Federal Direct Loans

Federal Direct Loans are either Subsidized or Unsubsidized. The Federal Government will pay the interest on Subsidized Loans while a Student is enrolled at least half-time or has six or more units load. Eligible Students must meet certain criteria, such as completing the Free Application for Federal Student Aid (FAFSA) and having some financial need. Unsubsidized Loans are available regardless of financial need. Interest is usually charged to the Student and Parents (see PLUS) while the Student is in School and up to when the Loan is paid in full.

On this page you will find:

Federal Direct Loans Are:

  • Subsidized – The federal government pays the interest while you are enrolled at least half-time.
  • Unsubsidized – Interest accrues while you are in school and must be repaid.
  • Review the Interest Rate and Fees for Federal Student Loans
  • Undergraduate Students may apply for Subsidized and/ or Unsubsidized loans depending on need.
  • Graduate Students are eligible for Unsubsidized Direct Loans. Once the FAFSA is received and the required documentation is completed, an Unsubsidized Loan will be automatically packaged. Students would need to accept, decline, or reduce the loan amount on CUNYFirst. For more information, visit the CUNY Graduate Student information page.

Eligiblity Requirements

  • Complete the FAFSA
  • Be enrolled at least half-time (6 credits)
  • Meet Satisfactory Academic Progress (SAP) requirements
  • Complete Entrance Counseling (first-time borrowers only)
  • Sign the Master Promissory Note (MPN)
  • Complete the Annual Student Loan Acknowledgment
  • Accept, decline, or reduce the loan in CUNYfirst
  • Meet enrollment and academic progress requirements

How to Submit Loan Request via CUNYfirst

  • Log in to CUNYfirst
  • Go to Student Center
  • Select Financial Aid
  • Click Direct Loan Processing Form
  • Institution: YRK01
  • Add the appropriate Aid Year
  • Enter a whole dollar amount (example: $1,500)
  • Indicate credits for Summer, Fall, and/or Spring

PLUS and Grad PLUS Loans

PLUS Loans are credit-based, unsubsidized loans available to, parents of dependent Undergraduate students or Graduate students (Grad PLUS). The maximum loan amount is calculated by the Cost of Attendance minus (–) all other Financial Aid. Applications are available on the Financial Aid website under “Forms.” All loans are equally divided among the semesters requested.

Loan Exit Counseling

Students must complete Exit Counseling when they graduate, withdraw, or drop below half-time status. Exit counseling ensures students understand their repayment obligations. Submit proof of completion through the secure Documents Upload Portal. Exit holds are typically released within 1–3 business days.

Loan Delinquency and Default

Students in default are not eligible for financial aid. To regain eligibility:

  • Make six consecutive payments
  • Obtain a default clearance letter from your lender
  • Submit it to the Financial Aid Office for review

Students can review their loan history and lender information on the Federal Student Loans Website If you have paid your loan but still show as defaulted, contact your lender or the Department of Education at 1-800-433-3243.

Loan Limits

There are lifetime borrowing limits based on your degree status. Review CUNY's Federal Direct Loans webpage for the 2025-2026 for undergraduate or graduate students.

Total and Permanent Disability (TPD) Discharge

Students whose loans were previously discharged due to total and permanent disability must provide:

  • Official doctor’s certification stating the ability to engage in substantial gainful activity
  • Signed personal statement acknowledging loan conditions
  • Without proper documentation, students are not eligible for financial aid.

Financial Awareness & Debt Management

York College offers financial literacy support through: FADE$ (Financial Awareness and Debt Education for Students) Program

Students are encouraged to participate to better understand borrowing, budgeting, and repayment responsibilities.

Revised: March 30, 2026