The total amount of loans offered through West Virginia University has increased by $158 million in the last five years.
This includes subsidized, unsubsidized and parent PLUS loans offered to students and families attending WVU.
The biggest increase was the amount offered in the Parent PLUS loans. A total of $192 million has been offered so far for the 2010-11 school year, an increase of $98 million since 2006-07.
Subsidized student loans have increased $18 million in the last five years, and unsubsidized student loans have increased $42 million.
"Most of the loans that are offered to students are not credit-based," said Kaye Widney, director of financial aid.
This makes it easier for students to borrow.
Students are offered different amounts based on their grade level and dependency status. Aid is offered in amounts ranging from $5,500 for a dependent freshman to $20,500 for an independent graduate student.
Up until two years ago, students took out loans in their own names on the private market.
When the credit crunch hit, private lenders were less wiling to loan to students, Widney said. As a result, parents went back to borrowing in the federal PLUS loan.
The financial aid staff does not recommend borrowing from private lenders, as the interest rates are much higher than federally funded aid.
The Parent PLUS loans at WVU are offered to parents with dependents considered at least half-time students. While some student loans do not require a credit check, parent loans do.
If approved, parents may borrow up to the cost of attendance minus any scholarships and financial aid awards the students has received.
The ability of a parent to borrow and defer payments has made the parent loan a more attractive option, Widney said.
Between the 2007-08 and 2008-09 school year, students were given the opportunity to borrow an extra $2,000 in unsubsidized loans, said Patricia Weimer, associate director of financial aid. Before, freshmen were limited to $3,500, now it is $5,500.
According to Widney, families are now more prepared than in previous years and have been more active in exploring opportunities such as loans and work-study.
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