Graduate Student Loans
Federal Stafford Loan
Formerly called the Guaranteed Student Loan (GSL), this is a low-interest government subsidized loan. Graduate/professional students can borrow up to $8,500 per year dependent on your tuition cost and financial need. The interest rate for all borrowers will be variable, set annually and capped at 8.25%.
If you are a new borrower or a previous borrower who is enrolling in graduate school before the end of your six month grace period, the interest and principal of your current and/or previous loans will continued to be be deferred until six months after graduation. If, on the other hand, you have started repayment on your previous loans, you must be enrolled as a full-time student in order to be eligible for deferment. If you are enrolled on a part-time basis, you may be eligible for a forebearance while enrolled. Be sure to contact your lender or loan servicer for more information.
Eligibility Requirements
Students must qualify for the Federal Stafford Loan by filing a Free Application for Federal Student Aid (FAFSA) and demonstrating need. Once your FAFSA has been processed you will receive directly a Federal Student Aid Report (SAR). This form must be submitted to the WPI Financial Aid Office in order to confirm your eligibility. Federal regulations require that students be enrolled on at least a half-time basis in a degree-granting program. You must also complete a "Graduate/Professional Student Personal Data Form."
Application Procedures
Students who are previous borrowers through Massachusetts lenders or who are first-time borrowers who wish WPI to assign a lender for them, do not need to obtain a loan application from a lender. By indicating on the "Graduate/Professional Student Personal Data Form" the name and address of your previous lender, you will be initiating the application process. WPI will forward a promissory note to you once the loan has been approved.
If you borrowed from a non-Massachusetts lender, you need to obtain an application from that lender. If you are unsure of the amount you wish to borrow, list the "Requested Loan Amount" as $8,500 or the maximum loan for a graduate student. WPI will inform you if your maximum eligibility is less.
Please Note: If you are a previous borrower of a Stafford Loan, you must use the same lender as your other loan(s) in order to ensure continuity in loan servicing.
Subsidized and Unsubsidized
If you are found to be ineligible for the Federally Subsidized Stafford Loan you may be eligible for a Stafford Loan that is not subsidized. A new program has been started to allow students who are not eligible under the former program to borrow a loan with the same loan limits, interest rate and deferment options.
The difference between the two loans is that the interest on the Unsubsidized Federal Stafford Loan must be paid while the student is in school or the student may opt to allow the interest to accrue and be capitalized. You must, however, apply for the Subsidized Stafford Loan first by filing the Free Application for Federal Student Aid and submitting the Student Aid Report to the office of financial aid. Once we have determined that you are not eligible for the subsidized loan, we will contact you regarding the Unsubsidized Federal Stafford Loan.
Additional funds may be borrowed under the Unsubsidized Stafford Loan by all students regardless of need. If you are eligible for all or part of the Subsidized Stafford Loan you may also apply for up to an additional $10,000 plus your eligibility based on the paragraph above under the unsubsidized program. If you were eligible for only the Unsubsidized Stafford you may borrow up to a total of $18,500 under one application. The same terms and conditions described in the paragraph above apply to the additional limits. If you are borrowing under both programs, you must stay with the same lender for both loans. Total borrowing under the two programs cannot exceed $18,500.
For those students who had previously borrowed under the Supplemental Loan for Students (SLS), the Unsubsidized Stafford now replaces that program. Eligibility requirements are principaly the same, but the unsubsidized program has lower interest rates and interest rate cap.
We hope this answers any questions you might have concerning loan options. Should you need applications and/or further information, please do not hesitate to contact this office.
Private Loan Borrowing
Need to borrow more than just your Stafford Loans? Not enrolled at least half time so you aren't eligible for Stafford Loans? There are options available for you, click here for more information.
Maintained by webmaster@wpi.eduLast modified: July 06, 2007 16:22:56