Federal Family Educational Loan Program (FFEL) Information
All applicants for loans (Stafford and Plus) must file a Free Application for Federal Student Aid (FAFSA). To apply, they must also complete the Webster University Application for Financial Aid and view a loan counseling video. Loans cannot be processed until the needs analysis information has been received in the Financial Aid Office in St. Louis and has been reviewed.
NOTE: Students must be enrolled at least half-time to receive loans. For fall semester (August through December) and spring semester (January through May), half-time is six or more credit hours for undergraduates; five credit hours or more for graduate or professional students. For summer sessions, half-time is three credit hours or more for undergraduates and graduate students. For students attending only eight-week or nine-week classes, half-time is three credit hours in each eight- or nine-week session.
Click for more information:
- Federal Stafford Loans
- Federal PLUS Loans
- Federal Perkins Loans
- How Do I Apply for Loans?
- Disbursement
For more eligibility information (including international student eligibility), please see "How to Apply for Financial Aid."
Federal Stafford Loans
Federal Stafford Loans are available to eligible undergraduate and graduate students, and may be subsidized or unsubsidized. Repayment of principal is postponed while the student is in school and during a six month grace period after the student leaves school or drops below half time hours. These loans are made by a lender, such as a bank, credit union, or savings and loan association; are insured by a state or nonprofit guarantee agency; and are reinsured by the federal government.
Subsidized Federal Stafford Loans:
The federal government pays interest on the borrower's behalf:
- while s/he is in school;
- in her/his grace period;
- during authorized periods of deferment of repayment.
Unsubsidized Federal Stafford Loans:
- are available to students who do not qualify, in whole or in part, for Subsidized Stafford Loans;
- have terms that are the same as the terms for subsidized loans, except that the federal government DOES NOT pay interest on the borrower's behalf;
- may either accrue interest while the student is in school and then be added to the loan balance, or the borrower may begin making interest payments after the first loan check is disbursed;
- accrue interest during the borrower's grace period and during authorized periods of deferment of repayment.
Interest Rates
Interest rates are set on July 1st of each year, and are based on the 91-day T-Bill rate plus 3.10%, capped at 8.25%. Students who have borrowed previously with fixed-rate loans should check their existing promissory note for the applicable interest rate.
A borrower may possibly receive both Subsidized and Unsubsidized Federal Stafford Loans, as long as the total of the two loans does not exceed the limit for the applicable grade level. If you do not qualify for the full amount permitted under the Subsidized Stafford program, an Unsubsidized Stafford Loan may be processed for the difference between the grade level maximums and the subsidized loan amount. Borrowing limits will be as follows:
Dependent Undergraduates
- $2,625 freshmen
- $3,500 sophomores
- $5,500 junior, seniors and fifth-year students
Independent/Graduate and Professional Students
- $2,625 - any subsidized elig. + $ 4,000 = $ 6,625 Freshmen
- $3,500 - any subsidized elig. + $ 4,000 = $ 7,500 Sophomores
- $5,500 - any subsidized elig. + $ 5,000 = $10,500 Juniors and Seniors
- $8,500 - any subsidized elig. + $10,000 = $18,500 Graduate & Professional
Subsidized Stafford Loan eligibility will be estimated on your award notification. Your other aid (need or non-need based) must be taken into consideration as a resource when determining your eligibility for a Subsidized Stafford Loan. If this subsidized amount is less than the maximum for your grade level, you may request consideration for an Unsubsidized Stafford Loan for the difference.
Federal PLUS Loans
PLUS (Parent Loans for Undergraduate Students) Loans enable parents (or legal guardians as determined by court order) to borrow the student's cost of attendance minus other aid for each dependent student who is enrolled at least half-time.
- Subsidized Stafford Loan eligibility for the student must be used when calculating PLUS eligibility, regardless of whether the student applies for the Stafford Loan.
- We require that ALL applicants for Title IV federal aid, including PLUS, file the Free Application for Federal Student Aid (FAFSA) before PLUS loans can be processed.
- A Webster Financial Aid Form must also be completed and signed by the student, and submitted before the PLUS application can be processed.
- PLUS loans do NOT require that the student have demonstrated financial need. However, the combination of PLUS loans and any other aid may not exceed the cost of education for the term of the loan.
Interest Rates
PLUS loans have variable interest rates, which are adjusted each year with a 9% cap.
Federal Perkins Loans
What is a Federal Perkins Loan?
Federal Perkins Loan is a low-interest (five percent), long-term loan to help pay for educational expenses such as tuition, fees, room and board, and books. These loans are made to undergraduate and graduate students through the Financial Aid Office in St. Louis and are awarded based on need. You apply by completing a Free Application for Federal Student Aid (FAFSA), Webster Application for Financial Aid, and by completing entrance counseling.
How much can I borrow?
You may borrow a total of up to $3,000 per year as an undergraduate student, to a total of $15,000; or up to $5,000 per year as a graduate student, to a total of $30,000, including loans borrowed as an undergraduate.
