Stafford and Graduate PLUS Loan Information

Stafford Loans

The Stafford Loan is a government loan, administered by the Department of Education through the William D. Ford Federal Direct Loan Program and originated by the school. Depending on need, graduate students can borrow up to $8,500 per academic year for school related expenses in a subsidized (need based) Stafford loan and $12,000 in an unsubsidized (non-need-based) Stafford loan.

How is need determined?

The Free Application for Federal Student Aid or FAFSA applies a comprehensive needs-analysis formula to each student's income and assets. From this an EFC is determined (Expected Family Contribution). This figure is then subtracted from Wesley's cost of attendance to determine need and therefore a student's eligibility for need-based financial aid. While it is not encouraged, the limit on the unsubsidized Stafford may be increased if the student does not qualify for the subsidized loan as cost of attendance will allow. Students must contact the Director of Financial Aid for this increase. The total amount of the loans cannot exceed $20,500 per academic year.

The present interest rate is fixed at 6.8%. The interest on subsidized Stafford loans is subsidized by the government while the student is enrolled at least half-time. The unsubsidized Stafford will begin to accrue this interest at the time of disbursement. Neither must be repaid until 6 months following graduation or after dropping below half-time. The origination fee for both subsidized and unsubsidized Stafford loans is 1.0% with an up-front interest rebate of 0.5%. The procedure for applying for a Stafford loan is as follows:

  1. Complete FAFSA form.
  2. Complete a Stafford Loan Request Form and return it to the Financial Aid Office.
  3. Complete a Master Promissory Note and Entrance Counseling at

Loan funds will be received by electronic fund transfer. The loan takes a couple of weeks to process, and disbursements will be scheduled once per week. Tuition, fees and any other charges must be paid first from the loan disbursement. Then, students may request a refund of any remaining credit balance once all charges are covered.

Graduate PLUS Loans

Grad PLUS loans should only be utilized if and when the Stafford loan limits for the year have been reached and the student needs additional loan funding. The interest rate is at a fixed rate of 7.9%. The loan is unsubsidized, therefore the interest accrues while the student is in school. A student may borrow the remaining cost of attendance after other aid is applied. It is a credit-based loan and there is no grace period following graduation or less-than-half-time status. Repayment begins immediately. To apply for a Grad PLUS go to

Financial Aid refunds are processed on a weekly basis. Refund request forms are located in the Business Office or on the Student Forms page. They must be submitted by 12 noon on Wednesday for a check date of Friday. If you would like your funds to remain on your account to cover future charges, please write a request and submit it to

Please note:  Students must be enrolled at least half-time to receive Stafford loans. Half-time at Wesley is defined as a minimum of 5 credits per semester. If at any point a student drops below half-time, he/she will enter the six month grace period prior to repayment.

For more consumer disclosure information regarding Stafford Loans, click here.

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