Paying for College
Federal Direct Student Loan Repayment Information
After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you are required to begin repayment. It is very important to prepare for repayment in advance of your first payment due date. You should review your Student Aid Summary by logging into www.studentaid.gov. Your Dashboard will show your current Loan Servicer, how to contact them, your current federal student loan balance, and any upcoming payments that may be due.
After reviewing this information, you should use the Student Loan Repayment Simulator to explore the different repayment options that are available to you. Below, you will find helpful videos, additional information regarding the different types of student loans, and some Frequently Asked Questions (FAQs).
Manage Your Federal Student Loans
Manage Your Federal Student Loans
Students are responsible for tracking and managing federal grants and/or loans received over the course of their education. The National Student Loan Data System (NSLDS) has important information for students to manage and track their federal aid history.
Manage Federal Loans and Grants, here: StudentAid.Gov
Loans and grants have annual and aggregate (lifetime) limits on how much a student may receive. Keep up to date and maintain awareness of your annual and lifetime eligibility.
Student Loan Default Statistics
| Student Loan Default Rate Statistics | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
| National Default Rate | 7.30% | 9.70% | 10.10% | 10.8% |
| WOU Default Rate | 5.10% | 7.30% | 8.0% | 7.0% |
| Avg. Fed. Loan Debt per WOU Student | $23,112.43 | $26,083.18 | $27,436.58 | $26,390.24 |
| Students in Default | 74 | 104 | 126 | 116 |
| Students in Repayment | 1,406 | 1,412 | 1,575 | 1,652 |
| Enrollment (FTE) | 4,391 | 4,527 | 4,633 | 4,986 |
**Due to the Federal Student Loan Repayment pause, these are the most current default rates that are available. Once the new default rates are released we will update this information.**
Federal Student Loan Repayment
Understanding how to repay your federal student loans can save you a lot of time and money. For more information on finding the right repayment plan for you, what to do if you can’t afford your payments, student loan forgiveness, cancellation, and discharge, visit https://studentaid.gov/sa/repay-loans.
A deferment or forbearance allows you to temporarily postpone making your federal student loan payments reduce the amount pay.
How do I request a deferment?
Most deferments are not automatic, and you will likely need to submit a request to your loan servicer, the organization that handles your loan account. If you are enrolled in school at least half-time and you would like to request an in-school deferment, you’ll need to contact your school’s registar’s office as well as your loan servicer.
Your deferment request should be submitted to the organization to which you make your loan payments.
- Direct Loans and FFEL Program loans: contact your loan servicer
- Perkins Loans: contact the school you were attending when you received the loan
Complete the following form and ask the registrar’s office to help fill it out: In-School Deferment Request
How do I request a forbearance?
Receiving loan forbearance is not automatic. You must apply by making a request to your loan servicer. In some cases, you must provide documentation to support your request.
Types of student loans
Federal Perkins Loan
Loans are funds which will need to be repaid.
The Federal Perkins Loan program is no longer in effect.
The Federal Perkins Loan is a low interest federal loan for eligible students. Repayment of a Perkins loan begins 9 months after you are no longer enrolled at least half-time at an eligible institution. The monthly minimum payment is $40. The maximum repayment period is ten years, but the actual amount of your payments and the length of the repayment period depend upon the size of your debt. No interest is charged until the repayment period begins.
The interest rate is fixed at 5% per year on the unpaid balance. Repayment of a Federal Perkins Loan that is not delinquent or in default can be deferred if you are enrolled at least half-time at an eligible institution. Other Federal Perkins Loan deferment provisions are listed in the Student Guide, available at the Financial Aid Office or on the Web. Repayment of a Federal Perkins Loan may be canceled if you have a permanent and total disability or if you die. Certain circumstances such as full-time employment in specific fields designated as teacher shortage areas, full-time teaching in a designated school serving students from low-income families or service as a full-time law enforcement or corrections officer may qualify for the cancellation of a Federal Perkins Loan.
