Guide to Financial Aid ...

Loans

Loans are borrowed money you must repay with interest. Southwestern participates in the William D. Ford Federal Direct Loan (Direct Loan) Program. Direct Loan funds come directly from the Department of Education to Southwestern; therefore, you need not visit a bank or lender for a loan application. Please visit our Student Loans page to learn more about the loan process at Southwestern.

The Direct Loan program consists of Stafford Loans for undergraduate students and PLUS Loans for the parents of dependent undergraduates. If you are a regular student enrolled in an eligible program at least half time, you may receive a Direct Loan. You must also meet other general eligibility requirements.

Direct Stafford Loans are awarded to students who have completed the FAFSA. The loans you receive will be either subsidized or unsubsidized.

• A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during deferment periods. The federal government "subsidizes" the interest during these periods.
  
• An unsubsidized loan is not awarded on the basis of need. You will be charged interest from the time the loan is disbursed until it is paid in full.

Direct PLUS Loans are loans that your parents can borrow to pay for your education expenses if you are a dependent undergraduate student enrolled at least half time. Your parents must have no adverse credit history and will begin repayment within 60 days of the last disbursement; PLUS Loans are unsubsidized. A parent who wishes to borrow the PLUS loan must complete an application with Southwestern’s Financial Aid Office prior to or during the enrollment period for which the loan is to be disbursed. The application can be downloaded from our Forms page.

Current Interest Rates for Federal Student Loans