| 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: | 6.0% for 2008-09. (Phased-in cuts in interest rates on Subsidized Stafford Loans for Undergraduate Students: 5.60% for 2009-10, 4.50% for 2010-11, 3.40% for 2011-12, 6.80% for 2012-13.) |
| Term: | 10 years. |
| Fees: | Origination: up to 3%. Default Fee: up to 1%. |
| Deferral: | Principal and interest. |
A Federal Subsidized Stafford Loan is a low interest loan made to a student enrolled at least half-time. The loan is borrowed from a bank, and is insured by the lender's guarantee agency. 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:
(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 thus 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:
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.
| Chase Toll-free: 1-800-487-4404 | Citibank (NYS) Toll-free: 1-800-967-2400 | Sallie Mae Toll-free: 1-888-272-5543 |
Also learn more about:
| > | Federal Unsubsidized Stafford Loan | |
| > | Lenders and Guarantors | |
| > | Myths and Facts: The Current Credit Market and Access to Student Loans | PDF | |