Financial Aid: Student Loans

Loans For College - Educational loans for college costs may be made to you and/or your parents. This aid must be repaid, usually with interest. Loans are sponsored by the federal government, banks and lending institutions, and many private colleges.

Federal Perkins loans

• Undergraduate students may borrow up to $5,500 per year for a total of $27,500 for undergraduate study. Graduate/ professional students may borrow up to $8,000 per year. The maximum total for all years of study is $60,000. The federal government pays the fixed 5% interest until you begin repayment which begins nine months after you are no longer enrolled at least half time. You will have up to 10 years to repay.
• Eligibility is determined by exceptional financial need and the availability of funds at each college. Funds for this program are limited.
• To apply, file the Free Application for Federal Student Aid (FAFSA).
• For more information, please visit www.studentaid.ed.gov (see bottom of page for info)

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Federal Stafford loans - subsidized and unsubsidized
Stafford loans are federally-guaranteed, low-interest loans.

Note: This information is subject to change and contingent on Federal funding.

• Subsidized Stafford loans will have a fixed interest rate of 6.8% for loans first disbursed after July 1, 2012. Eligibility for Stafford Loans is based on financial need as calculated from the information on the FAFSA. There is no income cutoff as long as you demonstrate need. The interest is paid by the government while the undergraduate student is enrolled at least half-time in college.
• Unsubsidized Stafford loans have a fixed interest rate of 6.8% (for loans first disbursed after July 1, 2008) and are not based on financial need. Students must exhaust their subsidized Stafford loans (if eligible) prior to using unsubsidized loans. Students pay all of the interest on unsubsidized Stafford loans, although payments can be deferred until after graduation.
• Undergraduate students may borrow up to $31,000 in Stafford loans, of which no more than $23,000 may be subsidized. Graduate and professional students may borrow up to $138,500, of which no more than $65,500 may be subsidized (including undergraduate Stafford loans). Borrowing limits for students in medical school are higher.
• Repayment begins six months after you're no longer enrolled at least half-time.
• To apply for federal student loans, students must first complete the Free Application for Federal Student Aid (FASFA).
• For more information, visit www.studentaid.ed.gov.

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• Offered at participating colleges with programs in medicine, osteopathy, podiatry, pharmacy, dentistry, optometry, and veterinary medicine. Students borrow at a low interest rate. Repayment begins 12 months after program completion, with up to 10 years to repay. Eligibility is based on financial need.
• Contact the college's financial aid office for additional information.

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• The New York State Higher Education Loan Program (NYHELPs) is a new loan program for full-time or part-time undergraduate or graduate students attending a participating college, at least half-time, in an approved program. Eligible students and parents or nonparent sponsors may borrow as much as $20,000 annually up to the cost of attendance minus all other financial aid, excluding federal PLUS loans, whichever is less (borrowers must meet citizenship and NYS residency requirements).
• Interest rates are currently fixed at 7.55%, 8.25% or 8.75% depending on the loan repayment option selected.
• For more information, contact NYS Higher Education Services Corporation at 1-888-697-4372, or visit www.hesc.org.

• A loan forgiveness program for experienced attorneys employed as District Attorneys, Assistant District Attorneys or Indigent Legal Services Attorneys throughout New York State.
• Awards will be paid in annual disbursements for each period of qualified service up to a maximum lifetime total of $20,400.
• For more information, contact NYS Higher Education Services Corporation at 1-888-697-4372, or visit www.hesc.org.

• A loan forgiveness program for social workers licensed to practice in New York State and who have at least one year of prior employment working in a critical human service area in the fields of health, mental health, substance abuse, aging, HIV/AIDS and child welfare or communities with multi-lingual needs.
• Awards will be paid in annual disbursements for each period of qualified service. For more information on how to apply, contact NYS Higher Education Services Corporation at 1-888-697-4372, or visit www.hesc.org.

• A loan forgiveness program for licensed registered nurses holding graduate degrees and who have taught in the field of nursing.
• Maximum award is the lesser of $40,000 (paid in the amount of $8,000 annually during qualified service), or the applicant's actual eligible student loan indebtedness at the time eligibility is established.
• For more information, contact NYS Higher Education Services Corporation at 1-888-697-4372, or visit www.hesc.org.

• A loan forgiveness program for teachers who have worked full-time as an elementary or secondary school teacher for five consecutive, complete school years, at least one of which was after the 1997-98 academic year in an elementary or secondary school that has been designated as a "low-income" school by the U.S. Department of Education. Up to $17,500 of Federal Family Education Stafford Loan (FFEL) maybe forgiven for teachers meeting all requirements.
• Applications are available from your lender or the National Council of Higher Education Loan Programs (NCHELP). For more information, contact NYS Higher Education Services Corporation at 1-888-697-4372, or visit www.hesc.org.

Loan programs from private colleges and universities

• Many independent colleges and universities offer loans with varying interest rates and terms. Programs are available for parents and for students. For additional information to determine which applications are required, check the college's catalogue or contact the financial aid office. The Free Application for Federal Student Aid (FAFSA) may be required along with the college's own financial aid application.

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