Loans
Stafford Loans
What are Stafford Loans?
Stafford Loans are either subsidized or unsubsidized. You can receive a subsidized loan and an unsubsidized loan for the same enrollment period. You do not start repaying either loan until six months after graduation or your last day of attendance.
A subsidized loan is awarded on the basis of financial need. Need is determined by subtracting your Expected Family Contribution (EFC) from the Cost of Attendance. The EFC is determined by the Department of Education on the FAFSA form. Interest is not charged before you begin repayment. The federal government "subsidizes" the interest during these periods.
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it's paid in full. If you allow the interest to accrue (accumulate) while you're in school or during other periods of nonpayment, it will be capitalized - that is, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
How much can I borrow?
The amounts you can borrow depend on your grade level in school and on the type of student you are: dependent undergraduate, independent undergraduate (or a dependent undergraduate whose parents are unable to get a PLUS Loan), or a graduate student.
New! For loans first disbursed on or after July 1, 2008, undergraduate students can borrow an additional $2,000 in an unsubsidized loan. If interested please e-mail the Office of Financial Aid at finaid@mail.fairfield.edu.
Annual Loan Limits for Subsidized and Unsubsidized Stafford Loans First Disbursed on or After July 1, 2008
| |
Dependent
Undergraduate
Student |
Independent
Undergraduate
Student |
Graduate/
Professional
Student |
| 1st Year |
$5,500 - No more than $3,500 of this amount may be in subsidized loans. |
$9,500 - No more than $3,500 of this amount may be in subsidized loans. |
$20,500 - No more than $8,500 of this amount may be in subsidized loan. |
| 2nd Year |
$6,500 - No more than $4,500 of this amount may be in subsidized loans. |
$10,500 - No more than $4,500 of this amount may be in subsidized loans. |
| 3rd and 4th Years (each) |
$7,500 -No more than $5,500 of this amount may be in subsidized loans. |
$12,500 - No more than $5,500 of this amount must be in subsidized loans. |
| Maximum Total Debt from Stafford Loans When You Graduate |
$31,000 - No more than $23,000 of this amount may be in subsidized loans. |
$57,500 - No more than $23,000 of this amount may be in subsidized loans. |
$138,500 - No more than $65,500 of this amount may be in subsidized loans.
The graduate debt limit includes Stafford Loans received for undergraduate study. |
How do I apply for a Stafford loan?
First, file the FAFSA online at http://www.fafsa.ed.gov/. The Financial Aid office will generate an award letter offering a Stafford loan. After accepting your Stafford loan, you will go online to complete the master promissory note (MPN) and to sign your Stafford loan electronically. All students 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 preferred lender list, and will suffer no penalty from the University for choosing a lender that is not on said preferred lender list.
What's the interest rate on Stafford loans?
For Stafford loans that will disburse between July 1, 2008 and June 30, 2009:
Subsidized Stafford Loan - the interest rate will be a fixed rate of 6%.
Unsubsidized Stafford Loan - the interest rate will be a fixed rate of 6.8%
Federal Plus Loans
(Federal Loans to Parents)
What are PLUS Loans?
They're loans your parents can get to pay for your education expenses if you're a dependent undergraduate student enrolled at least half time. Also, your parents must have no adverse credit history.
How much can my parents borrow?
The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive.
How do my parents apply for a Plus Loan?
Click here to complete the Plus Master Promissory Note (PMPN) online and to sign the PMPN electronically. All students and their 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 preferred lender list, and will suffer no penalty from the University for choosing a lender that is not on said preferred lender list.
What's the interest rate on PLUS Loans?
For loans that will disburse after July 1, 2008, the interest rate will be a fixed rate of 8.5. Your parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.
Loan Repayment Calculator
Estimate your monthly loan payment
Federal Perkins Loan
What is a Federal Perkins Loan?
A Federal Perkins Loan is a low-interest (5 percent) loan for students with exceptional financial need. Fairfield is your lender and you must repay this loan to Fairfield University. Preference is given to Freshmen and the average loan amount is approximately $1000.
