Private educational loans are credit-based consumer loans that can be used to pay any post-secondary education-related expenses, including tuition, fees, room and board, books, and transportation. Always consider your lowest-cost options first, including grants, scholarships, and federal student loans.
After exhausting loan opportunities available from the federal aid programs, some students may consider private loan programs as an additional source of funding. Wartburg College maintains a list of suggested private loan lenders that we believe offer strong customer service, competitive loan terms and easy loan processing. Eligibility for private loans is based on credit-worthiness and ability to repay, not on financial need. While private loans are borrowed by the student, most private loans require a co-signer and offer deferment of principal payments while the student is enrolled.
Students may borrow from any lender they choose and are not required to use a lender on Wartburg’s preferred lender list. Wartburg College will process loans from any eligible lender you select. Loans will be disbursed in two equal payments at the beginning of the fall and winter terms or summer terms if applicable.
Preferred Lender List Disclosures
In an effort to provide better counseling services to our students, Wartburg College has entered into a preferred lender arrangement (PLA). Federal and state law mandates that we must provide the following disclosures in association with this process:
Lender Selection: To determine which lenders and loan options to present, Wartburg College evaluated and selected lenders based on information requested from each financial institution. We feel the lenders on our list will provide you with exceptional customer service, excellent incentives such as low interest rates, low or no origination fees, and loan principal reductions. We are also interested in lenders who provide timely processing, electronic funds transfer capabilities, as well as counseling both before and after you complete the loan process.
Affiliation: Lenders chosen for this list are not affiliated with one another.
Federal Financial Aid Options: Federal and state law also mandates that Wartburg disclose the maximum amounts of Federal Grant and Loan assistance that are available. Maximum eligibility for Federal financial aid is based on the results of the FAFSA and is outlined on the student's award. Federal financial aid has better terms and conditions than private student loans and we strongly encourage students to utilize those resources first. The following is a list of maximum awards in each program:
- Pell Grant - $5,730 (in 2014-2015)
- SEOG - Award amounts are dependent on federal funding with a typical Wartburg award maximum being $500
- TEACH Grant - $3,965 (in 2014-2015 if originated before October 1, 2014)
- Stafford Loan - $5,500 (first year class); $6,500 (second year class); $7,500 (third and fourth year class and above); Independent students can receive an additional $4,000 (first and second year class) or $5,000 (third year class and above) Life time aggregate for Stafford loan = $31,000 for dependent students and $57,500 for independent students.
- Perkins Loan - $5,500 (Award amounts are dependent on federal funding with a typical Wartburg award maximum being $1000 for first and second year students)
- PLUS Loan - a credit-based loan for parent borrowers with a maximum determined by the difference between cost of attendance and the student's financial aid award
State Financial Aid Options: Click on State Scholarships and Grants for information on financing options that are available in the state of Iowa.
Favorable Terms and Conditions of Title IV Loans: If it is necessary to finance your education with loans, a Federal Direct Stafford loan should be your first choice. Stafford loans are fixed rate student loans guaranteed by the government. They can be used to pay for educationally related expenses. Stafford loans have a number of benefits all designed to help make paying for college more affordable. One of the most important Stafford loan benefit is the fixed interest rate. Subsidized and Unsubsidized Federal Direct loans have a fixed rate of 3.4% for the 2013-2014 academic year. The interest rate will remain fixed for the life of the loan until repayment is complete.
Another benefit of Stafford loans is that the repayment plans are designed to provide flexibility for any budget. Once you complete school and enter repayment, you will have the option to pick from a number of helpful plans:
- Standard Repayment - A fixed amount each month based on your principle and interest.
- Graduated Repayment - Lower payments at the beginning of repayment then, over time, payments increase.
- Extended Repayment - For loans totaling more than $30,000, this plan offers a choice of fixed or graduated payments over a period of up to 25 years.
- Income Based Repayment - Monthly payments are based on yearly income and loan amount.
- Pay As You Earn Repayment – Maximum monthly payment is 10% of discretionary income.
For more information on repayment plans: http://studentaid.ed.gov/repay-loans/understand/plans#direct-and-ffel
Preferred Lender List
The Financial Aid Office is utilizing FASTChoice, a loan comparison tool offered by Great Lakes Higher Education Corporation which allows students to compare up to three different loans side-by-side. By clicking on the following link, you will be directed away from the Wartburg College website. We encourage you to bookmark this page for future reference. Enter FASTChoice now to view private loan products that are a part of Wartburg College’s preferred lender list.
All lenders of a private educational loan must obtain a self-certification from the student applicant before disbursing any funds. In order to complete the self-certification, YOU the borrower, will need the following information.
1) Cost of Attendance (COA) for the period of enrollment covered by the loan:
- Wartburg COA is $23,310 for fall term; $24,130 for the winter term; $47,440 for the academic year.
- May term trip COA will be separate from the above cost – please contact the Financial Aid Office (FAO) if you do not know the budgeted cost of your trip.
2) Estimated Financial Assistance:
- Students have access 24/7 to Financial Assistance Information. Go to: My.Wartburg at https://my.wartburg.edu/ics. Log in and click on the Finances tab. Then click on the link to Financial Aid Awards.
If you have additional questions regarding private loans, please contact the Financial Aid Office at Wartburg College.
Preferred Lender Arrangements are required to be reviewed annually to ensure that competitive products that are in the best interest of the student borrower are being offered. Please provide us with feedback regarding any positive and/or negative aspects that may have been experienced when working with a particular lender. Feedback can be sent to: firstname.lastname@example.org
Toll-Free Phone: 800-772-2085 ext. 8262