Federal Loans
New York University works with the U.S. Department of Education to provide federal loans to students to ease the financial burden of attending college.
Federal loans, unlike scholarships and grants, require that you pay back the amount you receive, along with interest. The interest rates are generally lower than what private loan providers offer.
When you receive your awards package, you may see information included about a “suggested loan,” specifying the type and amount of loan you’re eligible for based on our information about you. The suggested amount is the maximum amount you can borrow. If you’d like to borrow less than that amount, please reduce the amount before pressing submit when accepting your loans. If you are unable to make the reduction during your loan acceptance, please contact the Office of Financial Aid. Please remember that for most students, loans are divided equally between the fall and spring so the amount you accept will be divided between two terms.
Find out more about:
Types of Loans
Federal Direct Loans
The U.S. Department of Education offers direct loans that include Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans. Learn more about payment plans and options through federal student aid.
Who is Eligible
- All students with a demonstrated need who meet eligibility criteria.
How to Apply
- Fill out the FAFSA to be automatically considered.
Federal Nursing Student Loan
The Federal Nursing Student Loan is available to students enrolled in the College of Nursing. The annual interest rate is 5%, and interest does not accrue while you remain enrolled at least half-time in a nursing program.
NYU will require you to complete a promissory note to ensure appropriate loan disbursement and corresponding credit on your bursar bill. You can read the instructions and complete the signing process on NYU Albert. You will not receive credit on your bursar's bill if you do not sign your promissory note.
Who is Eligible
- Students who demonstrate a financial need and are enrolled at least half-time in the College of Nursing.
How to Apply
- Fill out the FAFSA
Health Professions Student Loan Program
The Health Professions Student Loan program provides long-term, long-interest loans. The annual interest rate is 5%, and interest does not across while you remain enrolled as a full-time student at a school eligible to participate in the health professions program.
NYU will require you to complete a promissory note to ensure appropriate loan disbursement and corresponding credit on your bursar bill. You can read the instructions and complete the signing process on NYU Albert. You will not receive credit on your bursar's bill if you do not sign your promissory note.
Who is Eligible
- Students who demonstrate a financial need and are enrolled full-time in the College of Dentistry.
How to Apply
- Fill out the FAFSA
Your Loan Aggregate Limit: How Much You Can Borrow
Your loan aggregate limit is the maximum lifetime amount you may borrow from the federal student loan program for both Direct Subsidized and Direct Unsubsidized Loans.
You have both an annual loan limit and a total loan limit that spans your academic career.
Your limits depend on:
- What year you are in school
- Whether you are a dependent or independent student. Dependent students whose parents are ineligible for a Direct PLUS Loan might also be able to receive additional loan funds.
This chart will help you to understand the maximum annual and total loan limits you can expect for subsidized and unsubsidized loans.
Please note that the maximum total loan limits include any subsidized or unsubsidized federal loans you may have received under the Federal Family Education Loan (FFEL) Program.
Note: The following is for loans effective July 1, 2012.
| Year |
Dependent Students* |
Independent Students* |
|---|---|---|
| *Except students whose parents are unable to obtain PLUS Loans | *And dependent undergraduate students whose parents are unable to obtain PLUS Loans | |
| 1st year undergrad. | $5,500—No more than $3,500 of this amount may be in subsidized loans. | $9,500—No more than $3,500 of this amount may be in subsidized loans. |
| 2nd year undergrad. | $6,500—No more than $4,500 of this amount may be in subsidized loans. | $10,500—No more than $4,500 of this amount may be in subsidized loans |
| 3rd year and beyond undergrad. | $7,500 per year—No more than $5,500 of this amount may be in subsidized loans. | $12,500 per year—No more than $5,500 of this amount may be in subsidized loans. |
|
Graduate and Pro- fessional Degree Students |
Not Applicable | $20,500 |
|
Maximum Total Debt from Sub- sidized and Unsub-sidized Loans |
$31,000—No more than $23,000 of this amount may be in subsidized loans. |
$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.
|
If you are flagged by FAFSA as being over your aggregate limit, we will receive a report from the National Student Loan Data System (NSLDS). We will then investigate and verify the accuracy of the report.
The review can take up to three weeks. Once complete you will either be cleared to continue borrowing federal student loans or we’ll notify you of changes.
Your new status could be one of three, including SOME, DONE, and OVER.
If you’re status is:
SOME: We have reviewed your loan borrowing history and have determined the remaining amount of federal student loans you are eligible to receive. While you will still be able to borrow funds, this status does indicate that you’re reaching your aggregate loan limit and have fewer than three semesters worth of full eligibility left. If you do not enroll for the semesters listed for eligibility, you may be able to those funds when you do enroll. Your eligibility will be updated in your financial aid awards link on NYU Albert.
DONE: We have reviewed your loan borrowing history and have determined that you’ve reached your aggregate loan limit(s). If you have reached your aggregate borrowing limit, you may not receive any more Stafford subsidized or unsubsidized loans. However, you may have access to other types of federal financial aid. Adjustments to your award will be reflected in your current financial aid summary on NYU Albert.
OVER: We have reviewed your loan borrowing history and determined you have gone over your aggregate loan limit. If you’ve borrowed more Stafford loans than allowed, you will be ineligible to receive more federal student aid funds until you’ve either repaid the excess amount, made arrangements with the Stafford lender to repay the excess amount, consolidated your loans, or signed a Reaffirmation letter.
What to Do if You Reach Your Borrowing Limit
If you’ve gone over your allotted amount of federal loans, there are a few things you can do to be in good standing again.
You can:
Repay Your Loans or Make Payment Arrangements
You can contact the National Student Loan Data System to find out which loans are over your limit and how much you need to repay to regain eligibility for loan borrowing. We will need a proof of payment and an adjusted loan history after you’ve made a payment to continue to award federal aid to you. Information about this is also available on your Student Aid Report (SAR) and from FAFSA.
Consolidate Your Loans: You can contact the servicer for your loans to find out how to consolidate them. We will need to see the proof of your consolidation arrangement before we can continue to award federal aid to you.
Sign a Reaffirmation Letter: You can sign an agreement, or reaffirmation letter, that acknowledges the debt and affirms your intention to repay the excess amount as part of the normal repayment process. You can contact your federal loan servicer directly to get a letter.
To find out who your servicer is, you can contact the National Student Loan Data System or the U.S. Department of Education at 1-800-433-3243.
How Your Data is Used
When you officially secure your federal student loans, we will send information provided by you or your parents to the National Student Loan Data System (NSLDS).
NSLDS tracks this information from the financial aid approval stage onward so it may provide information to you or your parents about the aid you’re receiving and to maintain the integrity of the federal Title IV programs.