Federal Direct Loans

Federal Direct Subsidized Loan

Sponsor: U.S. Department of Education, 1-800-557-7394.
Amount: Up to $3,500 Freshman, $4,500 Sophomore, $5,500 Junior and Senior.  (NOTE : Effective July 1, 2012 the Subsidized Loan is no longer available to graduate students.)
Interest: 3.76%.  Based on 10-year Treasury bond yield plus 2.05 percent. Interest rate not to exceed 8.25%.
Repayment
Term:
Standard: 10 years. Many other options are available: see Federal Student Aid .
Fees: An origination fee of 1.073% will be deducted from each disbursement for loans first disbursed on or after October 1, 2014 and before October 1, 2015. Loans with a first disbursement date on or after October 1, 2015 and before October 1, 2016 will have an origination fee of 1.068%.
Eligibility: Student must maintain at least half-time enrollment status (i.e. at least 6 credits/points or, for graduate students, half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.
Deferral:

Principal and interest*.  Repayment begins six months after graduation or when the student falls below half-time status.

* For new Subsidized Loans, the interest subsidy during the six-month grace period is eliminated for students who fall below half-time status.

Federal Direct Unsubsidized Loan

Sponsor: U.S. Department of Education, 1-800-557-7394.
Amount: DEPENDENT STUDENTS: Up to $5,500 Freshman, $6,500 Sophomore, $7,500 Junior/Senior. (All amounts minus any subsidized loan.) Additional unsubsidized amounts may be available if your parent is credit denied for a Plus Loan. INDEPENDENT STUDENTS: Up to $9,500 Freshman, $10,500 Sophomore, $12,500 Junior/Senior, $20,500 Graduates, $40,500 Graduates in health professions. (All amounts minus any subsidized loan.)
Interest: 3.76% for undergraduate students, 5.31% for graduate students. Based on 10-year Treasury bond yield plus 2.05 percent (for undergraduate students) and 10-year Treasury bond yield plus 3.60 percent (for graduate students). Interest rate not to exceed 8.25% (for undergraduate students) and 9.50% (for graduate students).
Repayment
Term:
Standard: 10 years. Many other options are available: see Federal Student Aid .
Fees: An origination fee of 1.073% will be deducted from each disbursement for loans first disbursed on or after October 1, 2014 and before October 1, 2015. Loans with a first disbursement date on or after October 1, 2015 and before October 1, 2016 will have an origination fee of 1.068%.
Eligibility: Student must maintain at least half-time enrollment status (i.e. at least 6 credits/points or, for graduate students, half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.
Deferral: Principal only. Interest may be capitalized. Repayment begins six months after graduation or when the student falls below half-time status.

Federal Direct PLUS Loan

Sponsor: U.S. Department of Education, 1-800-557-7394.
Amount: Up to the full cost of education, minus other financial aid received.
Interest: 6.31%. Based on 10-year Treasury bond yield plus 4.60 percent. Interest rate not to exceed 10.50%.
Repayment
Term:
Standard: 10 years. Many other options are available: see Federal Student Aid .
Fees: An origination fee of 4.292% will be deducted from each disbursement for loans first disbursed on or after October 1, 2014 and before October 1, 2015. Loans with a first disbursement date on or after October 1, 2015 and before October 1, 2016 will have an origination fee of 4.272%.
Eligibility: Student must maintain at least half-time enrollment status (i.e. at least 6 credits/points or, for graduate students, half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.
Deferral: Principal only. Interest may be capitalized.  To apply for an in-school deferment, Direct Parent PLUS borrowers should call the Direct Loan Student Loan Support Center at 1-800-557-7394.

Federal Student Loan Aggregate Limit

There are maximum limits on the subsidized and unsubsidized loans you are eligible to receive. The aggregate limit is the lifetime amount you may borrow from the federal student loan program.

How much can I borrow?

NYU will suggest the actual loan amount you are eligible to receive each academic year.  However, there are limits on the maximum amount in subsidized and unsubsidized loans that you are eligible to receive each academic year (annual loan limit) and over your academic career (total loan limits). These limits depend on:

  • What year you are in school and;
  • Whether you are a dependent or independent student.

If you are a dependent student whose parents are ineligible for a Direct PLUS Loan, you may be able to receive additional loan funds.

The following chart provides maximum annual and total loan limits for subsidized and unsubsidized loans as of July 1, 2012.

Year Dependent Students
(except students whose parents are unable to obtain PLUS Loans)
Independent Students
(and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
1st year undergrad. $5,500—No more than $3,500 of this amount may be in subsidized loans. $9,500—No more than $3,500 of this amount may be in subsidized loans.
2nd year undergrad. $6,500—No more than $4,500 of this amount may be in subsidized loans. $10,500—No more than $4,500 of this amount may be in subsidized loans.
3rd year and beyond undergrad. $7,500 per year—No more than $5,500 of this amount may be in subsidized loans. $12,500 per year—No more than $5,500 of this amount may be in subsidized loans.
Graduate and Prof-
essional Degree Student
Not Applicable $20,500
Maximum Total Debt from Sub-
sidized and Unsub-sidized Loans
$31,000—No more than $23,000 of this amount may be in subsidized loans.

$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.

$138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes all federal loans received for undergraduate study.

Note: The maximum total loan limits include any Subsidized Federal Loans or Unsubsidized Federal Loans you may have received under the Federal Family Education Loan (FFEL) Program.

Graduate and professional students enrolled in certain health profession programs may receive additional unsubsidized Direct Loan amounts each academic year beyond those shown above. For these students, there is also an increased aggregate loan limit of $224,000 (no more than $65,500 of which can be subsidized).  The debt limit for Graduate and professional students includes any Direct Loans received for undergraduate study.

Source: www.studentaid.ed.gov/types/loans/subsidized-unsubsidized

A detailed outline of your federal loans are available on the National Student Loan Data System at www.nslds.ed.gov, where you can create an account to view your loan history.

Aggregate Limit FAQ