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.
- more about Federal Direct Loans
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:
- leave school, or
- 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.
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.
(except students whose parents are unable to obtain PLUS Loans)
(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
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.
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.
If we receive a report from the National Student Loan Data System (NSLDS) then NYU is required to check this information and verify the accuracy of the report. You may see a message on your "to-do" list that reads:
The National Student Loan Data System has reported you may have reached or exceeded your loan borrowing aggregate limits for your dependency status and degree. The Office of Financial Aid will review your loan borrowing history to determine your federal aid eligibility for the current academic year. There is nothing you the student need to do at this time.
This means we are in the process of reviewing your loan history and determining if you have any remaining eligibility. Once the review is complete, (which can take up to 3 weeks depending on the season of the academic year) you will either be entirely cleared to resume borrowing federal student loans and/or we will post subsequent messages for your information.
This means that The Office of Financial Aid has reviewed your loan borrowing history and has determined the remaining amount of federal student loans you are eligible to receive for your grade level. This is also an indication that you are close to your aggregate loan limit and have less than 3 semesters worth of full eligibility. Your loan eligibility is updated and reflected in your financial aid awards link on Albert. Please note if you do not enroll for the semesters listed, you may possibly use that eligibility when you do enroll. Contact the Office of Financial Aid for additional information.
The Office of Financial Aid has reviewed your federal loan borrowing history. Our review has determined you are at your aggregate loan limit(s). The Federal Stafford Subsidized and Unsubsidized Loan programs carry both annual and cumulative (lifetime) limits. They are commonly referred to as Loan Aggregate Limits. A borrower who has reached his or her aggregate borrowing limit may not receive any more of the Stafford Loan (Subsidized/Unsubsidized). You may have access to other types of federal financial aid. Please review your current financial aid summary regarding any adjustments to your award.
The maximum outstanding total subsidized and unsubsidized Stafford Loan debt is:
- $31,000 for a dependent undergraduate student. No more than $23,000 of this aggregate amount may be in the form of subsidized loans.
- $57,500 for an independent undergraduate student (or a dependent undergraduate student whose parents does not qualify for PLUS loans). No more than $23,000 of this aggregate amount may be in the form of subsidized loans.
- $138,500 for a graduate or professional student (including loans for undergraduate study). No more than $65,500 of this aggregate amount may be in the form of subsidized loans.
The Office of Financial Aid has reviewed your federal loan borrowing history. Our review has determined you have exceeded the aggregate loan limit(s). A student who has received more than the annual or Aggregate Stafford loan limits is ineligible to receive any Federal Student Aid funds until the over-borrowing is resolved. The student can regain eligibility for aid by repaying the amount that exceeded the Stafford annual or aggregate loan limits, or by making satisfactory arrangements with the Stafford lender to repay the excess amount, or Loan Consolidation, or signing a Reaffirmation letter.
- How do I repay my loans? Who can I make payment arrangements with? You may view some information on your Student Aid Report (SAR) from FAFSA (viewable on their site fafsa.ed.gov). You may also contact the National Student Loan Data System (NSLDS) to determine which loans are "over your limit" and how much you need to repay to become eligible for federal student loan borrowing. Please note, once you make a payment, NYU will require proof of payment made as well as an adjustment to the loan history reflected so we can continue to award federal aid.
- How do I consolidate my loans? To inquire about consolidation, borrowers should contact the servicer for each of their student loans. Borrowers may identify their servicer by telephoning the U.S. Department of Education at 1-800-433-3243, or they may research their loans at the National Student Loan Data System (NSLDS). Please note, once you make satisfactory repayment arrangements for all of your loans, you will need to provide NYU with the proper paperwork so we can continue to award federal financial aid.
- What is a Reaffirmation Letter? The borrower can sign an agreement acknowledging the debt and affirming his or her intention to repay the excess amount as part of the normal repayment process. This is called a REAFFIRMATION LETTER. A consolidation can also be considered a satisfactory repayment arrangement and acts the same as a reaffirmation letter if the loan(s) that caused the overage were included in a consolidation. The borrower can contact the federal loan servicer directly to get a letter.