Federal Perkins Loan
This is a low-interest (presently 5 percent) federal loan made available through the College to matriculated, continuing students enrolled at least half-time. Loans are awarded according to need, and repayment begins nine months after graduation or termination of college attendance.
William D. Ford Federal Direct Loan Program (Subsidized)
A low-interest, need-based loan program that helps students meet the cost of education, the Direct Loan Program allows students to borrow money directly from the federal government. Students who are matriculated in degree-granting programs and are registered for at least 6 credits per semester are eligible. Students must begin repayment within six months after graduation or termination of college attendance, and there is a maximum of 10 to 30 years in which to pay the borrowed funds.
Annual Direct Loan Limits
| Credits Completed |
Dependent Students |
Independent Students |
| 0–29 |
$5,500
(Maximum Subsidized $3,500) |
$9,500
(Maximum Subsidized $3,500) |
| 30–59 |
$6,500
(Maximum Subsidized $4,500) |
$10,500
(Maximum Subsidized $4,500) |
| 60+ |
$7,500
(Maximum Subsidized $5,500) |
$12,500
(Maximum Subsidized $5,500) |
Interest Rates and Origination Fees
The following two charts are from the Department of Education’s website: http://www.dl.ed.gov.
| Loan Type |
Date of First Disbursement |
Fixed Interest Rate |
| Direct Subsidized and Unsubsidized Loans |
7/1/15-6/30/16
7/1/14-6/30/15
7/1/13-6/30/14 |
4.29%
4.66%
3.86% |
| Direct Unsubsidized Loans |
7/1/06-6/30/13 |
6.80% |
| Direct Subsidized Loans |
7/1/11-6/30/13
7/1/10-6/30/11
7/1/09-6/30/10
7/1/08-6/30/09
7/1/06-6/30/08
|
3.40%
4.50%
5.60%
6.00%
6.80%
|
| Direct PLUS Loans (Parents) |
7/1/15-6/30/16
4/1/14-6/30/15
7/1/13-6/30/14
7/1/06-6/30/13 |
6.84%
7.21%
6.41%
7.90% |
| Please Note: The actual interest rate and loan fee will be included in a disclosure statement the student will receive before the first disbursement of the loan. |
|
The loan fee, or borrower origination fee, is another expense of borrowing a Direct Loan. The loan fee is subtracted proportionately from each loan disbursement. The loan origination fee for Direct (Subsidized and Unsubsidized) Loans will be reduced annually according to the following schedule:
| Loan Type |
Date of First Disbursement |
Origination Fee |
| Direct Subsidized and Unsubsidized Loans |
10/1/15 - 9/30/16
10/1/14 - 9/30/15 |
1.068%
1.073% |
| Direct PLUS Loans (Parents) |
10/1/15 - 9/30/16
10/1/14 - 9/30/15 |
4.272%
4.292% |
William D. Ford Federal Direct Loan Program (Unsubsidized)
These loans are available directly from the federal government to undergraduate students who need additional funds. The interest rate is fixed at 4.29%. Two repayment options for interest are available. Students may begin repayment while still attending school by paying the interest, with repayment of the principal deferred until after graduation or termination of attendance. Alternatively, interest may be deferred until after graduation or termination of attendance, in which case it will be added to the principal.
Direct PLUS (Parent Loan for Undergraduate Students)
These are loans parents may obtain to help pay the cost of education for their dependent undergraduate. The maximum that can be borrowed is equal to the cost of attendance minus any other financial aid received. Interest accrues while the student is in school. There is an origination fee of 4.272% of the loan principal that will be deducted proportionately from each loan disbursement. The interest rate is currently 6.84%. There is no grace period.
Application process: Students who wish to apply for a Direct Loan must first submit their FAFSA for the relevant year. New Direct Loan applicants must complete entrance counseling and sign a Master Promissory Note at http://www.studentloans.gov before turning in a Direct Loan application. The Federal Direct Loan application can be filed electronically through the CUNY Portal at http://www.cuny.edu. Students must login in order to submit the application.
Alternative Loans
These loans of last resort are private lender loans for students who may not be eligible for Federal Direct Student Loans or for students who are eligible and need additional funds to help meet additional educational expenses including tuition and housing. The amount that a student may borrow is limited to the “cost of attendance” as determined by federal approved standard budgets. All applicants are subject to credit review and/or may require a co-signer. Students who do not have eligible citizenship status for federal financial aid may borrow an Alternative Loan if they have a co-signer with eligible citizenship status. Interest is variable and may be as high as 18–21 percent. Students who are considering an Alternative Loan should first speak to a financial aid counselor.
Application process: Students who wish to apply for an Alternative Loan must also submit a FAFSA application prior to application for the loan.