Professional Students

Direct Unsubsidized Loans are available to graduate students; there is no requirement to demonstrate financial need. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.

Eligibility

To receive either type of loan, you must be enrolled at least half-time at a school that participates in the Direct Loan Program. Generally, you must also be enrolled in a program that leads to a degree or certificate awarded by the school. You are not required to show financial need to receive a Direct Unsubsidized Loan.

Annual and Aggregate Loan Limits

Your school determines the actual loan amount you are eligible to receive each academic year. However, there are limits on the amount of unsubsidized loans that you may be eligible to receive each academic year (annual loan limits) and the total amounts that you may borrow for graduate study (aggregate loan limits). The actual loan amount you are eligible to receive each academic year may be less than the annual loan limit. These limits vary depending on the students Legacy status.

Federal Direct Loan Aggregate Lifetime Limits

 *To remain transparent about the current Professional Level higher annual Unsubsidized Direct Loan amount of $50,000, be aware that due to the court’s ruling, we have permitted the increase to $50,000 and want you to be aware that the higher limit for OTD is the current law of the land, however we don’t know when or whether the final rule will be reinstated. If the final rule is reinstated in the middle of an academic year and you’ve already borrowed a higher amount, we don’t know if you will be in a worse position in later academic terms during the year (i.e., unable to borrow much or anything) due to a lower $20,500 limit being re-imposed. If the final rule is reinstated in a future academic year and you’ve already borrowed a higher amount for the current academic year, we don’t know if you will be in a worse position in later academic years (i.e., unable to borrow much or anything) due to a lower $100,000 aggregate limit being re-imposed as compared to the higher aggregate limit of $224,000.

How to Apply

To apply for a Direct Loan, you must first complete and submit the Free Application for Federal Student Aid (FAFSA®) form. The Financial Aid Office will use the information from your FAFSA® form to determine how much student aid you are eligible to receive. Direct Loans are included as part of your financial aid package.

How to Receive your Student Loans

In order to receive Federal student loans you must complete the online Entrance Counseling and sign a Master Promissory Note (MPN).

You will also need to accept the loans you are offered by logging into your WOU Portal, and clicking the Experience icon at the top of the page. Then navigate to the Services tab and find the Financial Aid Card. Click the “FA Dashboard” link, from the Home screen click on the Offer tab.

Then scroll down and review the amounts you have been offered once you have decided how much you would like to receive and made any necessary adjustments, click the “Accept” option.

Interest Rates

The interest rates for Direct Unsubsidized Loans first disbursed on or after July 1, 2025, and before July 1, 2026, are as follows:

Graduate or Professional Borrowers: 7.94% (Direct Unsubsidized Loans)

The interest rates for Direct Unsubsidized Loans first disbursed on or after July 1, 2026, and before July 1, 2027, are as follows:

Graduate or Professional Borrowers: 8.07% (Direct Unsubsidized Loans)

Note: The interest rates shown above are fixed rates for the life of the loan. For more information please visit www.studentaid.gov

Loan fees

All Direct Unsubsidized Loans have a loan fee. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage for all Direct Subsidized and Unsubsidized loans first disbursed on or after Oct. 1, 2020, is 1.057%. Loans first disbursed before that date had different loan fees.

There are times when grants and federal loans are not enough to cover the cost of attending school. If that happens, students and parents have options for private loans. Students who become ineligible for federal aid may also pursue private alternative loans. The rates private lenders offer are not as competitive as federal loans, and we strongly encourage students to pursue federal loans before private loans.

You can find information about Private Education Loan Lenders on the ELM Select website. The lenders listed here are simply lenders who have loaned to WOU students in the last few years. Western Oregon University does not endorse any one lender. The information at this link is simply informational. The student has the right to whatever lender they want, should they pursue a private alternative loan.

Students can begin requesting Private Loans for the upcoming academic year starting April 1st each year.

What is the Process of a Private Education Loan?

