| Sponsor: | U.S. Department of Education, 1-800-4-FED-AID. |
| Amount: | Up to $3,500 Freshman, $4,500 Sophomore, $5,500 Junior and Senior, $8,500 Graduate. |
| Interest: | Undergraduate Students: 5.60% for 2009-10, 4.50% for 2010-11, 3.40%
for 2011-12, 6.80% for 2012-13. Graduate Students: 6.80% |
| Term: | 10 years. |
| Fees: | Origination: up to 3.0%. Default Fee: up to 1.0%. |
| Deferral: | Principal and interest. Payment is deferred until six months after graduation or before if the student falls below half-time status. |
A Federal Subsidized Stafford Loan is a low interest loan made to a student enrolled at least half-time. The loan is obtained from a bank or other lender and is generally insured by both the state and federal governments. The total amount borrowed in any year may not exceed the cost of education minus the total family contribution and all other financial aid received that year. Stafford loan payments are copayable to NYU and the student, and funds are applied first to any outstanding balance on the student's account. An origination fee of up to 3 percent may be deducted from the loan funds. Loan interest is paid by the federal government while the student is in school, and loan repayment begins six months after the student graduates or drops below half-time enrollment.
You must do two things to apply for the Stafford Loan:
Please 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.
A signed MPN is required only once and remains valid for up to 10 years. The Stafford Loan is therefore renewed automatically for eligible returning students, and is verified each year by a "Notice of Loan Guarantee and Disclosure Statement" sent to you from HESC. (You must, however, first submit a FAFSA each year before your eligibility can be determined and renewed.)
Submit the MPN promptly after you receive the instructions from HESC. Allow several weeks for your loan to be processed and approved. It is in your best interest to apply in a timely manner to avoid registration complications. If you do not receive instructions within three weeks following the receipt of your award letter, contact HESC at 1-888-697-4372.
AN IMPORTANT NOTE ABOUT LENDERS/GUARANTORS:
During the Stafford 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.
Also learn more about:
| > | Federal Unsubsidized Stafford Loan | |
| > | Lenders and Guarantors |