Connecticut Student Loans
CT Higher Education Helps Students with Low-Interest Loans
Connecticut, like many other states, finances a low interest student loan for those students who qualify. The program is a Family Education Loan Program, designed to make it easier to fund a college degree. College is an expensive deal and most students carry multiple loans and compete for scholarships and grants.
CHESLA Program
The Connecticut Higher Education Supplemental Loan Authority (CHESLA) offers students an attractive low-interest, long-term loan intended to supplement federal funds such as the Stafford Loans, one of the most widely disbursed. To be eligible applicants for a CHESLA loan must either be enrolled in an institution in the state of Connecticut or a state resident attending an out-of-state school. Students who are not pursuing a degree or a professional certificate, or who are going to school less than half time are not eligible for this program.
Application Process
Students over 18 with good credit may apply as the primary borrower. Those under 18, or without qualifiable credit, are required to secure a co-borrower. A co-borrower may be a parent or guardian, even a friend or other relative. The key is to make sure you both understand the loan and ramifications of default. Borrowers for a CHESLA loan are required to agree to a credit check. While some federal loans are widely disbursed regardless of credit scores and history, private loans like CHESLA are credit-based. Not everyone gets them. Thanks to the digital age, you don’t have to find an office in order to get the loan, you or your co-borrower can apply right online and receive a quick approval.
Of Interest Rates and Fees
CHESLA loans are not bundled with one of those aggravating application fees. There is a small loan fee, however; pretty much the cost of doing business and managing money. You will likely want to stay abreast of current interest rates. Interest rates change with time and denote a percentage of the total loan that is converted to interest, or the money you owe in addition to the amount of the loan. In its simplest terms, it’s the amount you owe for the privilege of borrowing the amount.
Who Manages the Account?
While the state of Connecticut is the actual lender, they are not able to manage accounts; they are not a banking institution. Firstmark Services, a student loan servicing company, actually manages the business of the CHESLA loans. From loan application, credit check through the repayment process, borrowers actually deal with Firstmark Services. When your loan is approved, Firstmark disburses the money directly to your college or university, so you don’t have to worry about getting the money where it needs to go.
Repaying Your CHESLA Loan
The nice thing about student loans is that in most cases you are only responsible for paying the interest, due on a monthly payment schedule, up until 6 months after you graduate. A grace period is almost a matter of course and is designed to allow graduates leeway to get their financial feet on the ground and secure a job before student loan repayment kicks in.
