To finance major purchases such as houses, cars and higher education, most families spread the costs over time, by using past savings, drawing on current earnings and/or borrowing against future income. Families considering financing options may wish to investigate the loan programs listed below and at Supplemental Loans from Private Lenders page. The IRS has information regarding possible tax deductions for interest payments made on educational loans.
Employment Opportunities, both on and off campus, are available on a limited basis to Wake Forest students. Federal funding assists Wake Forest in its job location and development activities for students. Students may earn from $1,500 to $2,000 by working ten to twelve hours weekly during the academic year. Jobs are available in the libraries, in academic departments and in other campus locations, as well as in the city of Winston-Salem. Interested students should check the job postings in the aid office upon arrival on campus. Earnings are paid bi-weekly directly to the student as work is performed and time sheets are submitted.
Federal Direct Unsubsidized Loans are available to students meeting all Federal Direct Loan program requirements other than demonstrated need. Students must apply for need-based aid before being considered for this unsubsidized loan. Total annual borrowing under combined subsidized and unsubsidized Federal Direct Loans is limited to $5,500 for freshmen, $6,500 for sophomores, and $7,500 for juniors and seniors (up to an aggregate amount of $31,000 as an undergraduate). Independent students and those dependent students whose parents are denied Federal PLUS Loans may increase the unsubsidized loan limits above by $4,000 for their first and second years and by $5,000 for subsequent years of undergraduate study (up to an aggregate amount of $57,500). The Bipartisan Student Loan Certainty Act of 2013 ties federal student loan interest rates to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming aid year. Federal Student Aid Interest Rates and Fees provides the latest available interest rates and fees. An origination fee of 1.057 percent is deducted from loan proceeds. (The net disbursement amount is approximately 99%.) Interest accrues during the in-school period but payment of interest may be deferred upon request; it is best to pay interest to avoid capitalization, which increases the loan principal. Funds are paid by electronic funds transfer to student accounts. Entrance and exit counseling requirements apply to Federal Direct Unsubsidized Loans as well as to the subsidized loans. As required by law, the University reports borrower information to the National Student Loan Data System (NSLDS).
Federal Direct PLUS Loans allow credit-worthy parents of a dependent student to borrow up to the cost of education minus any expected aid. Students must apply for federal need-based aid (submit a FAFSA) before their parents can be considered for this loan. Under the Bipartisan Student Loan Certainty Act of 2013, interest rates are determined each June for new loans for the upcoming aid year. Federal Student Aid Interest Rates and Fees provides the latest available interest rates and fees. Loan fees of 4.228% are deducted from loan proceeds. (The net disbursement amount is approximately 96%.) Repayment of principal and interest generally begins immediately and continues over a period of five to ten years, although limited deferments of repayment are sometimes available. Federal PLUS Loans are paid by electronic funds transfer to student accounts. Please visit Types of Aid for more information and application instructions. As required by law, the University reports benefiting students’ information to the National Student Loan Data System (NSLDS).
Private Supplemental Education Loans are offered by financial institutions and agencies. In most cases, it is advantageous for students to pursue Federal Direct Unsubsidized Loans and for parents to pursue Federal PLUS Loans before seeking alternative loans. Several non-federal education loan programs are listed at Supplemental Loans from Private Vendors.
A Payment Plan is offered through the Office of Student Financial Services. Families unable to secure financing through other less-expensive options may wish to consider this plan.