Federal Student Loan Eligibility Requirements

1. Student must complete the FAFSA.  Apply at www.fafsa.ed.gov  
2. Student must meet satisfactory academic progress as determined by the Financial Aid Office.   If you are on financial aid suspension, you are not eligible for student loans.
3. Be accepted for enrollment (if a new student) or, if currently enrolled, be in good standing.
4. Student must be enrolled at least half-time (6 hours) each semester.
5. Be a citizen or eligible non-citizen.
6. The student must not be in default on any federal loan or owe a refund back to any federal program.
7. Not already exceed aggregate loan limits as established by the U.S. Department of Education

How much can I borrow?

Loan Limits for Federal Student Loans

 How do I apply for a Federal Student Loan?

Wharton County Junior College "packages" Federal Loans for all of our students who indicate on the FAFSA they are interested in being considered for a student loan. Once awarded a loan, you still must accept the loan either via paper award letter or on-line services.

Students who do not indicate on the FAFSA their desire to borrow a student loan but wish to do so may complete the Wharton County Junior College Loan request form.  This form is available at all campuses and in the forms section.

A student loan can be used only for educational costs such as tuition and fees, room and board, books and supplies. You want to borrow only what you need.

What Happens Next?

Wharton County Junior College utilizes the TG Loans by Web (LBW) student loan application process.  TG Loans by Web is a fast and accurate way to complete Entrance Counseling, the Master Promissory Note (MPN) and E-sign the promissory note.  You will need your PIN from FAFSA to complete the E-Sign Process.  PINs are available at www.pin.ed.gov.

After loan awards are accepted and the Financial Aid Office receives notification of acceptance you will be notified by mail instructing you how to access and complete entrance loan counseling and your promissory note via the Loans by Web process on the Texas Guaranteed Student Loan Corporation secure website.  Notification by email is available if you have a valid email address on file with the Registrar’s Office. 

How Will I Know If My Loan Has Been Approved?

You will know immediately if your loan has been guaranteed. You will receive a message after completing your online loan application that says “Congratulations, your loan has been guaranteed!” If you don’t receive this message, then you haven’t completed all of the steps to complete your loan application, and the funds will not be sent to Wharton County Junior College.

After your loan has been guaranteed you must e-sign the Master Promissory Note (MPN) with your FAFSA pin.

The Master Promissory Note (MPN) is a binding contract. You are promising to pay back the funds loaned to you.

You will receive a letter (disclosure statement) indicating the terms and conditions of the loan in addition of when to expect the funds to be disbursed to Wharton County Junior College. 

Do not make plans for the money until you have received the loan funds.

How Do I Get the Loan Funds?

Loan funds are sent to Wharton County Junior College by Electronic Funds Transfer (EFT).  EFT is the electronic transfer of loan proceeds to an account at the school.   Loan funds are received from the lender no earlier than 10 days prior to the start of a semester.   Funds are applied to the student account only if the student is enrolled at the time.  Any funds owed to the institution are deducted and a check for any balance due to the student is produced and mailed to the student.  Balance checks are mailed approximately on the 20^th class day.  Funds for students who are not enrolled are returned to the lender by EFT.

Loan proceeds are released in two disbursements.  For Fall/Spring loans, you will receive half of the loan amount requested in the Fall and the other half in the Spring semester provided you are enrolled in at least 6 semester hours and meet Wharton County Junior College’s satisfactory academic progress as determined by the Financial Aid Office.

Example: You were awarded $3,500 for the Fall/Spring term. You will receive $1,750 for the Fall semester and $1,750 for the Spring Semester minus loan origination fees. For Single Term only loans, only one disbursement will be made at the beginning of the semester.

Origination fees are charged by the federal government for processing the loan. The fee is deducted from the proceeds of your loan before funds are issued to Wharton County Junior College by your lender.

IMPORTANT!!! All balance checks are mailed by the Business Office to students at the mailing address listed in the Admissions Office. BE SURE ADMISSIONS HAS YOUR CURRENT MAILING ADDRESS AT ALL TIMES.

Types of Loans

Subsidized Federal Stafford Loan

The Subsidized Federal Stafford Loan is awarded to undergraduate on the basis of financial need determined by the Free Application for Federal Financial Aid (FAFSA). The federal government pays the interest on this loan until you begin repayment. Repayment of this loan will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours), whichever occurs first. To qualify for this loan please see the Federal Loan Eligibility Requirements.

 Unsubsidized Federal Stafford Loan

The Unsubsidized Federal Stafford Loan Program was created by the government to assure that all students, regardless of their income, would be able to obtain a student loan. The federal government does not pay the interest while you are in school. Interest will be charged from the time the loan is disbursed until it is repaid in full. You have the choice of paying the interest as it accrues or you may defer the interest.  If you decide to defer or capitalize the interest, it will be added to the principle amount of your loan and this will increase the amount you have to repay. If you choose the option of paying the interest as it accumulates, then you will pay less in the long run. Repayment of the interest and principle will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours) whichever occurs first. To qualify for this loan please see the Federal Loan Eligibility Requirements.

Parent Loans for Undergraduate Students (PLUS)

The purpose of the PLUS is to assist parents by providing a source of loan funds to help pay the cost of education for dependent, undergraduate students. Parents may borrow up to the full cost of attendance less any other financial assistance the student receives. Parents must be able to pass a credit check or obtain a 'co-signer' who is able to pass the credit check. Both the parent and student must meet general eligibility requirements for federal financial assistance. Students must be enrolled in at least 6 hours each semester to be eligible. Repayment begins within 60 days after the loan is fully disbursed.

PLUS Application Process

Students must meet all Federal Student Loan Eligibility Requirements.  PLUS loans at Wharton County Junior College are borrower-initiated, meaning the parent must log onto to the Texas Guaranteed Student Loan Corporation (TGSLC) website to complete the Master Promissory Note (MPN).    https://lbw.tgslc.org  Check with the lender of your choice regarding pre-approval of your loan.  Even if your chosen lender pre-approves your loan request, you must still complete the Loans by Web Process through the TGSLC Loans by Web site for your loan request to be processed by Wharton County Junior College.  Loans requested directly from a specific financial institution’s website will not be processed.

Funds will arrive at Wharton County Junior College by electronic funds transfer (EFT).  It is requested that parents sign the Wharton County Junior College PLUS Loan Refund Release Form so that funds can be deposited into your student’s WCJC account to be applied to their institutional charges (tuition, fees and other allowable charges).  Any excess loan funds, after all charges have been paid can be issued to the student with the parent’s consent.  Federal regulations require that the Financial Aid Office have a release from the parent permitting Wharton County Junior College to refund excess PLUS loan funds to the student.  The release form will remain in effect until the parent requests it be cancelled.