Loans - Types of Aid

Types of Loan

Eligibility

Terms

Federal

Perkins Loan

• Interest rate is 5%.  Interest is deferred until the beginning of the repayment period.
• Yearly awards up to $4000, with a cumulative maximum of $40,000 for graduates (including undergraduate cumulation). 
• Repayment begins 9 months after the borrower graduates, leaves school, or drops below half-time status.
• Repayment period up to 10 years.
• Allows for cancellations of all or part of the loan in return for certain types of teaching or service. Please visit The Student Guide (US Department of Education) for detailed information.
• Complete the Master Promissory Note (MPN) here. Note: students can't sign MPN until awarded loan.
• Current Borrowers can access specific loan information, forms, tax information and other links here.
• Repayment can be deferred or canceled under certain conditions. Contact the Perkins Office (715) 232-1657 with any questions.

FFEL Subsidized Stafford Loan

• Loans disbursed on or after July 1, 2006 have a fixed interest rate of 6.8%.
• Loans disbursed prior to July 1, 2006, will continue to have a variable interest rate capped at 8.25%.
• No interest charged as long as borrower is enrolled at least half-time ( 6 credits undergraduate level, 5 credits graduate level).
• The maximum awards differ by grade level, dependency status, and length of academic program.
• Repayment begins 6 months after the borrower graduates, leaves school, or drops below half-time status.
• First-time borrowers that have been offered a FFEL Stafford Loan should complete a master promissory note (MPN) entrance loan counseling (an online tutorial and quiz) before any loan proceeds can be disbursed.  Click here to complete the MPN and Entrance Counseling.
• Repayment may be deferred or modified under certain conditions. Visit The Student Guide (from the US Department of Education) for more information.

FFEL Unsubsidized Stafford Loan

• Loans disbursed on or after July 1, 2006 have a fixed interest rate of 6.8%.
• Loans disbursed prior to July 1, 2006, will continue to have a variable interest rate capped at 8.25%.
• The loan plus need-based aid may not exceed the total cost of attendance.
• Interest is charged from the date of the first disbursement. Interest may be paid while in school or paid later.
• The maximum awards differ by grade level, dependency status, and length of academic program.
• Repayment begins 6 months after the borrower graduates, leaves school, or drops below half-time status.
• First-time borrowers that have been offered a FFEL Stafford Loan should complete a master promissory note (MPN) entrance loan counseling (an online tutorial and quiz) before any loan proceeds can be disbursed.  Click here to complete the MPN and Entrance Counseling.
• Repayment may be deferred or modified under certain conditions. Visit The Student Guide (from the US Department of Education) for more information.

FFEL Plus

• Student must have a valid Free Application for Federal Student Aid (FAFSA) on file with the UW-Stout Financial Aid Office for the current award year before this loan can be pursued.
• Loans disbursed on or after July 1, 2006 have a fixed interest rate of 8.5%. Loans disbursed prior to July 1, 2006, will continue to have a variable interest rate capped at 9%.
• Click here for helpful PLUS loan Q & A.
• Annual maximum limited to student's cost of attendance minus any other financial aid.  Click here to help determine PLUS eligibility.
• Parent must reapply for the PLUS loan annually.  First time borrowers must complete a Master Promissory Note (MPN), as well.
• Repayment begins 30 days after the loan is fully disbursed.
• Parent is the borrower, and is responsible for repayment.
• Click here to start or review the application process.

SELF Loan

Undergraduate students who are Minnesota Residents

Credit-worthy co-signer required

• Student must have a valid Free Application for Federal Student Aid (FAFSA) on file with the UW-Stout Financial Aid Office for the current award year before this loan can be pursued.
• Maximum eligibility is limited to $7500 per grade level, and must fit within student’s cost of attendance (COA) budget for a given academic year.  Maximum cumulative eligibility is $37,500.
• Annual maximum limited to student's cost of attendance minus any other financial aid.
• Interest rate is variable, but cannot change more than 3% in a 12 month period. Find the current SELF loan interest rate at www.selfloan.org.
• Borrowers are required to make interest payments on a quarterly basis while currently enrolled. Interest payments begin within 90 days from the first disbursement.
• Monthly repayment after borrower graduates or leaves school.
• To start the application process or get additional SELF loan information, click here.

Alternative Loan

• The UW-Stout Financial Aid Office encourages students to consider the Federal PLUS and the SELF loan programs before pursuing an alternative loan option.
• Student must have a valid Free Application for Federal Student Aid (FAFSA) on file with the UW-Stout Financial Aid Office for the current award year before this loan can be pursued (per UW-Stout Financial Aid Policy).
• The interest rate is variable and is determined on credit-worthiness – generally a percentage added to a variable base (often PRIME or LIBOR)
• Students submit their applications directly to the lender, but will be “certified” (electronically verified) by the Financial Aid Office before the application process is complete
• Alternative loans are not subsidized by the government.
• Annual maximum limited to student's cost of attendance minus any other financial aid.
• For additional information and links to a few alternative loan programs, click here

**Graduate students:  please contact your financial aid office before pursuing this type of loan.  You may have other loan options.**