Loans: Frequently Asked Questions

If you are one of the many students that utilize federal student loans to finance their educational expenses, you likely have questions about your loans. Below are the answers to some frequently asked questions.

Who is my loan servicer?
Call the Department of Education at 800-433-3243.

How much do I owe?
Contact your federal loan servicer. If you don’t know who your federal student loan servicer is, call 800-433-3243.

What is the interest rate?
The interest rate varies depending on the loan type and the first disbursement of the loan. For more information regarding federal student loan interest rates, go to https://studentaid.gov/understand-aid/types/loans/interest-rates.

When do I need to make payments?
For most federal student loan types, after you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before you begin making payments. Not all federal student loans have a grace period. Note that for most loans, interest accrues during your grace period.

How do I make a payment?
Contact your federal student loan servicer. If you don’t know who your federal student loan servicer is, call 800-433-3243.

What are my repayment options?

For all graduating senior Federal and private loan borrowers:

A benefit of Federal Direct 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

Free Loan Repayment Guidance

You’re not alone when it comes to student loans. Wartburg College has partnered with Ascendium, to provide you with FREE assistance on your Federal student loan obligations to ensure successful, and comfortable, loan repayment. Ascendium’s friendly customer representatives may reach out to you during your grace period to answer questions you have about your loan obligation and/or repayment options. Ascendium is not a collection agency. We’ve partnered with them to inform you of a wide variety of possibilities such as alternative repayment plans, deferment, consolidation, discharge, forgiveness, and forbearance options. They will stay in touch with you via phone calls, letters, and/or emails to help you understand your repayment timing and options.

Need Student Loan Repayment Help? Our partner, Ascendium Education Solutions, can help you transition to repayment at no cost to you. Call 833-707-1220 for information.

Private education loans can be used as a source of additional funding when federal aid options have been exhausted. A private education loan is a nonfederal loan issued by a private lender such as a bank or credit union. Private education loans often have variable and fixed interest rates, require a credit check, have varied repayment options, and do not provide the same benefits as federal student loans. Students and parents may borrow up to the cost of attendance minus other financial aid received. Federal regulations require the Office of Financial Aid & Scholarships to be notified of any private education loans received. Students and parents should always exhaust federal loan options first before considering a private loan. If you determine that you need a private education loan to help pay for your educational expenses, you should carefully research and compare the options available.

Private Student Loan Options

Undergraduate Private Loan Lender Options
International Student Loan Options – MPOWER Financing
Graduate Private Loan Lender Options
Parent or Sponsor Private Loan Lender Options

By clicking on the following link, you will be directed away from the Wartburg College website: FASTChoice. Select the appropriate loan option. View and compare private loan products that are a part of Wartburg College’s preferred lender list. 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 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.