| Sponsor: | U.S. Department of Education, 1-800-4-FED-AID. |
| Amount: | Up to the full cost of education, minus other financial aid received. |
| Interest: | 8.50%. |
| Term: | 10 years. |
| Fees: | Origination: up to 3%. Default Fee: up to 1%. |
| Deferral: | Principal only. Interest may be capitalized. |
The Federal PLUS Loan is available to parents of dependent undergraduate students and to qualifying graduate students. You must do two things to apply for the PLUS Loan:
(Note: Undergraduate students who do not submit the FAFSA should contact us if they wish to be considered for a PLUS Loan. Also, if you are an undergraduate student and are interested in the PLUS loan but it does not appear on your award letter, please contact us to determine your eligibility.)
(Note: You are not required to use HESC as the loan guarantor. If you choose to borrow through another guarantee agency, please contact us, identify the guarantor that you prefer, and we will provide you with further instructions.)
For Graduate Students: Complete the Master Promissory Note (MPN) for disbursement of the loan. If your award letter indicates a Federal Grad PLUS Loan, go to www.hesc.com to complete the MPN online at the New York State Higher Education Services Corporation (HESC), a guarantee agency for federal student loans and New York State student aid.
(Note: You are not required to use HESC as the loan guarantor. If you choose to borrow through another guarantee agency, please contact us, identify the guarantor that you prefer, and we will provide you with further instructions.)
Graduate students: Is the Grad PLUS loan right for you? See a comparison chart of an alternative offered by Citibank and Nellie Mae/Sallie Mae, and note that you are not required to select either of these particular lenders.
The total amount of the PLUS loan combined with all other forms of financial aid cannot exceed the cost of attendance at NYU. While the maximum amount is reflected on the financial aid award letter, it is important to note that there are a variety of options, and you are not required to borrow any amount of PLUS loan, or you may instead prefer to borrow a smaller amount than suggested. If a loan is necessary to help finance your NYU education, the PLUS loan is a sound loan to consider. We suggest that you take advantage of the Federal PLUS loan before considering a private educational loan, which typically offer variable interest rates with no cap. Families should research their options to determine which type of loan is best for their particular situation.
Submit the MPN promptly, allowing several weeks for your loan to be processed and approved. It is important to apply in a timely manner to avoid registration complications. Contact HESC at 1-888-697-4372 if you require assistance with the MPN.
The PLUS loan borrower may choose to begin repayment either upon final disbursement (the first payment is due within 60 days after the loan is fully disbursed) or not until six months after the student graduates or drops below half-time enrollment. (Note: The six month grace period is not available to graduate PLUS borrowers.) Interest is accrued and capitalized (added to the principal of the loan) during an authorized deferment period. Borrowers have the option of paying the interest while in school (the first interest payment being due within 60 days after the loan is fully disbursed).
AN IMPORTANT NOTE ABOUT LENDERS/GUARANTORS:
Choosing a lender from the many student loan providers available can be confusing, particularly if you have never borrowed before. You may borrow from any lender/guarantor you wish, but we encourage you to first compare information from a number of lenders. We suggest that you consider one of the lenders featured below, and visit their web sites for specific information. For additional guidance see our notice "About Lenders and Guarantors."
New York University conducts a competitive bidding process to select and present loan providers who offer flexible borrower options and excellent service to the greatest number of our students. (See the attached Request For Proposals (RFP) form used by NYU for the lender competition.) You are not required to borrow from any of our featured lenders, and there is no penalty for choosing a different lender, if you prefer.
We are very pleased to announce the placement of Chase Student Loans
among our featured lenders. Recently selected through NYU's regular
evaluation of competing lender proposals, Chase was chosen on the basis of
its many attributes, including a firm demonstration of strong performance
standards and its secure and responsible financial management in a
challenging economic environment.
| Sallie Mae Toll-free: 1-888-272-5543 | Chase Toll-free: 1-800-487-4404 | Citibank (NYS) Toll-free: 1-800-967-2400 |
Also learn more about:
| > | Lenders and Guarantors | |
| > | Myths and Facts: The Current Credit Market and Access to Student Loans | PDF | |