Financial Aid Options for W.I.T.S. Students

As a W.I.T.S. student you may qualify for scholarships, grants and loans to help pay for your certification and training.  Because W.I.T.S. certificate programs have received academic credit recommendations through the American Council on Education (ACE) you may be eligible for some of the traditional government financial aid.  Other private sources of financial are also available.  Check with the university or college you are attending to find out what financial assistance is available.  You can also apply for financial assistance on your own through a variety of sources. 

Following are some financial aid options you may consider.  We recommend you first contact the financial aid office at the university or college you are attending.  W.I.T.S.  provides this information as a service to our students and  does not support or promote any funding source or option. 

Federal Financial Aid

Federal financial aid from the U.S. government is usually based on economic need. It is available to students enrolled in two- or four-year public or private educational institutions, career schools or trade schools.  To be considered for federal financial aid, you must complete and submit a Free Application for Federal Student Aid (FAFSA) form to the government to determine your need and ability to pay for college. Based on your FAFSA, your college will receive a report from the government, and in turn, will send you a financial aid award package indicating the financial aid for which you are eligible.
 
There are three types of federal aid: grants and scholar­ships, work-study programs and federally guaranteed loans.  Grants and scholarships are gift aid that need not be repaid. Grants, however, are usually reserved for the neediest students, and scholarships often require you to maintain a certain academic standing. Subsidized federal student loans, with their low interest rates, are the next best kind of federal aid, but they have a lengthy application process. Funds earned under a work-study program don’t have to be repaid. 

Grants

Eligibility For Federal Grants

• Any U.S. citizen or permanent resident
• Requires completion of FAFSA

Pell Grants

• Need-based gift aid.  Family income below $35,000 a year
• Awards range from $400 to $4050

Federal Supplemental Education Opportunity Grant (FSEOG)

• For students with extremely low expected family contribution as
• Awards range from $100 to $4000

Federal Work-Study

• Campus-based program that provides jobs for students with financial need
• Work usually relates to community service or each student's course of study
• Earnings are based on wage and hours, both of which are set by the school

Federal Loans
Federal loans are loans from banks, guaran­teed by the U.S. government, that you obtain and repay with interest.  Some loans are need-based and some are non-need-based types.  The most common federal loans are Stafford, Perkins and PLUS (Loans to Parents).

Eligibility

• Any U.S. citizen or perma­nent resident, or eligible non-citizen
• Must have a high school degree or GED
• Must have a valid social security number

Loan Terms and Limits

• Maximum is $4,000/yr for undergraduates, $6,000/yr for graduate students
• Cumulative limits: $20,000 undergraduates, $40,000 graduate students

Repayment

• Interest accrues
• 9 months after student graduates, leaves school or falls below half-time status

Perkins Loan

• Deferred, campus need-based loans awarded to students
• No parental co-signer needed
• Low 5% fixed interest rate
• School acts as lender
• Interest accrues and repay­ment begins nine months after student graduates, leaves school or falls below half-time status

PLUS Loan

• Credit-based loans for par­ents of undergraduate stu­dents
• Graduate and professional students can apply starting July 1, 2006
• Borrow up to annual Cost of Attendance* (COA) less financial aid received

Stafford Loan

• Either subsidized or unsubsidized
• Fixed 6.8% interest rate set by the federal government for loans disbursed
• Maximum loan amounts increase each year in school

Private Loans

Federal financial aid typically requires full or part time enrollment as an admitted undergraduate or graduate student at an accredited university or community college.  If you are taking a W.I.T.S. certification program and don’t meet this criteria you may be eligible to receive assistance from private funding sources.

Sallie Mae Career Training loans
The Career Training Loan is a private, credit-based student loan for technical training or trade school, online courses, and other continuing education programs.

Eligibility

• U.S. citizen or permanent resident
• Established credit history

Features

• Interest rates and fees reward good credit
• Repayment terms of up to 15 years are available
• If you have less-than-ideal credit or no credit at all, you can still be eligible by applying with a creditworthy cosigner
• You may borrow for both tuition and other education-related expenses
• Creditworthy borrowers may request a cosigner release after making the first 24 consecutive, on-time monthly payments of principal and interest
• Interest rates are variable, reset monthly and are as low as Prime + 0%
• Loan fees are 0%–6.5%

Loan terms and limits

• There is no aggregate loan limit

Repayment

• Up to 15 years to repay your loan. No penalty for early repayment
• With the standard repayment option, you make level, monthly payments of principal and interest. The minimum monthly payment is $30.
• With the interest-only repayment option, you make interest-only payments while you are in school and begin standard repayment of principal and interest once school is completed. The minimum monthly payment is $30.
• With the $10 deferred repayment option, you may defer payments for up to 12 months, not to exceed the anticipated graduation date on the application. You are required to make a $10 monthly payment during deferment. This $10 payment will be applied toward the interest that accrues on the account during deferment. After deferment, you will begin standard repayment of principal and interest.

