Federal Loans

Federal loans are secured and disbursed to the student in cooperation with the U.S. Department of Education.  Your award package may include information about a "suggested loan." This means that you are eligible for the type and amount of loan specified, based upon the information we have about you at the time the award is offered. It does not mean you will automatically receive the loan, but rather informs you of your current eligibility and how to apply. The suggested loan amount in your award package is the maximum you are eligible for and is the amount that NYU has certified for you. If you wish to borrow an amount lower than suggested, please contact the Office of Financial Aid for instructions.

Information provided by borrowers (student or parent) when securing federal student loans will be sent to the National Student Loan Data System (NSLDS), which is maintained by the U.S. Department of Education. NSLDS tracks this information from the financial aid approval stage onward to maintain the integrity of the federal Title IV programs and to provide information to individual students and parent borrowers about the aid they've secured.

Federal Direct Loans

Federal Direct Loans are offered to students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education. Direct Loans include the Subsidized, Unsubsidized, Parent PLUS, and Graduate PLUS Loans. To be eligible, the student must file the Free Application for Federal Student Aid (FAFSA) and meet other eligibility criteria.

Federal Perkins Loan

The Federal Perkins Loan is a low interest rate loan made to qualifying NYU students who demonstrate financial need. New York University is the lender for a Perkins Loan. The Federal Perkins Loan Program is ending September 30, 2017. At this point, there will be no further Perkins Loans offered, though anyone who has already accepted the loan and has completed the required paperwork by September 15, 2017 will receive their Perkins Loan for the 2017-2018 academic year. If a student is eligible for a Perkins Loan, their award package will indicate the amount.

Students are considered for a Federal Perkins Loan automatically; however, once a student has been offered the loan, they must sign and return a promissory note to receive it. A signed Master Promissory Note (MPN) is required only once and remains valid for up to 10 years. Students are required to complete a Truth in Lending Statement and a Statement of Rights and Responsibilities each year as their eligibility is renewed. After the required paperwork is complete, the appropriate credit will be applied to the student’s account at the Office of the Bursar.

The annual interest rate is 5 percent, and interest does not accrue while the student remains enrolled at least half-time in a degree program. Students must begin to repay the loan once they:

  1. graduate
  2. leave school, or
  3. drop below half-time enrollment status (usually 6 credit hours)

There is an interest free (grace) period before beginning repayment of 9 months and the first payment is due 12 months after the date of separation.

Federal Nursing Student Loan

The federally funded Nursing Student Loan may be offered to students who demonstrate financial need and enroll at least half-time in the College of Nursing.  The annual interest rate is 5 percent, and interest does not accrue while the student remains enrolled at least half-time in a nursing program.

Health Professions Student Loan Program

The Health Professions Student Loan Program provides long-term, low-interest loans to students at the College of Dentistry who demonstrate financial need.  The annual interest rate is currently 5 percent, and interest does not accrue while the student remains enrolled as a full-time student at a school eligible to participate in the health professions program.

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 effective 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 Pro-
fessional 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: 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.