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2011-12 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 July 28th and December 29th.

The Wesleyan Monthly Payment Plan (MPP). This plan, administered by Tuition Management Systems (TMS), 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. 

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There are many alternative loan programs.  Please be sure to explore all Direct student and parent loan options first.

Federal Direct Parent PLUS Loan

In order to complete any of the steps below you are required to have a Department of Education (DOE)-issued PIN. This PIN is the number used to file the FAFSA. If you do not have your DOE PIN you can access one by going to http://www.pin.ed.gov/PINWebApp/pinindex.jsp.

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 on the William D. Ford Federal Direct Loan Program click here.

1. A Free Application for Federal Student Aid (FAFSA) must be on file with the institution in order to confirm a student's eligibility to receive this Title IV federal funding.
2. Please go to www.studentloans.gov and sign-in under Manage My Direct Loan in order to complete the PLUS request process.
3. Select Start PLUS Application Process.
4. Under Select the loan type, choose Parent PLUS.
5. Follow the on screen instructions through to the end and submit the application for a credit check.
6. If you are approved and have not previously completed a Direct Parent PLUS Loan Master Promissory Note, you will need to do so from the same website.
7. Please email faloaninfo@wesleyan.edu to let us know your application has been submitted. Please include your name, the student’s name, their Wesleyan ID #, the date the application was submitted, and whether the loan was approved, denied*, or pending credit.

If you are a non-custodial parent, please email faloaninfo@wesleyan.edu for additional instructions.

*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.

Please email faloaninfo@wesleyan.edu or contact (860) 685-2890 if you have any questions.

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.
Interest rates on alternative loans will vary based upon the credit score of the applicant(s)

	Wells Fargo Collegiate Loan	Discover Student Loan	Chase Select Loan	Citibank CitiAssist Loan	Citizens Bank Trufit Loan	Sallie Mae Smart Option Loan
Payments in school	not required	not required	not required	not required	not required	not required
Co-signer Release Option	Yes	No	Yes	Yes	Yes	Yes
Aggregate (4-year)	$120,000	$200,000	$120,000	$120,000	$120,000	$200,000
Cover Past Due Balances	Yes, if continuously enrolled and current budget allows	Yes, 6 months	Yes, 12 months	No	Yes, 180 days	Yes, 180 days - reviewed on an individual basis
Forbearance Options	Yes	Yes	Yes	Yes	Yes	Yes
Available to International Students	Yes, with US co-signer	No	Yes, with US co-signer	Yes, with US co-signer	Yes, with US co-signer	Yes, with US co-signer
Link to Loan Disclosure	Wells Fargo Disclosure	Discover  Disclosure	Chase Disclosure	Citibank  Disclosure	Citizens Bank  Disclosure	SallieMae  Disclosure

List last updated June 2, 2011

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 need to email faloaninfo@wesleyan.edu with details about any pending application. 

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Additionally, 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/ 

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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