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PRIVATE LOANS

Please make sure that you first consider all possible Grants,  Scholarships, Federal Stafford and Parent PLUS loans that are available, before you apply for Private Educational loans. Private Loans generally have higher interest rates that will cost you more in the long term.

Private Loans (or Supplemental Loans) are loans based on ability to repay and credit rating. You do not need to fill out the FAFSA in order to apply for these loans. They are not based on financial need. Some of these loans will ask for a co-signer and most of the interest rates will be higher than the rates for a Federal Stafford or PLUS loan.

You may choose any Lender you wish. Please research the Repayment Options, Interest Rates, and Borrower Benefits to help determine which loans will most benefit the student. Private loans that have been have been utilized at the Lyme Academy include the following:

 

  • Connecticut Family Education Loan Program- CHESLA offers a supplemental educational loan available at a current fixed rate of 6.99% based on credit rating and ability to repay. Loan fees are limited to a non-refundable reserve fee equal to 3% of the loan amount. This charge is deducted from the loan prior to disbursement. Families with a student enrolled at least half-time in a CT non-profit college may annually borrow from $2000 up to the full cost of education less other aid at a low fixed rate. Family pays only interest during in-school years. Upon completion of college, the loan is paid off over 11 years. For more information call 1-800-935-2275 or visit the web site: www.chesla.org

    • 6.99% Fixed Annual Rate : Simple interest                                                                                             
    • APR - Annual Percentage Rate (adding 3% reserve fee) ranges  from 7.37% to 7.51% over the life of the loan. Monthly payments of $5.83 per $1,000 borrowed during the in-school and 6-month grace period, and $10.47 per $1,000 borrowed during the 140-month repayment term for principal and interest
    		 
  • NellieMae Student EXCEL: Undergraduate Student Loan. Borrower must be an undergraduate student enrolled at least half-time in a degree-granting program at a four-year college, and must have a satisfactory credit history. All freshmen must include a co-borrower. Borrower and co-borrower must have a US Social Security number and must be a US citizen or eligible permanent resident.  Find information at: www.nelliemae.com/loancenter/app_pre.asp
            Interest Rates:
  •    Monthly variable: Prime rate + 1.25%
  •    Annual variable: Prime rate + 2.5%
             Repayment Fee
  •    2% if student defers principal and interest while in school
  •    0% if student makes payments of principal and interest while in school
             APR - Annual Percentage Rate* - 9% to 11.25%  
   Disbursement fee with a co-  borrower: 0% - without a co-borrower: 5%            
             Repayment Options
  •    Defer principal and interest while in school at least half time
  •    Pay only interest while in school at least half time
  •    Pay principal and interest immediately
  •    Take up to 30 years to repay based on loan balance

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~ Lyme Academy College of Fine Arts ~
84 Lyme Street Old Lyme, Connecticut 06371 - T: 860.434.5232 F: 860.434.8725