Federal Education Loans
(Loans carry some form of interest payment and must be paid back)
New York State HESC offers several Loan Forgiveness programs

Perkins Loan
This is a 5.00% interest rate loan available to students who demonstrate exceptional financial need (priority is given to undergraduates). Repayment begins nine (9) months after graduation or ceasing to be at least a half-time student (less than six (6) credits per semester). If you accept your Federal Perkins Loan, and do not already have a valid Perkins Loan Master Promissory Note (MPN) on file with Stony Brook, you will be notified with instructions on signing the MPN. The maximum Stony Brook award is $1,500. For further information regarding repayment: SUNY Federal Perkins Loan Program Borrower's Guide.

Federal Direct Loans

There are two types of Federal Direct Loans: subsidized and unsubsidized. A subsidized loan is awarded on the basis of financial need. For the Subsidized Federal Direct Loan, the federal government pays the interest on the loan while the student is enrolled, during grace and authorized periods of deferment. An unsubsidized loan is not need-based and is, therefore, available to students who do not qualify for a Subsidized Federal Direct Loan or who may qualify for only a partial subsidized loan. For the Unsubsidized Federal Direct Loan, the student borrower is responsible for paying the interest. The interest can be paid while the student is in school or capitalized (added to the principal).

Repayment of the loan begins six months after the student graduates or ceases to be enrolled half-time. Information about repayment options is available from your lender for your FFELP loans. For Federal Direct loans, you can contact Federal Student Loan Servicing.

The interest rate is fixed at 6.8%.

Annual Loan Limits:*

Junior/senior dependent $7,500 (At least $2,000 must be an Unsubsidized loan)
Junior/senior independent $12,500 (At least $7,000 must be an Unsubsidized loan)
Graduate $20,500 (Beginning 2012-13, ALL Graduate Stafford loans will be unsubsidized )

*Students may not be eligible for the maximum loan amounts. The amount of the loan is determined by the cost of attendance as determined by the institution minus other financial aid. Cost of attendance includes tuition and fees, room and board, books, travel and an allowance for personal expenses.

Loans taken for summer study are included in the annual loan limits and therefore reduce the eligibility for the academic year.

Federal Direct PLUS Loan - Federal Direct Parent PLUS or Federal Direct Graduate PLUS

PLUS Loans are available to parents of dependent undergraduate students and to graduate students. The annual loan limit is the student's cost of attendance minus any estimated financial aid. The interest rate is fixed at 7.9% in the Direct Lending Program. Repayment of the Federal Direct PLUS loan offers the option to defer payments while the student is in school.

Credit checks are done for Federal Direct PLUS Loans. If a Federal Direct Parent PLUS Loan is denied, the dependent student may be eligible for additional Federal Direct Unsubsidized Loan funds. Graduate students have an option for an endorser if their credit is denied. To apply, parents will need to complete a Request for a Federal Direct Parent PLUS loan form. Graduate students will be offered the Grad PLUS in their financial aid package before the credit check is done.

Other Federal Loan Information