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Federal Direct Loan Collections to Restart May 5th

The U.S. Department of Education announced its Office of Federal Student Aid (FSA) will resume collections of its defaulted federal student loan portfolio on Monday, May 5th. Borrowers can read more on the Press release. Borrowers can also contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation. 

Federal Direct Loans

  • The deadline to submit a Summer Direct Loan application is July 1.
  • The  deadline to submit a Fall-only Direct Loan application is November 30 (if scheduled to graduate at end of semester, or will not re-enroll  in Spring for at least 6 credits).
  • The deadline to submit a Fall-Spring or Spring only Direct Loan application is May 2.

Direct Subsidized Loans and Direct Unsubsidized Loans are federal student loans provided by the U.S. Department of Education (ED) to assist eligible students in financing their higher education. To qualify, students must be enrolled in a degree-seeking program, submit the FAFSA application annually, and register for at least 6 credits for each semester they intend to borrow a Federal Direct Loan. Federal Direct Loans have a fixed interest rate for both undergraduate and graduate programs. For the most current rate, please click here.

Subsidized loans are for undergraduate students who demonstrate financial need. Interest is not charged  as long as they maintain continuous half-time enrollment (six equated credits), during the 6-month grace period and throughout deferrment periods.

Unsubsidized loans are available for undergraduate and graduate students. They are not need-based and interest is charged from the time the loan is disbursed. 

Students must complete Exit Counseling upon graduating, leaving school, or dropping below half-time enrollment. Exit counseling ensures that borrowers fully understand their student loan responsibilities and are ready for repayment. Repayment of Direct Loans starts six months after students graduate, withdraw from school, or reduce their enrollment to less than half-time. Additional information on loan limits, current interest rates, repayment plans, and other important loan information can be found at studentaid.gov.

The following requirements must be met in order to be eligible for Federal Direct Loans:
Packaged Federal Direct Loans

Students who have submitted a valid FAFSA may automatically be offered a federal student loan for the year. Most undergraduate students who have an outstanding balance of $500 or more, after anticipated grant aid is applied, will be packaged with federal student loans. The loan funds will be equally split between the Fall and Spring semesters. If you need loan funds for the Summer semester, see steps below for Requesting a loan. To accept, reduce or decline an offered loan:

  1. Sign in to CUNYfirst
  2. Click Student Center > Financial Aid
  3. Select your college & Financial Aid Year
  4. Click Award Summary
  5. Accept, reduce, or decline your loan
Requesting a Loan 

Students that were not offered a loan or want to request a loan for the Summer semester can apply by following the steps below:

  1. Sign in to CUNYfirst
  2. Click Student Center > Financial Aid
  3. Click the Direct Loan Processing Form link from the left sidebar.
  4. Acknowledge that you have read the instructions by selecting the checkbox at the bottom of the page and click “Agree”.
  5. Select Aid Year and college by clicking on the spyglass to the right of the corresponding box. Click the “Next” button to access the form.
  6. Complete and submit form.

Note that you can only apply for a loan through CUNYfirst once per academic year. If you need an additional funds including for the Summer semester, submit the CSI Federal Direct Loan Application.

Annual Loan Limits
Maximum Subsidized Loan 
Total Dependent Student Loan (Combined Subsidized and Unsubsidized Loan)
Total Independent Student Loan (Combined Subsidized and Unsubsidized Loan)
First-Year Undergraduate (0-29.5 credits) $3,500 $5,500 $9,500
Second-Year Undergraduate (30-59.5 credits) $4,500 $6,500 $10,500
Third-Year-and-Beyond Undergraduate (60 credits +) B.A/B.S Programs $5,500 $7,500 $12,500
Graduate or Professional Student N/A N/A $20,500
Subsidized and Unsubsidized Aggregate Loan Limit
 
$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.

$138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
1. When do I have to pay back my loans?

Your loan will go into repayment six months after you graduate, drop below half-time enrollment, or leave school. However, you may begin making payments while still enrolled in school or during your six month grace period to reduce the amount of interest you will pay on your loans. Plus loans begin repayment at the time of disbursement; however, they can be deferred while the student is enrolled at least half time.

2. How do I start making my loan payments?

After you graduate, leave school, or drop below half-time enrollment, you will have a six-month grace period before you start repayment. During this period, you'll receive repayment information from your loan servicer, and will be notified of your first payment due date. Payments are usually due monthly. Learn more about repaying your loan here. You can also contact your loan servicer by logging into studentaid.gov while still in school or during your grace period if you want to start making payments earlier. This will reduce the amount of interest you pay for your loan. 

3. What if I can’t afford to make my payments?

If you are having trouble making payments, please contact your loan servicer immediately. They can help you with different options including deferment, forbearance, or changing your repayment plans. You want to avoid your loans becoming delinquent or going into default as this will negatively affect your credit as well as have other serious consequences. 

Direct Loans become delinquent the first day after a payment is due. If a Direct Loan is delinquent for 270 days, it goes into default. For more information about delinquency and default, click here.

