Western University of Health Sciences Financial Aid Western University of Health Sciences
Financial Aid

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.

Under the Direct Loan program, the funds for your loan(s) come directly from the federal government unlike Federal Family Education Loans come from a bank, credit union, or other lender that participates in the program.

Students must fill out a FAFSA to get a Federal Direct Stafford Loan, and for the Graduate PLUS Loan.

Direct Loan Program Changes 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.

Previous and New Rates on Direct Stafford Loans 1314

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%

Previous and New Rates on Direct Graduate PLUS Loans 1314

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%
 
 

 

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

 

Questions and Answers about the Direct Loan Program

What is the difference between the Federal Family Education Loan Program (FFELP) and the William D. Ford Federal Direct Loan Program?

In the Direct Loan Program, the U.S. Department of Education acts as a lender, providing funds for Stafford loans and the Grad Plus loans. With Federal Family Education Loan Program, students chose a bank or lender.

If I have previously received a Stafford or Grad Plus loan through another lender, do I have to change to the Direct Loan Program?

Yes. All students needing a Stafford or Grad Plus Loan will need to apply for the loan through the Direct Loan Program.

What steps do I need to take to apply for the Stafford and Grad Plus Loans through the Direct Lending program?

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

What is the interest rate on the Stafford Direct Loan Program?

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 2013/2014 academic year the interest rate is 5.41% (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 2014/2015 academic year may differ based on what the 10-Year T-Bill will be by the end of May 2014.

 

What is the interest rate on the Direct PLUS Loan?

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 2013/2014 academic year the interest rate is 6.41% (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 2014/2015 academic year may differ based on what the 10-Year T-Bill will be by the end of May 2014.

 Does the Stafford Direct Loan program have any fees?

Yes. See chart below.

Previous and New rates 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%
 

Does the Direct PLUS Loan have any fees?

Yes. See chart below.

Previous and New Rates 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%

 How does the credit check process work on the Direct Grad Plus Loan?

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.

When does the credit check process take place?

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

How long is the credit check valid for?

A credit check is valid for 90 days.

Can endorsers of Direct Plus Loans complete the endorser addendum online?

Yes, the endorser may complete the endorser addendum on the www.StudentLoans.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.

Can I cancel my Stafford and or my Grad Plus loans?

Yes. You may cancel or reduce the amount of your loan by writingto 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.

Do I need to complete a new Entrance Interview for the Direct Loan Program?

Yes. Students need to be aware of the differences in the Direct Loan Program versus the Federal Family Education Loan Program (FFELP).

Does the Direct Loan program have in-school deferment for graduate/professional students?

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

Does the Direct Loan program allow borrowers to defer/forebear payments?

Yes. The Direct Loan program offers the same deferments that are available to borrowers in the Federal Family Education Loan (FFELP) Program.

Who will my servicer be for the Direct Loan program?

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

Who should I contact if I have questions about the Direct Loan program?

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/PIN 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

Aspire Resources Inc.

Phone: 855/475-3335
Fax: 515/471-8180
TDD/TTY: 855/475-4889
Overseas borrowers: 515/471-3999
Web site: www.AspireResourcesInc.com
Email: LoanCounsel@AspireResourcesInc.com
Office Hours: 7:00 a.m. – 7:30 p.m. (CT), Monday through Friday.

CornerStone

Phone: 800/663-1662
Fax: 801/366-8400
TDD/TTY: 801/321-7130
Overseas borrowers: 801/321-7295
Web site: www.MyCornerStoneLoan.org
Email: CustomerService@mycornerstoneloan.org
Office Hours: 6:00 a.m. – 9:00 p.m. (MT), Monday through Thursday. 6:00 a.m. – 5:00 p.m. (MT), Friday. 8:00 a.m. – 12:00 p.m.
(MT), Saturday.

Direct Loan Servicing Center (ACS)

Phone: 800/848-0979
Fax: 800/848-0984
TDD/TTY: 800/848-0983
Overseas borrowers: 315/738-6634
Web site: www.myedaccount.com
Office Hours: 8:00 a.m. – 8:30 p.m. (ET), Monday through Friday.

