Direct Loan Program | Western Technical College

Paying for College

Direct Loan Program

The William D. Ford Federal Direct Student Loan Program provides 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!

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
  • Must demonstrate financial need as determined by the FAFSA (Subsidized Direct Loans only)
  • Completed Entrance Counseling
  • Completed Master Promissory Note (MPN)

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 5.49% (effective July 1, 2023–June 30, 2024) 
  • 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.

Exit Counseling

Exit Counseling is required for any student who has received Direct Student Loans at Western, and has dropped below half time (6 credits), or has completed/graduated a program or certificate.

If you do need to complete Exit Counseling, please take the time to complete this "Before You Go" worksheet, as it will provide you with a convenient location to record the information you gather while reviewing and completing Exit Counseling.

Exit Counseling Q&A

I received Exit Counseling materials in the mail, but I have completed Exit Counseling before. Why do I have to complete it again?
It is likely a student will be required to complete Exit Counseling several times during his/her college career, as it is required EACH TIME a student:

  • Drops below half-time enrollment (6 credits)
  • Completes a program (or graduates)
  • Transfers to another college or university

I just completed the Practical Nursing (LPN) program, but I am continuing in the Nursing – Associate Degree (N-AD) program. Why do I have to complete Exit Counseling?
As stated above, EACH TIME a student completes a program, he/she must complete Exit Counseling. Student loans will remain on 'in-school deferment' (deferred payments) as long as the student is enrolled at least half-time (6 credits).

Does completing Exit Counseling affect my ability to receive student loans in the future?
No, completing Exit Counseling in no way affects a student's ability to receive student loans, or any other Federal Financial Aid funds, in the future.

Federal Direct Loan Resources