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Direct Loan Program & Counseling

Federal Direct Loan Programs

Western University of Health Sciences is a Direct Lending school which participates in the William D. Ford Direct Loan (Direct Loan) Program. This means that students get their loans directly through the U.S. Department of Education.

Students must be a U.S. Citizen or Eligible Non-Citizen and complete the FAFSA to get a Federal Direct Stafford Loan, and for the Graduate PLUS Loan.

Federal student loans are required by law to provide a range of flexible repayment options, including, but not limited to, income-based repayment and income-contingent repayment plans, and loan forgiveness benefits, which other student loans are not required to provide.

 Federal Direct loans are available to students regardless of income.

 

To apply for the Stafford and Grad PLUS Loans through the Direct Lending program:

  1. Apply for financial aid via the FAFSA https://fafsa.ed.gov/
  2. Wait to receive your award notification from the financial aid office that will be sent directly to your WesternU e-mail address to give you instructions to complete the award process through BanWeb
  3. Follow the steps/instructions on your award letter

 

Western University of Health Sciences does not participate in any preferred lender arrangements or preferred lender lists.

There are no Grants available to graduate students (Pell, FSEOG, TEACH, Iraq and Afghanistan Service Grants).


 

Direct Loan Program Changes That Became Effective Beginning 2012-2013

Loss of Subsidized Loan Eligibility for Graduate and Professional Students 
The Budget Control Act (BCA) of 2011 (Pub. L. 112-25) was signed into law on August 2, 2011. This Act makes two changes to the William D. Ford Direct Loan (Direct Loan) Program.
1)       Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans (the portion of the loan that the interest does not accrue while the student is enrolled at least half-time). The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change. Please see the chart below for the previous and new rate structure on the Direct Stafford and the Graduate PLUS Loans.
Termination of Direct Loan Borrower Repayment Incentives
2)       With the one exception noted below, the Budget Control Act terminates the authority of the Department of Education (the Department) to offer any repayment incentives to Direct Loan borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or origination fee, effective for loans first disbursed on or after July 1, 2012. As a result of this change, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012.
The law continues to authorize the Department to offer .25% interest rate reduction to Direct Loan borrowers who agree to have payments automatically electronically debited from a bank account.

Loan Origination Fees

The loan fee is charged to the borrower to originate the loan. The loan fee is an expense of borrowing one of these loans. The loan fee is a percentage of the amount of each loan the borrower receives, and is subtracted proportionately from each loan disbursement.

 

Previous and New Direct Loan Fees on Direct Stafford Loans

 

If the award’s earliest
disbursement date is…
Origination fee taken from your loan
Up-front origination REBATE
Total origination
fee
Before July 1, 2013
1.%
.5%
.5%
On or after July 1, 2013
1.05%
0%  (no rebate)
1.05%
On or after December 1, 2013 1.072% 0% 1.072%
First disbursed on or after October 1, 2014 and before October 1, 2015 1.073% 0% 1.073%
First disbursed on or after October 1, 2015 and before October 1, 2016 1.068% 0% 1.068%
First disbursed on or after October 1, 2016 and before October 1, 2017 1.069% 0% 1.069%

 

Previous and New Direct Loan Fees on Direct Graduate PLUS Loans

 

If the award’s earliest
disbursement date is…
Origination fee taken from your loan
Up-front origination REBATE
Total origination
fee
Before July 1, 2013
4.0%
1.5%
2.5%
On or after July 1, 2013
4.2%
0%  (no rebate)
4.2%
On or after December 1, 2013 4.288% 0% 4.288%
First disbursed on or after October 1, 2014 and before October 1, 2015 4.292% 0% 4.292%
First disbursed on or after October 1, 2015 and before October 1, 2016 4.272% 0% 4.272%
First Disbursed on or after October 1, 2016 and before October 1, 2017 4.276% 0% 4.276%
 
 
 
 

Interest Rates

 

Federal Unsubsidized Stafford Loans – Effective July 1, 2013 interest rates have changed to a “variable-fixed” rate. The rate would be fixed until the loan is paid in full. Interest rates will be established on July 1, for the upcoming academic year. For the 2016/2017 academic year the interest rate is 5.31% (T-bill + 3.60%) which starts accruing interest as soon as the funds are disbursed to the university. Please remember, that the interest rate for the 2017/2018 academic year may differ based on what the 10-Year T-Bill will be by the end of May 2017.

 New Rates on Direct Stafford Loans

Interest Rates Federal Direct Stafford Loans
 Borrower Type
Fixed Interest Rate 
 
 
 
 

Federal Direct Stafford Loans 2014/2015 interest rates effective for loans first disbursed on or after July 1, 2014 and prior to July1, 2015
 
Direct Unsubsidized Stafford Loans
 
 

Graduate/Professional Students
 
 6.21%

 Federal Direct Stafford Loans 2015/2016 interest rates effective for loans first disbursed on or after July I, 2015 and prior to July 1, 2016

Direct Unsubsidized Stafford Loans
 
 
Graduate/Professional Students
 

5.84%

 

 

 Federal Direct Stafford Loans 2016/2017 interest rates effective for loans first disbursed on or after July I, 2016 and prior to July 1, 2017

Direct Unsubsidized Stafford Loans
 
 Graduate/Professional Students

5.31% 

 

Grad PLUS Loan – Effective July 1, 2013 interest rates have changed to a “variable-fixed” rate. The rate would be fixed until the loan is paid in full. Interest rates will be established on July 1, for the upcoming academic year. For the 2015/2016 academic year the interest rate is 6.84% (T-bill + 4.60%) which starts accruing interest as soon as the funds are disbursed to the university. Please remember, that the interest rate for the 2016/2017 academic year may differ based on what the 10-Year T-Bill will be by the end of May 2016.