Private Education Loans are loans a credit-worthy student may borrow and repay with interest according to the terms of the loan agreement per the lender.

When Should Students Begin Private Loan Process: Students may begin private education loan process at any time, however, to ensure money approved, received and prepared for disbursement timely, you may need 4-8 weeks before the award year begins to get your funds in place to avoid WOU student account receivable late fees, interest charges, and AR holds, which prevent student from registering for classes.

Student Research: Compare loan options between lenders. Research interest rates (fixed or variable rates), fees (origination and disbursement), repayment terms, enrollment requirements, Satisfactory Academic Progress (SAP) requirements, and other factors such as if a cosigner is required, co-signer release options. Also review lender eligibility requirements such as credit score, and debt-to-income ratio. Carefully consider these factors to ensure they align with students’ education goals and financial needs.

Student Applies for a Private Education Loan: Student may use WOU’s Lender List to search for lender choice and provide personal and financial information on Application.

How Much May a Student Request for a Private Education Loan:

For Current Award Year: The difference between the students’ Cost of Attendance (COA) minus offered financial aid. COA-OFA= Max Loan Request

For Previous Award Years: Up to the amount owing to the WOU student account receivable balance for the previous award year.

What Dates Should Student Use on the Application:

For Current Award Year: If student is enrolled for fall, winter, and spring terms students may use Sept-June of that award year. If student is enrolled in summer, fall, winter, and spring terms of the award year students may use June-June.  The loan amount approved by lender will be split equally over the terms. Students are encouraged to seek a loan to cover award year, however, there are times when students may seek a one-term loan, such as when they are graduating after attending only fall term, then the student would use September- December for example.

For Previous Award Year: Student reports dates to reflect previous enrollment period, such as September-June of previous award year.

Approval: After submitting the Application and completing lender’s required documentation, lenders will review application and determine your eligibility and loan amount. This information will be electronically sent to WOU. If loan is not approved, student may be able to obtain a co-signer to gain approval.

Shopping Around for a Private Education Loan: When applying for private education loans, a “hard pull” on students’ credit will typically be conducted by lender. This involves accessing students’ credit file to assess creditworthiness and potentially approve students for the loan. To mitigate the impact of multiple hard pulls on student’s credit account and its effect on your credit score, students are encouraged to shop around within a two-week period.

Certification of Loan by WOU: Upon receipt of lender loan approval, WOU will certify the loan and respond electronically back to lender. The amount of the loan certified and approved by the WOU Financial Aid Office is added to the student’s WOU Award Offer.

Cooling Off Period: The lender has a “cooling off period” of up to 10 days. Then the lender will send the money electronically to the school for processing. The “cooling off period” is the period of time to permit the student to have the right of refusal, in other words, students have the right to change their mind to allow for loan cancellation.

Disbursement of the Private Education Loan: After the “cooling off period” the WOU financial aid office will process the loan and work with WOU’s Accounting & Business Office to disburse the loan funds electronically onto the student’s WOU account receivable.

Refund: If the Private Education Loan creates a credit balance on the student’s WOU accounts receivable, the WOU Business Office/Cashier Office will process a refund to the student as per student requested method. The default method is the refund is issued by paper check, unless student takes action by setting up direct deposit for an e-check to be sent to their bank account.

Revisions:

Student Seeking an Increase to the Loan: Student must apply for a new loan if they need additional loan funds for the award year.

Loan Reductions: If the total offered financial assistance (OFA) for award year results in more financial aid than Cost of Attendance (COA) the WOU Financial Aid Office may be required to reduce the loan during the award year.

Scholarships are gifts. They don’t need to be repaid. There are thousands of them, offered by schools, employers, individuals, private companies, nonprofits, communities, religious groups, and professional and social organizations.

Visit our scholarships page for more information on WOU scholarships, external scholarships, and helpful resources.

You may also want to review this list of OTD Scholarship Resources