Student Loans

• Federal Direct Stafford Loan (DL)
• Direct Loan Grad PLUS
• Federal Perkins Loan
• Alternative Loans

Federal Direct Stafford Loan (DL)

UAlbany participates in the Federal Direct Stafford Loan (DL) Program where students and parents obtain educational loans directly from the U.S. Department of Education.

• Subsidized and Unsubsidized Loans
  
• Master Promissory Note (MPN)
  
• Entrance Counseling
  
• Interest Rates and Fees
  
• Annual Borrowing Limits
  
• Lifetime Borrowing Limits
  
• Program Benefits
  
• Repayment
  
• Program Information
  
• My Direct Loan Information
  

Subsidized and Unsubsidized Loans

Subsidized Loans
Direct Subsidized Loans are federally guaranteed loans based on financial need. Your eligibility is a result of the information provided on the Free Application for Federal Student Aid (FAFSA). Interest does not accrue on the loan while you are in school at least half-time.

Unsubsidized Loans
You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Interest accrues on the date of disbursement and continues to accrue interest throughout the life of the loan. You can make interest payments while in school or allow the interest to be capitalized (added to the principal amount of your loan).  Please note for loan periods beginning on or after July 1, 2012 the interest subsidy on Graduate Direct Loans has been eliminated. Eligibility will be limited to Direct Unsubsidized Loans.

Stafford Master Promissory Note (MPN)

Go to www.studentloans.gov, and follow the below steps to complete the MPN:

1. Click on the Sign In button in the upper left hand corner to log in.
2. Select "Complete MPN", the third category found on the bottom left corner of the page.
3. Select the "Subsidized/Unsubsidized" link.
4. Fill in the Personal Information section.
5. Upon reaching the School Information section, choose NEW YORK in the School State drop-down and UNIVERSITY AT ALBANY (SUNY) in the School Name drop-down and click on continue.
6. You will be asked for two references. These references should be:
   1. Two persons with different U.S. addresses and telephone numbers. If the reference does not have a telephone number, enter N/A.
   2. Your references should be persons who you have known for at least three years.
   3. The first reference should be a parent or legal guardian.
7. Review all sections in the Terms & Conditions disclosure. Once reviewed, check the acknowledgement in SECTION G, and continue.
8. Review all entered data for accuracy. If you encounter an error, edit that section. Otherwise sign your name exactly as it appears in the "Borrower Section" and submit.
9. You will be prompted to view the MPN one last time. Once reviewed, close the MPN screen and click submit.

Stafford Entrance Counseling

First time UAlbany Stafford Loan borrowers must complete Direct Stafford Loan Entrance Counseling prior to disbursement of funds. To complete the Direct Stafford Entrance Loan Counseling online, please:

• Visit www.studentloans.gov
• Click on the Sign In button in the upper left hand corner to log in.
• Select "Counseling", the forth category found on the bottom left corner of the page.
• Counseling Options: Chose the counseling option that fits your academic career (undergraduate or graduate).
• Guidelines: Please allow 20-30 minutes to complete the online counseling session.
• School Information: Choose NEW YORK in the School State drop-down and UNIVERSITY AT ALBANY (SUNY) in the School Name drop-down and click on continue.
• Counseling Session/Quiz: Read text, answer questions.

The Department of Education will notify UAlbany within 2-3 days after the Stafford Entrance Counseling is completed online.

Interest Rates and Fees

Academic Career	Loan Type	Academic Year	Interest Rate	Origination Fee
Undergraduate	Subsidized Stafford	2012-13	3.40%	1.00%
Undergraduate	Unsubsidized Stafford	2012-13	6.80%	1.00%
Graduate	*Subsidized Stafford	2012-13	6.80%	1.00%
Graduate	Unsubsidized Stafford	2012-13	6.80%	1.00%
Parent	Parent PLUS	2012-13	7.90%	4.00%
Graduate	Grad PLUS	2012-13	7.90%	4.00%

* Please note for 2012-2013, subsidized loans for graduate students are limited to loan periods beginning prior to July 01, 2012.

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 Stafford (Subsidized and Unsubsidized)	Maximum 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.
• The DL PLUS loan program has a fixed 7.9% interest rate.
• 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 Stafford 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.

Direct Loan Program Information

More information about the Federal Direct Loan program can be found by visiting the Direct Loan page for Students at the United States Department of Education website.

My Direct Loan Information

Borrowers can review their personal 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. 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 Stafford Loans. Qualified Stafford borrowers can receive Stafford 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.

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.