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2013-14 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 payment due dates of August 16th and January 9th.

The Wesleyan Monthly Payment Plan (MPP).

This is an interest-free, 5-month plan each semester administered by Tuition Management Systems (TMS). The plan begins August 1 for fall semester and January 1 for spring semester with payment due the first of every month through May. There is a $45 application fee per semester. TMS accepts payment by check or auto-debit for undergraduates.
Enrollment for 2013-14 begins July 1st at afford.com or by calling (800) 722-4867.

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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 6.41%.  Fees of 4.204% are deducted from the loan when disbursed to the school. (NOTE: Direct Parent PLUS Loans that disburse for the first time after December 1, 2013 will have an orgination fee of 4.288%).  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 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 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 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 faloaninfo@wesleyan.edu or contact (860) 685-2800 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.

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 comparision 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.

 

CHESLA
1-800-935-2275

Citizens Bank
1-800-708-6684

Discover Student Loans
1-877-728-3030

SallieMae
1-888-272-5543

Wells Fargo
1-800-658-3567

 

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

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

 

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