Loans for Undergraduate Degree Students

A "loan" is a form of financial aid. It is money that you borrow, which must be repaid often with interest. The most common kinds of loans are:

  • Federal Perkins Loans
  • Federal Direct Stafford/Ford Loan Program
  • Federal PLUS (Parent Loan for Undergraduate Students)
  • Alternative Loans

Federal Perkins Loan

This is a low-interest (presently 5 percent) federal loan made available through the College to matriculated students enrolled at least half-time (6 credits or the equivalent). Loans are awarded according to need and repayment begins nine months after graduation or termination of college attendance. The FAFSA is the application for a Federal Perkins Loan.

Federal Direct Stafford/Ford Loan Program (Subsidized and Unsubsidized)

This low-interest loan program helps students meet the cost of a college education. The Federal 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 are eligible. Students must begin repayment within 6 months after graduation or termination of college attendance and have a maximum of 10 years in which to repay the borrowed funds under the Standard Repayment Plan. There is also the Extended Repayment Plan that allows loan repayment to be extended to 25 years. Other options are the Graduated Repayment Plan in which payments are lower at first and increase every two years, and the Income Contingent Repayment Plan that bases annual payments upon the borrower's Adjusted Gross Income (AGI) and the total amount of the Direct Loans. The annual interest rate will not exceed 6.8 percent. For loans disbursed prior to July 1, 2006 maximum interest rate is 8.2%. Federal regulations require the deduction of an origination fee from the face value of each loan.

Annual Loan Limits

Dependent Students (excludingstudents whose parents cannot borrow PLUS) Base Amount Sub/Unsub (no changes) Additional Unsubsidized Loan Amount  

Loans first disbursed before July 1, 2008

Loans first disbursed on or after July 1, 2008

   
1st year undergraduate $3,500 $0 $2,000
2nd year undergraduate $4,500 $0 $2,000
3rd year & beyond undergraduate $5,500 $0 $2,000
 
Independent Students (and dependent students whose parents cannot borrow PLUS) Base Amount Sub/Unsub (no changes) Additional Unsubsidized Loan Amount  

Loans first disbursed before July 1, 2008

Loans first disbursed on or after July 1, 2008

   
1st year undergraduate $3,500 $4,000 $6,000
2nd year undergraduate $4,500 $4,000 $6,000
3rd year & beyond undergraduate $5,500 $5,000 $7,000

Aggregate Loan Limits

  Subsidized / Unsubsidized Aggregate  

Current

Effective July 1, 2008

 
Dependent Students (excluding students whose parents cannot borrow PLUS) $23,000 $31,000
(maximum 23,000 subsidized)
Independent Students (and dependent students whose parents cannot borrow PLUS) $46,000 (maximum $23,000 subsidized) $57,500
(maximum 23,000 subsidized)

Repayment Calculator: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action#sthash.MnlqqM52.dpuf

How to Apply

Please read these instructions carefully. Any failure to follow these instructions may cause delays in the processing of your loan request. You must be enrolled at least half-time within your grade level in order to be eligible for a Direct Loan.

In order to secure a direct loan, there are three steps. You must complete or have completed all of these steps in order for a loan to be processed successfully.

The first is only necessary for a first time borrower of a Direct Loan. The student should complete an electronic master promissory note (eMPN). This can be done by going online to www.studentloans.gov. The student, when asked, should use Brooklyn or Baruch College as the home school and not the Graduate Center as their procedure is slightly different from ours.

Next, you need to complete Stafford Loan Entrance Counseling which demonstrates in a tutorial the rights and responsibilities of a student loan borrower. This can be done online by going to www.studentloans.gov. The tutorial is followed by a short quiz. Please note that for the entrance counseling you should use the Graduate Center as your school. You should save the results of the quiz since it will need to be forwarded to the school.

You must submit the results of the entrance counseling along with the William D. Ford Federal Direct Loan Application.

Federal PLUS (Parent Loan for Undergraduate Students)

This educational loan enables parents of dependent undergraduate matriculated students to borrow money in order to pay for their child's education. Parents are limited in the amount that they can borrow by the cost of their child's education minus any other financial aid that the student is receiving. The cost of education includes school related expenses as determined by The City University of New York (CUNY). A credit check is performed. If the parent loan is denied, it is possible for a dependent student to borrow additional unsubsidized loans in their own name. There is an origination fee of 4 percent of the loan principal that will be deducted proportionately from each loan disbursement. The interest rate is variable and is adjusted each year but will never be higher than 9 percent.

Alternative Loans

If your student status is:

  • Non-matriculated
  • International Student
  • Have reached the federal student aggregated limits

You may be eligible for alternative loans.

Once you select a lender, you must complete a Master Promissory Note then contact the Financial Aid Office at 646.664.8720 for further instructions.

The choice of a lender is ultimately your decision. Here are some things to consider as you seek possible lenders for alternative loans:

  • Interest rate of the loan
  • Repayment schedule and monthly amounts
  • Length of repayment period
  • Total amount you will repay over the life of the loan
  • Penalties for missing monthly payments
  • Options for loan consolidation

Organizations that provide alternative educational loans can be reached by visiting their websites. The following is a list of lenders to get you started:

Additional information about loans is available from the College Board: https://bigfuture.collegeboard.org/pay-for-college/loans.

Please know that the CUNY School of Professional Studies neither endorses nor recommends any lender.