Student Loans

Graduate and professional degree students may obtain Federal Direct Graduate PLUS Loans to help pay for their own education.

• Financial need is not required to obtain a Federal Direct Graduate PLUS Loan.
• Students must be enrolled at least half-time to be eligible.
• The student borrower must pay all accrued interest.
• As of July 1, 2018, the interest rate on Federal Direct Graduate PLUS Loans is a fixed 7.60%. Interest rates may change on July 1 of each year.  For the most current rates, go to Federal Student Aid/Interest Rates for New Direct Loans
• Repayment of PLUS Loans is between 10 and 25 years, depending on the amount owed and the type of repayment plan selected.
• The PLUS Loan has no annual or aggregate limit. The PLUS Loan is limited to Estimated Cost of Attendance minus any other aid.
• As of October 1, 2018, the loan origination fee deducted from Federal Direct Graduate PLUS Loans is 4.248%.  Origination fee rates change on October 1 of each year.  For the most current rates, go to Federal Student Aid/Interest Rates and Fees for Federal Student Loans.
• Complete Master Promissory Notes online.
• Complete required Loan Entrance Counseling online.
• A credit check is required. If the credit check comes back as denied, the student may appeal if there is an error or obtain an endorser.
  • The student will be mailed instructions on how to appeal the denial or obtain an endorser.
  • The phone number to appeal a credit decision is 800-557-7394.

Adverse Credit History

To qualify for a Federal Direct Graduate PLUS Loan, you cannot have an adverse credit history. A credit check is conducted on all Federal Direct Graduate PLUS Loan applicants. Your credit history is considered adverse if your credit report shows that you are experiencing any of the following credit conditions:

• Accounts with a total outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off during the two years preceding the date of the credit report
• Default determination during the five years preceding the date of the credit report
• Bankruptcy discharge during the five years preceding the date of the credit report
• Repossession during the five years preceding the date of the credit report
• Foreclosure during the five years preceding the date of the credit report
• Charge-off/write-off of a federal student aid debt during the five years preceding the date of the credit report
• Wage garnishment during the five years preceding the date of the credit report
• Tax lien during the five years preceding the date of the credit report

Graduate and professional degree students may obtain Federal Direct Unsubsidized Loans to help pay for their own education.

• Financial need is not required to obtain an unsubsidized loan.
• Students must pay all accrued interest.
• Students must be enrolled at least half-time to be eligible.
• As of July 1, 2018, the interest rate on unsubsidized loans is a fixed 6.60%. Interest rates may change on July 1 of each year.  For the most current rates, go to Federal Student Aid/Interest Rates for New Direct Loans.
• Repayment of unsubsidized loans is between 10 and 25 years, depending on the amount owed and the type of repayment plan selected.
• The annual loan limit for an unsubsidized loan is $40,500 for a 9-month academic year, $44,944 for an 11-month academic year, and $47,167 for a 12-month academic year.
• As of October 1, 2018, the loan origination fee deducted from Federal Unsubsidized Loans is 1.062%.  Origination fee rates change on October 1 of each year.  For the most current rates, go to Federal Student Aid/Interest Rates and Fees for Federal Student Loans.
• The aggregate loan limit for a federal direct subsidized loan is $65,500 (see item #1 below, “Loss of Subsidized Loan Eligibility for Graduate and Professional Students”).
• The aggregate loan limit for federal direct subsidized and unsubsidized loans combined is $224,000.
• Complete Master Promissory Notes online.
• Complete required Loan Entrance Counseling online.

The Budget Control Act (BCA) of 2011 (Pub. L. 112-25) was signed into law on August 2, 2011. This act made two significant changes to the William D. Ford Direct Loan (Direct Loan) Program.

1. Loss of Subsidized Loan Eligibility for Graduate and Professional Students. Effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012, for either graduate or undergraduate study, are not affected by this change.
2. Terminates the authority of the Department of Education to offer any repayment incentives to Direct Loan borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or origination fee, effective for loans first disbursed on or after July 1, 2012. As a result of this change, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of their loan disbursement will no longer be offered on any Direct Loan Program loan with a first disbursement date that is on or after July 1, 2012.

Students are encouraged to always apply for federal student aid first to determine what they may qualify for in Title IV loans or other assistance. Federal student loans often have more favorable terms/conditions than private education loans.

See a list of private loan lenders have made loans to PNWU students in the past. In addition, some students have obtained private loans from the Washington Osteopathic Medical Association.

Federal student loans are not available for expenses incurred by medical students after they graduate, such as expenses associated with finding a residency. There are private student loans for these expenses.  Private Residency and Relocation Loan helps medical and dental students with the expenses associated with finding a residency, including interview travel expenses and relocation costs, as well as board exam expenses. Any student interested in more information about these types of loans should contact the Financial Aid Office at (509) 249-7888, finaid@pnwu.edu.

• Alaska State Education Loans
• Michiana Forgivable Loan Program
• Motyka Dannin Foundation Forgivable Loan