Student loans are an excellent resource to assist in college affordability and provide access to a private, liberal arts education. Federal student loans provide students limited borrowing ability each year with competitive and affordable interest rates. The key to borrowing for your education, is borrowing wisely. The Federal Government limits how much a student may borrow per year, which makes it very difficult for student’s debt to get out of control.

Only 65% of May 2016 graduates seeking their first degree at William Jewell borrowed Federal student loans. The average of all Federal student loan debt for a four-year graduate at William Jewell College is $23,969, slightly below the Federal limit over four years of $27,000. In fact, when private student loan debt is added, Jewell graduates borrowed $29,885; less than the $30,000 national average. When you consider that at many institutions it may take five, even six years to graduate, then you can see how Jewell students get more value in obtaining their undergraduate degree. You borrow the same amount, enter the workforce sooner and begin realizing your earning potential. Graduates also maintain a 5.6% default rate, well below the national average of 13.4%. What does this mean? Jewell grads borrow responsibly and repay their loans.

What types of student loans are there?

Federal Direct Loan Program
By completing a FAFSA annually, you have successfully applied and guaranteed eligibility for a Federal Direct Loan. Direct Loans are low interest student loans funded by the U.S. Department of Education (ED). More about the Direct Loan program:

  • 3.76% Fixed interest rate on all loans beginning July 1, 2016
  • 1.069% Origination fee is deducted by ED at time of disbursement
  • There are two types: Subsidized (interest deferred) and Unsubsidized (interest accrues). The results of your FAFSA determine which you are eligible to receive. No more than $3,500 may be subsidized for first-year students; $4,500 subsidized limit for second-year, and $5,500 subsidized limit for the third and fourth years.
  • The maximum amount borrowed per academic year is based on academic eligibility. A student who borrows the maximum for four years will accumulate $27,000 of student loan debt. The limit for undergraduate study by a dependent student is $31,000.
    • $5,500 maximum for first-year
    • $6,500 maximum for second-year (26-57.5 credit hours)
    • $7,500 maximum for juniors and seniors (58-89.5 credit hours and 90+ credit hours, respectively)
  • Independent students (determined by the FAFSA) and dependent students whose parent is denied a Federal Parent Loan (see below) may be eligible for an additional $4,000 unsubsidized loan (first and second-year) or $5,000 unsubsidized loan (junior year and beyond) per academic year.
  • Students must be degree seeking and enrolled at least half-time (6 credit hours) per semester.
  • Repayment begins six (6) months after graduation or when the enrollment ceases to be half-time.

To receive your first loan disbursement, students must complete Loan Entrance Counseling and a Master Promissory Note (MPN) online at www.studentloans.gov.

Federal Perkins Loan and Federal Nursing Loan
Like the Direct Loan, the FAFSA is your application for the Perkins and/or Nursing Loan. However, these loans are a need-based, limited source of financial aid. For more information on if you might be eligible, click here.

Private Student Loans
These non-Federal loans are similar to what you might obtain from your bank. Based on your (student) credit history and the credit of your co-signer (parent, family member, friend, etc.), your interest rate may vary based on the marketplace. Generally, we ask you to speak with a financial aid counselor before pursuing private student loans to make sure all other Federal options have been exhausted. For more information, click here.

Federal Parent Loan
A Federal Parent Loan is not a student loan at all. These competitive loans give parents a long term financing solution to assist their son or daughter in paying for a Jewell education. Only one parent may borrow per term and the student must be a dependent undergraduate according to the FAFSA and eligible for the Federal Direct Loan (above).

  • 6.31% Fixed interest rate beginning July 1, 2016
  • 4.276% Origination fee is deducted by ED at time of disbursement

For every $5,000 borrowed, a parent can expect to incur a $56 monthly payment for a standard 10 year repayment. We encourage all parents deciding on a Parent Loan to complete the Loan Entrance Counseling for Parents to make sure you are comfortable with the terms of this Federal Loan. For disbursement to be complete, a parent must:

Once both steps are completed, Jewell will add the requested loan amount to the student account and schedule a disbursement date for the first date of classes, or within two business days if the term has begun.

If your Parent Loan is denied due to credit reasons, your student is allowed additional eligibility in an unsubsidized Federal Direct Loan. This is a better solution than pursuing a Private Loan, but this does increase the total borrowing capacity of the student, which could lead to undesirable monthly repayment upon the students graduation at Jewell. For this reason, we encourage parents who are denied to consider paying the interest on the additional unsubsidized loan while the student is in school to prevent the student from needing to pay accrued interest as a result of a denied Parent Loan.

Applying Loan Proceeds to your Student Account
Financial aid proceeds will be applied against all student charges including tuition, fees, room and board shown on the student account. In addition, financial aid proceeds will be applied to cover allowable charges other than those stated above, unless the parent or student provides the William Jewell College Business Office a statement in writing requesting these other charges not be paid with financial aid proceeds. This written request will take effect on the date that the Business Office receives it and is not retroactive.

Student Loan Resources
For more tools and resources regarding student loans, click here. You will find loan repayment calculators, debt/salary calculators, and database resources to track how much you have borrowed and which federal servicing partner you should contact with questions about your loans.