Application
Download a Career Training Loan application and instructions (PDF, 55KB)
1-877-834-9851.   www.salliemae.com/slmfin

Sallie Mae Continuing Education Loans
The Continuing Education Loan is a private, credit-based loan that provides financing for postsecondary students not seeking degrees and for part-time, degree-seeking students.

Eligibility

• U.S. citizen or permanent resident
• Established credit history

Features

• Interest rates and fees that reward good credit
• Repayment terms of up to 15 years are available
• If you have less-than-ideal credit or no credit at all, you can still be eligible for the Continuing Education Loan by applying with a creditworthy cosigner
• You may borrow for both tuition and other education-related expenses
• Creditworthy borrowers may request a cosigner release after making the first 24 consecutive, on-time monthly payments of principal and interest
• Flexible repayment terms are available
• Interest rates are variable, reset monthly and are as low as Prime + 0%
• Loan fees are 0%–- 6.5%

Loan terms and limits

• There is no aggregate loan limit

Repayment

• You may take up to 15 years to repay your loan
• With the standard repayment option, you make level, monthly payments of principal and interest. The minimum monthly payment is $30.
• With the interest-only repayment option, you make interest-only payments while you are in school and begin standard repayment of principal and interest once school is completed. The minimum monthly payment is $30.
• With the $10 deferred repayment option, you may defer payments for up to 12 months, not to exceed the anticipated graduation date on the application. You are required to make a $10 monthly payment during deferment. This $10 monthly payment will be applied toward the interest that accrues on the account during deferment.

Applications
If your school participates in the Continuing Education Loan program, download            and complete this application.  School-certified application (PDF, 227KB)

If your school does not participate in     the Loan program, download this form and        apply to Sallie Mae directly.             Non-school-certified application (PDF, 240KB)

SLM Financial Corporation   1-877-834-9851   www.salliemae.com/slmfin

TERI ACT Continuing Education Loan Program

The Education Resources Institute (TERI) offers continuing education loans with the goal of increasing the chances for people of varied backgrounds to complete higher education.

Eligibility

• Enrolled no more than half-time as defined by your school
• Attending a TERI-approved school (call 1-800-255-TERI to confirm)
• Proof of enrollment must be provided
• You must meet the credit guidelines requirements: (a co-signer may be required)
• Have a satisfactory credit, residence and employment history of at least two years,
• Have proof of current income 
• Are a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years, or, you are an international student with a qualified credit-worthy U.S. citizen or permanent resident co-signer

Features

• Borrow from $500 up to $15,000 annually
• Up to 20 years to repay
• Low interest rate
• Defer payments for 6 month
• Can use for previous academic year balance
• No enrollment status requirements

Loan Terms and Limits

• Up to 20 years to repay
• Borrow from $1,500 to $30,000 a year
• $130,000 aggregate maximum borrowing limit

Repayment

• Up to 20 years to repay.  No pre-payment penalties
• Minimum monthly payment as low as $25
• Vary depending on the type of program in which you are enrolled.
• Certificate/degree granting programs:  deferred until the earlier of:
• Two years after disbursement
• Six months after graduation, or
• Six months after enrollment has ended.
• For non-degree/non-certificate programs, deferred until the earlier of:
• Six months after end of the academic period when loan is taken, or
• Six months after enrollment has ended.

Application
http://www.alternativestudentloan.com/act4.php

Wells Fargo Connection Loan

Eligibility

• Students seeking a degree, multi-course certificate, or license
• Full-time, half-time, and less than half-time students

Features

• Competitive Interest Rates
• No payments while student is in school (up to five years)
• Annual loan amount:  $1,000 - $25,000 
• No origination, disbursement, repayment fees or prepayment penalties

Loan Term and Limits

• Annual Loan Amount $1,000 - $25,000 

Repayment

• 15 years
• Generous repayment benefits for enrolling in electronic statements
• 0.50% interest rate reduction for automatic deduction from Wells Fargo checking or savings account (0.25% from a non-Wells Fargo account)
• Interest rate reduction after making the first 48 consecutive payments on time.

Application
1-800-658-3567
https://www.wellsfargo.com/wf/student/loans/undergrad/education

Key Career Loan

The Key Career Loan offered by Key Education Resources is available to eligible students enrolled less than half-time in continuing education programs. It is specifically tailored to students who are working full or part-time.

