Federal Direct Loans
Direct Loan Program (Subsidized and Unsubsidized)
Direct loans are available to students enrolled in a minimum of six credit hours. This is a long-term, low- interest loan. The fixed interest rate for loans disbursed after July 1, 2020 (but before July 1, 2021) is 2.75%. Students must first complete the FAFSA to determine eligibility. All students must also complete EWC’s Direct Loan Request Form. First-time borrowers must also complete Loan Entrance Counseling and a Master Promissory Note.
View more information on student loans and the application process.
Direct Parent Loan for Undergraduate Students (PLUS)
This low-interest loan program is available to parents of dependent students who may need to borrow for educational expenses that the student’s aid won’t cover. The Direct Parent Loan may not exceed the student’s cost of education minus other financial aid awards. The fixed interest rate for loans disbursed after July 1, 2020 (but before July 1, 2021) is 5.30%.
View more information on Direct Parent Loans.
Private Student Loans
In accordance with 34 CFR 668.14(b)(29)(ii), an institution must discuss the availability of Federal, State, and institutional financial aid to a student applying for non-federal private or alternative educational loans. EWC’s Financial Aid Office is happy to discuss with students and prospective students, and their parents, the financial aid options available under Title IV of the Higher Education Act programs, which offer better options and more benefits than private loans. The terms and conditions of Title IV HEA program loans are often more favorable than the provisions of private educational loans. Non-federal loans also entail a credit check and often require a co-signer.
Federal Direct Loans vs. Private Student Loans at EWC
Compare some alternative loan lenders that have worked with EWC students in the past three to five years via ElmSelect.
Here are some points to consider as you are researching private/alternative loans:
- What are the eligibility requirements (enrolled half-time or more; meeting Satisfactory Academic Progress standards; degree- or certificate-seeking)?
- What is the interest rate; is it fixed or variable; is the rate capped?
- What fees must be paid for this loan and when does repayment start?
- Is there a grace period? Deferment or forbearance options?
- What will my monthly payment be?
- What will be the total cost if I use the full repayment period (how much total interest will I pay)?
- Are there penalties for early repayment?
- Is this a well-established and reputable loan program?
Regardless of which private loan program you choose, you will need to complete a self-certification form before receiving your first disbursement of funds. Your lender will provide that to you or you can download the form here: Private Education Loan Applicant Self-Certification Form