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In prior years, the University processed Federal Stafford and PLUS loans through the Federal Family Education Loan program (FFEL), in which students and parents borrow from private lenders and banks. Beginning in Summer Term 2010, the University will participate exclusively in the William D. Ford Federal Direct Loan program. Direct Lending is a federal family loan program allowing the student and/or parent to borrow directly from the Federal Government. On March 30, 2010, President Obama signed legislation into law eliminating the Federal Family Education Loan program making the William D. Ford Federal Direct Loan program the sole federal education loan program. We believe that this program will offer students and parents a more streamlined, stable, and predictable borrowing experience. It is not impacted by changes in the economy and allows families to Federal Stafford Loan SUBSIDIZED The subsidized Stafford Loan is a need-based federal loan. You must complete the FAFSA to qualify. Students will borrow funds directly from the federal government and begin repayment 6 months after falling below half-time status or after separation from the University. The interest rate is fixed at 4.5% for loans first disbursed on or after July 1, 2010. The federal government will pay the interest on this loan while you are in school and during the six months prior to the start of repayment. Students may borrow up to the following amounts with an aggregate limit (undergraduate education limit) of $23,000: Freshman (0 – 23 credits) $3,500 Your funds will credit to your account in 2 payments (disbursements). Usually, there is one payment for each semester. Additionally, the federal government will deduct a fee of .5% proportionately from each disbursement. This is a discounted fee. To retain this discount, you must make your first 12 payments on time during your repayment period. When your funds are paid to your account, the fee and discount will already have been accounted for. Loan repayment averages between 10 and 25 years depending on the amount you have borrowed over the course of your education and the type of repayment plan you select. You will receive information about the different types of repayment available to you before you borrow your first loan and again before it is time to pay it back. Remember, this has to be repaid so be sure you only borrow what you absolutely must. First-time borrowers at the University of Hartford must complete a Master Promissory Notice (MPN) and Entrance Counseling before your loan will pay. If you have previously borrowed at the University but are new to Direct Lending, you must complete a Master Promissory Notice before your loan will pay. UNSUBSIDIZED The unsubsidized Stafford Loan is a federal loan. You must complete the FAFSA to qualify. Students will borrow funds directly from the federal government and begin repayment 6 months after falling below half-time status or after separation from the University. The interest rate is fixed at 6.8%. You are responsible for payment of the interest on this loan while you are in school and during the 6 months prior to the start of repayment. You can elect to pay it quarterly while you are in school or have it added to the principle (capitalized). Students may borrow up to the following amounts (inclusive of any subsidized Stafford Loan funds you may be eligible for): Freshman (0 – 23 credits) $5,500 Dependent students may borrow an aggregate limit (undergraduate subsidized and unsubsidized total borrowing ability) of $31,000. Independent students have an aggregate of $57,500. Your funds will credit to your account in 2 payments (disbursements). Usually, there is one payment for each semester. Additionally, the federal government will deduct a fee of .5% proportionately from each disbursement. This is a discounted fee. To retain this discount, you must make your first 12 payments on time during your repayment period. When your funds are paid to your account, the fee and discount will already have been accounted for. Loan repayment averages between 10 and 25 years depending on the amount you have borrowed over the course of your education and the type of repayment plan you select. You will receive information about the different types of repayment available to you before you borrow your first loan and again before it is time to pay it back. Remember, this has to be repaid so be sure you only borrow what you absolutely must. First-time borrowers at the University of Hartford must complete a Master Promissory Notice (MPN) and Entrance Counseling before your loan will pay. If you have previously borrowed at the University but are new to Direct Lending, you must complete a Master Promissory Notice before your loan will pay. Additional Eligibility Independent students needing further assistance and dependent students, whose parents are ineligible for the Federal PLUS, may be eligible for additional unsubsidized Stafford Loan funds. Documentation of their ineligibility (PLUS denial) is required. You may borrow the following in addition to what is already noted above: Freshman (0 – 23 credits) $4,000
Federal Perkins Loan  The Federal Perkins Loan is awarded through the University of Hartford and must be repaid to the University with interest. The interest rate is fixed at 5%. You must complete the FAFSA to qualify. Eligible students may be awarded up to $4,000 per academic year, to a maximum cumulative amount of $20,000 for undergraduate studies. Repayment of principal and interest begins 9 months after you fall below half-time status or when you separate from the University. The average length of repayment is 10 years. Students must complete a Master Promissory Notice (MPN) before their loan will pay to their account. This MPN is separate from that necessary for the Stafford or PLUS and must be completed at the Bursar’s Office.
Federal PLUS Loan The PLUS is a federal loan meant to provide graduate students or parents of dependent students with additional funds for educational expenses. While completion of the FAFSA is not necessary to qualify, we highly recommend you exhaust your options through the FAFSA first. Graduate students and parents will borrow funds directly from the federal government. Repayment can begin immediately or you can elect to begin repayment 6 months after the student falls below half-time status or separates from the University. The interest rate is fixed at 7.9%. The borrower is responsible for payment of the interest on this loan while the student is in school and during the 6 months prior to the start of repayment (if this is the option you choose). Borrowers can elect to pay it quarterly while the student is in school or have it added to the principle (capitalized). Borrowers can request up to the cost-of-attendance minus any other financial aid the student has received. Funds will credit to the student’s account in 2 payments (disbursements). Usually, there is one payment for each semester. Additionally, the federal government will deduct a fee of 4% proportionately from each disbursement. When your funds are paid to your account, the fee will already have been accounted for. Loan repayment averages between 10 and 25 years depending on the amount borrowed over the course of the student’s education and the type of repayment plan you select. You will receive information about the different types of repayment available to you before you borrow your first loan. Remember, this has to be repaid so be sure you only borrow what you absolutely must. First-time PLUS borrowers at the University of Hartford must complete a Master Promissory Notice (MPN). First-time Graduate PLUS borrowers but also complete Entrance Counseling before the loan will pay. If you have previously borrowed at the University but are new to Direct Lending, you must complete a Master Promissory Notice before your loan will pay. You can apply for the loan as well as complete the MPN and Entrance Counseling at www.studentloans.gov.
Supplemental Loan Programs In addition to grants, scholarships and loans offered through the Office of Student Financial Assistance, some families are interested in learning more about supplemental loan programs for which they may qualify. Many lenders will offer loans for up to the full cost of attendance minus any financial assistance received. Click here for information regarding recommended loan programs. |
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