How to Borrow Responsibly

In this article we will cover the two types of loans available for students and offer a step-by-step guide on how to apply for them.

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Borrowing Responsibly

As you prepare for ministry, it isn't always possible to pay out of pocket or raise the funds needed for tuition, books, and living expenses. While the goal should be to minimize the debt you take into ministry, sometimes a loan may be required to assist along the way. We encourage you to seek out other funding options as much as possible. Our article on overcoming financial barriers to seminary offers a good starting point. However, if a loan is necessary as a last resort, give careful consideration and only borrow what you need, when you need it.

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Two Types of Student Loans

There are two types of loans for students: federal loans and private student loans. Both have competitive rates and terms, so you're encouraged to look into both to see what's best for you. The financial aid team is happy to walk through both options with you.

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Applying for a Private Student Loan

It is up to the student to choose their lender when selecting a private loan. Westminster does not have a preferred lender and will work with the lender of your choice. Loan terms and payment options vary and are typically dependent on a credit check. Check interest rates, fees, deferment options, and payback terms to make sure a given loan works for you. Visit ElmSelect to see lenders recently used by WTS students.

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Applying for a Federal Loan

Because Westminster is a graduate school and does not offer an undergraduate degree, the only Title IV aid a WTS student is eligible for is a federal loan. Applying for student loans may seem daunting — but with our step-by-step guide below, you'll have the process done before you know it.

Turnaround on loan applications is relatively quick when applying at the start of a term. Once everything is submitted, it can take up to a week for the FAFSA and loan information to be transmitted to us electronically and for us to return a loan amount to your account for you to accept. Please plan accordingly with invoice due dates.

If you are borrowing a federal loan, you'll need to be at least half-time in your program. Please note that the MAC is not currently eligible for federal student loans.

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Applying for Federal Loans, Step by Step

Be sure to complete EACH step below to apply for a loan.

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Step 1: Review the Department of Education's Federal Student Aid website to learn about the different types of loans, how much to borrow, how to manage and repay your loan, and the consequences of default.

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Step 2: Complete the Westminster Theological Seminary Loan Request Form online. Federal direct unsubsidized loan limits are set annually by the U.S. Department of Education — check current limits here. It's up to you to determine how much to borrow and to submit your loan request form for that amount.

As you prepare for ministry, keep in mind that you'll want to take as little debt into ministry as possible — what you borrow today may become a shackle tomorrow. It may help to use an online loan calculator as you consider how much to borrow, so you understand the impact on your post-school budget.

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Complete the Current Year Loan Request Form

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Step 3: Complete the Free Application for Federal Student Aid (FAFSA) online.
FAFSA uses tax information from two years prior to the academic year you're applying for (this is often called the "prior-prior year" rule) — for example, a student starting in Fall 2027 would use their 2026 tax data. The FAFSA form will indicate the correct tax year automatically when you apply.

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Step 4: Submit tax information one of three ways:

• Electronically transfer your filed federal tax return information to the FAFSA using the IRS Data Retrieval Tool, or
• Submit a Tax Return Transcript obtainable from the IRS Get Transcript website, or
• If you did not file taxes for the applicable year, submit a Verification of Non-Tax Filing to the Financial Aid Office (also obtainable via the link above).

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Step 5: If this is your first time receiving or applying for a loan with Westminster, complete a Master Promissory Note for your specific loan:

1. Direct Unsubsidized Loan borrowers: complete the Master Promissory Note for Direct Loans.
2. Graduate PLUS Loan borrowers: complete the Master Promissory Note for Graduate PLUS Loans if seeking funds in excess of the Direct Unsubsidized loan total. Graduate PLUS Loans also require a PLUS Loan application and a credit check.

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Step 6: If this is your first time receiving or applying for a loan with Westminster, complete Entrance Counseling online.

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Step 7: Complete the Annual Student Loan Acknowledgement (helpful but not mandatory).

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Step 8: After completing all of the steps above, Westminster's financial aid team will process your request and notify you to visit your Populi financial page to view your offered loan(s) and accept or change the amount.

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Conclusion

While debt is ideally to be avoided, and Westminster has gone to great lengths to alleviate the need for loans through scholarships and fundraising, if you do need to borrow to attend seminary, doing so carefully and responsibly is a must. We encourage you to exhaust all other options before pursuing a loan. When it is necessary, deciding on the right type of loan and following the step-by-step guide above will help you navigate the process with wisdom and care. If you have questions about loans or the application process, our financial aid team is happy to discuss these with you.

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