Federal Direct Loans

U.S. citizens or eligible noncitizens are eligible for a Federal Direct Loan, the most common federal student loan program in the United States. Students apply for these loans by completing the FAFSA form; no separate loan application is required. If financial need is demonstrated, the loan is subsidized, meaning that the federal government pays the interest on the loan during periods of at least half-time college attendance. If there is no financial need, the loan is unsubsidized, meaning that the student is responsible for the interest on the loan while in school. The borrower is allowed to defer interest payments until principal repayment begins.

• Master Promissory Note (MPN) & Loan Entrance Interview (LEI)

  Students must complete the MPN and LEI the first time they borrow at Wesleyan. It is a serial note good for up to 10 years. In subsequent years, students will be notified of the amount of the loan on their financial aid award. Wesleyan will certify the intended amount with the Department of Education. Students may decline part or all of the loan they have been awarded by notifying the office in writing via their Wesleyan email address.

• Loan Fees

  The Federal Direct Loan amount on the award offer represents the total loan the student is expected to borrow. The Federal Direct Loans all have fees. The amount of money disbursed is less than the amount borrowed after fees are deducted. For Direct Loans disbursed prior to October 1, 2022, the loan origination fee is 1.057%. Loan Limits The maximum annual amounts students may borrow through the Federal Direct Loan Program are: • First-year $5,500 (no more than $3,500 subsidized) • Sophomore $6,500 (no more than $4,500 subsidized) • Junior $7,500 (no more than $5,500 subsidized) • Senior $7,500 (no more than $5,500 subsidized). Eligible students who are not able to borrow the full annual amount on a subsidized basis may borrow the remaining amount on an unsubsidized basis. The total subsidized and unsubsidized loan amount cannot exceed the limits listed above. The aggregate limit for undergraduate education as a dependent student is $31,000 (no more than $23,000 subsidized).

• Interest Rate & Repayment

  For Federal Direct Loans disbursed during the 2022-23 academic year, the interest rate is fixed at 4.99%. Repayment of the loan typically begins six months after leaving school and can extend for 10 years (not including periods of deferment or forbearance). Additional repayment options may be available. Note: 2022-23 loan terms and conditions are unavailable at time of publication of this guide.

• Deferments & Forbearance

  Principal payments can be deferred during periods when the borrower is in school (including graduate school) and, with some restrictions, when unemployed or under economic hardship. Borrowers who have subsidized loans do not pay interest during deferments; borrowers of unsubsidized loans are responsible for the interest. Forbearance is a period of time when principal payments are not due, but interest does accrue against the loan.

Federal Direct Student Loans

Standard packaged loan amounts:

The loan source(s) will vary depending upon the student's federal and institutional eligibility. 

• Subsidized vs Unsubsidized Loans

  Types

  • Subsidized (need based)
    • Loan principal is deferred and the government pays the interest on the loan while you are enrolled at least half-time.
  • Unsubsidized (non-need based)
    • Loan principal may be deferred but interest accrues.  If you choose to defer interest, it will be added to the principal of the loan.
• Interest Rate & Repayment
  • Undergraduate loans: 4.99% for subsidized and unsubsidized loans after July 1, 2022
  • Graduate loans: 6.54% for unsubsidized loans after July 1, 2022
  • Fixed interest rate
  • Loans disbursed for the first time after October 1, 2021: fees of 1.057% are deducted from the loan
  • Standard ten-year repayment begins six months after graduation, or ceasing to be enrolled at least half-time.  Other repayment options (including Income Contingent/Income-Based/Pay as You Earn) may be available through the servicing agent. 
  • Deferments are granted while you are in college and for graduate or professional study or for economic hardship as defined by the Department of Education.
• Maximum Loan Amounts (Subsidized and Unsubsidized)
  • First Year: $5,500
  • Sophomore: $6,500
  • Junior: $7,500
  • Senior: $7,500
  • Graduate Students: $20,500

  If a parent is denied the Direct PLUS loan, a student is eligible to borrow additional unsubsidized Direct loan:  $4,000 freshman and sophomore years; $5,000 junior and senior years.

