Loans

If grants, scholarships and personal savings aren’t enough to help you cover tuition, loans can help you make up the difference. Loans must be paid back with interest, and there are several federal and state loans available to students.

The Federal Direct Loan Program

These loans by the U.S. Dept. of Education and must be repaid when you drop below half-time enrollment or graduate. Depending upon your income, the loan may be subsidized (need-based, and interest is not charged while you are in school) or unsubsidized (not need-based, and interest is charged while you are in school). The loan has a 10-year standard repayment period, and there is no pre-payment penalty. The interest rate is fixed and is determined by the date the loan is disbursed (see chart below). An origination fee results in a net fee incurred when the loan arrives (see chart below). Learn more about the Direct Loan Program.

How to apply:

  1. Complete the FAFSA.

    You must be admitted and enrolled at least half-time (six credits) 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 loan's terms. 

  3. Complete the master promissory note.

    This is the legally binding document you sign agreeing to repay the Direct Loan. You may sign the MPN electronically with your Federal Student Aid ID number, or you can print and mail it.

Interest Rate Charts

Subsidized

Loan Distributed Between Interest Rate Net Fee
7/1/2012 - 6/30/2013 3.40% 1.000%
7/1/2013 - 6/30/2014 3.86% 1.051%
7/1/2014 - 6/30/2015 4.66% 1.073%
7/1/2015 - 6/30/2016 4.29% 1.068%
7/1/2016 - 6/30/2017 3.76% 1.069%

Unsubsidized

Loan Distributed Between Interest Rate Net Fee
7/1/2012 - 6/30/2013 6.8% 1.000%
7/1/2013 - 6/30/2014 3.86% 1.051%
7/1/2014 - 6/30/2015 4.66% 1.073%
7/1/2015 - 6/30/2016 4.29% 1.068%
7/1/2016 - 6/30/2017 3.76% 1.069%

Parent Loans for Undergraduate Students (PLUS)

This federally insured, 6.31 percent fixed interest rate loan is available to parents of dependent students. PLUS loans enable parents to borrow up to total cost of education for an academic year, less any aid awarded. Repayment begins 60 days after loan is fully disbursed. In addition to submitting the federal PLUS Loan Application, you must submit a separate WCTC PLUS Loan application. Learn more about PLUS Loans.

To apply for a PLUS Loan:

  1. Complete the FAFSA.

    This will determine if you qualify for any grants first. Students should also apply for the lower-interest Direct Loan before a parent applies for a Parent PLUS loan.

  2. Complete the PLUS Loan application and Master Promissory Note.

    In this legally binding document, you agree to repay the Parent PLUS loan. You may sign the MPN electronically with your parents’ federal student aid ID number, or you can print and mail it.

  3. Complete the WCTC PLUS Loan form.

    Once complete, mail it or fax it to the WCTC Financial Aid department.

The PLUS loan goes into repayment 60 days after it is fully disbursed for the year, but parents can make arrangements to make interest-only payments while you are in school. Parents can even make arrangements to defer all payments until after you graduate by requesting forbearance from the loan servicer yearly. Parents interested in PLUS loans are required to apply yearly. Learn more.

Wisconsin Nursing Loan

Designed for aspiring LPN or RN nurses, this loan is for students who agree to work as a licensed nurse in Wisconsin. For each of the first two years you work as a nurse and meet the eligibility criteria, 25 percent of the loan is forgiven. The balance remaining must be repaid at an interest rate of 5 percent. If you do not practice nursing and meet the eligibility criteria, the loan must be repaid at an interest rate of 5 percent. The Financial Aid department will contact students to apply for this loan if funds are available.

Student Responsibilities of College Loans

Taking out a student loan is a serious commitment. It may be your first experience of taking on major debt. This investment in your future can pay off, but plan your studies carefully.

Student loan debt must be paid according to the terms agreed to in the promissory note. Defaulting on a student loan can be detrimental to your financial health and your career.

Below are some points to ponder when choosing a program and taking on debt:

  • Research your program, including employment opportunities in the field. WCTC’s Career Connections can help you find a program that’s right for you.
  • Know the costs associated with attending WCTC and details of the refund policy before you enroll. The College has strict rules on providing refunds to those who drop out.
  • Contact your lender with questions. They can explain your rights to deferment, cancellation, prepayment or consolidation; provide you with a definition of default; and explain consequences of default.
  • When you begin repaying your loan, keep payments up to date. Contact the lender immediately if you have trouble with payments.
  • Student loans are to be used only for educational purposes. Giving false information, forging information or using loan funds for any purpose other than legitimate school expenses is a criminal offense.