a building in florida




Students that complete the FAFSA are eligible to apply for the Federal Student Direct Loan, or a parent may apply for the Federal Parent PLUS Loan. While loans can be helpful, there is important information you should understand before embarking on the loan process.

Federal regulation requires that students who take out a Federal Student Loan complete both entrance and exit loan counseling. The entrance counseling must be completed before any loan disbursements can be credited to the student’s account. The exit counseling serves to inform students about repayment of their loan. If loan repayment is not managed properly, the student can go into default which will affect their credit rating, eligibility for further financial aid, and may result in garnishment of wages and future tax refunds. These counseling sessions inform the student of his or her rights and responsibilities as a borrower.

Word of Life Bible Institute’s federal student loan default rate is approximately 11% better than other colleges.*

*The average student loan default rate was 13% at private for-profit colleges and 6.4% at private nonprofit colleges before pandemic-related payment pauses (Source: Welding, Lyss. “Student Loan Default Rate: Facts and Statistics.” Best Colleges, December 18, 2023). The default rate at Word of Life Bible Institute stood at 1.9%.
Learn how to navigate the risks and benefits of loans by visiting the Federal Student Aid website.
People smiling under a tree


If you are a dependent undergraduate student, your parents can apply for a Parent PLUS Loan. This loan allows parents with an acceptable credit history to cover the cost of their child’s education expenses. To request a PLUS Loan, parents must submit an application and complete the Federal PLUS Loan Master Promissory Note.


You have the option of applying for federal loans as a student. If you are a dependent undergraduate student (dependency status is determined by the FAFSA), you can borrow up to:

  • $5,500 if you are a freshman
  • $6,500 if you are a sophomore

If you are an independent undergraduate student or a dependent student whose parents have applied for but were denied a PLUS Loan, you can borrow up to: $9,500 if you are a freshman $10,500 if you are a sophomore

  • $9,500 if you are a freshman
  • $10,500 if you are a sophomore

To apply, you must complete and sign the Federal Student Loan Master Promissory Note and complete an Annual Student Loan Acknowledgement. Loans must be repaid. Our office will provide you with instructions for completing the Master Promissory Note. Please check with the Financial Aid Office prior to completing loan applications from other sources.



Word of Life Bible Institute highly recommends that you exhaust all federal loan options and scholarship resources before researching alternative loan programs. Word of Life Bible Institute lists these private education lenders strictly for the student’s convenience.

Other lenders are available, and we welcome your investigation into other sources for a private loan. Interest rates and terms may vary significantly with this type of loan. Word of Life Bible Institute promises you that:

  • We are not offered any financial incentive from the institutions providing these loans.
  • We do not accept gifts or gratuities from the institutions providing these loans.
  • We have not entered into any promise or concession to these lenders for any reason.

In respect to private education lending, our staff is prohibited from accepting outside compensation for consulting or other services to a lender such as serving on an advisory board, commission, or group.

Sallie Mae offers a private student loan program to students that have outstanding financial need. A private student loan is similar in many ways to the Federal Student Loan with a few exceptions:

  • Once approved, the only limit on the amount the student may borrow is determined by the school’s cost of attendance. (Federal Student Loans have set limits).
  • Generally, students will need an eligible cosigner to be approved regardless of age, income or prior credit history.
  • The lender does not have the same assurances from the government that the Federal Student Loan has. Therefore, this loan will have a higher interest rate due to the increased risk. Students should exhaust their student eligibility for federal aid first and use private loans for their remaining unmet need.