Federal Stafford Loans are available from most New York banks and other lending institutions under the Federal Family Education Loan Program or directly from the school if the school participates in the Federal Direct Student Loan Program.
- Use the FAFSA to apply.
- Interest rates are favorable, no collateral is required.
- All loans must be repaid with interest.
- Learn your borrower rights and responsibilities.
- Attend a loan entrance interview.
Federal Stafford Loan (Subsidized)
To be eligible for a subsidized loan, your family must show financial need using the FAFSA. The loan limit for a freshman is $3,500. Loans are subject to an origination fee (maximum origination fee of 3% of the amount borrowed). For 2008-09 the interest rate is 6.00%. No repayment of principal or interest is due until six months after leaving school or falling below half-time status. (Additional funds may be available on an unsubsidized basis.)
Federal Stafford Loan (Unsubsidized)
The terms and conditions for the unsubsidized loan are the same as for the subsidized loan, except that interest (6.80%) on the loan is due while the student is in school. Interest may be paid during school or added to the loan as agreed by the borrower and the lender. This option increases the total cost of borrowing.
Federal Parent Loans For Undergraduate Students (PLUS)
Your parents may borrow up to the cost of education, minus any other aid received, for each academic year for each dependent undergraduate. PLUS loans require an insurance fee of 1% on the amount borrowed and a 3% origination fee. Interest is variable and will change each year on July 1, but is capped at 9%. The interest rate for PLUS Loans disbursed on or after July 1, 2006 is fixed at 7.9% for Direct PLUS Loans and 8.5% for FFELP PLUS Loans. Repayment begins within 60 days of receipt of the loan. A credit check is required.
Federal Perkins Loan Program
Freshmen may be offered up to $4,000 per year. While you attend school at least half time, no interest is charged and repayment is deferred. Repayment with interest begins nine months after leaving school. The interest rate is 5%.
Alternative Loans
Non-goverment, private market loans are also available. Contact campus financial aid offices and lenders for information.