4. How can I find out more information about loans?

Federal Direct PLUS Loans

Federal Direct PLUS Loans allow parents of a dependent student or to a graduate students with good credit ratings to borrow up to the cost of attendance minus other aid student is receiving. These loans are not need-based, but students must have valid FAFSA at the College of Staten Island. These loans require a credit check and have higher origination fees and interest rates than Federal Direct Subsidized and Unsubsidized loans. We recommend utilizing all eligible Federal Subsidized and Unsubsidized Loans prior to borrowing a Federal Direct Plus Loan. Federal Plus Loans have a fixed interest rate. To find the most current rate and loan eligibility for Parent PLUS loan,click here. To find the most current rate and loan eligibility for Grad PLUS loan, click here. Federal Direct PLUS Loan application is available directly from the Office of Student Financial Aid or on the Forms page under “Direct Loan Forms”. Please DO NOT use PLUS loan application on studentaid.gov.

 

Parent PLUS Loan

To receive a Parent PLUS Loan, you must meet the following eligibility requirements:

  • Be the biological parent, adoptive parent, or the stepparent legally married to the biological/adoptive parent of a dependent undergraduate student enrolled at least half-time pursuing a bachelor’s degree.
  • Student must meet Satisfactory Academic Progress and be enrolled for a minimum of half-time (6 credits).
  • Complete a Direct PLUS Master Promissory Note (MPN) for parents of dependent undergraduate students.
  • Pass a credit check* requested by the U.S. Department of Education or have an eligible endorser.
  • Meet general eligibility requirements to receive federal student aid.

*If parent is denied a PLUS loan, student may borrow an additional unsubsidized loan up to Independent student loan limit.

Note: Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive Parent Plus Loans, even if they had primary responsibility for raising the student.

 

Direct PLUS Loan for Graduate Students  

To receive a Grad PLUS Loan, you must meet the following eligibility requirements:

  • Be a graduate or professional student enrolled at least half-time (6 credits) in a master’s or doctoral program.
  • Student must meet Satisfactory Academic Progress and meet general eligibility requirements to receive federal student aid.
  • Utilize the maximum annual limit in Federal Direct Loans.
  • Complete a Direct PLUS Master Promissory Note(MPN)
  • Pass a credit check requested by the U.S. Department of Education or have an eligible endorser.

1. When does PLUS loan repayment begin?

For graduate students, repayment begins 6 months after a student graduates, leaves school, or drops below half-time enrollment. Interest will begin to accrue as soon as funds are disbursed. Your loan servicer will notify you when your first payment is due. For parent borrowers, repayment begins immediately after the loan fully disburses. However, parent borrowers may make a request with their loan servicer to defer payment while the student continues to attend at least half-time. Interest will begin to accrue as soon as funds are disbursed. The loan servicer will notify the borrowers when first payment is due.

2. Can a PLUS loan borrower postpone loan repayment?

Borrowers can request either deferment or forbearance from their loan servicer. Receiving deferment or forbearance is not automatic. The borrower must continue to make payments until a deferment or forbearance has been granted.

3. Is there any prepayment penalty?

No, the borrower can pay off these loans as early as they prefer.

4. Can the borrower cancel their loan if they change their minds, even if they signed a promissory note agreeing to the loan’s terms?

Yes. Before loan money is disbursed, the borrower may cancel all or part of the loan at any time by notifying the school. After the loan is disbursed, the borrower may cancel all or part of the loan within 30 days of disbursement. 

5. Other than interest, is there any other charge involved with a PLUS Loan?

An origination fee is a percentage of the loan amount charged by the lender for the processing of the loan; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.

 

 

Alternative or Private Loans

Alternative or Private loans are offered through private lenders and are meant to provide additional educational funding only after a student and families have exhausted all other sources of funding such as federal and state aid. These loans are not guaranteed by the federal government and may carry high interest rates and origination fees. All Private lenders will review the borrower's credit history and some may require a co-signer. The Office of Financial Aid does not endorse or recommend any particular alternative loan program or any particular private lender. Students can use any lenders or view and compare private loan options that works best for you. Learn more about private loans here. 

 

Cohort Default Rate

A cohort default rate is the percentage of a school's student borrowers who enter repayment on certain Federal Family Education Loan (FFEL) Program or William D. Ford Federal Direct Loan (Direct Loan) Program loans during a particular federal fiscal year (FY), October 1st to September 30th, and default or meet other specified conditions prior to the end of the second following fiscal year. Please refer to the Cohort Default Rate Guide for a more in-depth description of cohort default rates and how the rates are calculated.

CSI Student Loan Cohort Default Rate:

FY 2019 Cohort Default Rate is 2.7%
FY2020 Cohort Default Rate is 0%
FY2021 Cohort Default Rate is 0%

FY 2020 National Cohort Default Rate average is 0%. Average National Student Loan Cohort Default rate can be found here.

* Official Cohort Default Rates
* OPEID:002698

Federal Perkins Loans

Exit interviews are required of all recipients who fall below six equated credits, graduate or leave school. Loans may not be given to students who have previously defaulted or owe a Title IV repayment.

  • Call 1.888.549.3274 to obtain PIN to be used when doing the Exit Interview
  • CSI's School Code is: F5
  • Your Account Number is your social security number
  • Use the Hyperlink below to enter BORROWER SITE
  • Select "MY ACCOUNT"
  • Provide CSI School Code (F5), Account # (your Social Security Number) and Password (your PIN)
  • Complete Exit
  • Enter Borrower Site Here

Helpful Links

Paying for College Brochure
Finaid @ CUNY Portal
Federal Student Aid Estimator
Net Price Calculator