Loans
Undergraduate Admission |
Graduate Admission |
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Loans are funds that you or your parent will borrow as a financing tool to fund your education. Prior to utilizing any loans, review the total amount of grants and scholarships you have been awarded. Then, only borrow the amount you will need to cover your educational expenses. Responsible borrowing is important - you will be required to repay all loans on a monthly basis upon graduation.
There are several types of loans which may be contained in your award letter: Federal, Institutional and Alternative.
I. Federal Loans
There are four primary federal loan programs: Perkins, Sudsidized Stafford, Unsubsidized Stafford and Parent Loans. You are required to complete a FAFSA to determine financial eligibility for Perkins, Subsidized and Unsubsidized Stafford Loans. All three of these loans are in the students' name.
The Perkins Loan is an interest-free loan while you are enrolled with repayment beginning 9 months after you graduate or cease to be enrolled. During repayment, a fixed interest rate of 5% will be charged. The Subsidized Stafford Loan is also interest-free while you are enrolled with repayment beginning 6 months after you graduate or cease to be enrolled. During repayment, a variable interest rate with a cap of 8% will be charged. The Unsubsidized Stafford Loan is an "interest accruing" loan which will begin to accrue interest from the time you borrow the loan. Repayment begins 6 months after you graduate or cease to be enrolled with a variable interest rate also capped at 8%.
The Parent Loan for Undergraduate Study (PLUS) is the only federal loan which a parent may use to fund a child's education. Your parent can borrow up to full-tuition minus all other grants, scholarships, and loans you are already receiving. The interest rate is variable with a cap of 9%. Interest will accrue immediately and repayment begins 30-days after the loan proceeds are disbursed.
II. Institutional Loans
Polytechnic Institute of NYU offers an institutionally funded loan program for those students who are in need of additional loan support after utilizing all other loan sources. The Polytechnic Loan is an interest-free loan a with a fixed interest rate of 7%. Repayment begins 3 months after you graduate or cease to be enrolled. Limited funds are available.
All of the above loan programs will be automatically included in your award letter once you have completed the FAFSA. Amounts that you may borrow, along with the application process, will be outlined in a later section.
III. Alternative Loans
Polytechnic Institute of NYU currently uses three alternative loan programs: CitiAssist, Chase Signature and Fleet Teri Loan. Alternative loans can be used when students have remaining balances and have exhausted their eligibility for federal loans. Information regarding terms and conditions of the programs are available in the Office of Financial Aid.
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