How do I receive my Federal Perkins Loan fund?
You must sign a Promissory Note with the Business Office. A check for the loan proceeds will be issued once you sign this loan check. Your loan proceeds are applied to your student account.
When do I pay back my Federal Perkins Loan?
If you have an outstanding principal or interest owing on any direct loan (Perkins/NDSL) prior to July 1, 1987, you begin paying six months after you graduate, leave school, or drop below half-time status. If you are a new borrower who has no previous outstanding principal or interest owing on any loan as of July 1, 1987, you begin repayment nine months after you graduate, leave school or drop below half-time status. You may be allowed up to 10 years to repay your loan. The amount of your payment depends on the size of your debt, but usually you must repay at least $40 per month.
What happens if I don't pay back my loan?
If you default on a Federal Perkins Loan and the school is unable to collect, it will harm your credit rating, and the federal government may take action to recover the loan. You cannot receive further financial aid if you are in default status.
How Do I Apply For Loans?
The student must:
- file the Free Application for Federal Student Aid (FAFSA) with the Central Processing Agency;
- submit the Webster University Financial Aid Form;
- submit a signed PLUS Loan application completed by the student and a parent to the Financial Aid Office.
Additional Information
A common Loan Application is used for Stafford Loans (subsidized and unsubsidized). This single form allows you to apply for both subsidized and unsubsidized loan programs on one application.
- Read ALL instructions carefully.
- Be sure to answer ALL questions.
- Incomplete applications cannot be processed.
- Loan funds are delivered by means of paper checks or Electronic Funds Transfer (EFT). EFT allows your lender to deposit your student loan funds directly to a student account. Be sure to mark the EFT box on your Stafford Loan application. Not all lenders participate in EFT.
- Because of changes in Federal regulations, loan eligibility may change during the academic year. It is critical that you enroll for the period(s) specified on your form and loan applications. IF YOU APPLY FOR A PARTICULAR LOAN PERIOD AND THEN DO NOT ENROLL AS INDICATED FOR THAT PERIOD, YOUR LOAN ELIGIBILITY WILL BE AFFECTED. ANY UNDISBURSED AMOUNTS MUST BE CANCELED, AND DUE TO THE CANCELLATION PROCESS, ANY SUBSEQUENT APPLICATIONS CAN BE DELAYED SEVERAL WEEKS. DO NOT APPLY FOR A PARTICULAR LOAN PERIOD IF YOU HAVE ANY DOUBTS ABOUT BEING ENROLLED AS ANTICIPATED.
- We cannot process an application showing a break in the loan period, for example, summer and spring on the same application. Loan periods must be consecutive in order to process on one application.
Application materials for Stafford Loans are available from the Financial Aid Office in St. Louis and all of Webster's locations. The completed application materials should be returned to the Financial Aid Office in St. Louis or any of Webster's locations as early as possible.
Disbursement
Federal regulation requires us to schedule at least two disbursement dates for each loan that we certify. Normally, the first is scheduled so that funds can be applied to the student's account on the first day of the second week of the school term, which begins the loan period. The second is scheduled for at least halfway through the loan period. Realize also that your lender will deduct origination and processing fees from your loan disbursements before remitting them to the university. These fees normally total approximately four percent of the principal amount.
There are two methods by which your lender may send student loan funds to Webster University. The first method is to send a check co-payable to the borrower and the school. This requires both borrower and institution endorsement in order to negotiate the check. The second method is a process called Electronic Funds Transfer (EFT). Under this arrangement money is wired into a university account and does not require endorsement. Note that students must provide their authorization for the school to utilize EFT and that this can be done on the loan application itself. Furthermore, not all lenders can or will provide this service to their customers. Please refer to the recommended lender list for those banks that have agreed to provide EFT service to their Webster borrowers. This list is included in the application packet.
Regardless of the method by which student loan funds are disbursed, the school has a very limited amount of time to process this for you. You must be registered properly and be making satisfactory academic progress before we can process your loan funds. You must endorse your check, and Webster must deposit your check within this time frame. Because of the mail time required to deliver these disbursements to extended campuses, we strongly recommend that you consider using a lender which has agreed to participate in EFT with Webster.
Deferment of fees may be arranged with the Business Office for Stafford and PLUS loans that have been processed; however, students should arrive with sufficient funds to cover the cost of their books and personal expenses for the first 30 days of the semester.
First-time borrowers at Webster University must go through an Entrance Interview given by the Financial Aid Office before loans can be processed. Students attending extended campuses may have the Entrance Interview at the extended campus. The Entrance Interview requirements can also be satisfied on-line via online.educaid.com/counseling/EIntro970725.cfm
When does payment begin?
For Subsidized Stafford Loans, repayment of principal and interest begins six months after you leave school or fall below half-time hours.
For Unsubsidized Stafford Loans, repayment of principal begins six months after you leave school or fall below half-time hours. Interest begins accruing immediately.
For PLUS Loans, repayment begins immediately after disbursement of funds. Parents must check with their lender to obtain information on repayment procedures.