• Processing

  All first-time borrowers will need to complete a Loan Entrance Interview and Direct Master Promissory Note. Both steps can be completed by visiting www.studentaid.gov.

• Disclosure Statement

  Federal Direct Loan Disclosure Statement

Federal Direct Parent PLUS Loans

In order to complete any of the steps below you are required to have a Department of Education (ED)-issued FSA-ID. This FSA-ID is your identification used to file the FAFSA. Access your FSA-ID

• 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 7.54%.  NOTE: PLUS Loans that are disbursed for the first time after October 1, 2020 will have an origination fee of 4.228%.  In most cases, repayment of the loan begins immediately after the loan has disbursed.  Read detail and application information on the William D. Ford Federal Direct Loan Program.

  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.studentaid.gov and sign-in under Manage My Direct Loan in order to complete the PLUS request process.
  3. Select Request a Direct PLUS Loan
  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 finaid@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 follow steps 2 through 7 listed above.

  *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 finaid@wesleyan.edu or contact (860) 685-2800 if you have any questions.

• Disclosure Statement

  Federal Direct Parent PLUS Loan Disclosure Statement

Wesleyan Loans

Wesleyan Loans originate from a limited fund managed by Wesleyan and are available only to eligible DACA, undocumented and international students. Because this fund is administered by Wesleyan, there is no additional application form to complete, although a promissory note and information sheet are required. The Student Loan Office, part of the Student Accounts Office on the first floor of North College, will contact eligible students for completion of these forms.

• Fees and Loan Limits

  There are no origination fees deducted from Wesleyan Loans; borrowers receive the full amount they borrow as a credit to their account. The maximum loan an individual student can receive is based on the student’s need and Wesleyan’s packaging policy.

• Interest Rate & Repayments

  The interest rate for Wesleyan loans is fixed at 8%. Repayment of loan principal typically commences six months after leaving school and can extend for 10 years (not including periods of deferment or forbearance). There is no interest on Wesleyan Loans while in school and during deferment periods. Students make repayment through Heartland ECSI, Wesleyan’s loan servicer.

• Deferments

  Principal payments may be deferred during periods when the borrower is in school (including graduate school) and, with some restrictions, when unemployed or under economic hardship.

Private Loans

What is a Private 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, LIBOR or SOFR 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.

Each of our Private Loan Recommended Lenders offer an array of educational loans.  To assist students and families in the selection process, we are using FASTChoice, a loan comparison tool that will assist borrowers in deciding on a private loan that is best suited for their needs. For a comparison of the loans and borrower benefits, please visit our online Private Loan Recommended Lenders list. For direct contact information see the list of lenders below.

• State’s Higher Education Assistance Program(s)

  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

  College Foundation of North Carolina http://www.cfnc.org/ 

  RISLA for Rhode Island http://www.risla.com/ 

  FAME for Maine http://www.famemaine.com/

• International Students

  Eligible international students may apply for an educational loan with MPOWER Financing without a US citizen or permanent resident as a cosignor.  For more information regarding this loan, please see the contact information below.

  MPOWER
  1-202-417-3800

• Private Loan Recommended Lenders:

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

  AAA Advantage Student Loans by Cognition
  1-800-513-1464

  CHESLA 
  1-800-935-2275

  Citizens
  1-866-999-0077

  College Ave Student Loans
  1-844-422-7502

  Credit Union Student Choice
  1-844-649-2856

  Custom Choice by Cognition
  1-866-232-3889

  Nelnet
  1-800-446-4190

  Sallie Mae Student Loans
  1-877-279-7172

  Thrivent Federal Credit Union
  1-866-540-3191 

  SoFi
  1-855-456-7634

• Disclosure Statement:

  Students and parents have the right and ability to select the education loan provider of their choice. You are not required to use any of the lenders on the suggested lender list and will suffer no penalty from the University for choosing a lender that is not on said suggested lender list. Wesleyan will process any approved alternative loan promissory note you submit to the office.  

  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