Welcome to the Washburn University Financial Aid Blog

Welcome to the Washburn University’s Financial Aid Office’s blog.  The purpose of this blog is to keep you informed on the rapidly changing world of financial aid and to discuss topics that affect your ability to pay for your education.  Please note that some topics will be categorized for certain groups while others will be categorized for all students, parents, faculty and staff.

This is a shared blog within the Financial Aid Office so several of the staff members will be sharing information regarding general federal financial aid, Satisfactory Academic Progress, filling out the Free Application for Federal Student Aid (FAFSA), important dates and a variety of other topics.

You can subscribe to our blog by entering your e-mail address in the widget on the right side of the screen.  Don’t worry, just like you, the Financial Aid Office is pretty busy and we don’t plan on flooding you with posts. However, if you want to keep current on Financial Aid topics, we encourage you to subscribe.

Sequestration Changes to Federal Direct Loans

There has been a change to the origination fees percentage for Federal Direct Loans for the 2013-2014 academic year. What is an origination fee? The origination fee is a fee paid by a borrower to help defray the cost of making a loan. These funds are not paid to Washburn University but are retained by the Department of Education and your loan servicer.

As of October 1, 2013, the sequester increased the origination fees charged to Direct Loan borrowers. However, taking into account all of the underlying circumstances, including operational requirements, the new loan fee percentages will apply only with regard to loans where the first disbursement is made on or after December 1, 2013. The new loan fees are 1.072 percent for Direct Subsidized Loans and Direct Unsubsidized Loans and 4.288 percent for Direct PLUS Loans (both parent and graduate student PLUS Loans).

The increased loan fee percentages must be applied to any loan disbursement for a loan where the first disbursement will be made on or after December 1, 2013. This includes loans that will be made for the remainder of the 2013-2014 academic year and loans that will be made for summer 2014.

Of course, loans where the first disbursement was or will be made prior to December 1, 2013 that continue to have the 1.051 percent and 4.204 percent loan fee. If you accepted your loans for the full academic year and you have already received a loan disbursement, you will continue to have the 1.051 percent and 4.204 percent loan origination fee.  The new loan fees apply to any loan where the first disbursement is made on or after December 1, 2013.

Here is a chart of the current origination loan fees for the 2013-2014 academic year – Origination Fee Chart