Federal Direct Loan Program & Counseling

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. Fees are subject to change.

Previous and New Direct Loan Fees on Direct Unsubsidized Loans

Previous and New Direct Loan Fees on Direct Graduate PLUS Loans

Federal Unsubsidized Loans – Interest rates are a  “variable-fixed” rate. The rate would be fixed until the loan is paid in full. The interest rate for federal direct loans first disbursed on or after July 1, 2025 are from 8.08% to 7.94% for graduate/professional Direct Unsubsidized Loans. Interest starts accruing as soon as the funds are disbursed to the university. Please remember, that the interest rate for the 2026/2027 academic year may differ based on what the 10-Year T-Bill will be by the end of May 2026. Interest rates are subject to change.

Previous and New Interest Rates on Direct Unsubsidized Loans

Grad PLUS Loan – Interest rates are  a “variable-fixed” rate. The rate would be fixed until the loan is paid in full. Interest rates for the federal direct Grad PLUS loans first disbursed on or after July 1, 2024 are from 9.08% to 8.94% for Parent and Grad PLUS loans. Interest starts accruing as soon as the funds are disbursed to the university. Please remember, that the interest rate for the 2026/2027 academic year may differ based on what the 10-Year T-Bill will be by the end of May 2026. Interest rates are subject to change.

 Previous and New Interest Rates on Direct Graduate PLUS Loans

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 offer in Banner.

The credit check is good for 180 days

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 government website. 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

Canceling or Reducing Your Student Loan

Students may cancel or reduce the amount their 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 (or sooner) 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.

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

Direct and PLUS Loan Borrower Information

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

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 Unsubsidized Loan Rights and Responsibilities, please go to:

Direct Unsubsidized Loan Borrower’s Rights and Responsibilities

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

Borrower Repayment Options

For Washington State residents seeking information and resources about student loan repayment or seeking to submit a complaint relating to your student loans or student loan servicer, please contact the Student Loan Advocate or loanadvocate@wsac.wa.gov.

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 909-469-5353 or e-mail at finaid@westernu.edu .