Entrance Counseling
All students borrowing either a Federal Stafford or Federal Perkins loan must complete entrance counseling to be informed of their rights and responsibilities as a borrower. Your loans will not disburse until this is completed.
You can complete entrance counseling for the Stafford loan at:
www.salliemae.com/fairfield/opennet/
You can complete entrance counseling for the Perkins loan at:
www.mapping-your-future.org
Other Alternative Loans
All borrowers should borrow the maximum in their Stafford loan eligibility before considering an alternative loan. Alternative loans are an option to assist students cover any financial gap that may exist between their educational costs and the amount of financial aid they are receiving. There are many types of alternative loans, each calculated with different interest and repayment terms. Listed below is a summary of several alternative loans that Fairfield borrowers have used in the past. The Office of Financial Aid will certify any alternative loan at the request of any borrower, however, it is up to the borrower to determine which alternative loan best fits their needs. It is recommended that borrowers should have a co-borrower to help obtain the lowest interest rate. If you have any questions regarding any alternative loan(s), please contact the Office of Financial Aid at: finaid@mail.fairfield.edu, or at (203) 254-4125.
New! For loans first disbursed on or after July 1, 2008, undergraduate students can borrow an additional $2,000 in an unsubsidized loan. If interested please e-mail the Office of Financial Aid at finaid@mail.fairfield.edu.
| Loan Program |
Academic Progress needed? |
Co-Signer? |
Interest Rates |
Fees |
Min/max Amounts |
Repayment Dates & Options |
Apply Online |
|
| CT FELP |
Yes
1/2 time |
Yes |
6.99% fixed |
3% |
2,000 Min
COA-Total Aid is Max
|
pay only interest while in school & during 6 month grace period |
www.chesla.org |
|
Sallie Mae
Signature Loan |
No
Non-matric is ok if student has 1st degree already
|
Freshman Only |
Ranges from:
LIBOR +2% to LIBOR +6% plus .5% int rate reduction with auto-debit
|
0% |
COA-AID ($100k aggreg) |
6 month grace period after leaving school or dropping below 1/2 time |
www.salliemae.com/
fairfield/opennet/ |
|
|
| Key Alt.loan |
Yes + 1/2 time |
No if they have at least two years good credit |
3mo LIBOR
+ 2.9% to
+ 7.99% |
None |
$500 - COA
($100,000 aggreg) |
6 months after graduation
10, 15, or 20 years |
www.keybank.com |
|
|
Citi-Assist
borrower for prev balance |
Matric not required
No - can be <1/2 time |
if student isn't creditworthy |
Prime + 1/2% |
0 to 5% |
COA-Aid ($1,000 Min) |
U-Grad up to 12 years
up to 15 years
6 months after Grad |
www.studentloan.com |
|
Wells Fargo
Collegiate Loan |
Matriculation Required |
No |
Prime to Prime+6% |
0 |
COA-Aid |
6 months after student no longer enrolled |
www.wellsfargo.com/
student/
undergrad/collegiate |
Preferred Lenders
The Office of Financial Aid continues to monitor the student lending market to ensure that our students are receiving the best student loan interest rates and benefits possible. We developed our preferred lender list, which will be reviewed annually, with this objective in mind.
Fairfield University's Preferred Lenders were selected through a competitive bid process, in which the following factors were considered (in order of importance):
- Low interest rates with strong borrower benefits including: additional reductions in interest rates or cash back to borrowers for timely payments and payments made via direct deposit.
- Excellent customer service to borrowers.
- Availability of lender representatives to quickly resolve loan issues.
- Full electronic processing of loans including electronic transfer of funds
Neither Fairfield University nor its employees who select the Preferred Lenders has a revenue-sharing interest in any of the lender agreements.
All students and their 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 preferred lender list, and will suffer no penalty from the University for choosing a lender that is not on said preferred lender list.
View the borrower benefits offered by our preferred lenders. The Office of Financial Aid will certify any lender's master promissory note on behalf of the student's request.
Read our preferred lenders disclosure statement by clicking here.
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