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Federal Loans

In addition to scholarships, financial aid to cover the total cost of attendance is available in the form of federal loans.

Generally, there are two kinds of student loans:

  • Federal loan programs, such as Direct Unsubsidized Stafford and Graduate PLUS loans
  • Private alternative educational loans

Direct Subsidized Loans and Perkins loans are only available to undergraduate students.

Federal Loan Programs

Unsubsidized Stafford Loan

Unsubsidized Loans are available to graduate or professional degree students. You are not required to show financial need to receive a Direct Unsubsidized Loan. The maximum annual limit is $20,500. Program aggregates are $138,500. No more than $65,500 of this amount may be in subsidized loans; the graduate debt limit includes loans received for undergraduate study.

More About the Unsubsidized Stafford Loan
Eligibility Requirements

A completed FAFSA is required.

Interest Rates

As of July 1, 2017 Federal Direct Loan unsubsidized interest rates are fixed at 6% for the life of the loan. However, future loan interest rates will vary based on the 10-year Treasury note” auctioned at the final auction held prior to the June 1 preceding the July 1 of the year for which the rate will be effective.

Interest Payments

The interest accrues on the loan from the time the loan is disbursed until it’s paid in full. You can:

  • Pay the interest while you’re in school and during deferment or forbearance periods. To pay the interest while you are in school, please contact the servicer of your loan(s). An alternative to paying interest is to put any extra money toward credit card debt or other loans that have a higher interest rate first. Keep in mind that the money you use to pay the interest while in school is most likely borrowed money from your refund check. A better alternative would be to borrow less.
  • Or, you can allow the interest to accrue and have the interest added to the principal amount of your loan at repayment. This will increase the total amount that you have to repay because you will be charged interest on a higher principal amount.

Origination Fee

Currently 1.66% (Fee changes in October)

An origination fee, is a payment associated with the establishment of an account with a bank, broker or the Department of Education providing services handling the processing associated with taking out a loan. The fee will be proportionately deducted from each loan disbursement.

Repayment

Repayment begins six months after graduation or after your status drops to less than half time. You have up to 10 years to repay and there is a minimum monthly payment of $50. There is no penalty for prepayment. Extended repayment, loan consolidation, deferment, and forbearance options are available.

For additional information, or to apply, go to studentloans.gov.

Federal Graduate PLUS Loan

Graduate and professional students have another option for funding their higher education: The Federal Graduate PLUS loan is guaranteed by the federal government. An eligible student can borrow up to the cost of attendance minus any other aid.

More About the Federal Graduate PLUS Loan
Eligibility Requirements

A completed FAFSA is required.

To qualify, your credit report cannot reflect any of the following adverse items:

  • 90 or more days late on a debit
  • Default on a debt during the past 5 years.
  • Debts have not been discharged due to bankruptcy during the past 5 years.
  • Has not been the subject of foreclosure, repossession, tax lien, wage garnishment, or write-off of a Federal Student Aid debt during the past 5 years.

Request your free annual credit report. Its QUICK, EASY and SECURE at www.annualcreditreport.com. This central site allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion. AnnualCreditReport.com is the official site to help consumers to obtain their free credit report.

We suggest checking with a different consumer credit reporting company every four months. For example, request a report from Equifax in January, request a report from Experian in May, and a report from TransUnion in September (each request is free). FICO (credit) score is not included. An additional charge is required to receive your FICO score.

Interest Rate

As of July 1, 2017 Federal Direct Loan unsubsidized interest rates are fixed at 7% for the life of the loan. However, future loan interest rates will vary based on the 10-year Treasury note” auctioned at the final auction held prior to the June 1 preceding the July 1 of the year for which the rate will be effective.

Origination Fee

Currently 4.264% (Fee changes in October)

An origination fee, is a payment associated with the establishment of an account with a bank, broker or the Department of Education providing services handling the processing associated with taking out a loan. The fee will be proportionately deducted from each loan disbursement.

Repayment

Your Direct PLUS Loan enters repayment once your loan is fully disbursed (paid out).

However, if you are a graduate or professional student, your loan will be placed into deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time.

PLUS loans have no grace period. They enter repayment once they are fully disbursed but may be eligible for a deferment. Contact your loan servicer for more information.​ Contact your loan servicer by logging into My Federal Student Aid at studentloans.gov.

Repayment after graduation: Learn about how, when, and to whom you make your federal loan payments.

Private/Alternative Educational Loans

Interest rates can vary – mostly based on FICO score

Applicants with excellent credit scores and/or a cosigner may be interested

Contact the Financial Aid office for additional information

The National Student Loan Data System (NSLDS)

For information about all of your direct loans, Federal Family Education Loan (FFEL) Program loans, federal Perkins loans, and federal grants, visit the Department of Education National Student Loan Data System (NSLDS). You will need your federal student aid PIN to access NSLDS. NSLDS does not include information about any private loans you may have received.

​The University notifies NSLDS four times a year of students who are currently enrolled. NSLDS is the national database of information about loans and grants awarded to students under Title IV of the Higher Education Act (HEA) of 1965. NSLDS provides a centralized, integrated view of Title IV loans and grants during their complete life cycle, from aid approval through disbursement, repayment, deferment, delinquency, and closure.​​ Lenders, Servicers, and Guaranty ​Agencies use NSLDS to verify enrollment for federal student loan borrowers.

Visit NSLDS

Loan Deferment

There are a number of tools that can help you manage your debt and finance your professional education, including deferring your undergraduate and other graduate school loans. Learn more about how to do this.

More About Loan Deferment

FAFSA Requirement

To apply for federally sponsored loan programs, you must complete the Free Application for Federal Student Aid (FAFSA).

Procedures to Apply

  1. Complete the FAFSA.
    2. It is important that you use your official tax return (two previous years) to complete the FAFSA. Please contact the law school Financial Aid Office if you are unsure of the tax year.
    In order for Wake Forest Law to receive your FAFSA results, you must include the law school’s Federal Title IV Code E00514. The Department of Education will generate a Student Aid Report (SAR) and send the results to you and the law schools you have listed on your FAFSA. You will also receive a pin number to make corrections online and to complete your renewal FAFSA each year you are enrolled in law school.
  2. Once you are accepted, the Cost of Attendance (COA) is finalized, and we have received your FAFSA results, we will send an email detailing your eligibility.

All applicants are eligible for federal student loans up to the cost of attendance minus law school and outside scholarships or other financial aid (not including Veteran benefits).

The University uses the William D. Ford Federal Direct Loan Program to originate all new federally guaranteed loans. Information about the Direct Loan Program can be found at studentloans.gov

Contact Us

 336.758.6103
 lawfinaid@wfu.edu