Student loans are financial aid that must be repaid. Most educational loans (with the exception of private/alternative credit based loans) are part of the William D. Ford Direct Federal Loan program (DL).
- The Federal Perkins Loan is a federally subsidized loan, which means the federal government pays the interest while the student is enrolled in school at least half-time. This loan offers a low fixed interest rate (5%) and does not have processing or origination fees. Perkins loans are awarded to undergraduates with exceptional financial need.
- The Federal Direct Subsidized Loan is also a need-based loan. Because it is subsidized, the federal government pays the interest while you are enrolled in school at least half time.
- As the name suggests, the Federal Direct Unsubsidized Loan is not subsidized by the federal government. You are responsible for paying the interest while enrolled in school or you may defer interest payments until repayment begins. Students must file a Free Application for Federal Student Aid (FAFSA), which enables WPI to determine eligibility for the loans. The federal government sets annual borrowing limits according to year in school or grade level (undergraduate students are also eligible to borrow an additional unsubsidized Stafford Loan in the amount of $2,000 a year):
- First-year students = $3,500
- Second-year students = $4,500
- Third- and fourth-year students = $5,500
- Graduate students = $20,50
WPI Average Student Debt
- WPI students graduating in 2016 have a federal average student debt level of $26,500. For more detailed information on financial aid statistics and debt levels, please visit the National Center for Education Statistics College Navigator
- Massachusetts No Interest Loan. This program offers a zero-interest, long-term student loan to financially needy Massachusetts residents to help meet postsecondary educational costs. Learn more about borrowers’ responsibilities (PDF).
- WPI offers its own institutional loans to undergraduate students who demonstrate financial need. WPI Loans are typically awarded to students in their junior and senior year. Repayment of both principal and interest (currently fixed at 5%) begins nine months after the recipient ceases enrollment or falls below half time enrollment status. WPI Loans include the following:
- Oliver Brewster Institute
- Davis Fund Institute
- Kinnicutt Fund Institute
- Knowles Institute
- Koppers Institute
- Manning Institute
- Stewart Fund Institute
- Ward Institute
Monthly Payment Plan
Students and their families may choose to repay over a 12-month (June to May) period through Tuition Management Services. There are no charges or interest beyond the $110 application fee. Visit https://wpi.afford.com for more information.
Credit Based Loans
Many of these loans are deferred while the student is enrolled at least half-time; some require interest-only payments while enrolled. Interest does accrue while the loan is deferred. Repayment begins six months after graduation or whenever enrollment drops below half time. There are no prepayment penalties on any of these loans.
- Federal PLUS Loan. For parents the federal government offers the Parent PLUS Loan with a fixed rate of 7.21%. Payment may be deferred while the student is enrolled at least half time. All federal loans are processed through the Federal Direct Loan Program. How to apply for a PLUS loan
- GradPLUS Loan. This federal fixed-rate loan is available to Graduate Students from the Department of Education. Beginning with 2010-2011 WPI will be participating in the Federal Direct Loan Program. How to apply for a GradPLUS loan
- Private Loans - WPI uses ELM SELECT as a tool to provide students and parents with information about alternative / private loans our students have used in the past. ELM SELECT allows you to compare several items such as loan rates, length of repayment, monthly payment amounts, etc. (The WPI Office of Student Aid & Financial Literacy does not endorse or recommend a particular program)
Students from Minnesota, Montana, North Dakota, South Dakota, Wyoming, and Wisconsin are eligible to borrow a Bank of North Dakota (BND) DEAL student loan. BND does not list their product on ELM SELECT for WPI because of the small number of students that may be eligible. If you are a resident of one of these states and are interested in information about the BND DEAL student loan please visit BND's website directly.
Preferred Lender Disclaimer
PLEASE NOTE: The lenders list on WPI's Office of Student Aid & Financial Literacy website and on printed materials are recommendations only and students have the option of using these lenders or they may elect to use lenders of their own choosing. The list is a historical survey of lenders our students have borrowed from in the past 5 years. WPI is in no way induced to choose any of the lenders appearing on their lists and we abide by the code of conduct followed by NASFAA members. Students are encouraged to maximize their federal loan borrowing (subsidized and unsubsidized Federal Direct loans) before using alternative / private loans, and Parents are encouraged to compare the Federal PLUS Loans to the alternative / private loan options they may are considering.