Federal Loans | Financial Aid

Types of Loans for Undergraduate Students

Be sure to review NSLDS Consumer Loan Disclosure Information

Important note: All loans must be originated prior to the end of the semester for which you would like to receive the loan. Refer to the academic calendar for the official end of semester dates.

Federal Direct Loans

Federal Direct Subsidized Loans

Subsidized 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 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.

Undergraduate subsidized loans with a disbursement date on or after July 1, 2022 have an effective interest rate of 4.99%

Undergraduate subsidized loans with a disbursement date on or after July 1, 2023 have an effective interest rate of 5.50%

The loan origination fee for a subsidized loan that has fully or partially disbursed on or after October 1, 2020 and prior to October 1, 2023 is 1.057%. This fee will be reduced from the loan funds sent to the school.

*Please note that for subsidized 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.

Federal Direct Unsubsidized Loans

Unsubsidized loans are non-need based loans and are available regardless of financial need. Students 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.

Undergraduate unsubsidized loans with a disbursement date on or after July 1, 2022 have an effective interest rate of 4.99%

Undergraduate unsubsidized loans with a disbursement date on or after July 1, 2023 have an effective interest rate of 5.50%
The loan origination fee for an unsubsidized loan that has fully or partially disbursed on or after October 1, 2020 and prior to October 1, 2023 is 1.057%. 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 into The National Student Loan Data System.

How Is The Interest Rate Determined

Interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type.

Loans for Non-Matriculated/Non-degree students:

Undergraduate and Graduate Students - Generally as a non-degree student you are not eligible for federal assistance.However, if you are taking prerequisites leading to admission into a degree granting program you may be eligible. You will need to submit a Preparatory Coursework Agreement. If your request is approved, you may be eligible for a federal loan.

You will need to file a FAFSA application.

Eligible non-matriculated students may receive loans for one consecutive, twelve-month period. If the student is unable to matriculate into a degree-earning program at the end of the twelve-month term of eligibility, he/she will no longer be able to receive additional federal loans. Once the student becomes matriculated, he/she may continue to receive federal loans and may also be eligible for other types of aid.

If you are not eligible for a Preparatory Coursework Agreement you may apply for a private/alternative loan to cover your education expenses.
Federal Direct Parent Plus

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, 2022 have an effective interest rate of 7.54%

Federal Parent PLUS loans with a disbursement date on or after July 1, 2023 have an effective interest rate of 8.05%

The loan origination fee for a Federal Parent PLUS loan that has fully or partially disbursed on or after October 1, 2020 and prior to October 1, 2023 is 4.228%. This fee will be reduced from loan funds sent to the school.

Repayment 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 the 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 https://studentaid.gov/understand-aid/types/loans/plus/parent

Direct Loan Limits

Undergraduate Student Annual Loan Limit

Undergraduate student loan limits range from $5,500 to $12,500 per year depending on certain factors, including the student's year in college and other aid received.

Dependent Students	Maximum Eligibility
Freshman	$5,500	If eligible, up to $3,500 may be subsidized.
Sophomore	$6,500	If eligible, up to $4,500 may be subsidized.
Junior or Senior	$7,500	If eligible, up to $5,500 may be subsidized.

Independent Students	Maximum Eligibility
Freshman	$9,500	If eligible, up to $3,500 may be subsidized.
Sophomore	$10,500	If eligible, up to $4,500 may be subsidized.
Junior or Senior	$12,500	If eligible, up to $5,500 may be subsidized.

Undergraduate Student Combined Total (Aggregate) Limit

An aggregate loan limit is the total amount of money a student is allowed to borrow during his/her undergraduate education.

Dependent Undergraduate Student: $31,000 (no more than $23,000 can be subsidized)

Independent Undergraduate Student: $57,500 (no more than $23,000 can be subsidized)

Federal Perkins Loan

The federal Perkins loan, which provided low-interest loans to students with exceptional financial need, expired in 2017. As a result, this loan program is no longer available.

Repayment information for borrowers who have previously received a Federal Perkins Loan from Stony Brook University should contact the Student Loan Service Center (SLSC) by telephone at 1-518-525-2626 or by e-mail at slsc@albany.edu. Borrowers may also access the SUNY SLSC's website at https://slsc.albany.edu.
NSLDS Consumer Loan Disclosure Information

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)]

Types of Financial Aid