Federal Direct Loans
A Federal Direct Loan can be either subsidized or unsubsidized. If, after your family contribution and financial aid have been subtracted from your total cost of education, and you have remaining financial need, you are eligible to receive a subsidized Direct Loan (a Stafford loan). The federal government pays the interest on a subsidized Direct Loan while you are a matriculated student enrolled at least half time (6 credits) and for six months after you leave school.
You are eligible to receive an unsubsidized Direct Loan to replace all or a portion of the family contribution, if there is loan eligibility remaining. If you borrow an unsubsidized Direct Loan, you have the option of paying the interest as it accrues, or you can allow the interest to be periodically added to the principal of the loan.
Repayment of Direct Loans begins six months after you graduate, withdraw from school or drop to less than half-time status, and an Exit Counseling is required.
You may complete your loan request on CUNYfirst by clicking on "Direct Loan Processing Form"
Deadline to submit a Fall Direct Loan application is October 30.
Deadline to submit a Spring Direct Loan application is April 30.
Deadline to submit a summer Direct Loan application is July 15.
The following chart shows the amount you are eligible to borrow in each academic year beginning July 1.
|Third Year & Beyond||$5,500||$7,500|
Independent & Dependent Students (Except Students Whose Parents Cannot Borrow PLUS)
|Third Year & Beyond, Second Degree||$5,500||$12,500|
|Graduate and Professional Students||N/A||$20,500|
Stafford Loans have a maximum interest rate of 8.25%. The interest rate varies each year and is adjusted each July 1. For yearly interest rates please check the Federal Direct Loan web site at www.studentsloans.gov .
Aggregate Loan Limits (Effective July 1, 2008)
Undergraduate Dependent Students: $31,000 (no more than $23,000 of which can be subsidized)
Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)
Graduate and Professional Students: currently $138,500
Effective July 1, 2012 Graduate and Professional students will no longer be eligible for Subsidized Loans, only Undergraduates.
If you are requesting a Direct Loan at York College, you are required to complete a Direct Loan Request Form online on your CUNYfirst. You will be required to submit a request form to the office if you are seeking additional or an increase of your loan funds, or if you wish to reduce or completely cancel your existing Loan.
You must complete the Free Application For Student id (FAFSA). You must also complete an Entrance Interview exam and sign a Master Promissory Note.
First time borrowers should schedule an appointment for Financial Awareness and Debt Management Education for Students (F.A.D.E.S.) Workshop before submitting Direct Loan Request form. Please complete the Entrance Interview exam and submit the results with your William D. Ford Direct Loan Request Form.