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.  

Code of Conduct: http://www.bhe.mass.edu/library/Motions/2007/FAAP07-29.pdf

The University of Massachusetts Disclosure Statement Concerning Lenders for
Private/Alternative Student Loans: 2009-2010.
 
Every student/parent/guardian has the right to select their own lender. The lenders listed
at this site are independent entities. The University of Massachusetts (University,
UMass) makes no representations, warranties, or guarantees, implied or otherwise, as to
the lenders listed at this site or that the financing options presented at this site are the
most attractive terms available to any particular student, or parent, or guardian of a
student seeking financial aid. Also, information may not be updated or timely or may be
subject to data entry errors or changes by the lender. Please read carefully final loan
agreements or promissory notes and understand their payment terms and other
obligations.
 
The University is not a lender and is not engaged in rendering legal, accounting, financial
planning or other related professional services. Any agreements entered into with the
lenders whose products are included at this site will exist solely between the lender and
the borrower, and UMass assumes no obligation or liability in connection with any such
agreements.
 
The University recommends that borrowers consult with their own expert advisors before
making educational financing decisions. Students and their parents/guardians have the
right and ability to select the education loan provider of their choice, and are not required
to use any of the lenders listed here. There will be no penalty for choosing a lender that
is not included as a lender on this site.
 
The lenders listed on this website responded to a publicly solicited Request for Response
for private/alternative student loans. This request document can be found on the Internet
by searching for the document number “UP09PC0226.” The University reviewed
information regarding each lending institution’s background, loan program requirements,
and customer service and program affiliations. The interest rate, fees, or loan cost
offered by these lenders may not be the lowest available. In addition, a lender may
change the rates, terms, fees, and other information from that which was presented in
their original responses. The University will review the status of each lender at least
annually and may add or drop lenders from this list. The University reviewers from
UMass campuses at Lowell, Dartmouth, and Boston have declared no personal affiliation,
financial interest, benefit, or other personal ties related to these lenders in a signed
affidavit maintained on file at the University.

 Suggested Private Lenders

Chase, http://www.chaseselectloans.com/, 1-866-306-0868

Citibank, https://studentloan.citibank.com/s/slcsite/, 1-800-967-2400

Citizens Bank TruFit Student Loan, www.citizensbank.com/trufitstudentloan, 1-800-708-6684

Mefa, http://www.mefa.org/, 1-800-809-0571

Sallie Mae, http://www.salliemae.com/get_student_loan/find_student_loan/smart-option-student-loan.htm, 1-888-272-5543

Wells Fargo, https://www.wellsfargo.com/student/undergrad/collegiate/, 1-800-658-3567

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.

 Last Updated On: 6/22/09