Federal Loans

Learn what federal loans are, how they work, and how New York and out-of-state students can access aid. Explore options for financing your education.

New York University works with the U.S. Department of Education to provide federal loans to assist with the student/family contribution portion of the cost of attendance. Federal loans, unlike scholarships and grants, require that you pay back the amount you receive, along with interest. The interest rates are generally lower than what private loan providers offer.

Please note: The information on this page is relevant for U.S. citizens, permanent residents, and eligible non-citizens applying to the New York and Shanghai campuses only. U.S. federal loans are not available to applicants to the Abu Dhabi campus.

Please select your level of study below.

Undergraduate Federal Loan Options

The U.S. Department of Education offers direct loans, including Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans for undergraduate students. 

All students who meet eligibility criteria will be automatically considered for federal student loans upon completing the Free Application for Federal Student Aid (FAFSA).

How much you can borrow will depend on your academic level and your aggregate borrowing history. Learn more about aggregate loan limits. 

The Federal Direct Subsidized Loan is available to eligible undergraduate students who have completed the FAFSA for the appropriate academic year and demonstrate financial need. The U.S. Department of Education pays the interest on a Direct Subsidized Loan while you are in school at least half-time, for the first six months after leaving school (referred to as a grace period), and during a period of deferment (a postponement of loan payments). Learn more through the federal student aid website.

Sponsor: U.S. Department of Education, 1-800-557-7394

Amount: Up to $3,500 Freshman, $4,500 Sophomore, $5,500 Junior and Senior. 

Interest: Current interest rate 6.39%, based on 10-year Treasury bond yield plus 2.05%.

Repayment Term: Standard: 10 years. Many other options are available. Visit Federal Student Aid for details.

Fees: An origination fee of 1.057% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate federal student loan amount.

Eligibility: Student must maintain at least half-time enrollment status (i.e., at least 6 credits) in each enrolled semester and meet basic eligibility requirements.

**NEW** Effective July 1, 2026, students enrolled less than full-time will have their loans prorated in direct proportion to the percent of full-time status the student is enrolled.

Deferral: Principal and interest can be deferred. If not deferred, repayment begins six months after graduation or when the student falls below half-time status.

The Federal Direct Unsubsidized Loan is a type of federal loan available to eligible undergraduate and graduate students who have completed the FAFSA for the appropriate academic year, regardless of financial need. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. During periods of time when you are not required to make payments (such as while you are in school, in a deferment, or in a forbearance), interest on unsubsidized loans continues to accrue. Learn more through the federal student aid website.

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 ($4,000 for Freshman and Sophomores, $5,000 for Juniors & Seniors). Please reach out to the Office of Financial Aid if your parent is denied a PLUS Loan and you would like to be offered additional Unsubsidized Loan.

Amount, Independent Students: Up to $9,500 Freshman, $10,500 Sophomore, $12,500 Junior/Senior (All amounts minus any subsidized loan.)

Interest: Current interest rate 6.39%. Based on 10-year Treasury bond yield plus 2.05 percent.

Repayment Amount: Standard: 10 years. Many other options are available. Visit Federal Student Aid for details.

Fees: An origination fee of 1.057% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate federal student loan amount.

Eligibility: Student must maintain at least half-time enrollment status (i.e., at least 6 credits) in each enrolled semester and meet basic eligibility requirements.

**NEW** Effective July 1, 2026, students enrolled less than full-time will have their loans prorated in direct proportion to the percent of full-time status the student is enrolled.

Deferral: Only the principal can be deferred. Interest may be capitalized. If not deferred, repayment begins six months after graduation or when the student falls below half-time status

The Federal Direct PLUS Loan is a type of loan available to eligible parents of dependent undergraduate students who have completed the FAFSA for the appropriate academic year. PLUS Loans help pay for education expenses up to the cost of attendance, minus all other financial aid received. Interest is charged during all periods. The U.S. Department of Education will evaluate the borrower's credit history to determine eligibility.

Sponsor: U.S. Department of Education, 1-800-557-7394

Amount: Effective July 1, 2026, all parents (combined) may borrow up to $20,000 per year, per dependent student and the aggregate limit will be capped at $65,000 per dependent student (without regard to amounts forgiven, repaid, canceled, or discharged).

  • Legacy Provision: Parents of returning NYU students with a loan disbursed before July 1, 2026 for the student’s current degree program (either a student loan or a parent loan) may borrow up to the full cost of education, minus other financial aid received for 3 academic years beyond July 1, 2026 or the remainder of their program, whichever is less.

Interest: Current interest rate 8.94%, based on 10-year Treasury bond yield, plus 2.05 percent.

Repayment Term: Standard: 10 years. Many other options are available. See Federal Student Aid

Fees: An origination fee of 4.228% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate federal student loan amount.

