../templates_2009/images/random_pagetops/img-7.jpg; ../templates_2009/images/random_pagetops/pic-1.jpg; ../templates_2009/images/random_pagetops/pic-3.jpg; ../templates_2009/images/random_pagetops/pic-6.jpg; ../templates_2009/images/random_pagetops/pic-8.jpg; ../templates_2009/images/random_pagetops/pic-9.jpg; ../templates_2009/images/random_pagetops/pic-11.jpg;
 

Student Loans

Federal Federal Direct Subsidized and Unsubsidized Loans (DL)

UAlbany participates in the Federal Direct Loan (DL) Program where students and parents obtain educational loans Federal Directly from the United States Department of Education.


Federal Direct Subsidized and Federal Direct Unsubsidized Loans

Federal Direct Subsidized Loans
  • Must have valid current year FAFSA on file.
  • For all undergraduate and graduate students who are enrolled at least half-time, or six-credits, in a degree seeking program.
  • Students must demonstrate financial need.
  • Interest rate is currently fixed at 4.66% for loans first disbursed after July 1, 2014 and prior to July 1, 2015.
  • All Federal Direct Subsidized Loans are subject to a 1.073% loan fee.
  • Student is not charged interest on the loan while in school.
  • The U.S. Department of Education (ED) is the lender; payment is owed to ED.
Federal Direct Unsubsidized Loans
  • Must have valid current year FAFSA on file.
  • For all undergraduate and graduate students who are enrolled at least half-time in a degree seeking program.
  • Students are not required to demonstrate financial need.
  • For undergraduate students, interest rate is fixed at 4.66% for loans first disbursed after July 1, 2014 and prior to July 1, 2015.
  • For graduate students, interest rate is fixed at 6.21% for loans first disbursed after July 1, 2014 and prior to July 1, 2015.
  • All Federal Direct Unsubsidized Loans are subject to a 1.073% loan fee.
  • Student is responsible for interest during all periods.
  • The U.S. Department of Education (ED) is the lender; payment is owed to ED.

Federal Direct Subsidized and Unsubsidized Master Promissory Note (MPN)

The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. The MPN gives detailed descriptions on the terms and conditions of your loan(s). It includes information on how interest is calculated as well as deferment and repayments options available to you.

Generally the Federal Direct Subsidized and Unsubsidized MPN is valid for a period of 10 years. This means you should only need to complete the MPN once while attending UAlbany. Please be aware, you must have a valid MPN on file with the U.S. Department of Education prior to receiving any federal loan disbursement. Monitor the "to-do" items listed on My UAlbany to determine if the MPN is needed.

To complete the MPN electronically, please visit www.studentloans.gov. Note, you need your Federal Student Aid PIN to sign the MPN.

The process takes approximately 30 minutes to complete and consists of the following four steps:
    1. Enter your personal information and school information.
    2. Enter information about two references who you have known for at least three years.
    3. Read all terms and conditions.
    4. Review, electronically sign (using PIN), and submit the MPN.

Federal Direct Subsidized and Unsubsidized Entrance Counseling

All UAlbany students borrowing Federal Direct Subsidized and/or Unsubsidized Loan(s) for the first time must complete Federal Direct Loan Entrance Counseling prior to disbursement of funds. To complete the Federal Direct Loan Entrance Counseling, please visit: www.studentloans.gov.

The Department of Education will notify UAlbany within 2-3 days after the entrance counseling is completed online.

Interest Rates





Annual Borrowing Limits

Dependent Students
(Excluding Students Whose Parents Cannot Borrow Parent PLUS)

Class Standing Base Amount Additional Unsubsidized Total
Freshman
less than 24 credits
$3,500 $2,000 $5,500
Sophomore
24-55 credits
$4,500 $2,000 $6,500
Junior
56-87 credits
$5,500 $2,000 $7,500
Senior
88 or more credits
$5,500 $2,000 $7,500


Independent Undergraduate Students
(Including Dependent Students Whose Parents Cannot Borrow a Parent PLUS Loan)
Class Standing Base Amount Additional Unsubsidized Total
Freshman
less than 24 credits
$3,500 $6,000 $9,500
Sophomore
24-55 credits
$4,500 $6,000 $10,500
Junior
56-87 credits
$5,500 $7,000 $12,500
Senior
88 or more credits
$5,500 $7,000 $12,500


Graduate Students
Total Unsubsidized Loan
$20,500




Lifetime Borrowing Limits

Beginning 2008-2009
Student Level & Dependency Status Maximum
Federal Direct Loan
Subsidized and Unsubsidized
Maximum
Federal Direct Loan
Subsidized
Dependent Undergraduate $31,000 $23,000
Independent Undergraduate $57,500 $23,000
Graduate/Professional $138,500 $65,500


Program Benefits

  • The DL program offers many repayment options, including the Income Based Repayment Plan, the Public Service Loan Forgiveness Program, and Loan Consolidation. For additional information on forgiveness and cancellation, please visit Federal Student Aid's website on Forgiveness, Cancellation, and Discharge.
  • All Federal Direct Loan Programs have a fixed interest for the life of the loan. Please see the "Interest Rates" section of this page for current rates.
  • If the borrower meets certain criteria, the DL program has a repayment incentive program whereby the interest rate charged on a borrower's loan(s) may be reduced.

