Federal Stafford Loans
In order to be eligible for federal loans, you must file a Free Application for Federal Student Aid (FAFSA) and meet federal loan eligibility criteria. You can apply for the FAFSA electronically (strongly recommended) or by completing a paper application. Parental information is not required on the FAFSA. About 1-2 weeks after you submit the FAFSA, you will receive a Student Aid Report (SAR). If NYU is not listed on your SAR, please contact the FAFSA processing center at www.fafsa.ed.gov or at 1-800-4-FED-AID and provide them with NYU’s Title IV Code (#002785).
Subsidized Stafford Loan
Eligibility for subsidized Stafford loans is based on the income and asset information you reported on the FAFSA, using the federal methodology (FM) set forth in U.S. Department of Education regulations. If you are determined to have financial need based on the FM, you may be eligible to borrow up to $8,500 per academic year through the federal Stafford loan program. You will be notified of the actual amount of subsidized Stafford loans (if any) you are eligible to receive shortly after NYU reviews your Student Aid Report (SAR).
The aggregate lifetime limit for subsidized Stafford loans is $65,500, including any undergraduate debt. Interest charges for the subsidized Stafford loan are paid by the federal government to your lender while you are a student and during eligible grace and deferment periods. The interest rate on subsidized Stafford loans first disbursed beginning July 1, 2008, for graduate and professional students is 6.8%. Repayment begins and interest starts to accrue six months after graduation or six months after the date your enrollment status changes to less than half-time.
There is a 3% origination fee and a guarantee fee ranging from 0%-1%, depending on the guarantee agency. Please check with your lender and guarantee agency regarding any fees. Repayment begins six months after graduation or six months after the date your enrollment status changes to less than half-time.
Unsubsidized Stafford Loan
While the subsidized Stafford loan is need-based, the unsubsidized Stafford loan is not. The unsubsidized Stafford loan was created to provide additional money to students who require more funding in addition to the subsidized Stafford loan. You must file the FAFSA to be considered for this loan. The University Financial Aid Office automatically determines your eligibility for the subsidized Stafford loan before determining your eligibility for the unsubsidized Stafford. Eligibility notification is thereafter sent to the student.
Since this loan is unsubsidized, interest accrues while you are in school and during your six-month grace period. The interest rate on unsubsidized Stafford loans first disbursed beginning July 1, 2008, for graduate and professional students is 6.8%.
There is a 3% origination fee and a guarantee fee ranging from 0-1%, depending on the guarantee agency. Please check with your lender and guarantee agency regarding any fees. Repayment begins six months after graduation or six months after the date your enrollment status changes to less than half-time.
You may borrow up to $20,500 per academic year in unsubsidized Stafford loans, less any amount borrowed under the subsidized program, to an aggregate total of $138,500 for subsidized and unsubsidized.
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