Loans

A loan is federal or private funding that must be repaid. A Free Application for Federal Student Aid (FAFSA) must be completed each year to be evaluated for most loan assistance. While the Nurse Faculty Loan and Private Educational Loans do not require a FAFSA, submitting an application is strongly recommended to ensure that students are taking advantage of the best financial aid programs.

A minimum enrollment status of half-time (undergraduate 6 credits/graduate 4 credits) is required to participate in most loan programs. Students enrolled less than half time may have private educational loan options.

Federal Loans

Several federal loans require students to complete counseling and promissory notes in order to receive the funds. Learn more about those processes below.

Federal Loan Counseling
Promissory Notes

There are several different federally funded loans available to students. Learn more about the specifics of each below.

Federal Direct Loans (Includes Subsidized, Unsubsidized, and PLUS loans)

Direct Loans are low-interest loans for students and parents to help pay for the cost of a student’s education after high school. The lender is the U.S. Department of Education. In order to be awarded a Direct Loan, you must complete the Free Application for Federal Student Aid (FAFSA) each academic year. The FAFSA can be completed by going to www.fafsa.gov.

The Direct Loan Program offers the following types of loans:

Federal Direct Subsidized Loan
Federal Direct Unsubsidized Loan
Federal Direct Parent PLUS Loan
Federal Direct Graduate PLUS Loan

Direct Loan Eligibility Chart

The chart below shows the annual and aggregate loan limits for a Federal Direct loan. Annual loan limits are based on grade level. Aggregate loan limits are the lifetime maximum amounts a borrower is eligible to borrow for their academic career. A dependent undergraduate student whose parent is denied a Direct Parent PLUS loan becomes eligible for independent undergraduate student loan limits for that academic year.

Dependent Undergraduate Student (except students whose parents are unable to obtain a PLUS loan) Independent Undergraduate Student (and dependent students whose parents are unable to obtain a PLUS loan)
Freshmen $5,500 (no more than $3,500 may be in Subsidized loans) $9,500 (no more than $3,500 may be in Subsidized loans)
Sophomores $6,500 (no more than $4,500 may be in Subsidized loans) $10,500 (no more than $4,500 may be in Subsidized loans)
Juniors and Seniors $7,500 (no more than $5500 may be in Subsidized loans) $12,500 (no more than $5,500 may be in Subsidized loans)
Aggregate Undergraduate Loan Limits $31,000 (no more than $23000 may be in Subsidized loans) $57,500 (no more than $23,000 may be in Subsidized loans)
Graduate Student Annual Unsubsidized Loan Maximum $20,500
Graduate Student Aggregate Loan Limits $138,500 (no more than $65,500 may be in subsidized loans). This limit includes Federal Loans received for undergraduate study.

All borrowers are strongly encouraged to review their federal loan indebtedness each school year. The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for federal student aid. NSLDS provides information such as the type(s) of loans you have taken out, outstanding principal and interest amounts, the total amount of all your loans, and who your loan servicer is. You will need your FSA ID to sign in to NSLDS to review your financial aid history. NSLDS only has information about your federal student loans—private loans are not included.

For an estimate of your monthly loan payments after you graduate, take a look at the Department of Education’s repayment estimator.

 

Federal Perkins Loan

This program is scheduled to be eliminated as of October 1, 2017. Undergraduates who have been offered this loan for the 2017-18 academic year must have the fall portion of the loan disbursed before September 30, 2017.  If it has not disbursed, the full year loan will have to be canceled. Graduate students are no longer eligible to participate in this program.

Details:

  • Interest rate is 5%. Interest is deferred until the beginning of the repayment period.
  • Award based on financial need with limited funding available.
  • A cumulative maximum of $60,000 for combined undergraduate and graduate education.
  • Repayment begins 9 months after the borrower graduates, leaves school, or drops below half-time status.
  • The master promissory note (MPN) and repayment process of this loan are handled through the Accounts Receivable Office. They are available at 414-229-4914 or in Mitchell Hall room 295 for any questions.

Eligibility:

  • New undergraduate borrowers
    • “New” is defined as having no previous Federal Perkins Loan balance at UW-Milwaukee.
    • Amount is limited to remaining need after federal subsidized and unsubsidized loans are offered.
  • Continuing undergraduate borrowers
    • “Continuing” is defined as having received a Federal Perkins Loan prior to October 1, 2015 at UWM.
    • Amount is limited to remaining need after federal subsidized loans are offered.

