Financial Aid       

West Chester University

25 University Avenue, Suite #030
West Chester, PA 19383
Phone: (610) 436-2627
Fax: (610) 436-2574


Federal Stafford Loan Program for the Spring and Summer of 2010.

A Federal Stafford Loan is a low-interest federal loan funded by various lenders and/or guarantee agencies. The interest rate usually changes yearly. For the 2009-2010 academic year the interest rates for the Federal Subsidized loan is 5.6%. The interest rate for unsubsidized loans is 6.8%.

Ford Direct Federal Student Loan Program 2010-2011

West Chester University is transitioning from the Federal Family Education Loan Program (FFELP) to the Ford Direct Federal Student Loan Program and the Direct Parent Loan Program, effective fall 2010. This change is precipitated by the changes in federal guidelines regulating student and parent education loans.For the 2010-2011 academic year the interest rates for the Ford Direct Federal Student Loan will be 4.5%. The interest rate for the Unsubsidized loan remains unchanged. Students and parents will be informed via various media, including this website, with instructions about this transition.

 

FFELP and Ford Direct Student Loan Programs

Repayment on the loan begins 6 months after the student separates from school or drop below half-time, (6 credits) whether or not the program of study has been completed. Depending on dependency status and need, the interest that accrues on the loan during the in-school period, grace periods and periods of deferment can be either subsidized or unsubsidized. If students have demonstrated need after grant eligibility has been determined, the federal government will pay, or "subsidize" the interest on the loan, up to the grade-level maximum. Students who do not have sufficient need for a subsidized loan may still borrow the funds, but will have to pay the interest on the loan for the in-school period or capitalize the interest; this is an unsubsidized loan. Note that if students choose to capitalize, the interest that accrues during the in-school and grace periods will be added to the principal balance of the loan. Interest then accrues on that new amount. Students must be enrolled in a degree program and, at least a half-time (6 credits) basis per semester in order to be eligible to borrow loan funds.