Eligibility: Student must maintain at least half-time enrollment status (i.e., at least 6 credits) in each enrolled semester and meet basic eligibility requirements.

Deferral: Only the principal can be deferred. 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.

The Federal Nursing Student Loan is available to students enrolled in the College of Nursing. The annual interest rate is 5%, and interest does not accrue while you remain enrolled at least half-time in a nursing program.

NYU will require you to complete a promissory note to ensure appropriate loan disbursement and corresponding credit on your bursar bill. You can read the instructions and complete the signing process on NYU Albert. You will not receive credit on your bursar bill if you do not sign your promissory note.

Students who demonstrate a financial need on the FAFSA and are enrolled at least half-time in the College of Nursing are eligible.

Graduate Federal Loan Options

The U.S. Department of Education offers federal direct loans for graduate students.

All students who meet eligibility criteria will be automatically considered for federal student loans upon completing the Free Application for Federal Student Aid (FAFSA). For the Direct PLUS Loan, the U.S. Department of Education will evaluate the borrower's credit history to determine eligibility.

How much you can borrow will depend on your academic level and your aggregate borrowing history. Learn more about aggregate loan limits. 

The Federal Direct Unsubsidized Loan is available to eligible graduate students who have completed the FAFSA for the appropriate academic year, regardless of financial need. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods. During periods when you are not required to make payments (such as while you are in school, in a deferment, or in a forbearance), interest on unsubsidized loans continues to accrue. Learn more through the federal student aid website.

Sponsor: U.S. Department of Education

Amount: $20,500 Graduates, $40,500 for Graduates in health professions, and effective July 1, 2026, $50,000 per year for professional degree students.

Interest: Current interest rate 7.94%, based on 10-year Treasury bond yield, plus 2.05%.

Repayment Term: Standard: 10 years. Many other options are available. See Federal Student Aid

Fees: An origination fee of 1.057% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate federal student loan amount.

Eligibility: Student must maintain at least half-time enrollment status (i.e., at least 4.5 credits or a half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.

**NEW** Effective July 1, 2026, students enrolled less than full-time will have their loans prorated in direct proportion to the percent of full-time status the student is enrolled.

Deferral: Principal only can be deferred. Interest may be capitalized. Repayment begins six months after graduation or when the student falls below half-time status.

The Graduate PLUS Loan will be eliminated as of July 1, 2026 for students who have never borrowed a federal loan (Unsubsidized or Grad PLUS) in their current degree program.

  • Legacy Provision: Returning NYU borrowers with a federal loan (Unsubsidized or Grad PLUS) disbursed before July 1, 2026 for their current degree program may continue to borrow Grad PLUS Loans under the current loan limits for 3 academic years beyond July 1, 2026 or the remainder of their program, whichever is less.

Sponsor: U.S. Department of Education

Amount: Up to the full cost of education, minus other financial aid received.

Interest: Current interest rate 8.94%. Based on 10-year Treasury bond yield plus 4.60%.

Repayment Term: Standard: 10 years. Many other options are available: see Federal Student Aid

Fees: An origination fee of 4.228% will be deducted from each disbursement for loans first disbursed on or after October 1, 2021. Calculate federal student loan amount.

Eligibility: Student must maintain at least half-time enrollment status (i.e. at least 4.5 credits or a half-time equivalency as approved by their academic department) in each enrolled semester and meet basic eligibility requirements.

**NEW** Effective July 1, 2026, students enrolled less than full-time will have their loans prorated in direct proportion to the percent of full-time status the student is enrolled.

Deferral: Only the principal can be deferred. Interest may be capitalized. To apply for an in-school deferment, Direct PLUS borrowers should contact their loan servicer.

NOTE: The U.S. Department of Education will evaluate the borrower's credit history to determine eligibility.

The Health Professions Student Loan program provides long-term, long-interest loans. The annual interest rate is 5%, and interest does not accrue while you remain enrolled as a full-time student at a school eligible to participate in the health professions program.

NYU will require you to complete a promissory note to ensure appropriate loan disbursement and corresponding credit on your bursar bill. You can read the instructions and complete the signing process on NYU Albert. You will not receive credit on your bursar's bill if you do not sign your promissory note.

Students who demonstrate financial need and are enrolled full-time in the College of Dentistry are eligible. To apply, fill out the FAFSA.

 

Optional Loans

When you receive your financial aid package, you may see information included about an “optional loan,” specifying the type and amount of loan you’re eligible for based on the results of your Free Application for Federal Student Aid (FAFSA). The suggested amount is the maximum amount you can borrow.

If you’d like to borrow less than the suggested amount, please reduce the amount before pressing submit when accepting your loans.  Remember that for most students, loans are divided equally between the fall and spring, so the amount you accept will be divided between two terms. If you are unable to make the reduction during your loan acceptance, please contact the Office of Financial Aid for assistance.

