CHESLA Student Loans Review

CHESLA is a non-profit state-based student loan provider.

Student loans can make the dream of attending college a reality. But with the college costs continually rising, finding the right student loan provider is more important than ever, and can make a big difference to your financial future.  

CHESLA offers Connecticut students an opportunity to tap into student loans at more favorable interest rates than most private student loans. You can also expect borrower protections and flexible repayment options. Let’s explore what CHESLA has to offer Connecticut residents and those attending school in Connecticut.

What Is CHESLA?

The Connecticut Higher Education Supplemental Loan Authority (CHESLA) is a quasi-public organization that works to help students pay for higher education. Through CHESLA, Connecticut students, alumni, and their families can tap into loan opportunities.

As a student, you can qualify to work with CHESLA by attending school in Connecticut. You can also be a Connecticut resident attending an accredited non-profit university in another part of the United States.

According to the organization’s website, CHESLA’s loan program has resulted in a $74 million increase in Connecticut GDP and a $72 million increase in state wage income. 

What Does It Offer?

If you meet the geographic requirements, through an educational connection to Connecticut, you can tap into everything CHESLA has to offer, including the following:  

Fixed-Rates Student Loans

CHESLA is offering a fixed rate of 6.45% APR for the 2024-2025 academic year. Borrowers who sign up for automatic ACH payments can tap into a 0.25% rate reduction. While this rate is higher than Direct federal loans for undergraduates, it’s a relatively attractive rate for private student loans. 

Range of Loan Amounts

CHESLA offers student loans starting from $2,000 up to a cumulative maximum of $125,000. The loans can be used to cover the current or previous school year’s expenses. 

Borrower Protections

CHESLAs student loans come with built-in protections. For example, if you run into financial difficulties, you can request hardship forbearance. If granted, this can give you a 2-month payment reprieve. Additionally, there are no prepayment penalties. If you have the bandwidth to pay off your loans faster, you can get these student loans out of your life early. 

Are There Any Fees?

CHESLA student loans don’t come with any fees attached. Of course, you’ll pay interest charges on your loans. But you won’t incur any prepayment penalties or origination fees. 

How Does CHESLA Compare?

If you want to pay for college, private student loans aren’t the only solution. Before you turn to any type of loan, consider scholarship or grant opportunities. Once you've exhausted your free money options, take a look at your federal student loan eligibility. Federal student loans offer the most borrower protection. Plus, federal student loans tend to be the most affordable.

CHESLA is an option to consider after you’ve looked at your scholarship, grant, and federal student loan possibilities. After that, you’ll need to consider the eligibility requirements of CHESLA. It’s relatively limited because only students with a connection to Connecticut qualify.

If you are looking for a broader option, consider Sallie Mae, Edly, or one of the other top private student loan providers.

How Do I Open An Account?

If you want to apply for a loan through CHESLA, you’ll need to meet the following requirements:

• Be at least 18 years old.
• Have an annual income of at least $20,000, or meet this requirement through a co-applicant.
• Must be enrolled in a degree program or certificate program on at least a half-time basis.
• Must be making satisfactory academic progress.
• Must be creditworthy, or meet this requirement through a co-borrower.
• Must have a debt-to-income (DTI) ratio of less than 43%. 

If you meet the requirements, you can apply through the CHESLA website. Be prepared to provide information about your school, citizenship status, age, and more. You should find out about the status of your application within a few business days, but it can take up to two weeks for your application to be processed. 

Is It Safe And Secure?

MyCHESLA Student Loan employs encryption technology to protect your personal information and is safe and secure for students to use. 

How Do I Contact CHESLA?

You can get in touch with CHESLA by calling 860-520-4001. Keep in mind that CHESLA recommends you exhaust all other financial aid, scholarship, and federal student loan options before moving forward with an application. 

Is It Worth It?

If you have a qualifying connection to Connecticut, CHESLA presents an opportunity to pay for school. But it’s certainly not the only option. Before turning to private student loans, consider your scholarship, grant, and federal student loan opportunities.

CHESLA might be worth it if you shop around and determine this lender is willing to offer you the best rates. However, it’s critical to shop around for the best rates to ensure you are locking in the best possible deal. Explore your other private student loan options here.

 
Check out CHESLA here >>

CHESLA Student Loan Features