Federal Direct Loans (William D. Ford)
The William D. Ford Federal Direct Loans are a low-interest loan designed to provide students with additional funds to assist in paying for education cost not covered by other sources of financial aid. There are two types of Direct Loans: Subsidized and Unsubsidized. To qualify, you must first complete the FAFSA (Free Application for Federal Student Aid) online and be enrolled in either the Pathway Welding Program, Program One, or Structural Welding, Program Two. Repayment begins 6 months after graduation, leave school, or cease to be enrolled.
Federal Direct Subsidized Loan
The subsidized loan is based on financial need as determined by the Free Application for Federal Student Aid (FAFSA). The federal government pays the interest while you are in school.
Federal Direct Unsubsidized Loan
The unsubsidized loan is not based on need, which means students at any income level can qualify. Interest will accrue while in school, during your grace period, and during any authorized deferment periods. The student has the option of paying the interest during these times.
Federal Regulations require that all students borrowing Federal Direct Loans complete Entrance Counseling prior to the initial disbursement of loan funds. Students will be required to do this prior to completing the loan application. Students who obtain Federal Student Loans are also required to complete the Exit Counseling process prior to obtaining their diploma/certificate and official transcript from Hobart Institute of Welding Technology.
Federal Direct Parent PLUS Loan
The Parent PLUS Loan is a federally sponsored education loan that offers a low, fixed interest rate. The Parent PLUS Loans are made to parents of dependent students attending the institution. Parents are solely responsible for loan repayments – not the student. The standard repayment period is ten years, but there is no penalty for early payoff. These loans typically go into repayment 60 days after full disbursement, but you may delay repayment while your student is enrolled in school; however interest will continue to accrue.
When federal aid is not enough, private loans are available to fill the funding gaps. These loans are not guaranteed or subsidized by the government. Instead, they are based on your credit and the credit of any co-signers you may have. Private loans can be necessary and a cost-effective way to fill the gaps that federal funding leave behind. Students and their co-signer can take advantage of private student loans if they need additional funds for education related expenses.
Disclosure: The lenders listed have extended loans to students at our institution within the last three years. You may choose one of the lenders listed or provide us with a lender of your choice.