Federal Direct Loan Checklist for Students and Parents (PDF: 128KB)

Your Loan Aggregate Limit: How Much You Can Borrow

Your loan aggregate limit is the maximum lifetime amount you may borrow from the federal student loan program for both Direct Subsidized and Direct Unsubsidized Loans.

You have both an annual loan limit and a total loan limit that spans your academic career. Your limits depend on:

  • What year you are in school
  • Whether you are a dependent or independent student. Dependent students whose parents are ineligible for a Direct PLUS Loan might also be able to receive additional loan funds.

The chart below will help you understand the maximum annual and total loan limits you can expect for subsidized and unsubsidized loans (for loans effective July 1, 2012). Please note that the maximum total loan limits include any subsidized or unsubsidized federal loans you may have received under the Federal Family Education Loan (FFEL) Program.  

Year Dependent Students*  Independent Students **

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 professional degree students

Not applicable

$20,500 for graduate students

$50,000 for professional degree students

Maximum total debt from subsidized and unsubsidized 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.

New Graduate and Professional Degree Students

$100,000 for graduate students who are new borrowers as of July 1, 2026. This amount does not include undergraduate borrowing, but does include all graduate borrowing.

$200,000 for professional degree students who are new borrowers as of July 1, 2026. This amount does not include undergraduate borrowing, but does include all graduate and professional degree borrowing.

$257,500 is the lifetime limit for all new borrowers as of July 1, 2026. This amount includes all undergraduate and graduate borrowing combined.

Graduate and Professional Degree Student Legacy Borrowers

$138,500 for graduate or professional students who qualify for the Legacy Provision by having borrowed a federal student loan for their current program that disbursed prior to July 1, 2026 – 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 except PLUS Loan. Students who qualify for the Legacy Provision have up to three years, or the remainder of their expected time to credential, whichever is less.

*Except students whose parents are unable to obtain PLUS Loans.
**And dependent undergraduate students whose parents are unable to obtain PLUS Loans.

What To Do If...

If you are flagged by the FAFSA as being over your aggregate limit, we will receive a report from the National Student Loan Data System (NSLDS). We will then review and verify your total borrowing.

The review can take up to three weeks. Once complete, you will either be cleared to continue borrowing federal student loans or we’ll notify you of changes. Your new status could be one of three, including SOME, DONE, and OVER:

SOME: This status indicates that you’re reaching your aggregate loan limit and have fewer than three semesters of full eligibility. If you do not enroll for the semesters listed for eligibility, you may be able to use those funds when you do enroll.

DONE: This status indicates that you’ve reached your aggregate loan limit(s). If you have reached your aggregate borrowing limit, you may not receive any more Stafford subsidized or unsubsidized loans. However, you may have access to other types of federal financial aid.

OVER: This status indicates that you have borrowed over your aggregate loan limit. You will be ineligible to receive more federal student aid funds.

If you borrowed above your aggregate loan amount, there are a few things you can do to be in good standing again:

Repay Your Loans or Make Payment Arrangements: You can review your borrowing history on studentaid.gov to find out which loans are over your limit and how much you need to repay to regain eligibility for loan borrowing. We will need proof of payment and an adjusted loan history after you’ve made a payment to award federal aid to you. Information about this is also available on your FAFSA Submission Summary (FSS).

Consolidate Your Loans: You can contact the servicer for your loans to find out how to consolidate them. We will need to see the proof of your consolidation arrangement before we can continue to award federal aid to you. 

Sign a Reaffirmation Letter: You can sign a reaffirmation letter, that acknowledges the debt and affirms your intention to repay the excess amount as part of the normal repayment process. You can contact your federal loan servicer directly to get a letter.

You can find out who your loan servicer is on studentaid.gov.  

Your student loan repayment options vary depending on whether you have federal or private loans.  You can learn more about repayment on our Financial Education Resources page.

Monitoring Your Financial Aid History

When you officially secure your federal student loans, we will send information provided by you or your parents to the National Student Loan Data System (NSLDS). NSLDS tracks this information from the financial aid approval stage onward, so it may provide information to you or your parents about the aid you’re receiving and to maintain the integrity of the federal Title IV programs. You can monitor your financial aid history at studentaid.gov.

Resources

Frequently Asked Questions

Once you have accepted your Direct Loan amounts on NYU Albert, you cannot make further changes online.  Please notify us to make adjustments to your awards:

Upon receipt of your request, a financial aid counselor will update your loan.

Each loan type (undergraduate/graduate Federal Direct Subsidized/Unsubsidized Loan, Federal Direct PLUS Loan) requires its own Master Promissory Note (MPN), and Entrance Counseling (except Parent PLUS).  So, if your increase is to an existing loan type, you do NOT need to complete the MPN and Entrance Counseling again.  However, you will still need to accept your increase on NYU Albert.

