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Types of Loans for Undergraduates and Graduate Students

Be sure to review important disclosure information at the bottom of this page

Direct Federal Loans:

Subsidized - Undergraduates only

Subsidized Stafford Loans are need-based loans. Student must be enrolled in a degree program with six or more credits each semester to be eligible.

First time borrowers will be required to complete a Master Promissory Note and Entrance Counseling before loan funds can be disbursed.

While you are enrolled in at least 6 credits and during your 6 month grace period, the federal government pays the interest on Subsidized Stafford Loans.* Your loan grace period is defined as the 6 months immediately following your graduation or the date at which your enrollment dropped below 6 credits.

Repayment begins 6 months after you graduate or are no longer enrolled for 6 or more credits. Payments are made directly to your loan servicer. To locate your servicer log onto The National Student Loan Data System.

Beginning July 1, 2016, the interest rate is 3.76% for subsidized loans. Beginning July 1, 2017, the interest rate is 4.45% for subsidized loans. The loan origination fee for a subsidized loan that has fully or partially disbursed prior to October 1, 2017 is 1.069%. Any loan that has not fully or partially disbursed prior to October 1, 2017 will have a loan origination fee of 1.066%. This fee will be reduced from loan funds sent to the school.

*Please note that for Subsidized Stafford Loans disbursed between July 1, 2012 and July 1, 2014, interest that accrues during the 6-month grace period will be payable by you  (the student) instead of by the federal government.

Unsubsidized- Undergraduates and Graduates

Unsubsidized loans are non-need based loans, and are available regardless of financial need. Student must be enrolled in a degree program with six or more credits to be eligible.

First time borrowers will be required to complete a Master Promissory Note and Entrance Counseling, before loan funds can be disbursed.

The federal government does NOT pay the interest. Interest begins to accrue as soon as the loan funds are disbursed. Students may choose to pay the interest that accumulates or have it capitalized – meaning, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount. Paying the interest as it accumulates will reduce the amount of interest that must be repaid. 

Beginning July 1, 2016, the interest rate is 3.76% for undergraduate students and interest rate is 5.31% for graduate/professional students. Beginning July 1, 2017, the interest rate is 4.45% for undergraduate students and the interest rate is 6.00% for graduate/professional students. The loan origination fee for an unsubsidized loan that has fully or partially disbursed prior to October 1, 2017 is 1.069%. Any loan that has not fully or partially disbursed prior to October 1, 2017 will have a loan origination fee of 1.066%. This fee will be reduced from the loan funds sent to the school.

Repayment begins 6 months after you graduate or are no longer enrolled for 6 or more credits. Payments are made directly to your loan servicer. To locate your servicer log onto The National Student Loan Data System.

Perkins:  

The Department of Education is no longer funding the Perkins loan program. Therefore, no new Perkins loans will be issued as of 10/01/2017. 

Students with repayment questions on previous Perkins loans may contact the Student Loan Service Center at 1-518-525-2626.                   

Direct Parent Plus:

Loan funds are available to parents for their dependent, undergraduate students who are matriculated in a degree program and enrolled in at least six (6) credits. Parents of dependent students may borrow up to the cost of attendance minus any other aid. Borrowers must have an acceptable credit history, or may reapply with an endorser (someone who agrees to repay the loan if you do not pay it) with an acceptable credit history.

First time parent borrowers will be required to complete a Master Promissory Note before loan funds can be disbursed.

Federal Parent PLUS loans with a disbursement date on or after July 1, 2016 have an effective interest of 6.31%. Federal Parent PLUS loans with a disbursement date on or after July 1, 2017 have an effective interest of 7.00%. Interest begins to accrue upon disbursement. A Parent PLUS Loan that has fully or partially disbursed prior to October 1, 2017 has a loan origination fee of 4.276%.  Any Loan that has not fully or partially disbursed prior to October 1, 2017 has a loan origination fee of 4.264%. This fee will be reduced from loan funds sent to the school.

Repayments starts within 60 days after the last disbursement of the loan for the academic year; OR the parents may choose to defer payments until 6 months after student graduates or falls below 6 credits. Parent borrowers may choose to pay interest monthly, quarterly or choose to have interest capitalized. Payments are made directly to your loan servicer. To locate your servicer log onto studentaid.gov on the top right corner of the page.

If a Parent is denied:

The parent will receive notification from the federal government as to the credit decision.

If denied, the parent can provide an endorser. If the parent does not want to provide an endorser the student will be offered and additional unsubsidized loan in the amount of $4,000 or $5,000 based on their grade level.

Visit following link for more information http://studentaid.ed.gov/types/loans/plus.

Direct Graduate Plus:

Graduate PLUS loans are available to eligible graduate and professional students up to the cost of attendance minus other financial assistance offered each academic year. To be eligible, you must be enrolled in 6 or more matriculated credits and not have an adverse credit history.

First time borrowers will be required to complete a Master Promissory Note before loan funds can be disbursed.

Federal Graduate PLUS loans with a disbursement date on or after July 1, 2016 have an effective interest of 6.31%. Federal Graduate PLUS loans with a disbursement date on or after July 1, 2017 have an effective interest of 7.00%. Interest begins to accrue upon disbursement. A Graduate PLUS Loan that has fully or partially disbursed prior to October 1, 2017 has a loan origination fee of 4.276%.  Any Loan that has not fully or partially disbursed prior to October 1, 2017 has a loan origination fee of 4.264%. This fee will be reduced from loan funds sent to the school.

Interest begins accruing as the loan is disbursed. Borrowers may choose to repay the interest monthly, quarterly, or have the interest capitalized. Repayment of the principal balance plus interest begins 60 days after the loan has disbursed. However, the borrower can defer payments while that are enrolled at least half time (six credits) by contacting the loan servicer. To locate your servicer log onto The National Student Loan Data System.

If a Grad PLUS is denied:

The borrower will receive notification from the federal government as to the credit decision. The borrower has an option to re-apply with a credit-worthy endorser.

 

NSLDS Consumer Loan Disclosure Information

Institutions that enter into an agreement with a potential student or parent of a student regarding a Title IV loan are required to inform the student or parent that the loan will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.   [HEOA Sec. 489 amended Sec. 485B (d) (4) (20 U.S.C. 1092b)] 

 

For more information on federal loans please visit the following website https://studentaid.ed.gov/types/loans.

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