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Loan Programs

Below is list of federal loan programs available to undergraduate students.  

The loan funds listed here all require that the student file the Free Application for Federal Student Aid (FAFSA) each year.

If you are attending two institutions of higher education simultaneously (even if attendance only overlaps 1 day), this will impact your federal student aid eligibility at both schools, and you must notify the Financial Aid Office immediately.

Loan eligibility is renewable provided that the student continues to meet Financial Aid SAP requirements, has not borrowed the aggregate maximum set by the federal government, and has not completed the graduation requirements for their degree program.

Federal Direct Subsidized Loan

Loan Terms

  • Fixed interest rate of 5.50% (As of 07/01/23)
  • Origination fee of 1.057%
  • Interest begins accruing as soon as repayment begins
  • Repayment will begin 6 months after you graduate, withdraw, or are enrolled less than half-time
  • 10 year repayment period

Yearly Amounts

Up to $5,500, determined by year in program and need as determined by the FAFSA

Application Requirements

Sample Repayment Schedule

Total Debt at Repayment* Monthly Payment Amount Total Amount Paid Total Interest Paid
$5,000 $50 $6,005 $1,007
$10,000 $100 $12,013 $2,013
$15,000 $150 $18,020 $3,020
$20,000 $200 $24,026 $4,026
$25,000 $250 $30,033 $5,033
$30,000 $300 $36,039 $6,039
$35,000 $350 $42,046 $7,046
$40,000 $400 $48,052 $8,052
$45,000 $450 $54,059 $9,059
$50,000 $501 $60,065 $10,065
*Payment calculated using a fixed interest rate of 3.76% over a 10 year period.
Federal Direct Unsubsidized Loan

Loan Terms

  • Undergraduate fixed interest rate of 5.50% (As of 07/01/23)
  • Origination fee of 1.057%
  • Interest begins accruing as soon as funds are disbursed
  • Repayment will begin 6 months after you graduate, withdraw, or are enrolled less than half-time
  • 10 year repayment period

Yearly Amounts

  • Up to $7,500, determined by year in program and amount of subsidized direct loan awarded, if any.

Application Requirements

Sample Repayment Schedule

Total Debt at Repayment* Monthly Payment Amount Total Amount Paid Total Interest Paid
$5,000 $50 $6,005 $1,007
$10,000 $100 $12,013 $2,013
$15,000 $150 $18,020 $3,020
$20,000 $200 $24,026 $4,026
$25,000 $250 $30,033 $5,033
$30,000 $300 $36,039 $6,039
$35,000 $350 $42,046 $7,046
$40,000 $400 $48,052 $8,052
$45,000 $450 $54,059 $9,059
$50,000 $501 $60,065 $10,065
*Payment calculated using a fixed interest rate of 3.76% over a 10 year period.
Federal Parent PLUS Loan

Loan Terms

  • Fixed interest rate of 8.05% (As of 07/01/23)
  • Origination fee of 4.228%
  • Interest begins accruing as soon as funds are disbursed
  • Repayment will be scheduled for 60 days after the loan is fully disbursed, but can be deferred until after the student graduates, withdraws, or is enrolled less than half-time
  • 10 year repayment period

PLUS loans enable parents with good credit histories to borrow to pay the educational expenses of their dependent children. Generally, repayment begins 60 days after the loan is fully disbursed, unless deferred.

Yearly Amounts

Up to the student's cost of education, less any other financial aid received.

Application Requirements

Sample Repayment Schedule

Total Debt at Repayment* Monthly Payment Amount Total Amount Paid Total Interest Paid
$5,000 $56 $6,755 $1,755
$10,000 $112 $13,510 $3,510
$15,000 $168 $20,265 $5,265
$20,000 $225 $27,020 $7,020
$25,000 $281 $33,775 $8,775
$30,000 $337 $40,530 $10,530
$35,000 $394 $47,285 $12,285
$40,000 $450 $54,040 $14,040
$45,000 $506 $60,795 $15,795
$50,000 $563 $67,550 $17,550
*Payment calculated using a fixed interest rate of 6.31% over a 10 year period.
Federal Perkins Loan

(This fund is no longer available.)

Loan Terms

Fixed 5.0% interest rate. No fees. Awarded to students with exceptional financial need. Interest and repayment are deferred until nine months after a student ceases to be enrolled at least half-time. This fund is no longer available to new borrowers.

Yearly Amounts

Range from $500 to $3,000.

Application Requirements

  • Valid FAFSA filed and available to Willamette
  • Master promissory note (MPN)
  • Entrance counseling

Required Disclosures

Federal Perkins Loans are awarded to students with remaining financial need after their full annual eligibility for the Subsidized and Unsubsidized Federal Stafford Loan is considered. Although Perkins Loans have repayment and forgiveness options that are not the same as those available for Stafford Loans, both Perkins and Stafford Loans may become part of a Federal Direct Consolidation Loan along with Stafford Loans. Consolidating Perkins and Stafford Loans may result in a lower monthly payment and/or an extended amount of time to repay the underlying loans although a higher total amount of interest expense may be incurred due to the extended time to repay. Perkins Loan interest is fixed at 5%. This compares to the variable rate applied to Federal Stafford Loans of 3.76% for undergraduate borrowers for the 2016-17 award year. For more information on Federal Perkins, Stafford, or Direct Consolidation Loans, visit studentaid.gov.

Repayment and Exit Counseling Requirement

Loans must be repaid under the terms and conditions described for each program.

When you graduate, withdraw, or are enrolled less than half-time you are required to complete exit counseling.  This counseling will review loan repayment terms and conditions among other loan repayment topics.  You can complete loan exit counseling for Federal Direct Loans at studentaid.gov and at ECSI for the Perkins Loan.

Willamette University

Office of Financial Aid

Address
1st Floor Waller Hall
900 State Street
Salem Oregon 97301 U.S.A.
Phone
503-370-6273 voice
877-744-3736 toll free
Email
finaid@willamette.edu

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