Loan Programs


All student loans, both federal and private, require new applications for each period of enrollment. For the Federal Direct Loans, the FAFSA serves as the application document. For private loans, apply directly with the lender. To reduce or cancel a loan, please contact the Financial Aid Office directly. Loans can be reduced or canceled at any time prior to the end of the semester for which the funds paid. Student and parent education loans pay directly to the student's account on the University's scheduled disbursement date, or within two weeks of certification, whichever is later.

Federal Subsidized Direct Loan

  • Need-based, long-term federal loan, for which the Federal government will pay the interest while students are enrolled, as well as during deferment periods.
  • Repayment of both principal and interest begins six months after a student graduates, withdraws, or drops below half-time enrollment.
  • The interest rate for the 2020-2021 academic year, for undergraduate students, is fixed at 2.75%.*
  • There is a 1.057% origination fee that is withheld at the time of disbursement for undergraduate student loans.
  • The interest rate for the 2020-2021 academic year, for graduate students, is fixed at 4.30%.*
  • There is a 1.057% loan origination fee that is withheld at the time of disbursement for graduate student loans.
  • Current Subsidized Loan limits are: $3,500 for freshmen, $4,500 for sophomores, and $5,500 for juniors and seniors.
  • This must be repaid.

Federal Unsubsidized Direct Loan

  • Federal Loan available to students regardless of calculated need.
  • Interest begins to accrue immediately and accumulates during deferment periods.  Paying toward interest while the student is enrolled is optional, but advised.
  • The interest rate and origination fee for unsubsidized loans are the same as for subsidized loans.
  • Loan limits are the same as those for the Federal Subsidized Direct Loan.
  • This must be repaid.

Additional Unsubsidized Direct Loan

  • Dependent students may borrow an additional $2,000 per year in Unsubsidized Direct Loan. In most cases, the additional $2,000 is reflected in the financial aid award letter.
  • This must be repaid.

*Direct Loan Interest Rate Information - The Student Loan Certainty Act of 2013 was signed into law on August 9, 2013. Under this law, federal student loan interest rates will be calculated based on the 10-year Treasury bill. Loans will be "fixed -variable," meaning students would receive a fixed rate for the life of that loan, but each year rates will be recalculated and new loans will be made at the new rate. For example, an undergraduate student borrowing in 2014-2015 had an interest rate of 4.66% for the life of that year's loan. But, for 2015-2016 there was a recalculation of the applicable rate based on the 10-year Treasury Note at that time, and this new rate will apply to the life of the 2015-2016 loan. This law also places caps on future interest rates: 8.25% cap for undergraduate loans, 9.5% for graduate loans, and 10.5% for PLUS.

To Secure a Federal Direct Loan

All NEW STUDENT borrowers must complete the Direct Loan Entrance Counseling, Master Promissory Note, and Annual Student Loan Acknowledgment at  
NEW FOR ALL BORROWERS All students must complete the Annual Student Loan Acknowledgment each year you accept a new federal student loan. To view this website effectively, you will need one of the following supported browsers:  MS Microsoft Internet Explorer or Mozilla Firefox.

You will need your FSA ID to log in and e-sign your Direct Loan Master Promissory Note. You can obtain an FSA ID at is a loan in the student's name and it is important that students understand their loan. Parents should not do this for the student.

The Federal Direct Loan award is for the academic year and it will be disbursed to your student account, half in the fall semester and half in the spring semester.

Federal Direct Parent PLUS Loans

If your parent wishes to borrow a Federal Parent Loan (PLUS) he/she should go to to apply. The interest rate for the 2020-2021 academic year, is fixed at 5.30%.*  Your parent may borrow up to the total cost of education minus any financial aid you are receiving. The financial aid staff strongly encourages parents to borrow the PLUS Loan for the academic year as opposed to by the semester. When determining how much to borrow, please keep in mind the 4.248% origination fee that is taken off of the amount borrowed. Fall semester bills will be due in July and spring semester bills will be due in December.

Parents will need their FSA ID to log on and apply for the Direct Parent PLUS Loan. You can obtain an FSA ID at
All PARENT borrowers must also sign the Master Promissory Note and complete the Annual Student Loan Acknowledgment.  

Private Student And Parent Loans:

Private Educational Loans are loans not guaranteed by the Federal government. The borrower (either student or parent) may borrow a private educational loan through various banks, credit unions, or savings and loan associations. There are many different types of private educational loans for different types of borrowers.

