Full-Time Formats: Educational Loans

Educational loans provide students the opportunity to cover their educational, living and personal expenses while completing their MBA. Loans make it possible for students to invest in a future of expanded career opportunities and increased earning power. Loans are also the most common source of financial assistance for MBA students.

Federal Direct Stafford Loans
The Federal Direct Stafford Loan program includes two programs; the Subsidized Federal Direct Stafford Loan and the Unsubsidized Federal Direct Stafford Loan. Eligible students who are U.S. citizens and permanent residents may borrow up to $20,500 per academic year through the Federal Direct Stafford programs.

The Federal Direct Subsidized Stafford Loan Program provides subsidized need-based loans to graduate students. Eligibility for the Federal Direct Stafford Loan is determined by submission of the Free Application for Federal Student Aid. The FAFSA is available on line at www.fafsa.ed.gov .

MBA students eligible for the Federal Direct Subsidized Federal Stafford Loan Program may borrow up to their level of need as determined by the FAFSA, within a maximum of $8,500 per year. The current interest rate on Stafford Loans is 6.8%. Interest does not accrue nor are payments due on the Subsidized Federal Direct Stafford Loan while a student is enrolled at least half-time.

Repayment begins six months after graduation or six months after a student drops below half-time status. The standard repayment period is 10 years. The repayment period can be extended to 20 or 30 years. Subsidized Federal Direct Stafford Loans are eligible for loan consolidation.

Over 80% of Willamette MBA students participate in the Federal Direct Stafford Loan Programs.

The Federal Direct Unsubsidized Stafford Loan Program provides additional funding for students participating in the Federal Direct Subsidized Stafford Loan Program, or assistance to students not financially eligible to participate in the Federal Direct Subsidized Stafford Loan Program. Interested students must file the Free Application for Federal Student Aid. The FAFSA is available on line at www.fafsa.ed.gov .

MBA students may borrow up to $20,500 per year (less subsidized Stafford eligibility) and are responsible for interest that accrues on the Federal Direct Unsubsidized Federal Stafford Loan while in school. The current interest rate on Federal Direct Unsubsidized Stafford Loans is 6.8 per cent. Interest may be paid quarterly or capitalized to the principal.

Repayment begins six months after graduation or six months after a student drops below half-time status. The standard repayment period is 10 years. The repayment period can be extended to 20 or 30 years.

Federal Direct Graduate PLUS Loan
MBA students who are U.S. citizens or permanent residents are eligible to utilize the new credit-based Federal Direct Graduate PLUS Loan Program. The PLUS Loan allows students to borrow up to the full cost of attendance (estimated budget of educational, living and personal expenses minus other financial assistance).

Interested students must file the Free Application for Federal Student Aid (www.fafsa.ed.gov). They must also have applied for their annual loan maximum eligibility under the Stafford Loan program before applying for a Federal Direct Graduate PLUS loan.

The repayment term is 10 years. The interest rate is fixed at 7.9 per cent. Interest begins to accrue on the Graduate PLUS loan as soon as the funds are released to the school.

Private Credit-Based Loans
International students may be eligible to borrow funds through private credit-based educational loan programs if they have a co-signer who is a U.S. citizen or permanent resident. Programs to consider include:

• Bank of America International Student Loan
• CitiAssist Loan for Graduate Students
• Sallie Mae International Student Loans

Information about how credit scores are computed is available at http://www.myfico.com.

Questions?
Willamette University financial aid personnel and the Willamette MBA admission staff are available to help you with your questions. Contact the financial aid office at gradaid@willamette.edu or call 877-542-2787.
Contact the MBA admission office at mba-admission@willamette.edu or call 503-370-6167.