If you were awarded a loan type not previously awarded, you WILL need to complete the MPN and Entrance Counseling (except Parent PLUS) in addition to accepting it on NYU Albert.

Within 120 Days of Disbursement
You have the right to cancel all or part of any disbursement of a Federal Direct Loan without being charged interest and other loan fees, as long as the cancellation is processed within 120 days of the original disbursement date. The disbursement date is the date the funds were applied to your NYU bursar bill during any semester.

To request a cancellation, you must make your request through NYU Albert by completing a Request to Return Loan Funds Form and submitting it to the bursar as instructed on the form.

More Than 120 Days After Disbursement
If you wish to cancel all or part of any disbursement of your loan more than 120 days after it was disbursed, you are repaying part of your loan and you must pay any accrued interest and/or fees. You cannot cancel your loan, but you can make a payment directly to your federal loan servicer.  Borrowers are assigned to one of the five servicers, which include ACS, Great Lakes, NelNet, Mohela, and Sallie Mae. If you are not sure which of the five centers is your assigned servicer, log in to the federal government’s National Student Loan Data System to determine your servicer. You may also call 1-800-4-FED-AID to locate your servicer.

Loan refunds are administered through the Office of the Bursar, and there are important elements to consider if you are anticipating a credit balance.  For example, because your loans cannot be released to NYU before your designated disbursement date, and because once they are disbursed certain basic enrollment criteria must first be verified (e.g. you normally must be enrolled for at least 6 points) before the loan amount is applied to your account balance, a refund resulting from your student loan will usually not be confirmed and processed until a few days after your disbursement date.

You, the student, must start the process by accepting the offered Federal Direct PLUS Loan on your Albert account.  You can do so by logging in to Albert, and then clicking on the Accept/Decline Financial Aid link and following the instructions.

Your parent borrower will be asked to complete the Federal Direct PLUS Loan Request and Master Promissory Note by visiting the Direct Loan Web site at studentaid.gov. They must sign in using the same Federal Student Aid ID that was assigned to them to access your FAFSA. If they do not remember their ID, they may request a duplicate on the FSA website.

The U.S. Department of Education will conduct a credit check that is valid for only 90 days.  Your parent borrower should not apply more than 90 days before the start of the fall semester to avoid credit expiration.

Shortly after the PLUS Loan originates to the Department of Education, an email from the NYU Office of Financial Aid will be sent to the parent borrower (only if the PLUS Loan was credit approved). The approved parent must complete the PLUS Loan process by logging in to the NYU Student System as instructed in this email and by providing the dollar amount of the PLUS Loan that is desired. The parent must actively accept the PLUS Loan on the same page.

Credit approval is valid for 180 days. Your credit is evaluated every time you request a new loan, unless you have had a credit decision within the preceding 180 days.

Federal regulations require a parent borrower to actively accept each Direct PLUS Loan and indicate the final amount they wish to accept for each loan. The email with instructions on completing the final PLUS Loan confirmation is sent to the parent borrower after the loan has been originated and we are in receipt of the approved credit decision.  This is your parent borrower’s opportunity to accept the loan for the amount that was originated or reduce the amount if they do not need the entire loan.

For subsequent PLUS Loans in your undergraduate career, your parent borrower may not be required to complete a new PLUS Loan Request on studentaid.gov, but they will be required to complete the final PLUS Loan confirmation process through our site.

Yes. Borrowers have the right to cancel all or part of any disbursement of a federal Direct Loan without being charged interest and other loan fees as long as the cancellation is processed within 120 days of the original disbursement date. The disbursement date is the date the funds were applied to your NYU bursar bill during any given semester.


To request a cancellation, the request should be made through the NYU Bursar’s Office by completing a Request to Return Loan Funds Form and submitting it to the bursar as instructed on the form.

If you or your parent borrower wishes to cancel all or part of any disbursement of a loan more than 120 days after it was disbursed, the borrower is actually repaying part of the loan and accrued interest and/or fees must be paid. The loan cannot be canceled, but payment can be made directly to the federal loan servicer.  Borrowers are assigned to one of the five servicers, which include ACS, Great Lakes, NelNet, PHEAA, and Sallie Mae. If they are not sure which of the five centers is their assigned servicer, visit and log into the federal government’s National Student Loan Data System to determine their servicer. They may also call 1-800-4-FED-AID to locate your servicer.

After a private loan has been credit approved and certified, it will generally disburse three weeks after the loan is added to your financial aid package.  If the loan is for a future semester, it will not disburse until 10 days before classes begin.

Contact Financial Aid

  • Our team looks forward to serving you and making sure you understand all your options. If you have questions for our New York Financial Aid team, please reach out to us.

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Students applying to NYU Shanghai or NYU Abu Dhabi should visit the websites of those campuses to obtain further details on applying for financial aid.