These loans are not need-based; rather, they are based on creditworthiness. Most students will need a creditworthy co-signer such as a parent or other relative in order to obtain a private educational loan. The terms and conditions applicable to these loans vary greatly. Factors such as interest rate, APR, length of repayment, loan minimum and maximum, and fees should be carefully considered when researching and choosing a private educational loan. 

While we encourage students and families to pursue Federal financial aid before considering private educational loans, there are many student/family situations where a private educational loan is viewed as a preferred alternative. Sometimes parents want their students to be responsible for his/her education. In other cases, the convenience of not needing Federal forms to borrow funds is also a consideration. Whatever your situation may be, borrow only what you need, and compare your options before you borrow.



ELM Resources is the only not-for-profit mutual benefit corporation serving the student loan industry today. offers lender comparison solution allowing students to compare the current terms and benefits of selected lenders' loan products and provides links to the necessary disclosure statements and applications. Historical Listing of previous lenders who have serviced Westfield State University student borrowers are available and offer students the ability to compare and select the loan that best fits their needs. Over 1,800 campuses use ELM Resources to send and receive loan data for alternative loans with the lender of their choice

In choosing lenders for our list, we sent a Request for Information out through the Massachusetts Association of Student Financial Aid Administrators. All of the lenders who responded were stable, reputable lenders whom our students have used in the past, have demonstrated excellent customer service to students, offer competitive loan terms, and offer ease of application and processing for our students. Westfield State does not receive any monetary or other incentives for having these lenders on our list.

Elm Select


Credible is an online tool that allows students to compare personalized loans from multiple lenders. Students can analyze prequalified rates, terms, and eligibility rules side-by-side in just a matter of minutes. Credible is not a lender or bank. Credible partners with student loan lenders so that applicants have a variety of competitive options, each addressing their particular needs. Credible is completely free! You can find out more about Credible and begin the process at


The Financial Aid Office at Westfield State University does not endorse any lender platform or one private educational loan lender over another. We will not deny or unnecessarily delay the processing of a private education loan from a lender not on the institution's lender list. We use ELM Select and Credible as a way to deliver information to families so that they make the best possible decisions. The inclusion of these platforms does not indicate preference over lenders not included. Students may also choose to use a loan provider that does not appear in the list of lenders included at either of the links above. 

What to expect when applying for a private student loan

Gather your information. Items you will need include:

  • current address and phone number
  • social security number
  • driver's license number
  • employment information (if applicable)
  • personal reference (name and contact information)

Find a cosigner. Students who do not have an established credit history will need a cosigner to obtain a credit decision. For those students who do have a credit history, a cosigner may improve your chance of  approval for your loan, and may also help you secure a lower interest rate.

Review your Application Disclosure to find general information about your loan. This is the first of three disclosures your lender is required to provide for you.

Complete the Applicant Self Certification. You will need your Cost of Attendance and the amount of your financial aid.

Read your Approval Disclosure. This is the second of three disclosures that your lender is required to provide for you. The information on this form is specific to you and your approved loan and will not change for 30 days.

Watch for your Final Disclosure. This is the third and final disclosure. You must sign this document to formally accept the loan, and return it to your lender. Failure to do so will result in your approved loan being cancelled. Many private lenders are set up to accept and process this document online.

Loan funds will pay directly to the student's account on the University's scheduled disbursement date, or as quickly following said date as is allowed by Title X.

The approval process for a private loan will result in a "hard inquiry" placed on your credit report. Multiple applications within 30 days will only result in 1 hard inquiry so we recommend applying to multiple lenders to find the most competitive rates. Multiple hard inquiries may reduce your overall credit score, so we recommend completing all of your applications within a two week period in order to ensure that your application processing does not flow into a second 30 day period and result in a second hard inquiry. 

Concepts and Definitions

Principle - the amount you borrowed that remains unpaid, before interest and fees.  -
Annual Percentage Rate (APR) - the annual cost of your loan, including the effect of any fees or charges in addition to interest.
Fixed interest rate - a fixed interest rate remains the same throughout the entire loan term.
Variable interest rate - also referred to as "adjustable rates" - are subject to change, and could increase during the life of the loan, making the loan more expensive.
Interest Capitalization - when will unpaid interest be added to the principle of the loan? If you defer paying your loan while you are in school, you are deferring the principal, interest, and fees. Interest still accrues on the loan while you are in school, and then is added to the principal for you to pay back at the Annual Percentage Rate (APR). This means you will be paying interest on the interest you "borrowed." Making interest-only payments on an alternative loan while in school will drastically reduce the overall cost of the loan.

Average Loan Debt

The average federal student loan debt for students, who began as freshmen and graduated between July 1, 2019 and June 30, 2020 and borrowed federal student loans, is $24,231.