Loans

Southern Connecticut State University (SCSU) participates in the William D. Ford Federal Direct Loan (FDL) program. This program allows borrowers to obtain loan funds directly from the U.S. Department of Education. Federal Direct Loans are available to undergraduate and graduate students, students earning a second degree and education certification students, and parents of undergraduate students.

To be considered for a federal student loan, a student must complete the Free Application for Federal Student Aid (FAFSA) for the appropriate academic year and meet eligibility requirements.  A student must be accepted as a degree candidate (matriculated) and enrolled at least half time.  Please refer to The Financial Aid Process for additional eligibility requirements.

Direct Subsidized Loans are available to eligible undergraduate students who demonstrate financial need to help cover the cost of higher education.

The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are in school at least half-time, for the first six months after you leave school, and during a period of deferment.

Direct Unsubsidized Loans are available to eligible undergraduate and graduate students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan.

The student is responsible for paying the interest during all periods.

Direct Parent Loans for Undergraduate Students (PLUS) are available to the parents of dependent undergraduate students.

The borrower must be a parent (biological, adoptive, or in some cases, a stepparent) who is a U.S. citizen or eligible non-citizen.

Credit approval is necessary to receive the loan.  Please refer to How to Apply for a Direct Plus Loan for instructions.

Direct Graduate PLUS Loans are available to graduate and professional students. Credit approval is required. Please refer to How to Apply for a Plus Loan for application instructions.

The Nurse Faculty Loan Program (NFLP) is for graduate nursing students focusing on becoming a nursing teacher faculty member. This program offers partial loan forgiveness for borrowers who graduate and serve as full-time nursing faculty for the prescribed period of time.

Students need to complete the Free Application for Federal Student Aid (FAFSA) and meet the following criteria to receive the NFLP loan:

  • Must be enrolled in a full-time or part-time doctoral program that offers an education component to prepare qualified nurse faculty.
  • Must maintain enrollment for a minimum of two consecutive terms/semesters during an academic year.
  • Must not be in default on any federal loans.

The NFLP loan can help with the cost of tuition, fees, books and laboratory expenses.  The NFLP loan cannot be used for room, board, personal, transportation and living expenses.

There is a limited amount of NFLP funds available.  The NFLP is a non-need based loan program.  The loan cannot exceed $35,500 per academic year, and may not to exceed 5 years of support. 

The grace period for NFLP loan repayment is 9 months and begins immediately after the individual ceases to pursue a course of study at the school of nursing. The interest rate of 3 percent begins 3-months after the borrower graduates from the program.  The borrower will be given up to 10 years to repay the loan.

NFLP borrowers who fail to establish employment as a full-time nurse faculty at a school of nursing must begin repayment of the NFLP loan following the 9-month grace period at the prevailing market interest rate.  The current interest rate is 10.5%.

To cancel the maximum amount of the loan, the borrower must serve as full-time nurse faculty for a consecutive four-year period at an accredited school of nursing following graduation from the program to cancel the maximum amount of the loan.

The borrower may cancel:

  • 20 percent of the principal and the interest on the amount of unpaid loan balance upon completion of each of the first, second, and third year of full-time employment; and
  • 25 percent of the principal and the interest on the amount of the unpaid loan balance upon completion of the fourth year of full-time employment.

The following sixth year professional diplomas and certificate programs are not eligible for federal financial aid. Therefore, students enrolled in one of the following programs cannot receive financial aid and must make payment arrangements with the Student Accounts Office or secure a private loan.

  • Women's Studies – certificate program
  • Master of Business Administration degree jointly conferred by SCSU and Liverpool John Moores University
  • Master of Science degree jointly conferred by SCSU and Liverpool John Moores University
     

First-time borrowers of a Federal Direct student loan are required to complete Entrance Counseling  and a Master Promissory Note (MPN).  Both documents are completed at www.studentaid.gov by logging on using your FSA ID and will link with SCSU within 24 hours of completion. Please note that parents borrowing a PLUS loan for their dependent undergraduate student will need to complete a Parent PLUS MPN and Graduate students borrowing a PLUS will need to complete a Graduate PLUS MPN.

Federal regulations require that students who have received a Direct Loan (Subsidized and Unsubsidized) must complete an online exit counseling session upon withdrawing, graduating or registering for less than half-time.

Please follow the instructions below to complete the exit counseling session for a Federal Direct Loan:

  1. Go to Studentaid.gov
  2. Sign in using your FSA ID Username and Password
  3. Select "Complete Counseling" and click on Exit Counseling
  4. Select CT and Southern Connecticut State University
  5. Click on "Add School"
  6. Complete the entire counseling session (upon completion you will receive a confirmation number)

 

Repayment of federal student loans begins after you graduate, withdraw, drop below half-time enrollment or are academically dismissed.  Your loan servicer will provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment.  To determine your loan servicer, please visit the National Student Loan Data System.

These private bank loans can provide education financing beyond Federal Direct Loans. You should carefully research these loans, comparing interest rates, repayment options and other benefits. You can check with any credit union or bank that offers educational loans or compare a number of options by going to Elm Select Alternative Loans.

Interest Rates for Direct Loans First Disbursed on or After July 1, 2020 and Before July 1, 2021:

Loan Type

Borrower Type

Fixed Interest Rate

Direct Subsidized and Unsubsidized Loans

Undergraduate

2.75%

Direct Unsubsidized Loans

Graduate or Professional

4.30%

Direct PLUS Loans

Parents and Graduate or Professional Students

5.30%

Origination Fees for Direct Loans first disbursed on or after October 1, 2020 and before October 1, 2021:

Loan Type

Borrower Type

Origination Fee

Direct Subsidized and Unsubsidized Loans

Undergraduate or Graduate

1.057%

Direct PLUS Loans

Parents or Graduate

4.228%

Federal Direct Loan Annual Limits

Dependent Undergraduates

Dependent Undergraduates

Subsidized Direct Loan

Unsubsidized Direct Loan

Freshman

$3,500

$2,000

Sophomore

$4,500

$2,000

Junior

$5,500

$2,000

Senior

$5,500

$2,000

Independent Undergraduates and Dependent Undergraduates with a Parent Plus Loan Denial

Independent/Dependent Undergraduates with a- Plus Loan Denied

Subsidized Direct Loan

Unsubsidized Direct Loan

Freshman

$3,500

$6,000

Sophomore

$4,500

$6,000

Junior

$5,500

$7,000

Senior

$5,500

$7,000

Graduate Students

Graduate Students

Unsubsidized Direct Loan

Graduate Students

$20,500

 

Federal Direct Loan Aggregate Limits

 

Subsidized Direct Loan

Sub & Unsub Loan Total

Dependent Undergraduates

$23,000

$31,000

Independent Undergraduates

$23,000

$57,000

Graduate Students

$65,500

$138,500 *includes all federal loans received as an undergraduate

 

https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized
https://studentaid.gov/understand-aid/types/loans/interest-rates