Managing Federal Direct Loan Repayment

All borrowers are encouraged to review their National Student Loan Data System (NSLDS) records (www.nslds.ed.gov) and monitor their loan debt. NSLDS not only provides a detailed record of each loan transaction, but also includes servicing information for all federal loans. Borrowers with both FFELP and DL may have multiple loan servicing agents and thus more than one minimum monthly payment. Borrower's are encouraged to work with their servicing agents to maintain a workable and affordable payment plan.

For more information on repayment, please visit: Education Loan Repayment.

The DL Program offers consolidation to assist borrowers with multiple payments. This is the process of combining one or more eligible federal loans into a single new loan.

Federal Direct Loan Program Information

More information about the Federal Direct Loan program can be found by visiting the Federal Student Aid, United States Department of Education website.

My Federal Direct Loan Information

Borrowers can review their personal Federal Direct Loan information by visiting www.studentloans.gov.

Perkins Loan

The Perkins loan is a federal campus-based (limited fund)loan available to qualified undergraduate students.  Students must have substantial financial need to be eligible for a Perkins Loan. Additionally, in an effort to limit student loan debt, Perkins loan funds generally are not awarded to students in their senior year unless they have previously borrowed under the Perkins loan program. Loan amounts range from $500 to $2,500.

The Perkins loan does not accrue interest. Payments are not due on the loan during the in-school period.  Repayment begins nine months after the student leaves school and 5% simple interest is charged on the unpaid balance of the loan.

First time Perkins Loan recipients are required to complete the Perkins Promissory Note.  The Perkins Promissory note may be completed online 3-5 days after the Perkins loan is accepted. Failure to complete the promissory note will result in the delayed processing and potential cancellation of the Perkins award. [Perkins Promissory Note]

Questions about Perkins repayment and delinquency are answered by the Student Loan Service Center (SLSC), (518) 525-2626.


Alternative Loan

Alternative Loans are private education credit based loans that are offered by several financial lending institutions. Not everyone will credit qualify for these loans. Alternative loans are designed to finance your remaining cost of attendance after all other sources of federal aid are exhausted.

The University at Albany strongly encourages you to complete your Free Application for Federal Student Aid (FAFSA) in order to receive the Federal Direct Loans. Qualified Federal Direct borrowers can receive Federal Direct loans regardless of need.

Shortly after receipt of your FAFSA form, you will receive an award letter itemizing your financial aid eligibility. If you still feel that it is necessary to borrow an alternative loan once your financial aid package is awarded to you, research any financial lending institution of your choice to cover your remaining educational expenses.

Also, when deciding upon how much to borrow, practice smart borrowing techniques and only borrow those funds that you need. A refund from your alternative loan may be nice up front, but could be very costly down the road!

Lastly, if possible, have a cosigner (parent, grandparent, aunt, uncle, etc.) apply for the loan with you. Often lenders require the use of cosigners, and it can be very cost effective for the primary borrower to use a cosigner as interest rates will most likely be drastically reduced.

For a detailed comparison of alternative loans and federal student loans, please click on the following link http://www.studentaid.ed.gov/types/loans/federal-vs-private .

Alternative Loan Disclosures

In accordance with the Truth in Lending Act (TILA), financial lending institutions are required to provide students with three loan disclosures. Each disclosure informs the borrower of specific information regarding the loan.

  1. Application Disclosure: the Application Disclosure is generally presented to the borrower along with the loan application. If the disclosure is not provided with the initial loan application, the lender will be required to mail an Application Disclosure to the borrower within three days after an application is received.

    The Application Disclosure contains pertinent information about:
    • the range of rates
    • fees
    • other terms that apply
    • total cost of the loan
    • federal student loan options
    Please be aware the Application Disclosure must be accepted and signed by the borrower and cosigner in order to proceed through the application process.

  2. Approval Disclosure: the Approval Disclosure is provided to the borrower electronically or by mail when the lender has conditionally approved or approved the borrower for a loan.

    The borrower and cosigner will receive the Approval Disclosure as part of the application process before the promissory note is signed. The Approval Disclosure must be accepted by both the borrower and cosigner within 30 calendar days of the credit offer. The Approval Disclosure must state the acceptance date deadline and the manner in which the lender requires the borrower to accept the terms of the loan. If any permissible changes (i.e. changes made to accommodate a borrower request) are made to the loan, a new disclosure and 30 day acceptance period is required to accept new terms.

    Remember that the Approval Disclosure must be accepted and signed by the borrower and cosigner (if applicable) prior to continuation of the application process.

  3. Final Disclosure: the Final Disclosure is presented to the borrower after the loan terms have been accepted. A three day recession period occurs after the Final Disclosure is presented to the borrower.

    The Final Disclosure will note the borrowers' right to cancel the loan, state the deadline for cancellation, and the methods in which a lender accepts a cancellation request.

    Lastly, the Final Disclosure provides the borrower with the final information on the cost of their loan.

Self-Certification Form

The Self-Certification Form must be completed by the borrower and returned to the lender during the application process. The self-certification form is available once the Approval Disclosure has been accepted and the promissory note has been signed.

The self-certification form is intended to promote intelligent borrowing by educating borrowers about federal financial aid availability and encouraging them to seek other forms of financial aid before borrowing an alternative loan. The borrower is required to provide his/her cost of attendance and financial aid award information on this form.

Once the self-certification form is completed, the borrower is required to sign and return the form to the lender.