Student loans are a common source of funding used by students to help pay for their education. Washington State encourages responsible borrowing practices for all of our students. Remember, these funds MUST be repaid.

Types of Loans

Both student and parent loans are available to help pay educational expenses. Current interest rates may be found at

Federal Direct Subsidized Loan

A need-based student loan which DOES NOT accrue interest while the student is enrolled in school. Interest begins accruing six months after a student graduates, enrolls less than half-time or withdraws.

Federal Direct Unsubsidized Loan

A non-need based student loan which DOES accrue interest for the life of the loan. You’re charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid.

Federal Direct Parent PLUS Loan

A parent loan which helps pay the educational expenses of a dependent undergraduate student enrolled in at least 6 credit hours a semester. The loan is based on parent’s credit and is in the parent’s name.

Loan Process

In order for student loans to be disbursed students must complete the following by the Direct Loan Deadline:

  1. Accept the amount of student loans you would like applied to your account.
    • For the 2019-2020 academic year, please visit the Student Planning section of MyWSCC, click on Financial Aid, then My Awards to change and accept your student loans amount.
  2. Entrance Counseling - Complete Entrance Counseling by visiting
  3. Master Promissory Note (MPN) - Complete your MPN by visiting You will use the same FSA ID and password as you did to sign your FAFSA.

The Department of Education will not release funds to the school until these requirements are fulfilled

Loan Rates

Interest Rates for Direct Loans First Disbursed on or After July 1, 2018.

Loan TypeBorrower TypeLoans first disbursed on or after 7/1/18 and before 7/1/19
Direct Subsidized LoansUndergraduate5.05%
Direct Unsubsidized LoansUndergraduate5.05%
Data provided by

Loan Limits

The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.

Year Dependent Students (except students whose parents are unable to obtain PLUS Loans)Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
First-Year Undergraduate Annual Loan Limit$5,500-No more than $3,500 of this amount may be in subsidized loans.$9,500-No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit$6,500-No more than $4,500 of this amount may be in subsidized loans.$10,500-No more than $4,500 of this amount may be in subsidized loans.
Subsidized and Unsubsidized Aggregate Loan Limit$31,000-No more than $23,000 of this amount may be in subsidized loans.$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans.
$138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
Data provided by

What to Know Before You Borrow

If you’re considering a student loan, you should review the following information prior to accepting any loans so you understand the responsibilities associated with borrowing/repaying an educational loan as well as the negative long-term financial consequences of not repaying your loan.

Borrow Wisely
  • Borrow only what you need and can reasonably repay.
  • Develop a realistic budget and consider ways to lower your costs.
  • Research the average pay of your chosen field to know if your projected earnings will be enough to repay your student loans.
  • Keep track of your loan debt (principal and any accrued interest) so you will know the amount you will have to repay when you graduate.
  • Stay in contact with your loan servicer and be sure they have your updated contact information.
  • Know that repaying your student loan on time can help establish and maintain an excellent credit history. If you ever have trouble making your payments, work with your loan servicer regarding your repayment options and be sure to take advantage of deferment and forbearance options that can prevent your loan from going into default status.
Understand the Responsibility of Borrowing
  • Be aware that student loans are in your name and affect your credit history, so you should know and understand the obligations. Don't rely on your parents or others to review this information for you.
  • Complete entrance loan counseling and understand all aspects of the loan and the borrowing process. Contact our office  if you have questions.
  • Read and understand the terms and conditions on your promissory note.
  • Understand that you’re obligated to repay your loan regardless of whether you complete your education, are satisfied with your education, or are unable to find a job.
Recognize the Consequences of Not Repaying your Student Loans
  • Unlike other forms of consumer debt, student loans cannot be discharged through bankruptcy except under extraordinary circumstances.
  • If you fail to make a payment on your student loan for an extended period, your loans may be placed into default.
  • A default on a federal student loan will require payment of additional costs, including collection costs, attorney's fees, court costs, and additional interest. These costs may substantially increase the amount owed on your student loan.
  • No statutes of limitation apply to the collection of student loan debt. This means that your student loan debt may be collected many years, or decades, into the future.
  • The IRS may seize your tax refunds to repay a defaulted student loan.
  • Your future wages may be garnished to repay a defaulted student loan.
  • Your Social Security benefits may be garnished to repay a defaulted student loan.
  • Any disability benefits you receive may be garnished to repay a defaulted student loan.
  • A default on a student loan may result in the denial or revocation of a professional license, such as a license to practice medicine or law.