IMPORTANT NOTICE: New York University currently participates in the Federal Direct Lending Program and no longer awards Stafford and PLUS loans in cooperation with private lenders. This policy record is provided for general archival reference only.
Once New York University has received your FAFSA information from the federal processor, you will be reviewed for financial aid. If you are deemed eligible for federal loans, it will be indicated on your financial aid award letter, and you will automatically receive instructions from the New York State Higher Education Services Corporation (HESC) about how to complete the online application for a Federal Subsidized Stafford Loan, Federal Unsubsidized Stafford Loan, or Federal PLUS Loan.
You have the right to borrow from any lender you choose.
The Office of Financial Aid is available to help you with the loan application process. However, the choice of a lender is ultimately your decision.
If you choose to borrow a federal loan from a HESC-registered lender (see information about guarantee agencies at Loan Guarantors: Frequently Asked Questions), you must complete an electronic Master Promissory Note (e-MPN) online on the HESC web site. You will need your FAFSA PIN to complete the e-MPN.
If you choose to borrow a federal loan from a non-HESC lender, please contact the Office of Financial Aid, identify the lender that you prefer, and we will provide you with further instructions.
Here are some things to consider as you review possible lenders for either a federal loan (i.e. Stafford or PLUS) or a non-federal alternative (private) loan:
Many incentives require the borrower to make a set number of consecutive on-time payments in order to qualify, beginning with the first payment due. In many cases, missing or being late on one payment may forfeit your ability to qualify for the incentive. Some lenders offer incentives that allow you to rehabilitate a delinquency and restore the incentive at a later date. In our experience, the most common reason a student loses their ability to qualify for a borrower incentive is because he or she misses or is late on the first payment due.
Students who enroll in an auto-debit program with their lender prior to the first payment due tend to have a higher rate of qualification for on-time payment incentives. However, the largest number of students qualify for incentives which offer the opportunity for rehabilitation from a delinquency status.
Effective Date Supersedes N/A Issuing Authority Senior Vice Provost for Undergraduate Education & University Life Responsible Officer Director of Financial Aid