Students offered a Federal Perkins Loan need to have an active Loan Counseling session and MPN on file. If you previously received a Perkins Loan for attendance at UWM (within the last 10 years), you do NOT need to complete these items again.

Federal Nursing Student Loan

This loan is offered to students seeking a degree in nursing.

Requirements and Details:

  • Must be a junior, senior, second degree candidate, or a graduate student pursuing a degree in nursing.
  • Award based on financial need.
  • The annual interest rate is 5% and is deferred while enrolled at least half-time in the School of Nursing. Half-time enrollment is at least 6 credits for undergraduates and 4 credits for graduates.
  • Awards range from $200-$4,000 per academic year and the aggregate limit is $17,000 for the entire academic career.
  • Repayment begins 9 months after the borrower graduates, leaves the School of Nursing, or drops below half-time status. A minimum quarterly repayment of $120 is required with a maximum repayment period of 10 years.
  • The repayment process of this loan is handled through the Accounts Receivable Office. They are available at 414-229-4914 or in Mitchell Hall room 295 for any questions.
  • Students offered a Federal Nursing Loan must complete a promissory note each time a new loan is accepted. Students must first accept the loan via their PAWS account before promissory notes become available for completion.

Minority Teacher Loan

The Minority Teacher Loan is a loan for Wisconsin residents seeking teaching degrees who are African American, American Indian, Hispanic, and South-East Asian (Hmong, citizens or descendants of Laos, Cambodia, or Vietnam admitted to the U.S. after December 31, 1975).  It is administered by the Wisconsin Higher Educational Aids Board (HEAB). The loan can be forgiven up to 100% based on certain employment criteria. Eligible students will be queried and have applications mailed to them.

Additional Requirements:

  • Must be a first degree sophomore, junior, senior enrolled for at least half-time (6 credits).
  • Enrolled in a program of study leading to a teacher’s license in a discipline identified as a teacher shortage area for this state by the Federal Department of Education.
    • Teacher Shortage Areas for the state of Wisconsin:
      • English as a Second Language
      • Bilingual Education
      • Foreign Languages
      • Mathematics
      • Science
      • Special Education
        • Cognitive Disabilities
        • Cross Categorical
        • Deaf and Hard of Hearing
        • Early Childhood-Special Education
        • Emotional/Behavioral Disorders
        • Learning Disabilities
        • School Speech and Language Disabilities
        • Visual Disabilities
  • 3.0 or higher GPA.
  • Terms of Forgiveness – Employed in a public or private elementary or secondary school in the city of Milwaukee as a full-time teacher in the high-demand area related to the recipient’s program of study. The loan recipient must receive a rating of proficient or distinguished on the educator effectiveness system or the equivalent in a school that does not use the educator effectiveness system.
  • Borrowers ineligible for loan forgiveness will begin repayment six months after graduating, leaving school, or dropping below half-time enrollment. Repayment must be completed within 10 years of the date repayment begins.  For questions regarding repayment, please contact Tegan McGillivray (HEAB), 608-267-2212.

Nurse Faculty Loan

The Nurse Faculty Loan Program (NFLP), sponsored by the US Department of Health and Human Services, is available to nursing doctoral students interested in becoming nurse educators.   Following graduation from the nursing program, up to 85 percent of the borrowers’ loan principal and interest will be cancelled in exchange for the loan recipient’s service as a full-time nursing faculty member at a school of nursing.

Requirements:

  • Must make a commitment to stay in the NFLP program for the duration of your academic program and graduate. You may only borrow money for 5 years.
  • Doctoral students taking classes must be enrolled in six or more credits for at least two consecutive semesters each year that you apply for this program. Although a leave of absence is allowed, it must be documented.
  • Must take a least two education courses from a list of approved courses.
  • Expected to obtain full-time employment as a nurse educator in a school/college of nursing after graduation. Must serve as a full-time nurse faculty for a consecutive four-year period to cancel the maximum amount which is 85% of the unpaid loan balance.