Department of Education Student Loan Servicing Center (ACS)

Phone: 800/835-4611
Fax: 315/738-2232
TDD/TTY: 800/662-1220 within New York State
TDD/TTY: 800/855-2880 outside New York State
Office Hours: 8:00 a.m. – 11:00 p.m. (ET), Monday through Friday.

EdManage

Phone: 855/479-0490
Fax: 855/479-0487
TDD/TTY: A borrower who is hearing-impaired may use the 711 Telecommunications Relay Service for assistance.
Overseas borrowers: 855/479-0490
Web site: www.EdManage.MyEdLoan.com
E-mail: A borrower must log in to www.EdManage.MyEdLoan.com, click on the “Contact Us” tab, and select the “Secure Email” option.
Office Hours: 8:00 a.m. – 9:00 p.m. (ET), Monday through Thursday. 8:00 a.m. – 5:00 p.m. (ET), Friday.

ESA/Edfinancial

Phone: 855/337-6884
Fax: 865/692-6348 or 865/692-6349
TDD/TTY: 855/337-6884
Overseas borrowers: 855/337-6884
Web site: www.edfinancial.com/DL
Contact Us Page: www.edfinancial.com/Contact
Office Hours: 8:30 a.m. – 8:00 p.m. (ET), Monday through Thursday. 8:30 a.m. – 6:00 p.m. (ET), Friday.

FedLoan Servicing (PHEAA)

Phone: 800/699-2908
Fax: 717/720-1628
TDD/TTY: 800/722-8189
Overseas borrowers: 717/720-1985
Web site: www.myfedloan.org
Office Hours: 8:00 a.m. – 11:00 p.m. (ET), Monday through Thursday. 8:00 a.m. – 9:00 p.m. (ET), Friday.

Granite State – GSMR

Phone: 888/556-0022
Fax: 603/227-5415
TDD/TTY: A borrower who is hearing-impaired may e-mail dlcustomerservice@gsmr.org for assistance.
Overseas borrowers: 603/227-5321
Web site: www.gsmr.org
E-mail: dlcustomerservice@gsmr.org
Office Hours: 8:00 a.m. – 6:00 p.m. (ET), Monday through Friday.

Great Lakes Educational Loan Services, Inc.

Phone: 800/236-4300
TDD/TTY: A borrower who is hearing-impaired may use the 711 Telecommunications Relay Service for assistance.
Overseas borrowers: 608/246-1700
Web site: www.mygreatlakes.org
Office Hours: 7:00 a.m. – 8:45 p.m. (CT), Monday through Thursday. 7:00 a.m. – 5:45 p.m. (CT), Friday.

MOHELA

Phone: 888/866-4352
Fax: 866/222-7060
TDD/TTY: 636/532-5189
Overseas borrowers: 888/866-4352
Web site: www.mohela.com
Office Hours: 8:00 a.m. – 8:00 p.m. (CT), Monday through Thursday. 8:00 a.m. – 5:00 p.m. (CT), Friday.

Nelnet

Phone: 888/486-4722
Fax: 877/402-5816
TDD/TTY: 888/486-4722
Overseas borrowers: 303/696-3625
Web site: www.nelnet.com
Office Hours: 24 hours a day, 7 days a week.

OSLA Servicing

Phone: 866/264-9762
Fax: 855/813-2224
TDD/TTY: 405/556-9230
Web site: www.osla.org
E-mail: DLcustserv@osla.org
Office Hours: 8:00 a.m. – 5:00 p.m. (CT), Monday through Friday.

Sallie Mae

Phone: 800/722-1300
Fax: 866/266-0178 (within United States)
Fax: 570/706-8563 (outside United States)
TDD/TTY: 877/713-3833
Overseas borrowers: If toll-free (no cost per call) number cannot be accessed, use 317/806-0580 (cost per call)
Web site: www.salliemae.com
Office Hours: 8:00 a.m. – 9:00 p.m. (ET), Monday through Thursday. 8:00 a.m. – 8:00 p.m. (ET), Friday.