NYUS participates in the federal student loan program which allows students and their parents to borrow money to help meet their educational costs. Educational loans MUST BE PAID BACK with interest. These loans have low interest rates and offer flexible repayment terms, benefits, and options.
The SD, Ford Federal Direct Loan Program
NYUS was selected by the United States Department of Education to participate in the Federal Direct Student Loan Program as one of its initial 104 institutions. Direct Loans are low-interest loans and the lender/ servicer is the U.S. Department of Education (the Department).
Unsubsidized Direct Loan
Are loans for undergraduate students with financial need. Repayment begins 6 months after a student graduates or is no longer enrolled at least half time. The interest rate on Federal Direct Subsidized loans borrowed by undergraduate students between July 1, 2018 and June 30, 2019 is 3.86%. If a student qualifies, the maximum amount of a Subsidized Stafford Loan is $3,500 for first-year students, $4,500 for second-year students and $5,500 for third-yea and fourth-year students
Unsubsidized Direct Loan
Are loans for both undergraduate and graduate students that are not based on financial need. Interest is charged during in-school, deferment, and grace periods. The interest rate on Federal Direct Unsubsidized loans borrowed by undergraduate students between July 1, 2018 and June 30, 2019 is 3.86% and the interest rate for graduate/professional students is 5.41%. You are charged interest on this loan from the time the loan is disbursed until it is paid in full. If the interest is allowed to accumulate, the interest will be added to the principal amount of the loan and increase the amount to be repaid. If a student qualifies, the maximum amount of an Unsubsidized Stafford Loan is $6,000 for firstand second year students, $7,000 for third and fourth year students, $20,500 for graduate students. Award amounts are dependent upon a student’s dependency status on the Free Application for Federal Student Aid.
Fedral Direct Plus Loan
Are low interest loans available to parents of dependent undergraduate students and graduate and professional students. It is an affordable, low-interest loan designed to help students and parents pay for a college education. The Direct Plus Loan is an unsubsidized loan, meaning that interest accrues while the student is enrolled at least half-time and during deferment periods. A mandatory credit check is completed as eligibility for this loan depends upon the borrower’s credit worthiness. Repayment of principal and interest begins 60 days after the loan is disbursed. The interest rate on Federal Direct PLUS loans borrowed between 2018 and June 30, 2019 is 7.9%.
Fedral Work Study
Are low interest loans for both undergraduate and graduate students with financial need. Repayment begins 9 months after a student graduates or is no longer enrolled at least half time. The interest rate on a Federal Perkins Loan is 5%. Award amounts vary depending upon the availability of funds at the institution.
Fedral Work Study
The Federal Work Study program gives part-time employment to undergraduate students who need income to help meet the costs of post secondary education. When available, NYUS provides part-time jobs for financially needy students through the FWS program. Generally, students work 15-20 hours per week. Part of this program is community service.
FINANCIAL AID > FEDERAL DIRECT LOANS
NYUA continues to work diligently to lower student indebtedness. Loan funding is available to assist students and parents with meeting their educational expenses. Please review the information below regarding the different types of federal loans offered at Rice University.
Direct loans require applicants to have a citizenship status of either U.S. citizen or U.S. permanent resident. Students must complete the Free application for Federal Student Aid (FAFSA) and be enrolled at least half time for funds to disburse to the student's account. For undergraduates, this means enrolling in at least six (6) credit hours. Graduate students must enroll in a minimum of four and one-half (4.5) credit hours. All loans are disbursed into two equal parts, unless you specifically request one semester only. The lender for these loans is the U.S. Department of Education. On July 1, borrowers will be able to view interest rates for the new academic year. Please visit the U.S. Department of Education for additional detailed information.
Direct Loan Limits, Interest Rates, and Origination Fees
The Direct Loan Program includes:
The Direct Subsidized Loan: A need-based loan with a fixed interest rate. The government pays the interest subsidy while the student is enrolled at least half time. Repayment begins after the six-month grace period when the student graduates, withdraws or drops below half-time enrollment.
The Direct Unsubsidized Loan: A non-need based loan with a fixed interest rate. Repayment begins after the six-month grace period when the student graduates, withdraws or drops below half-time enrollment.
The Direct PLUS Loan for Graduate Students: A credit-based, fixed rate loan that enables graduate or professional students to borrow funds to meet their educational expenses. For more information, please visit Direct PLUS Loans.
The Direct PLUS Loan for Parents: A credit-based, fixed rate loan that parents of undergraduate students can borrow on the student’s behalf to meet educational expenses. For more information, please visit Direct PLUS Loans.
Once awarded a Subsidized and/or Unsubsidized loan(s):
Log into your Esther account to accept your loan offer. You may accept, reduce or decline your loan.
In order to complete the loan process, Complete Entrance Counseling and Master Promissory Note (MPN).