Loan FAQ’s
How is my eligibility for federal student loans determined?
Federal Loans (Perkins and Stafford) require that a Free Application for Federal Student Aid (FAFSA) be completed for every academic year. Once the Financial Aid Office receives your FAFSA from the federal processor, we will determine your eligibility for the different types of federal loans available based on year in school and financial “need”.
What must I do if offered loans in my financial aid award proposal?
Students must either accept or decline the proposed financial aid. After accepting the award package, loan applications can be completed online or requested to be sent home for you to complete and return to the Financial Aid Office. These forms must be signed in order to process and disburse funds.
Do I need to complete loan promissory notes every year?
You are required to complete promissory notes annually for the Perkins Loan and the Illinois Wesleyan Loan. The applications are available online or can be mailed to you. The promissory notes will be ready to sign in September and the student will be notified when it is ready for their signature. The Stafford Loans require a Master Promissory Note and Loan Counseling Interview to be completed and signed the first year only. All these forms are available online or can be sent to the student after he/she has been packaged. All loan documents must be received in the Financial Aid Office in order for the loan to be disbursed.
When do I have to start repaying my loan(s)?
Federal Stafford Loans (Subsidized and Unsubsidized) begin 6 months after the student leaves the university or graduates. The Illinois Wesleyan Loan payments begin 6 months after the student leaves the university or graduates. The Perkins repayment begins 9 months after the student leaves the university or graduates.
Can I make payments on my Federal Stafford Loan while I’m still in college?
Yes! You can pay a portion (or all) of your Stafford Loan obligation while you’re still pursuing your education, with no pre-payment penalty. Students can elect to make interest only payments on Stafford Unsubsidized loans to help further reduce the loan balance.
Can my parents apply for a loan to help finance my education?
Yes! To apply for a parent PLUS loan, the borrower must apply for the loan and complete a Master Promissory Note (if borrowing for the first time). Illinois Wesleyan Financial Aid Office has a packet including the promissory note and information regarding the PLUS.
What are Private Loans?
Private Loans are funded by banks and private lending institutions. These loans are credit based and are not federally regulated so their terms will vary depending on the lender. Private Loans that require certification by the Financial Aid Office can be certified up to a student’s Cost of Education minus other aid received for the period. In the past three years, students at IWU have received private loans from Citibank, Sallie Mae, Wells Fargo, Chase, and Discover.