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2009-10
Financing Options Available to Meet the Family Contribution
Students and
family may use a combination of programs to manage the expected family
contribution.
The
following payment plan and supplemental loans tips are alternatives to
lump-sum payments on the tuition due dates of August 15th and
January 1st.
The
Wesleyan Monthly Payment Plan (MPP). This plan, administered by Key
Education Resources, provides for 10 equal payments beginning July 1 and
covers undergraduate charges for the academic year beginning in September. There is
an application fee of $65; no interest is charged. Optional insurance
coverage is available. To apply on line click
here.
___________________________________________________________
There are many alternative loan programs.
Please be sure to explore all Direct
student and parent loan options first.
What is a Direct Parent PLUS Loan?
This federal Parent Loan for Undergraduate Students (PLUS) is a loan
borrowed by a parent from the US government. The loan has a fixed interest rate of
7.9%.
Fees of 4% are deducted from the loan when disbursed to the school. In
most cases, repayment of the loan begins immediately after the loan has
disbursed. For more detail and application information for the
William D. Ford Federal Direct Loan Program click
here.
To confirm
a student's eligibility to receive this Title IV federal funding a
completed 2009-10 Free Application for Federal Student Aid (FAFSA) must
be on file with the institution.
To apply for
a Direct PLUS loan:
Step 1: Complete the
on-line Master
Promissory Note (MPN).
Step 2: Download
and complete the pre-application
here
and fax or mail this completed form directly to the Office of
Financial Aid.
If a parent is denied the Direct PLUS loan, a student is eligible to
borrow additional unsubsidized Direct loan: $4,000 first and
sophomore years; $5,000 junior and senior years.
What is an Alternative Loan?
(Also known as Private Education Loans)
These loan products are not backed by the federal government. They
usually have variable interest rates based on Prime or LIBOR and rely on a credit review to calculate the initial
rate of interest. Typically the student is the borrower and often a
co-borrower is required to pass credit or receive a favorable interest
rate. Interest accrues from disbursement. These loans may not be
included in a federal consolidation. In recent years the lenders have
offered refinancing to convert the loans to a fixed rate. The following
list of lenders is in no particular order and does not reflect any
particular preference.
(Printable
.pdf)
Interest rates
on alternative loans will vary based upon the credit score of
the applicant(s)
|
|
Wells Fargo Collegiate Loan |
Chase Select Student Loan |
Discover Student Loan |
Citizens Bank Trufit Loan |
Sallie Mae Smart Option Loan |
|
Payments in school |
not required |
not required |
not required |
not
required |
required |
|
Origination Fees |
No |
No |
No |
No |
No |
|
Guarantee Fees |
No |
No |
No |
No |
No |
|
Co-signer Release Option |
Yes |
Yes |
No |
Yes |
Yes |
|
Aggregate (4-year) |
$120,000 |
$120,000 |
$200,000 |
$120,000 |
Based on school Cost of Attendance (COA) |
|
Cover Past Due Balances |
Yes, 12 months |
Yes, 12 months |
Yes, 6 months |
Yes, 180 days |
Yes, 180 days |
|
Sell Loans to 3rd Parties |
No |
No |
No |
No |
No |
|
Forbearance Options |
Yes |
Yes |
Yes |
Yes |
Yes |
|
Available to International Students |
Yes, with US co-signer |
Yes, with US co-signer |
No |
Yes, with US co-signer |
Yes, with US co-signer |
|
Interest Rate Base |
Prime |
LIBOR |
Prime |
LIBOR |
LIBOR |
List last updated June 24, 2009
You are not obligated to choose any of
these lenders. Wesleyan will process any approved alternative loan promissory note
you submit to the office. Borrowers are encouraged to email
faloaninfo@wesleyan.edu
with details about any pending application.
____________________________________________________
As a
starting point for alternative loans,
be sure to review your state’s higher education assistance program(s).
Here are the most common state organizations for which we have processed
applications:
VSAC
for Vermont
http://www.vsac.org/
MEFA for Massachusetts
http://www.mefa.org/
HESAA for New Jersey
www.hesaa.org
Connecticut Family
Education Loan Program (CT FELP)
www.chesla.org
College Foundation of North Carolina
http://www.cfnc.org/
RISLA for Rhode Island
http://www.risla.com/index.aspx
FAME for Maine
http://www.famemaine.com/
__________________________________________________________
Disclosure Statement:
Students and parents
have the right and ability to select the education loan provider
of their choice, are not required to use any of the lenders on
the suggested lender list, and will suffer not penalty from the
University for choosing a lender that is not on said suggested
lender list.
The University’s
selection of preferred lenders and the University’s decision as
to where or how prominently on the list the lending
institution’s name appears shall be based solely on the best
interests of student and parent borrowers, utilizing stated
criteria that are limited to benefits provided to borrowers
(such as competitive interest rates and repayment terms, quality
of loan servicing, and whether loans will be sold) and the
ability to work efficiently and effectively with the University
to process loans, without regard to the pecuniary interest of
the University or to any benefits provided by lending
institutions to the University or any of the University’s
officers, trustees, directors, agents or employees or their
family members.
The University
reviews its suggested lender list annually.
General Factors Used
in University Suggested Lender Determination:
1.
Loan
Terms, including possible interest rate and principal
reductions, repayment options, and average interest rates and
approval rates for alternative loans
2.
Observed
and reported customer service to families
3.
Student
recommendations based on borrower interface
4.
University staff evaluations of proposals sent by lenders
5.
Likelihood of loans being sold, especially in cases in which
borrower benefits and/or terms could be impacted
6.
Projections by
lenders of their companies ability to survive given current
condition of the student loan market
CT Code
of Conduct
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