Direct Loan Program | Western Technical College

Direct Loan Program

Federal Direct Loans are low interest loans for students, borrowed directly through the U.S. Department of Education. In the Direct Loan Program, the lender is the U.S. Department of Education. While student loans are an excellent option to help you meet your educational goals, loans are borrowed money that must be repaid, with interest. Interest rates vary from different loan programs and times; it is in your best interest to only borrow what you need in student loans!

COVID-19-Related Direct Loan Information

From March 13, 2020, through September 30, 2021, the interest rate on all Federal Direct Student Loans is 0%. Federal student loan borrowers are automatically being placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payment. This suspension of payments will last until Sept. 30, 2020, but you can still make payments if you choose. During the period of 0% interest (March 13, 2020, through Sept. 30, 2020), the full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 is paid. 

Loan Eligibility

Federal Direct Loan Eligibility Requirements (Both Subsidized and Unsubsidized)

  • Accepted into a financial aid eligible program of study
  • Enrolled at least ½ time (6 credits)
  • Receipt of a financial aid award letter from Western indicating eligibility for a Federal Direct Loan
  • Completed Entrance Counseling
  • Completed Master Promissory Note (MPN)

Before you graduate, you must complete your Exit Counseling requirements as well.

Loan Eligibility Is Calculated Based on the Following Criteria

  • Academic level in school - 1st or 2nd Year
  • If a student changes academic level between semesters, the student may contact Financial Aid Resources and Planning Services to determine additional loan eligibility, if any
  • If a student adds credits after receiving original award package, the student may contact Financial Aid Resources and Planning Services to determine additional loan eligibility, if any
  • Dependency Status - Dependent or Independent

Interest Rate

  • Loan interest rate is fixed at 3.73% (effective July 1, 2021–June 30, 2022) 
  • Origination fee is 1.057% (effective October 1, 2021–September 30, 2022)

Loan Limits

Dependent Students*

1st Year Students - Student has completed < 50% of their program's required credits 2nd Year Students - Student has completed at least 50% of their program's required credits
$5,500 - no more than $3,500 in Subsidized loans $6,500 - no more than $4,500 in Subsidized loans
Lifetime Aggregate Limit*
$31,000 - no more than $23,000 in Subsidized loans

Lifetime Aggregate Limit*
$31,000 - no more than $23,000 in Subsidized loans

Independent Students*

1st Year Students - Student has completed < 50% of their program's required credits 2nd Year Students - Student has completed at least 50% of their program's required credits
$9,500 - no more than $3500 in Subsidized loans. $10,500 - no more than $4500 in Subsidized loans.
Lifetime Aggregate Limit*
$57,500 - no more than $23,000 in Subsidized loans
Lifetime Aggregate Limit*
$57,500 - no more than $23,000 in Subsidized loans

*Students may check their own lifetime aggregate loan limits on the Federal Student Aid website.