| 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 3.0%. Default Fee: up to 1.0%. |
| Deferral: | Principal only. Interest may be capitalized. |
The Federal PLUS Loan is available to parents of dependent undergraduate students and to qualifying graduate and professional 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.)
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:
During the PLUS Loan application process you will be required to select a lender. It is important for you to know that you may borrow from any lender/guarantor who participates in the Federal Family Education Loan Program (i.e. Stafford, Unsubsidized Stafford, and PLUS loans). Borrowers are encouraged to review and compare the choices available; consult online resources such as www.HESC.com or www.FinAid.org for a directory of lenders, or search online for "FFELP lenders." Regardless of your lender selection, the terms of these loans are basically the same since they are all federally mandated loan programs, but there may be slight differences in origination and default fees, as well as additional borrower benefits that may be important to you as you make your decision (for example, interest rates can be reduced for auto-debit loan repayments, and further reductions are available for consistent and consecutive on-time payments). NYU suggests that you consider the details of the loans carefully. Information can typically be found on the lender's web site.
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