Early Career MBA: 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.

There are many different lenders offering a variety of benefits that can reduce the cost of your loan. To get the most from your educational loan program be sure to contact the Willamette University financial aid office to review your options and select the best lender for your education.

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

The Subsidized Federal Stafford Loan Program provides subsidized need-based loans to graduate students. Eligibility for the 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 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 interest rate on Stafford Loans borrowed for the 2008-09 academic year is 6%. Interest does not accrue nor are payments due on the Subsidized Federal 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 Stafford Loans are eligible for loan consolidation.

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

The Unsubsidized Federal Stafford Loan Program provides additional funding for students participating in the Subsidized Stafford Loan Program, or assistance to students not financially eligible to participate in the 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 Unsubsidized Federal Stafford Loan while in school. The interest rate on Unsubsidized Stafford Loans borrowed for the 2008-09 academic year is 6 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.

Subsidized and Unsubsidized Stafford Loans are provided by
banks, credit unions, savings and loan associations and other sources such as:

• Chase at 877-968-7331
• Citibank at 800-976-2400
• Key Bank at 800-539-5663
• Sallie Mae at 888-272-55453
• Wells Fargo at 800-658-3567

Federal Graduate PLUS Loan
MBA students who are U.S. citizens or permanent residents are eligible to utilize the new credit-based Federal 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 Graduate/Professional PLUS loan. Eligible students must submit a Federal PLUS Loan Promissory Master Note to secure loan funds.

Federal PLUS Loans are borrowed through banks, credit unions, savings and loan associations and other sources. The repayment term is 10 years.

The interest rate is fixed at 8.5 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

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