Student Loans
Our students are eligible to apply for student loans through SLM Financial. The majority of our students participate in this popular and flexible loan program!
ANSWERS TO MOST COMMONLY ASKED QUESTIONS
Q: How do I know if I qualify?
A: Qualification is based on your credit history and your debt- to- income ratio. The better your credit is, the better your chance of getting the loan on the first try is. You also must have a job with verifiable income in order to get the loan without a co-borrower.
Q: What if my credit is not good or if I do not have any credit history because I am a young student. Can I still get a student loan?
A: Even if you do not have good credit or have no credit history you may still qualify for the loan. But, you will need to have a co-borrower for your loan. The co-borrower can be a friend or a relative. They must have a job with verifiable income (retired grandparents or parents may qualify) and have good credit. The co-borrower does not have to be a CT resident.
Q: What if the co-borrower I choose is denied too?
A: SLM Financial gives each student 3 chances to apply. So, if you applied for the loan on your own but needed a co-borrower then you would have 2 more chances to find a suitable co-borrower. If your first co-borrower did not qualify, you still have one more chance.
Q: How do I apply?
A: Our admissions office has the simple 1 page loan applications. We will be happy to assist you in completing it. Once completed, we submit the information to SLM Financial online. Usually we have an answer within 24 hours.
Q: What is the interest rate on the loan?
A: That depends on your credit score. The interest rates are on a sliding scale that is based on the prime rate plus 1 to 9% depending on your credit score. Right now, (4/30/08) the prime rate is: 5% , so the interest rate you would get would be anywhere from 6% (prime plus 1) to 14% (prime plus 9). The better your credit, the lower your interest rate will be. If you apply with a co-borrower who has excellent credit, your interest rate will be better than it would have been on your own.
Q: When do I start making my payments?
A: You start making payments 1 month after you start school.
Q: Does SLM Financial lend me the entire amount needed for school or do I need a down payment?
A: SLM Financial will lend the entire amount that you need for school (no money down is needed). In addition, you can opt to borrow up to an additional 60% more than you need for school (maximum of $6,000 more) if you need it to supplement your income or pay for daycare while you are in school.
Q: How long can I take the loan for?
A: Loan terms can be anywhere from 1 to 15 years. It is up to you. The longer the term, the lower your monthly payment will be.
Q: Can I repay my loan early?
A: YES! By repaying your loan early you will save money on interest! There is no prepayment penalty on your loan.
Q: How much will my monthly payments be?
A: You can opt for payments as low as $10 a month while you are in school. After you graduate your payments will increase, and are usually between $100.00 - $150.00 per month depending on how much you borrowed and what your interest rate is.
If you have additional questions, please give us a call. (860) 887- 9990
