No-loan offers for all families.
All students receiving financial aid offers will have their full need met with grants, scholarships, and Federal Work-Study. No need-based loans are included.
While this policy makes it possible for many students to graduate WashU with little to no debt, some families may wish to take advantage of loans to help finance the cost of college, including the parent or student contribution.
If you are interested in a federal student or parent loan, please contact our office to review your loan options and availability.
Federal student loans
There are three types of federal student loans.
Federal Direct Subsidized Student Loans are available for students who have demonstrated financial need. This loan is more favorable than unsubsidized student loans, because the U.S. Department of Education pays the interest while the student is in school, during the six-month grace period after school, and during a period of deferment.
The maximum Federal Direct Student Loan amounts are $5,500 for the first-year, $6,500 for sophomore year, and $7,500 per yer for junior and seniors, based on credit hours earned. The fixed interest rate and origination fee are set by the federal government each year. The U.S. Department of Education is the lender, though the entity you deal with – your loan servicer – can be a private business.
For information regarding loan types, interest rates, fees, and repayment, go to the Federal Student Aid website.
Federal Direct Unsubsidized Loans are available to students regardless of need. The government does not pay the interest on a Direct Unsubsidized Student loan. Students are responsible for repaying interest that begins accruing as soon as the loan is taken out.
Interest payments can be made while in school. You are not required to pay the accumulating interest while in school, during the six-month grace period after school, and during a period of deferment if you are having financial trouble after graduation. You can pay interest as you go (request to receive interest only statements from Federal Student Aid or allow interest to accrue until your education is complete. But if you choose not to pay, it will be added to the principle amount of your loan.
The maximum Federal Direct Student Loan amounts are $5,500 for the first-year, $6,500 for sophomore year, and $7,500 per year for junior and seniors, based on credit hours earned. The fixed interest rate and origination fee are set by the federal government each year. The U.S. Department of Education is the lender, though the entity you deal with – your loan servicer – can be a private business. Student Aid website.
For information regarding loan types, interest rates, fees, and repayment, go to the Federal Student Aid website.
PLUS Loans are loans for parents of dependent undergraduate students to help pay for expenses not covered by other aid.
No demonstration of financial need is required for these loans. The fixed interest rate and origination fee are set by the federal government each year. Borrowers have several repayment options, including a deferred option while the student is in school.
To apply for a Federal Parent PLUS Loan:
- Complete a Free Application for Federal Student Aid (FAFSA) online at FAFSA’s website.
- Request a PLUS loan online at the Federal Student Aid website to fill out an application for the loan. This request must be completed each year that you wish to borrow. The request authorizes a credit check and determines your loan eligibility at that time.
- Complete a Direct PLUS Loan Master Promissory Note (MPN) online at the Federal Student Aid website.
- If you completed a Direct Loan MPN in a previous year, you are not required to complete another one. Direct PLUS Loan MPN’s are valid for 10 years.
Private loans
Private loans are available from a variety of lenders outside the university. These loans are credit-based and should be viewed as a last resort after other borrowing options have been considered. Although terms and rates vary among private lenders, in many cases a Federal Direct Student Loan may provide the student with more beneficial terms and conditions than a private loan.
As you begin the process of evaluating student loan options, we encourage you to review two resources: the Studentaid.gov article that compares federal student loans versus private student loans, and ELMselect.com, which compares loan offers for various private student loan lenders.