The PEP program is financed and managed by the University. The program features low interest rates, low monthly repayment terms, and the chance to freeze up to four years of charges at the entering-year rate.
These features apply to the PEP Multiyear and annual options.
- We don’t require security or collateral.
- We don’t charge origination fees.
- We do require you to have a good credit rating, and we make a judgment about your ability to handle your monthly payments. In the Annual Option, we’ll ask you to provide updated credit information for each year that you borrow.
- You may make prepayments on the loan at any time without penalty.
If you’re an international student, your family may participate with a credit-worthy U.S. citizen co-applicant. Proof of co-applicant citizenship and additional documentation may be required. Please contact our office for details.
PEP has four options:
The PEP Multiyear Option allows you to borrow one initial amount at the start of your student’s entering year to cover all or a portion of four years of tuition, fees, and room and board charges. This option freezes the charges covered by PEP at the entering-year rate. You can benefit from our competitive, fixed interest rate of 5.5 percent per year on the balance of the loan and take up to 10 years to repay. There is no penalty for prepayment.
Your monthly payments will depend on the amount you borrow. You may consider using the PEP Prepay Option to prepay part of the charges, which will reduce your PEP Multiyear monthly payments, while taking full advantage of the cost-saving benefit.
You may choose to prepay, without borrowing from WashU, all or part of the tuition, fees, and room and board charges for multiple years – up to four undergraduate years – at the entering-year rate. This options ensures that the portion of college expenses you’ve prepaid will not be subject to later increases in university costs.
You can also choose to prepay a portion of the charges with the PEP Prepay Option and borrow the rest from WashU through the PEP Multiyear Option. Combining these options works well if you have saved for some or most of your student’s college expenses and want to take advantage of the cost-saving, benefit by using to finance the remaining charges.
If you prefer to borrow for college costs one year at a time, our PEP Annual Option might be your best choice. Each year, you can borrow up to the cost of that year’s tuition, fees, and room, and board charges, and take up to 10 years to repay. There’s no penalty for prepayment, and you’ll benefit from our competitive, fixed interest rate of 6.5 percent per year (for the 2019-2020 academic year).
If you decide to borrow in the second, third, and fourth years of your student’s undergraduate education, the amount borrowed and the monthly payments would, of course, increase. Please let us know if you would like a shorter repayment period.
Note: The Multiyear Option, the Prepay Option, and the Combination Option require participation of 2, 3, or 4 years. Only the Annual Option provides the ability to borrow one year at a time.
Compare Your Options
Financial Planning Comparison Worksheet
We encourage you to use our Financial Planning Comparison Worksheet to calculate your PEP participation rate, estimate your monthly payments, and compare your different financing options.Financial Planning Comparison Worksheet
Financial Information for Parents and Families
For more information on the different financing options available to you, please view our Financial Information for Parents & Families Brochure.
PEP Application Deadlines
We encourage early application. Submission of the PEP application does not mean you are obligated to accept the loan. Applications will be processed in the order received.
Early Application Date
We encourage early application, preferably by June 1, 2019. Later applications are also acceptable, but please keep in mind that unpaid university balances are subject to a late fee.
Application Deadline for Multiyear, Combination and Prepay Options
Applications will no longer be accepted after this date
Prepayments must be received by this date
Truth in Lending Act
The Truth in Lending Act is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.Truth in Lending Act
For questions regarding the PEP program