Educational loans for college costs may be made to you and/or your parents/guardians. This aid must be repaid, usually with interest. Loans are sponsored by the federal government, banks and lending institutions, and many private not-for-profit colleges.
Federal Direct Loans - Subsidized and Unsubsidized
Note: This information is subject to change and contingent on Federal funding.
Depending on your financial need and status as a dependent or independent student, there are two types of Stafford loans with varying interest rates and borrowing limits:
- Subsidized Direct Loans are available only for undergraduate study. Loans first disbursed between July 1, 2014 and June 30, 2015 have a fixed interest rate of 4.66% for the 2014-2015 academic year. The interest on Subsidized Direct Loans is based on a student’s financial need as calculated from the information on the FAFSA. There is no income cutoff as long as you demonstrate need.
- Unsubsidized Direct Loans have a fixed interest rate of 4.66% (for loans first disbursed between July 1, 2014 andJune 30, 2015) and are not based on financial need. Undergraduate students must exhaust their Subsidized Direct Loans (if eligible) prior to using unsubsidized loans. The interest on Unsubsidized Direct Loans accrues while the student is enrolled in college, although payments can be deferred until after graduation.
- Undergraduates tudents may borrow up to $31,000 in Direct 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 from Subsidized undergraduate Direct 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.
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.
Health Professions Student Loans
- 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.
New York State: District Attorney and Indigent Legal Services Attorney Loan Forgiveness Program
- 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 1-888-NYHESC.
New York State: Get On Your Feet Loan Forgiveness Program
- For students graduating college in 2015 and beyond.
- For more information, contact 1-888-NYHESC.
New York State: Nursing Faculty Loan Forgiveness Incentive Program
- 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-NYSHESC, or visit www.hesc.ny.gov.
New York State: Licensed Social Worker Loan Forgiveness Program
- 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.ny.gov.
Federal: Loan Forgiveness for Public Service Employees
- A loan forgiveness program for full-time public service employees with Federal Direct Loans.
- Remaining balance of Direct Loans will be forgiven after 120 qualifying payments have been made, while employed full-time at a public service organization.
- For more information, contact NYS Higher Education Services Corporation at 1-800-4-FED-AID or TDD 1-800-730-8913, or visit www.studentaid.ed.gov.
New York State: Young Farmers Loan Forgiveness Incentive Program
- Provides loan forgiveness awards to individuals who obtain an undergraduate degree from an approved New York State college or university and agree to operate a farm in New York State, on a full-time basis, for five years.
- For more information, contact NYS Higher Education Services Corporation at 1-888-697-4372, or visit www.hesc.ny.gov.
New York State: Direct Loan Forgiveness for Teachers
- A loan forgiveness program for teachers who have worked full-time as an elementary or secondary school teacher in an elementary or secondary school that has been designated as a "low-income" school by the U.S. Department of Education for five consecutive, complete school years, of which at least one was after the 1997-98 academic year. Up to $17,500 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.ny.gov.