Details:

  • Eligible students and award amounts are determined by the College of Nursing.
  • Loans are typically added to financial aid awards in August.
  • PhD dissertators can enroll in 3 credits.
  • Upon completion of each of the first, second and third year of full-time employment, 20% of the principal and interest on the unpaid loan balance may be cancelled.Upon completion of the fourth year of full-time employment, 25% of the unpaid loan balance may be cancelled. The remaining 15% unpaid loan balance will bear interest at a rate of 3%.
  • Given 12 months from graduation date to find employment as a full-time nursing faculty. Repayment of loan begins nine months after graduation. If employment verification is not submitted within the 12-month period, students will not be eligible for the NFLP loan cancellation provision.
  • The loan interest rate is 3%.  However if students fail to complete the course of study or fulfill obligation to obtain full-time employment as a nurse faculty following graduation from the program, loan will bear interest on the unpaid balance at the prevailing market rate. Historically these rates have averaged from about 10% to 15 %.
  • Students will need to sign a promissory note and a letter of your rights and responsibilities for each year that they borrow from the NFLP. After accepting the loan, information regarding the promissory note will be provided via the PAWS to-do list.

 

Private Loans
Private/Alternative loans are not subsidized by the government and are not guaranteed as they are subject to lender approval including a credit check. Many lending institutions offer a variety of private/alternative loan programs. Not sure if a private loan is for you? Compare PLUS and Private Loans side by side.

Private Loan Details and Eligibility

  • Require enrollment at an eligible post-secondary institution.
  • Filing a FAFSA is strongly suggested as most students will qualify for a Federal Direct Loan which generally offers better loan terms. Please review the Comparison of Federal and Private Loans Chart for additional information.
  • Consider only after all other financing options have been exhausted.
  • Borrowing for less than half-time enrollment will be limited to tuition/fees, books, and transportation.
  • Borrowing for a past term will be limited to the exact amount of the balance due for that term.
  • Students may use these loans to cover educational expenses up to the cost of attendance minus all other financial assistance.
  • For more information on private loan search tips, please view the Private Preferred Lender Arrangement.
  • Your lender will require you to complete a Private Loan Self-Certification Form as part of your application. This form will be provided to you through your lender, but you can also print a copy and obtain additional information here: Loan Self-Certification Information.
  • It will take approximately two weeks to receive funds after school certification.
  • You should start applying no sooner than 90 days before the start of your requested semester.  Applying earlier may put you at risk of your credit check expiring before the loan can be processed.
  • UWM adheres to the UW System Student Loan Code of Conduct.
  • You may borrow from any lender you choose and are not restricted to this list. To apply for a private loan not listed, you will need to apply directly with that lender.

Your lender will provide you with a Loan Self-Certification Form that you will have to complete as part of the application.

Private Loan Picking a Lender

Trying to pick the lender that is best for you can seem overwhelming. UWM provides a tool, FASTChoice, which allows students to compare and research several lenders terms and conditions prior to applying for a private loan.  The list reflects the top ten most utilized lenders at UWM within the past three years and provide a competitive product, value exceptional customer service, offer online processing, and are able to guaranty, disburse, and accept refunds via electronic funds transfer (EFT) which helps borrowers receive their funds in a timely manner.  This list will be re-evaluated each October 1st.  Students may borrow from any lender and are not restricted to this list.  UWM encourages all students to complete the FAFSA in order to seek out Title IV aid programs that may be more favorable than provisions of private education loans.

Disclosures for lenders listed on UWM’s preferred lender list are located in FASTChoice.  You will find individual lender disclosures by selecting one or more lenders within FASTChoice and selecting compare.  Under the loan rates and fees section of each lender, select the View 10K Disclosure link, which will direct you to the appropriate disclosure form.

Click the link below to begin researching the best option for yourself.

 

FASTChoice

Minnesota Residents (SELF Loan)

The SELF loan program, unique to Minnesota, is an educational alternative/private loan provided by the Minnesota Office of Higher Education. You are strongly encouraged to exhaust all eligibility for federal aid programs before you consider this program.

  • Minnesota residents attending UWM are eligible to apply.
  • Loan amounts depend on your grade level.
  • For details visit SELF Loan.
  • All SELF applications are certified by the school and require a completed application by a credit-worthy co-signer.
  • IMPORTANT!!! The SELF loan does not offer a grace period or deferment options to borrowers.