It is important that students understand their rights and responsibilities before borrowing from these loan programs. As mandated by federal regulations, students will be required to:
- pass an online entrance counseling session and
- complete a master promissory note for each loan program
Additional information must be provided depending on the requirements of each loan program.
Families may choose to take additional loan funding to assist them in covering their expected 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 taken out 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 Loan and Federal Perkins Loan listed below) before applying for any alternative loans.
Federal Direct Loan
New student loan regulations, effective July 1, 2013:
New borrowers on or after July 1, 2013, there is now a maximum timeframe for receiving Federal Direct Student loans. Reference the website for the new timeframe. (pdf)
Formerly called the Federal Stafford Loan, the Federal Direct loan is a program for undergraduate and graduate students. The interest rate is determined each academic year by the federal government. The payments are deferred until the student is no longer enrolled in at least half time. There are two types of Federal Direct loans:
1. SUBSIDIZED: The federal government “pays for” the interest that accrues while the student is enrolled in at least half time.
2. UNSUBSIDIZED: The interest accrues on the loan directly from the time of disbursement. The federal government does not subsidize this interest.
Which loan you are awarded depends on your demonstrated financial need.
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 14 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 several types of federal loans, you may be eligible to consolidate these loans into one payment.
There are several repayment plans that you can choose based on your current income level. However, the longer you extend the loan repayment, the more interest you will pay. The types of repayment plans are Standard, Extended, Graduated, Income Based Repayment (IBR) and Income Contingent Repayment (ICF). If you have trouble making a payment, you should contact your loan servicer immediately.
Students can monitor their loan borrowing online through the national Student Loan Database at www.nslds.ed.gov.
For more information about this loan program, visit www.studentaid.gov.
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 is a program for undergraduate and graduate students. It has an annual interest rate of 5%. The payments are deferred until the student is no longer enrolled in at least half time.
Repayment, Deferment, Cancellation, Consolidation
Repayment begins nine months after you graduate, leave school or drop 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 transfer to another school
- 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, forms and correspondence to:
P.O. Box 2901
Winston-Salem, NC 27102-2901
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: one-half of the total posted in each semester and 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.
Student loan borrowers in default now have more options than ever before to repay student loan. The U.S. Department of Education's Default Resolution Group is committed to assisting you by making debt repayment a simple process. Learn more about the options.