Frequently Asked Questions About... Loans

Stafford Loan
Parent PLUS Loan
Repayment
Refunds
Perkins

Can I borrow less on my Stafford Loan than the amount listed on the award letter?

Yes. You can borrow any amount, up to the amount listed on your award letter.

What are the interest rates on the Stafford Loans?

For loans originating after July 1, 2006, the interest rate is fixed at 6.8%. For loans originating before July 1, 2006, the interest rate is variable.

What is the difference between subsidized and unsubsidized Stafford loans?

The government pays all the interest on subsidized loans while you are in school. Unsubsidized loans begin to accumulate interest as soon as they are disbursed. We recommend that you pay your interest quarterly.

What is the process for applying for my loans for the 2007-08 academic year?

Please read the 2007-08 Loan Information Letter in detail for loan application instructions.

I applied for a Stafford Loan, but I haven't gotten my money yet. Where is it?

The only way that you will receive a Stafford Loan is to accept the loan on your award screen on my.wm.edu. If you have done that and you have had previous loans, please contact the Financial Aid Office. If you are a first year student or first time borrower at W&M, you must also complete entrance counseling and a promissory note. We will send you information on how to complete these items to your W&M email account. If all of these requirements have been fulfilled and you still have not received your loan, contact our office.

What is the interest rate on the Parent PLUS loan?

It is a fixed interest rate of 8.5% for loans originating after July 1, 2006.

How do I apply for a Parent PLUS loan?

Parents of students will go to the financial aid website under PLUS Loan to complete the loan application.

Why do I have to file a FAFSA for a parent PLUS loan?

William & Mary must determine that a PLUS loan application is for an eligible dependent student. By requiring the FAFSA, we are able to determine if a student is eligible. For example, the FAFSA process checks dependency, citizen status, selective service registration, etc. We will not process a PLUS loan without a FAFSA on file.

When do I start making loan payments?

Students do not have to pay on their loan principal until after graduation. However, we do recommend that students with unsubsidized loans pay the interest quarterly, rather than capitalizing it. Parent PLUS loans will enter repayment 60 days after the second disbursement. There are no early repayment penalties.

When will I receive my student loan refund check?

After all the paperwork has been completed for your student loans, two things need to happen before you will receive your check. First, the Financial Aid Office must receive your money from the bank. The timing on this process will vary from lender to lender.

Once the Financial Aid Office has received your money, we will forward it on to the Bursar's Office so it can be credited to your student account. A refund check will be issued to you from the Bursar's Office within 14 days, per Federal requirements.

Where can I find information on my past loans?

To find the most up-to-date information about your loans, please log on to www.nslds.ed.gov. The National Student Loan Data System (NSLDS) is the U.S. Department of Education's central database for student aid. It receives data from schools, agencies that guarantee loans, the Direct Loan program, the Pell Grant program, and other U.S. Department of Education programs. NSLDS provides a centralized, integrated view of Title IV loans and Pell grants that are tracked through their entire cycle, from aid approval through closure. You will need your PIN to access this database. You can obtain a PIN at www.pin.ed.gov.

My Perkins Loan is not showing as "Accepted" on Banner Web. What do I have to do to get that loan?

Perkins Loans work differently than Stafford Loans. First, you must accept your Perkins Loan in Banner Self Service. Then, you will complete the Perkins Loan Information Form and sign the Master Promissory Note by following the link to Campus Partners iPromise website located inside the Banner Self Service page.

I just accepted my loans on Banner Web, but I didn't receive confirmation. How do I know if I did the right thing?

Go back to http://my.wm.edu and follow the links to "Accept all Awards." You should see that the loans are now marked "Accepted."