Student and Parent Loans
Many students choose to use federal loans to help fund their education. At CWI we are committed to providing an affordable education and acknowledge that taking on debt is often a frightening prospect. We want students to understand their financial aid options and what it means to borrow and repay a federal loan.
Loan Basics
Loans
It is important to understand your rights and responsibilities as a borrower before you take out a loan.
A student loan may help with costs today, but it binds you to a financial commitment for years to come. Student loans are meant for educational expenses and must be paid back with interest.
CWI offers student and parent loans from the Federal Direct Loan Program (loan funds come directly from the U.S. Department of Education).
Looking for a guide to funding your college education? Much of the information you see here is from the U.S. Department of Education’s Guide to Funding Education Beyond High School. See a free copy of the Guide online.
Important information about student loans:
- Loans are disbursed in two equal installments (one fall and one spring).
- First time borrowers at CWI are required to complete entrance counseling.
- If you are a first year, first time borrower, CWI holds your student loan disbursement for 30 days. The 30-day count begins on the first day of the semester, it is required and it is a one-time hold that will not apply in subsequent semesters.
- If you decide to borrow for one semester only, the loan must be disbursed in two equal installments with the second installment coming at the midpoint of the semester.
- You must be maintaining satisfactory progress to continue to receive your Federal Student Aid. It is the student's responsibility to read and to know the Satisfactory Academic Progress policy.
- Repayment begins six months (known as the grace period) after graduation, withdrawal from college, or enrollment at less than half-time.
Check with the Department of Education for more information and loan repayment calculators to assist you in estimating your monthly payment.
If you had student loans prior to attending CWI, you may have already used your 6 month grace period. As soon as you graduate, withdraw, or drop below half-time status and even possibly with the half-time status (if you did not borrow a new loan for that year), you may enter repayment on the prior loans immediately. It is imperative that you keep in close contact with your loan lender; in many cases this will be the Department of Education. You should notify them of any address changes and contact them if you are having difficulty repaying your loans so they can explain your options.
Please also contact the Department of Education regarding consolidation. If you are unsure who your lender is, you can log into www.nslds.ed.gov using your FAFSA pin number. This website contains your federal student loan and grant history but does not include any information on alternative or outside loans you may have borrowed.
View current Direct Loan interest rates, payment plans, and other information at the U.S. Department of Education's Direct Loan website or on the following tabs.
Direct Loans
Direct Student Loans
- A Subsidized Direct Loan is “need based.” The federal government pays the interest on the loan as long as you are enrolled at least half time and during the “grace period” and authorized periods of deferment. Interest will begin to accrue when you enter repayment which is usually 6 months after you graduate or drop below half time.
- An Unsubsidized Direct Loan has no interest subsidy. The loan principal can be deferred, but you must pay the interest monthly or quarterly while enrolled or choose to defer the interest and have the interest added to the loan principal. This is known as “interest capitalization.” In other words, interest accrues on the loan while you are in school if you do not choose to pay it monthly.
If you wish to borrow Federal Direct Student Loans, you must first complete a FAFSA to determine loan eligibility. Learn more about the financial aid application process.
Direct Loan Application Instructions
Step 1 – Entrance Counseling
- Students borrowing William D. Ford Direct Student Loans for the first time must complete an entrance counseling session. Students who have previously completed an entrance counseling session at CWI can skip to step 2.
- Read and follow the instructions for completing the tutorial and quiz. (You will need a browser that is Java enabled such as Microsoft Internet Explorer 5.0 or higher). You will be guided through the counseling session. Read everything carefully, you will be required to complete a quiz at the end of the session and you will have to answer every question.
⋙ IMPORTANT! There are 4 additional steps required after completing the entrance counseling tutorial and quiz. When prompted:
- Enter your Personal Information
- Read and accept your Borrower’s Rights and Responsibilities
- Select the Schools that should be notified that you completed Entrance Counseling – be sure to include the College of Western Idaho.
- Receive a confirmation Number and you’re done! We recommend you print a copy of your "Congratulations!" page and retain it for your records.
- CWI will receive electronic notification (from the U.S. Department of Education) confirming you have completed entrance counseling. You cannot receive loan funds without completing entrance counseling.
- Complete your entrance counseling session now!
Step 2 – Complete a Master Promissory Note (MPN)
- Complete your MPN.
- Select the Schools that should be notified when you have completed your MPN - be sure to include the College of Western Idaho.
Step 3 - Award Notification
- Your award notification (issued once all documentation requirements are complete) will include a student loan offer. You can accept, decline, or reduce the amount offered at any time prior to disbursement on myCWI. Once logged into myCWI, review your award notification, make any modifications, and submit changes.
- NOTE: If you did not receive a student loan offer or previously declined loans but would like them now, contact CWI One Stop Student Services or send an email CWI to onestop@cwidaho.cc with your name, id #, and request loans. Please allow 10 business days for processing.
PLUS Loans
Parent Loan for Undergraduate Students (PLUS)
PLUS Loans are available to eligible parents to help cover the educational cost of their dependent student. There is no interest subsidy on these loans, meaning interest is accruing on the loan while your student is attending school. A PLUS is in the parent’s name and based on the parent’s credit. The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid the student will receive. Once you have received your SAR, be sure to check your aid status so that you know what to do to receive aid.
PLUS Loan Application Instructions
Step 1 – Apply Online
- Complete a PLUS Loan Application.
- CWI receives electronic notification (from the U.S. Department of Education) confirming you have successfully completed the PLUS Loan Application. We recommend you print a copy of your PLUS Application confirmation page and retain it for your records.
- Complete a PLUS Loan Disbursement Authorization and submit it to CWI One Stop Student Services. PLUS loan funds cannot be delivered to your student's account without this Authorization.
Step 2 – Complete a Master Promissory Note (MPN)
- Complete your PLUS MPN.
Step 3 – Please Review Your Student’s Award Notification
- Once your Parent PLUS Loan has been added to your student's aid package, CWI will issue a new award notification. Please review your student's award notification carefully with them. If you would like to reduce the amount of the PLUS Loan offered, please contact us.
Loan Default
CAUTION! – Student Loan Default
Loans are legal obligations. Before accepting student loans, carefully consider your future ability and willingness to repay borrowed money (paid back with interest), similar to car loans and mortgages.
Student loans CANNOT be canceled or added to a bankruptcy, even if you:
- Didn’t like the education received.
- Didn’t get a job in your field of study.
- Are experiencing financial difficulty.
If you don’t pay back the loans, as agreed in your student loan promissory note, you may be in default. A loan default can severely impact your credit status. If you default on any federal student loan, the federal government may take serious actions against you such as:
- Turning your loans over to a collection agency.
- Finding you liable for costs associated with collecting your loan, including court costs and attorney fees.
- Sue you for the entire amount of your loan.
- Garnish your wages. (Federal law limits the amount to 15% of the borrower's take-home pay.)
- Intercept your federal and state income tax refunds.
- Withhold part of your Social Security benefit payments. (The US Supreme Court upheld the government's ability to collect defaulted student loans in this manner without a statute of limitations in Lockhart v US (04-881, December 2005).)
- Harming your credit record. Defaulted loans appear on your credit history making it difficult for you to obtain an auto loan, mortgage, credit cards, and can impact your ability to find a job.
- Becoming ineligible for federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments. (You will also be ineligible for assistance under most federal benefit programs.)
- Being ineligible for deferments.
- Denying subsidized interest benefits.
- Inability to renew professional licenses.
