financial aid that require students to first complete the FAFSA and be admitted and enrolled at least half time in an eligible program.
2. Complete the online Entrance Counseling
   All first-time loan recipients are required to complete online entrance counseling which will describe the terms of the Stafford loan as well as your rights and responsibilities as a Stafford loan borrower.
3. Complete the Stafford Loan Master Promissory Note (MPN)
   The Stafford Loan Master Promissory Note is the legally binding document you sign agreeing to repay the Stafford loan. You can choose to sign the MPN electronically with your U.S. Department of Education PIN number or you can print it off and mail it in.

Repayment Information

Stafford loans enter repayment 6 months after you graduate or drop below half time enrollment.

If you drop below half-time enrollment, graduate, or leave WCTC, you are required to complete an online exit counseling session. This online session will describe your repayment information to you.
Start your exit counseling session.

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