Financial Aid

Loan Types

Note: All Stafford & Plus Loans are considered financial aid and must be paid back. A FAFSA is always required for processing loans.

Subsidized Stafford - The Federal Subsidized Stafford Loan is based on financial need. Eligibility is determined by the Financial Aid Office from the results of the Free Application for Federal Student Aid (FAFSA). The government pays the interest on Subsidized Stafford Loans while the student is in school at least half-time. Once the student drops to less than half-time attendance or leaves school, repayment will begin after a six-month grace period, the time at which interest will begin to accrue.

Unsubsidized Stafford – The Federal Unsubsidized Stafford Loan is not need-based. Eligibility is determined by the Financial Aid Office from the results of the FAFSA. The government does not subsidize this loan. The student is responsible for the interest that accrues during in-school, grace, and deferment periods. You may choose to make interest payments while you are in school or you may defer (and accumulate) the interest until repayment begins after the six-month grace period.

Parent Plus - Parents of dependent students can take out loans to supplement the student’s aid packages. The Federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by the student’s financial aid package, up to the full cost of attendance. PLUS loans are the responsibility of the parents, not the student. Once the student drops to less than half-time attendance or leaves school, repayment will begin after a six-month grace period, and the repayment term is up to 10 years. JWCC still requires a FAFSA to be completed before a PLUS loan may be processed. If a parent is denied, the student can then qualify for an additional Unsubsidized Stafford Loan.

Alternative/Private - Be very cautious if you absolutely need to consider an alternative/private loan. You should research your options extremely thoroughly before applying for these loans. Credit history is checked and often students need a co-signer. The interest is normally variable (changes every year) and tends to be on the high end. Applying for alternative/private loans is solely between the student and the lender. JWCC does not have an application process for alternative/private loans.