Loan Opportunities

Private Loan Options

A UMass Dartmouth education will open a world of opportunities for you. It is an investment that will pay dividends over the course of your entire life. Consequently, like any other investment, you should examine all available options when considering the cost of the University. Just as you do not have to pay for a home or car all at once, you may also choose to finance your education.

Before considering private loans, you should first apply for federal, state, and institutional financial aid at www.fafsa.ed.gov/. Many who have thought that they would not be eligible for financial assistance, or that such assistance would not offer significant help, have been pleasantly surprised.

Upon determining the total cost of your UMass Dartmouth education, you should consider that any significant expense is best funded with a combination of income from the past, present, and future. Income from the past that has been earmarked for education should be the first source you draw upon for payment of the bill. Other savings and investments should also be considered, although not entirely exhausted. Present income should be the next source from which you draw upon. If you cannot pay the final balance due at the beginning of each semester, but can set aside a certain amount of money from monthly income to pay the bill, you may wish to consider the interest-free monthly payment option. If upon combining your savings and current earnings you are still unable to cover the charges due for each semester, you may want to consider an educational private loan.

Begin by totaling your tuition, room and board expenses, and fees for the entire academic year. Then, subtract any scholarships, grants, loans or deposits made to arrive at your estimated out of- pocket expenses due to the University.

When applying for a loan, please be sure to apply for the amount that you will need for the entire academic year (i.e. Fall 2008 and Spring 2009 semesters).

The following are some of the important factors to consider in evaluating borrowing options:

• INTEREST RATE: Interest is money paid to the lender for the use of borrowed funds. Comparing interest rates is a helpful indicator of the relative cost when comparing two loans.
• FIXED VS. VARIABLE RATE: While most education loans feature variable interest rates, some have interest rates that are fixed for the life of the loan. Interest charged on variable rate loans is subject to change, anywhere from monthly to annually. The interest rate is normally tied to an index such as Prime Rate, U.S. Treasury Bills, Auction Rate Securities, or another rate that may fluctuate over time. In evaluating a variable rate loan, you should understand how frequently your payment may change, and whether there is any cap on how high the interest rate may go.
• LOAN FEES: In addition to interest, many loans have additional fees that are either added to the loan amount or deducted from the loan proceeds. These may be referred to as Origination fees or Guarantee fees.
• ANNUAL PERCENTAGE RATE (APR): The APR reflects the total cost of borrowing money over the life of the loan, considering not only the interest rate, but also the effect of other fees on the total cost of repaying the amount financed.
• REQUIRED MONTHLY PAYMENT: For many families, the amount of the monthly payment is an important factor in choosing a loan.
• GRACE PERIOD: The grace period is the six-month payment-free period that follows the student’s graduation, withdrawal, or dropping below half-time enrollment status. Like other forms of borrowing, most education loans are subject to credit approval. Many lenders use automated credit “scoring” models to determine your creditworthiness. Your credit score is determined by many factors, most notably your record of past credit use.

Although credit qualifications and processes vary, two important primary considerations are:

• CREDIT HISTORY: A track record of timely repayments on other debts indicates that a borrower is likely to continue to manage future credit obligations well.
• SUFFICIENT INCOME TO MEET PAYMENTS: Lenders will typically review a borrower’s current income and compare it to his/her monthly debts. After deducting fixed monthly obligations (including rent or mortgage, car loans, education loans, and payments on other consumer loans and credit cards) from after-tax income, there must be sufficient resources to pay everyday living expenses such as food, clothing, utilities, transportation, insurance, etc.

Please keep in mind that loans take several weeks for approval. Loans will not be deducted from your outstanding balance until approved and funds have been received by UMass Dartmouth.

If you wish to explore private loans, we have included a list of suggested private lenders below. Students and parents are not required to use the lenders on the suggested lender list and may use any eligible lender of their choice, including lenders not on the suggested lender list. Students are encouraged to shop around to find the lender offering the rates, terms, and service that are right for them. Please note that the lenders below may also offer Federal Stafford and PLUS Loans through the Federal Family Education Loan Program (FFELP). As a Federal Direct Lending institution, UMass Dartmouth does not accept FFELP loan applications. Please review lenders for their private (or alternative) loan offerings.

Suggested Private Lenders

Campus Door, http://www.campusdoor.com/, 1-800-786-0002
Chase, http://www.collegeloansite.com/, 1-866-349-0373
Citibank, https://studentloan.citibank.com/s/slcsite/, 1-800-967-2400
Key Bank, https://www.key.com/html/H-1.32.b1.html, 1-800-539-5363
MEFA, http://www.mefa.org/, 1-800-449-6332
Sallie Mae, http://www.salliemae.com/content/signature/, 1-888-272-5543

 Last Updated On: 4/30/08