FEDERAL FAMILY EDUCATION LOAN PROGRAMS (FFELP)

• Federal Stafford Loan
• Subsidized Stafford Loan
• Unsubsidized Stafford Loan
• Additional Unsubsidized Stafford Loan Eligibility
• Federal Parent PLUS Loan
• Federal Graduate PLUS Loan
• American Student Assistance (ASA)

Federal Stafford Loan
The Federal Stafford Loan is a low-interest education loan which must be repaid. If you are participating in the Unsubsidized and/or Subsidized Federal Stafford Loan Program, you must borrow your loan through a lender participating in this loan program. These loans are backed by the federal government and insured through a state or national guaranty agency.

The University of Hartford recommends the following lenders for the Federal Stafford and PLUS Loan programs; Academic Finance Corporation (AFC), Citibank and Nellie Mae. Please be aware, you have the right to select any lender that participates in the Federal Family Education Loan program. Below you will find the borrower benefits of the lenders the university recommends. Please use this as a guide of things to think about when researching lenders. It is also strongly recommended you continue to use the same lender throughout your education. The reason for this is because it will make is easier when you go into repayment on your loans after you graduate. You will have one bill as compared to keeping track of different student loan bills from the different lenders. The University of Hartford reviews borrower benefit information each fall for the future academic year. During this review the goal is to add additional lenders with borrower benefits that offer different value to students and parents based on their needs. This is done to ensure students have even more information available when researching student loan lenders. Lenders may be removed if their borrower benefits no longer offer a valuable benefit to students and parents or if their customer service is no longer satisfactory. The chart below provides basic borrower benefit information. Please visit each banks website for specific details regarding borrower benefits. Please visit this link to read more information about the University of Hartford's selection of preferred lenders. The borrower benefits are subject to change and are at the lenders control.

If you accepted the Stafford loan which was suggested on your University of Hartford award letter, you will be mailed information about completing your Master Promissory Note (MPN) directly from American Student Assistance (ASA). ASA is a guarantor of the Federal Family Education Loan program which operates under contract with the U.S. Department of Education. ASA is a federally funded, non-profit student loan guarantor. For more than 50 years, ASA has continually advanced their mission of helping students and their families successfully manage education debt. ASA's borrower-centered Wellness service offers the highest level of proactive and preventive care to help stop students' repayment problems before they begin. With an impressive track record, the innovative program provides students timely and insightful information and tools. Keenly committed to borrower success, ASA connects with students at every stage of the loan to ensure that their loan remains in good standing. Through counseling and practical information on budgeting, debt management, and repayment options, ASA helps the student achieve successful repayment and a shining individual credit record. Throughout the loan experience, ASA stands alongside the student, offering encouragement and education. So, when you have a question about your federal loan, remember ASA is your designated resource and effective advocate. For more information, please visit http://www.amsa.com/. As part of its services in guaranteeing loans for students at the Unviersity of Hartford, ASA provides this gateway to the Federal Master Promissory Note. The MPN can be completed online or by paper. If you choose paper it should be returned to ASA. For more information, or to obtain a paper application, please contact ASA at (800) 999-9080. While you may choose to borrow from a lender other than one of those listed above, you must obtain an MPN directly from that lender, complete it and return it to the University of Hartford Office of Student Financial Assistance. This process may extend the amount of time it takes to process your loan.

* Loan limits for independent undergraduate students also apply to dependent students whose parents do not qualify for PLUS loans.

The annual limit that you may borrow includes both Subsidized and Unsubsidized Federal Stafford Loans. Eligibility for annual loan limits is based on your cost of attendance and other financial aid awarded.

Other things to keep in mind about your Stafford Loan:

• Federal regulations require the lender or guaranty agency to forward the proceeds of your loan directly to the University in multiple disbursements (usually one disbursement for the fall term and one for the spring term).
• If you are a first-time borrower at the University, you must complete an entrance interview requirement; all borrowers must complete an exit interview when they graduate or drop below half-time status. Please contact the Bursar's office at (860) 768-4205 to make an appointment.

• Previous Federal Stafford Loan borrowers are encouraged to apply to the same lender. If the lender no longer participates in the loan program, you should contact the Office of Admission and Student Financial Assistance.

The interest rate for loans disbursed on or after July 1, 2006, have a fixed annual rate of 6.8%. The interest rate for loans disbursed prior to July 1, 2006, have a variable annual rate that is capped at 8.25%. The new variable loan rate is effective each July 1.

