Steps in Applying for Federal Student Loans in the Federal Direct Loan Program:
Complete the FAFSA
Complete and return your award letter by fax, mail, in person, or via online at NYIT Connect
PLUS loans also require a credit check application to be completed (Graduate PLUS or Parent PLUS)
Complete appropriate Master Promissory Notes (First-time Direct Loan Borrowers Only)
Complete appropriate Federal Direct Loan Entrance Counseling (First-time Direct Loan Borrowers Only)
Complete any other necessary documents the Office of Financial Aid may require. (Authorization Statement, Verification, etc.)
Student Loan Repayment
All students should attend an in person "Exit Counseling Session" during their final semester at NYIT. The purpose of this session is to make sure that students understand their rights and responsibilities as they enter repayment.
Eligibility Rules for Graduate Subsidized Direct Loans (Effective July 1, 2012)
The Federal Budget Control Act of 2011 has eliminated Subsidized Stafford Loans for graduate students.
For any period of enrollment beginning on or after July 1, 2012, graduate students will no longer be eligible to borrow Subsidized Stafford Loans. Graduate students may continue to borrow Unsubsidized Stafford Loans and Graduate PLUS Loans. The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012 are not affected by this change. This only affects NEW loans made on or after July 1, 2012.
If you have any questions regarding this new law, please contact the Financial Aid Office at 516.686.7680 or email@example.com
150% Direct Subsidized Loan Limit (Effective July 1, 2013)
On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21)(Public Law 112-141) was enacted and limits a first-time borrower's eligibility for Direct Subsidized Loans to a period not to exceed 150% of the length of the borrower's educational program. In May 2013, interim final regulations were implemented.
NOTE: Only first-time borrowers on or after July 1, 2013 are subject to the new provision. Generally, a first-time borrower is one who did not have an outstanding balance of principal or interest on a Direct Loan or on a FFEL Program Loan on July 1, 2013.
How does this affect you?
As outlined in your entrance counseling, the subsidized loan has slightly better terms than the unsubsidized: historically, the US Department of Education has paid the interest for a subsidized loan while you're in school at least half-time and the interest rate has been lower than the rate for unsubsidized loans. If you are a first-time borrower or have paid off previous loans, MAP-21 affects you by limiting the time period during which you can receive Direct Subsidized loans to 150% of the standard, published length of the program in which you are enrolled. For a 4-year bachelor’s degree program, the maximum period you can receive subsidized loans is 6 years (150% of 4 years = 6 years). The period used will be reduced for less than full-time study.
Once you have received Direct Subsidized Loans for your maximum eligibility period, you may continue to receive Direct Unsubsidized loans and your subsidized loans may begin accruing interest, including any portion of a Direct Consolidation Loan that was used to pay off a Direct Subsidized Loan. Congress wants to encourage students to obtain a degree within a reasonable time frame. We recommend you contact your advisor to help ensure you are enrolling in classes required to complete your degree and avoid excess withdrawals or retaking of coursework. Resources like your campus tutoring center can help you meet your goals. View more information on Direct Subsidized Loan Limits (pdf)
, or contact the Financial Aid Department at 516.686.7680.
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