Exit Loan Counseling
Students who have accepted a Federal Perkins Loan at WOU must complete online Exit Counseling prior to departure from WOU. Questions about Perkins loan exit counseling should be directed to WOU Accounting & Business Services at 503-838-8201. Additional information regarding cancellation provisions for Federal Perkins Loans and Master Promissory Notes are available from WOU’s Accounting & Business Services.
Federal Direct Loan Program
Loans are funds which will need to be repaid
Student Loans are available to both undergraduate and graduate students. A student must complete a Master Promissory Note (MPN) and entrance counseling before receiving a Federal Direct Loan. Information about interest rates and fees can by found by clicking here.
Federal Direct Subsidized Stafford Loan
If you are eligible for a Federal Direct Subsidized Stafford Loan, the federal government pays your interest while you’re in school at least half-time and for some loans, during grace periods and periods of deferment. You must have “need” to qualify for the subsidized loan.
Federal Direct Unsubsidized Stafford Loan
These loans are available to students who do not qualify for “need” based Federal Direct Subsidized Loans or who are not eligible for the full Federal Direct Subsidized Loan amount. The amount of the loan cannot be more than the difference between the cost of attendance and any financial assistance you will receive from the school and any outside source (including the subsidized Federal Direct Stafford Loan). Interest accrues on the Federal Direct Unsubsidized Loan while you are in school and during the six-month grace period before repayment begins.
Additional Federal Direct Unsubsidized Stafford Loan
Additional Direct Unsubsidized Loans may be available for independent students, and for dependent students whose parents do not pass a credit check and therefore are unable to borrow under the Federal Direct Parent Loan for Undergraduate Students (PLUS) Program.
Annual Federal Direct Stafford loan limits
Annual Federal Direct Stafford loan limits cover the academic year and summer term. For example, if you are a junior and are considered “dependent” for financial aid purposes, your annual loan limit is $7,500 whether you attend three or four terms. See below for the annual maximum Direct Stafford loan limits. The amount you are eligible to borrow depends on your other financial aid, cost of attendance and dependency status. Students can apply for private loans through banks or credit unions to cover the costs of study abroad.
| Year in School | Total | Additional limits for Independent Students |
| Freshman (0-44 credits) | $5,500 | $4,000 |
| Sophomore (45-89 credits) | $6,500 | $4,000 |
| Junior/Senior (90+ credits) | $7,500 | $5,000 |
| Graduate | $20,500 | N/A |
| Aggregate Loan Limits | Dependent Students (except students whose parents are unable to obtain PLUS Loans) | Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans) |
| Subsidized and Unsubsidized Aggregate Loan Limit | $31,000—No more than $23,000 of this amount may be in subsidized loans. |
$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.
$138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study. |
Entrance & Exit Loan Counseling
If you decide to accept a loan, you are making a commitment to repay it. Loan counseling is required by WOU’s Financial Aid Office to help you understand your loan obligations. Students receiving the Federal Direct Loan for the first time at WOU must complete an online entrance loan counseling session at https://studentaid.gov. When a student departs WOU, they must complete exit counseling at https://studentaid.gov (this data system only reflects federal loans, not private loans).
Parent Loans
Loans are funds which will need to be repaid
Federal Direct Parent Loan for Undergraduate Students (PLUS)
Apply for a 25/26 Federal Direct PLUS Loan starting April 1, 2025.
Available to parents of dependent undergraduate students. The loan maximum cannot exceed the total cost of attendance (budget) minus any other financial aid received (including any subsidized, unsubsidized and additional unsubsidized Federal Direct Loans the student is receiving). Information about interest rates and fees can by found by clicking here.
To be eligible for the Direct PLUS loan, a parent will be required to complete the Parent PLUS Loan application and Master Promissory Note (MPN) online. Parents will be notified directly by the Direct Loan servicer if they are approved and eligible to receive the PLUS loan. If the parent does not pass the credit check and the PLUS loan is denied, the credit check may be appealed or endorsed, both options requiring the applicant to process through studentaid.gov.