 New Rates on Direct Graduate PLUS Loans

 Interest Rates Federal Direct Grad PLUS Loans
 Borrower Type
 Fixed Interest Rate
 
 
 
 

Federal Direct Grad PLUS Loans 2014/2015 interest rates effective for loans first disbursed on or after July 1, 2014 and prior to July1, 2015
 
Direct Grad PLUS Loans
 
Graduate/Professional Students

 

 
7.21%
 

Federal Direct Grad PLUS Loans 2015/2016 interest rates effective for loans first disbursed on or after July 1, 2015 and prior to July1, 2016
 
Direct Grad PLUS Loans

Graduate/Professional Students 

 

6.84% 

 

 
Federal Direct Grad PLUS Loans 2016/2017 interest rates effective for loans first disbursed on or after July 1, 2016 and prior to July1, 2017
 
Direct Grad PLUS Loans
 

 Graduate/Professional Students 

 6.31%

 


 

Direct Grad PLUS Loan Information

The Direct Grad PLUS loan program is credit based, borrowers must not have an adverse credit history.

Once the borrower completes the Master promissory note, which includes the applicants authorization for a credit check to be completed the borrower will receive written confirmation of the credit check result.

The school sends notification to the Direct Loan program within 5 days after the student accepts their award in Banner.

The credit check is good for 180 days (new as of March 29, 2015)

If the borrower’s credit has been denied the borrower will be notified directly from Direct Loans.

Borrowers may obtain a co-signer (endorser) for the Grad PLUS loan. The co-signer must be credit worthy and a U.S. Citizen.

The endorser may complete the endorser addendum on the Student Loans.gov secure web site. To complete the endorser addendum online, the endorser will need the Loan Reference Number, which the student may obtain from the financial aid office.

Please go to Grad PLUS Loan Denials for further information and options following a credit denial.


General Borrower Information

Students may cancel or reduce the amount of your loan by writing to your school’s financial aid office or lender before your lender sends your loan money to your school. There are also two ways to cancel all or part of your loan after your loan money is sent to your school. You may contact the school within 14 days of the date the school informs you they have applied your loan to your account or you can pay back all or a part of your loan within 120 days of the date your lender sends your loan money to your school.

Contact the Financial Aid Office for any questions regarding the return of funds back to your lender.

Graduate/professional students who have Direct Loans, Stafford and/or Grad PLUS Loans are placed in an In-school deferment status based on the information reported by the school. 

Students will be directly notified by the Direct Loan Program as to whom your servicer will be.

For information on the your Direct Grad PLUS Rights and Responsibilities please go to:

Direct PLUS Loan Borrower’s Rights And Responsibilities

For information on your Direct Stafford Loan Rights and Responsibilities, please go to:

Direct Stafford Loan Borrower’s Rights and Responsibilities 

For information on repayment options and loan servicer information, please go to:

Borrower Repayment Options 

For information on financial literacy, financial planning and budgeting, please go to:

Financing a Healthy Future 

For any questions concerning your loans, budgeting, deferment or forbearance and repayment options, please contact the Financial Aid Office at 800-346-1610 or e-mail at finaid@westernu.edu .

 

Helpful Phone Numbers and Addresses for Students and Borrowers

For general questions:

In regards to your loans, Master Promissory Note or need assistance with the studentloans.gov website or appealing credit decisions and endorser questions

Direct Loan Applicant Services   1-800-557-7394

For Direct Loan servicing questions:
(for a listing on Direct Loan Servicers, see below)

Direct Loan Servicing Center for Borrowers  1-800-848-0979

If a borrower needs to know who is servicing the loan please contact the Applicant Service Number at 1-800-557-7394

For Endorser Information:

Endorsers on the Grad Plus Loan can complete the endorser application online at www.studentloans.gov endorsers will need to have their own pin number which can be obtained at www.pin.ed.gov once the pin has been activated the endorser can complete the endorser application at the www.studentloans.gov website

If a paper endorser form or Master Promissory Note needs to be mailed or sent overnight:

Regular Mailing
Department of Education
PO Box 5692
Montgomery, AL 36103

Overnight
Department of Education
100 Capitol Commerce Blvd.
Montgomery, AL 36117

For information on consolidation:
Consolidation 1-800-557-7392

For borrower assistance regarding exit counseling:
FSA/ID 1-800-433-3243
Direct Loan Servicer – Contact Information

If you have a question about Title IV federal student aid or one of the services the Department of Education provides, please contact one of the Customer Service Centers or Federal Student Aid Offices. If you are not sure which Service Center to call, contact the Research and Customer Care Center at 1-800-433-7327, or e-mail us at fsa.customer.support@ed.gov.

Loan Servicing Centers for Students:

Visit My Federal Student Aid to view information about all of the federal student loans you have received and to find contact information for the loan servicer or lender for your loans.

The following are loan servicers for federally held loans made through the William D. Ford Federal Direct Loan (Direct Loan) Program and the Federal Family Education Loan (FFEL) Program.

Loan Servicer

Contact

Heartland ESA/Edfinancial

1-888-549-3274

FedLoan Servicing (PHEAA)

1-800-699-2908

Great Lakes Educational Loan Services, Inc.

1-800-236-4300

MOHELA

1-800-866-4352

Navient

1-800-722-1300

Nelnet

1-800-722-1300

 CornerStone

 1-800-663-1662

 Granite Slate – GMSR

 1-888-556-0022

 OSLA

 1-00-264-0762

 VSAC

 1-888-932-5626