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 may receive this loan. The U.S. Department of Education pays the interest on this type of loan while you are enrolled at least half-time and during grace and deferment periods. Students must begin repayment six months after graduation or if they drop below half-time enrollment. Depending on your repayment plan, there is a maximum of 10 to 25 years in which to repay the borrowed funds (except for a consolidation loan which can be up to 30 years).
For information about student loan interest rates and origination fees, see https://studentaid.ed.gov/sa/types/loans/interest-rates.
For information about repayment plans, see https://studentaid.ed.gov/sa/repay-loans.
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) |
William D. Ford Federal Direct Loan Program (Unsubsidized)
These loans are available directly from the federal government to undergraduate students who need additional funds. They are not need based and interest is charged during all periods. Two repayment options for interest are available. Students may pay the interest while attending school, with repayment of the principal deferred until six months after graduation or less than half-time enrollment. Alternatively, interest may be deferred until after graduation or less than half-time enrollment, in which case it will be added to the principal.
For information about student loan interest rates and origination fees, see https://studentaid.ed.gov/sa/types/loans/interest-rates.
For information about repayment plans, see https://studentaid.ed.gov/sa/repay-loans.
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 that will be deducted proportionately from each loan disbursement. There is no grace period.
For more information on PLUS Loans, see https://studentaid.ed.gov/sa/types/loans/plus.
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 Subsidized/Unsubsidized Loan Master Promissory Note (MPN) at http://www.studentloans.gov before completing the Direct Loan Processing Form from your Student Center on CUNYfirst. Students who have previously completed Direct Loan entrance counseling and have an active Subsidized/Unsubsidized Loan MPN need only complete the Direct Loan Processing Form on CUNYfirst. Parents of undergraduate students may complete the Parent PLUS loan application at www.studentloans.gov. New PLUS loan applicants will also need to sign a Master Promissory Note at www.studentloans.gov for each dependent for whom you are applying.
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. Applicants must be enrolled for the minimum credits required by the lender (usually 6 credits) during the semester for which the loan has been requested and meet Title IV Satisfactory Academic Progress standards for the school to certify the loan.