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Loans - Undergraduate Students

Southern Connecticut State University (SCSU) participates in the William D. Ford Federal Direct Loan (FDL) program.  This program allows borrowers to obtain loan funds directly from the U.S. Department of Education.  Federal Direct Loans are loans available to undergraduate and graduate students, students earning a second degree and education certification students, and parents of undergraduate students.

To be considered for a federal student loan, a student must complete the Free Application for Federal Student Aid (FAFSA) for the appropriate academic year and meet eligibility requirements.  A student must be accepted as a degree candidate (matriculated) and enrolled at least half time.  Refer to How to Apply for Financial Aid for additional eligibility requirements.

Direct Loans

Direct Subsidized Loans are made to eligible undergraduate students who demonstrate financial need to help cover the cost of higher education.

  • Loans must be repaid.
  • The interest rate for the 2017-18 academic year is 4.45%.
  • The government charges an origination fee of 1.066% (effective 10/1/17).
  • The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are in school at least half-time, for the first six months after you leave school, and during a period of deferment.

Direct Unsubsidized Loans are made to eligible undergraduate students, but in this case the student does not have to demonstrate financial need to be eligible for the loan.

  • Loans must be repaid.
  • The interest rate for the 2017-18 academic year is 4.45%.
  • The government charges an origination fee of 1.066% (effective 10/1/17).
  • The student is responsible for paying the interest during all periods.

Repayment of federal student loans begins after you graduate, withdraw, drop below half-time enrollment or are academically dismissed.  Your loan servicer will provide you with a loan repayment schedule that states when your first payment is due, the number and frequency of payments, and the amount of each payment.  To determine your loan servicer, please visit the National Student Loan Data System.

Federal Perkins Loans

Federal Perkins Loans are low-interest federal student loans for undergraduate students with exceptional financial need.  Federal Perkins Loans are awarded to continuing Perkins Loan borrowers.

  • The interest rate is 5.0% and SCSU is the lender; you will make your payments to the University.
  • Undergraduates may borrow a maximum of $5,500.
  • Repayment may be deferred or cancelled under certain conditions.
  • Upon making a properly documented written request, Federal Perkins borrowers are entitled to have up to 100 percent of the amount of their loan, plus interest thereon, cancelled if they perform qualifying service after the period for which they received the loan. Borrowers should refer to their promissory note for specifics of each qualifying service cancellation. 
  • The Perkins Loan Program has been terminated for the 2018-2019 year.

Direct Parent Loan for Undergraduate Students

Direct Parent Loan for Undergraduate Students (PLUS) are loans available to the parents of dependent students.  Students must be enrolled at least half-time as a matriculated student and maintain Satisfactory Academic Progress (SAP), as determined by the university.

  • The borrower must be a parent (biological, adoptive, or in some cases, a stepparent) who is a U.S. citizen and/or eligible non-citizen.
  • The U.S. Department of Education is the lender.
  • Credit approval is necessary to receive the loan.  Please refer to How to Apply for a Direct Plus Loan for instructions.
  • As of July 1, 2017, the interest rate is 7% fixed.
  • Repayment of the loan begins 60 days after the loan is fully disbursed to the university.
  • As of October 1, 2017, the Department of Education will charge a 4.264% fee to process the loan.

Entrance Counseling

First time borrowers of a federal student loan are required to complete entrance counseling.

Exit Counseling

Federal regulations require that students who have received a Federal Perkins Loan and/or Direct Loan (Subsidized & Unsubsidized) must complete an exit counseling session upon withdrawing, graduating or registering for less than half-time.

Direct Loan (Subsidized and Unsubsidized)

Please follow the instructions below to complete the exit counseling session for a Federal Stafford and/or Direct Loan:

  1. Go to
  2. Click on "Sign In".
  3. Enter your FSA ID Username and Password.
  4. Click on "Complete Counseling".
  5. Click on Exit Counseling start button.
  6. Select the School State: Connecticut.
  7. Select the School Name: Southern Connecticut State University.
  8. Click on "Add School".
  9. Click on "Continue".
  10. Complete the entire counseling session (upon completion you will receive a confirmation number).

Federal Perkins Loan

Please follow the instructions below to complete the exit counseling for the Federal Perkins Loan:

  1. University Accounting Services
  2. Create an account
  3. Complete exit questionnaire

Any questions regarding the Perkins Loan Exit Counseling should be directed to Kelly Visokay (203) 392-6856 or UAS (800) 999-6227.

Students will have to complete both exit counseling sessions if they borrowed from the Direct and the Federal Perkins Loan program.

SCSU will be notified by and/or "University Accounting Services" of all students who completed the required exit counseling.