Eligibility

• U.S. resident
• Stable income, residence, employment and satisfactory credit history
• Applicant (or co-applicant must have a minimum income of $18,000

Features

• Borrow from $1,000 to $15,000 a year, up to aggregate limit of $40,000
• Interest rate varies and is adjusted quarterly

Loan Term and Limits

• Borrow from $1,000 to $15,000 a year, up to aggregate limit of $40,000
• Maximum term is 15 years with a minimum monthly payment of $50

Repayment

• Repayment begins 30 days after disbursement

Application                                                                   

 https://www.key.com/pdf/careerloan_app.pdf
1-800-KEY2YOU® (1-800-539-2968)

Loan To Learn
Loan to Learn was created by EduCap® , a not-for profit education organization.
to pay for college.

Eligibility

• U.S. citizen
• Stable income and credit

Features

• Competitive interest rates and terms, generous repayment periods, and low monthly payments.
• No application deadlines.  Simple application process and instant pre-approval.
• Funds for tuition, room and board and all your education-related expenses
• Loans are based on the borrower’s income and credit

Loan terms and limits

• Borrow up to $50,000/year, $250,000/cumulative

Repayment

• Partial Deferment
• Low monthly payments

Application

Loan to learn   1-800-to-learn   www.Loantolearn.com

Loan To Learn Consolidation Loan
Loan to Learn was created by EduCap® , a not-for profit education organization.
to pay for college.  Students who have at least one private loan can consolidate this private loan with all of your other student loans into one bill and monthly payment.

Eligibility

• U.S. citizen
• Stable income and credit

Features

• Competitive interest rates and terms and low monthly payments.
• No application deadlines.  Simple application process and instant pre-approval.
• Funds for tuition, room and board and all your education-related expenses
• Loans are based on the borrower's income and credit.
• Lower rates, one consolidated bill.
• Borrow from $10,000 to $250,000.
• Partial Deferment

Loan terms and limits

• Borrow up to $10,000/year, $250,000/cumulative

Repayment

• Partial Deferment
• Low monthly payments

Application

Loan to learn   1-800-to-learn   www.Loantolearn.com

P.L.A.T.O. The Classic Student Loan
P.L.A.T.O. is a private, credit-based loan program for undergraduate, graduate, and professional students.

Eligibility

• Stabile income, residence, employment and satisfactory credit history.
• U.S. resident

Features

• No application fee.  Completed application processed in 24 hours.
• Borrow from $1,500 to $25,000 a year, up to a total of $100,000
• Application accepted anytime during the year
• Disbursements are immediate unless otherwise requested

 
Loan Term and Limits

• Borrow from $1,500 to $25,000 a year up to a total of $100,000
• Maximum term is 15 years with a minimum monthly payment of $50.

Repayment

• Payment of loan principle can be deferred up to 7 years while in school 

Application
Apply online or call to apply.  1-800-GO-PLATO or www.plato.org  

Additional options you may consider for financing your education. 

401(k) Loans
Loans from a retirement fund to pay for college. Typically, you can borrow up to half the funds in your account, up to $50,000, but must pay back the money within five years.

Features

• Borrow up to half the funds in your account, up to a maximum of $50,000
• No credit check
• Low interest rate
• You must repay the loan within 5 years or it is classified as a withdrawal and it will become taxable income

Home Equity Loans
Funds borrowed from the equity in your home.

Features

• Borrow a portion of the equity in your home
• Terms typically determined by your credit rating
• Low interest rates
• Interest may be tax de­ductible

Credit Cards
Charge education related expenses to a credit card or take a cash advance (loan.)

Features

• High interest rates and late fees
• Credit cards are widely available and easy to use
• No waiting, payment is immediate
• Interest is not tax-deductible

529 College Savings Plan
A 529 College Savings Plan is a tax advan­taged way to save money for college.

Features

• Earnings are exempt from federal income tax if used for higher education expenses
• Also exempt from state taxes
• Family members, friends and others can contribute to the plan 
• If not used or canceled, the funds become a taxable distribution with a 10% penalty.
• The money in the plan is controlled by the account owner
• can be used for college or graduate school
• The terms of a 529 Savings Plans may vary by state

529 Prepaid Tuition Plan
A 529 Prepaid Tuition Plan is a tax advan­taged way to lock in future tuition rates at their current levels.

Features

• Earnings are exempt from federal income tax and in many cases, state income taxes, provided they are used for qualified higher education expenses
• High cumulative con­tribution limits, typically over $200,000 per beneficiary, and sometimes as high as $305,000 per beneficiary
• Tuition is locked-in at current rates
• Family members and friends can con­tribute to the plan
• No restrictions on choice of accredited “in-state” college
• No date by which funds must be used
• If not used, funds become taxable distribution with a 10% penalty
• The money in the plan is controlled by the account owner
• can be used for college or graduate school
• The terms of a 529 Savings Plans may vary by state