If the parent decides not to pursue the denied PLUS loan, the student may apply for an additional unsubsidized loan. Prior to that additional loan being awarded, the parent must notify Western Oregon University in writing that they no longer wish to continue the application process for the PLUS loan. The applicant may submit and email to finaid@wou.edu to confirm that they will not pursue the PLUS loan for their student. The Financial Aid Office will then follow up with the student via email.
Graduate Loans
Loans are funds which will need to be repaid
Federal Direct Graduate PLUS Loans
Apply for a 25/26 Federal Direct PLUS Loan starting April 1, 2025.
Available to students admitted and enrolled in a graduate program who have eligibility for additional funding after receiving Stafford loans and any other financial assistance. The loan maximum cannot exceed the total cost of attendance (budget) minus any other financial aid received (including any unsubsidized Federal Direct Loans the student is receiving). Information about interest rates and fees can by found by clicking here.
To be eligible for the Direct PLUS Loan, the graduate student will need to complete the Graduate PLUS Loan application (includes a credit check), Master Promissory Note (MPN) and Graduate PLUS Loan Counseling online. Applicants will be notified by the Direct Loan servicer if they are approved and eligible to receive the PLUS loan. If the applicant does not pass the credit check and the Graduate PLUS loan is denied, the applicant may appeal the credit decision or pursue an endorser for the loan. Both options require the applicant process through studentaid.gov. There are no additional options to process a denied PLUS Loan for graduate students.
Alternative/Private Student Loans
Loans are funds which will need to be repaid
Alternative student loans are credit-based loans obtained directly through a financial institution. The Financial Aid Office will certify the loan amount within the cost of attendance upon the loan being approved by the financial institution. Students should investigate private loan options carefully to see if there is a loan that is right for them. Although WOU does not recommend any particular lender, we have developed a worksheet with questions to consider when shopping for an alternative student loan. WOU never recommends that a student obtain a “direct to consumer” student loan as these loans generally charge high fees and interest.
FAQs
What is Loan Exit Counseling and who should complete it?
You must complete Exit Counseling when you leave school or drop below half-time enrollment. The purpose of exit counseling is to ensure you understand your student loan obligations and are prepared for repayment. You’ll learn about what your federal student loan payments will look like after school, and a repayment strategy that best suits your future plans and goals will be recommended.
What do I do if I cannot afford to repay my loans?
Contact your Loan Servicer for information about different payment options, forbearance, or deferement. To find out who your loan servicer is log into www.studentaid.gov and view your Dashboard.
What does it mean if my Student Loans are in Delinquency or Default?
**If you’ve missed a payment or are having trouble making payments, immediately contact and discuss options with the organization that handles billing and other services for your loan to avoid defaulting on your loan. To locate this information go to www.studentaid.gov log into your account and view your Dashboard **
The first day after you miss a student loan payment, your loan becomes past due, or delinquent. Your loan account remains delinquent until you repay the past due amount or make other arrangements, such as changing repayment plans or getting a deferment or forbearance.
If you are delinquent on your student loan payment for 90 days or more, your loan servicer will report the delinquency to the national credit bureaus, which can negatively impact your credit rating. If you continue to be delinquent, you risk your loan going into default. Don’t ignore your student loan payments—defaulting on your loan can have serious consequences. Learn more about how to avoid default.
For more information about Delinquency and Default click here.
Do I qualify for Student Loan Forgiveness?
In certain situations, you can have your federal student loans forgiven, canceled, or discharged. That means you won’t have to pay back some or all of your loan(s). Click here to learn more about the different types of student loan forgiveness and how to apply.
What is Direct Loan Consolidation?
A Direct Consolidation Loan allows you to consolidate (combine) one or more federal education loans into a new Direct Consolidation Loan for the purpose of lowering your monthly payment amount or gaining access to federal forgiveness programs. To learn more about the advantages and disadvantages of consolidation and the eligibility requirements click here.
To apply for Direct Loan Consolidation click here.
Contact
Financial Aid Office
toll free 1-877-877-1593 | or e-mail: finaid@wou.edu | Location: Welcome Center 140
