It is important that students understand their rights and responsibilities before borrowing loans. As mandated by federal regulations, students who borrow a Federal Direct Student Loan will be required to complete:
- an online Entrance Counseling session and
- a Master Promissory Note (MPN)
Additional information must be provided depending on the requirements of each loan program.
Students are encouraged to review the benefits of their federal student loan options before applying for alternative/private loans.
Alternative/Private Loans
Families may choose to take additional loan funding to assist them in covering their calculated family contribution. One option is to investigate alternative or private loans. These loans are not backed by the federal government and are administered by outside/private companies. These loans are borrowed by the student and many loan products have variable interest rates based on the credit worthiness of the borrower. Many of these alternative loan products require the student to obtain a co-borrower and the interest rate will depend on that person's credit worthiness.
To help navigate the process of selecting an alternative student loan, we encourage families to use ELM Select. This is a resource that will enable families to compare various loan products and borrower benefits. Lenders are listed based upon their historical lending with our students and parents. If you wish to use another lender that is not on this list, you have the right to do so. Please be sure to explore your federal student loan options (i.e. the Federal Direct Student Loan listed below) before applying for any alternative loans.
Federal Direct Student Loans
The Federal Direct Student Loan program is for undergraduate and graduate students. Interest rates and origination fees are determined each academic year by the federal government. Payments are deferred until the student is no longer enrolled at least half-time. There are two types of Federal Direct Student Loans:
1. SUBSIDIZED: The federal government “pays for” the interest that accrues while the student is enrolled at least half-time and for the first six months after you leave school
2. UNSUBSIDIZED: The interest accrues on the loan directly from the time of disbursement. The federal government does not subsidize this interest.
The type and amount of federal student loan(s) you are eligible to borrow is determined by the results of your FAFSA and your year in school.
Right to Cancel Loan
The College will send to you a letter notifying you when your account has been credited with the loan proceeds. You have the right to cancel all or a portion of your loan if you inform the College within 30 days after the date you receive the letter.
Repayment, Deferment, Cancellation, Consolidation
Repayment begins six months after you graduate, leave school, or drop below half-time status. As explained in your Master Promissory Note, there are several repayment, deferment, cancellation, and consolidation options. If you have multiple federal loans, you may be eligible to consolidate these loans into one payment.
There are several repayment plans that you can choose from based on your current income level. However, the longer you extend your loan repayment, the more interest you will pay. The types of repayment plans can be found at https://studentaid.gov/manage-loans/repayment/plans. If you have trouble making a payment, you should contact your loan servicer immediately to discuss your options.
Students can monitor their loan borrowing online with Federal Student Aid (FSA) at https://studentaid.gov/h/manage-loans/.
For more information about the Federal Direct Student Loan program, visit https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized.
Federal Perkins Loan
*Per federal regulation, effective September 30, 2017, this loan program is no longer available. Information below is for past borrowers only.
The Federal Perkins loan was a program for undergraduate and graduate students. It had an annual interest rate of 5%. The payments were deferred until the student was no longer enrolled at least half-time.
Repayment, Deferment, Cancellation, Consolidation
Repayment began nine months after you graduated, left school or dropped below half-time status. Connecticut College bills quarterly and the payment will be at least $120. If you have several types of federal loans, you may be eligible to consolidate these loans into one payment. It is your responsibility to immediately report any of the following changes to the Connecticut College Senior Accountant, Heidi Sajkowicz at 860-439-2088.
- Withdrawal from school or enrollment at another institution
- Drop below half-time status
- Change of name, address, or parent(s') address
- Change of Social Security number
Note: Be sure to have your account number available.
Mail payments to:
Connecticut College c/o ECSI
P.O. Box 1287
Coraopolis, PA 15108
Mail forms and correspondence to:
Connecticut College c/o ECSI
P.O. Box 1289
Coraopolis, PA 15108
As explained in your master promissory note, there are several repayment, deferment, cancellation and consolidation options. For more information, visit www.studentaid.gov.
Disbursement of Loans
All loans are normally payable in two equal installments with one-half of the total posted in each semester. Loans will not be disbursed earlier than 10 days prior to the start of the semester.
No loan funds will be disbursed until all necessary loan requirements have been completed. The student must also be enrolled in sufficient credit hours and must have proven satisfactory academic progress.
Student Loan Exit Counseling
A student who is graduating, transferring, or will be enrolled less than half-time will be required to participate in a loan counseling session. For graduating seniors, group sessions are provided each spring. Learn more about student loan exit counseling.
Default Management
Student loan borrowers in default now have more options than ever before to repay student loans. Learn more about the options.