Since 1978, Washington University has been a pioneer in developing creative payment choices for parents. Our PEP program is financed and managed by the University. We work closely with our students and their families to continually improve these offerings and provide what we believe are the most attractive set of payment options in American higher education. 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, activity fee, 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. Compare financing options below to estimate your monthly payments. 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 Washington University, all or part of the tuition, activity fee, room, and board charges for multiple years - up to all four undergraduate years - at the entering-year rate. This option assures families that the prepaid portion of college expenses is covered and 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 Washington University through the PEP Multiyear Option. Combining the PEP Multiyear and PEP Prepay Options works well for parents who may have saved for some or most of their student's college expenses and who also want to take full advantage of the cost-saving benefit by using PEP to finance the remaining charges.
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.
If you prefer to borrow for college costs one year at a time, then our PEP Annual Option might be your best choice. Each year, you can borrow up to the cost of that year's tuition, activity fee, room, and board charges and take up to 10 years to repay. There's no penalty for prepayment, and you will benefit from our per year 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. To calculate your borrowing needs, compare financing options below with our Financial Planning Comparison Worksheet.
ADDITIONAL FEATURES OF BOTH PEP MULTIYEAR AND ANNUAL OPTIONS
- We do not require security or collateral.
- We do not 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 will ask you to provide updated credit information for each year that you borrow.
- Families of international students may participate with a credit-worthy U.S. citizen co-applicant. Proof of co-applicant citizenship and additional documentation may be required. Contact our office for details.
- Prepayments on the loan may be made at any time without penalty.
Compare your financing options now! Calculate your PEP participation rate or estimate your monthly payments for each of these options using our Financial Planning Comparison Worksheet.
Financial Planning Comparison Worksheet
For the 2019-2020 academic year, we encourage early application, preferably by June 1, 2019. Later applications are also acceptable, however, keep in mind that unpaid university balances are subject to a late fee. Applications for the Multiyear, Combination, and Prepay Options will not be accepted after November 30, 2019. Prepayments must be received by December 15, 2019.
For questions regarding the PEP program, please contact us at:
Partners in Education with Parents (PEP)