• The minimum annual payment on a Subsidized or Unsubsidized Federal Stafford Loan is $600.
• The maximum loan repayment period is 10 years.
• Federal regulations allow a fee of up to 2.5% (1.5% origination fee and 1% federal default fee) to be deducted proportionately from each disbursement of the loan. The net amount of the loan is forwarded directly to the University.

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Subsidized Stafford Loan
Principal and interest on the loan are deferred while you are enrolled at least half time and during the six-month grace period following graduation. Interest is paid by the federal government while you are enrolled and during the grace period.

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Unsubsidized Stafford Loan
If you are not eligible for a need-based subsidized Federal Stafford Loan and the annual loan limit of the Federal Stafford Loan has not been reached, you may be eligible for the unsubsidized loan. However, it is important to keep the following in mind:

• Interest is your responsibility from the date of disbursement.
• You may repay principal and interest, make interest payments only, or defer both principal and interest payments while enrolled at least half time.
• If you defer principal and interest payments, the interest will continue to accrue and will be added to the principal.

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Additional Unsubsidized Stafford Loan Eligibility
Independent undergraduate students who want to borrow additional funds may borrow through the Unsubsidized Federal Stafford Loan Program.

Independent undergraduate students may borrow according to the following schedule: up to $4,000 per year for freshmen and sophomore undergraduate students (0-53 credits); up to $5,000 per year thereafter (54+ credits). The aggregate loan limit for independent undergraduate students is $46,000 (no more than $23,000 of this amount may be in subsidized loans).

Dependent undergraduate students whose parents are ineligible for the Federal PLUS Loan may be eligible for the additional Unsubsidized Federal Stafford Loan. Documentation of denial is required each academic year.

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Federal Parent PLUS Loan
Federal Parent PLUS Loans provide parents of dependent undergraduates with additional funds for education expenses.

• Creditworthy parents may borrow up to the cost of attendance minus any financial aid awarded to each child who is a dependent undergraduate student and enrolled at least half time. To apply contact American Student Assistance by phone (800) 999-9080 or online.
• Federal Parent PLUS Loans are made through a lender participating in this loan program. Typically, lenders include banks, savings, and loan associations, credit unions, or other financial institutions.
• The interest rate for loans disbursed on or after July 1, 2006, is a fixed annual rate of 8.5%. The interest rate for loans disbursed prior to July 1, 2006, is a variable annual rate and is capped at 9%. Rate changes take effect each July 1.
• Principal and interest payments begin when the second loan disbursement is made.
• Federal regulations allow a fee of up to 4% (3% origination fee and 1% federal default fee) to be deducted from each disbursement of the loan.
• The net amount is forwarded directly to the University in multiple disbursements (usually one disbursement for the fall term and one for the spring term).
• Loan proceeds are typically disbursed by electronic funds transfer. If the loan is disbursed by check, the checks are made co-payable to the parent borrower and the University.
• Parents have up to 10 years to repay their PLUS Loan.

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Federal Graduate PLUS Loan
Federal Graduate PLUS Loans provide graduate students with additional funds for education expenses.

• Creditworthy graduate students may borrow up to the cost of attendance minus any financial aid awarded while enrolled at least half time. To apply contact American Student Assistance by phone (800) 999-9080 or online.
• You must first borrow your full annual subsidized and unsubsidized Stafford loan eligiblity.
• Federal Graduate PLUS Loans are made through a lender participating in this loan program. Typically, lenders include banks, savings, and loan associations, credit unions, or other financial institutions.
• The interest rate for loans disbursed on or after July 1, 2006, is a fixed annual rate of 8.5%. The interest rate for loans disbursed prior to July 1, 2006, is a variable annual rate and is capped at 9%. Rate changes take effect each July 1.
• Principal and interest payments begin when the second loan disbursement is made. Graduate students may apply for an in-school deferment with their lenders.
• Federal regulations allow a fee of up to 4% (3% origination fee and 1% federal default fee) to be deducted from each disbursement of the loan.
• The net amount is forwarded directly to the University in multiple disbursements (usually one disbursement for the fall term and one for the spring term).
• Loan proceeds are typically disbursed by electronic funds transfer. If the loan is disbursed by check, the checks are made co-payable to the graduate borrower and the University.
• Graduate students have up to 10 years to repay their PLUS Loan.

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The University of Hartford recommends that borrowers choose from one of the following lenders for PLUS loan program. The chart below provides basic borrower benefit information. The borrower benefits are subject to change and are at the lenders control. Please visit each banks website for specifics.: