MBA Financial Aid

NYU FAFSA CODE: 002785

Federal Loans

Subsidized Stafford Loan	Unsubsidized Stafford Loan	Graduate Plus Loan
Need-based. Financial need is determined by subtracting the family contribution (EFC) as determined by the FAFSA from the student's full cost of attendance. No in-school interest. The government pays the interest that accrues while the student is still enrolled, during the six-month grace period following graduation, and during periods of authorized deferment. Maximum of $4,250 per semester, if the student demonstrates financial need. 1% Default fee from HESC. .5% origination fee from most lenders.*	Not need-based. In-school interest. Interest starts to accrue 60 days after the first disbursement. Students can choose to make interest payments while in school or capitalize it (the accrued interest will be added to the principal amount at repayment). Maximum of $10,250 per semester, less the amount of Subsidized Stafford Loan funds. 1% Default fee from HESC. .5% origination fee from most lenders.*	Not need-based. Interest starts to accrue 60 days after the first disbursement Students can defer the principal only (please check with your lender) Students can borrow up to the cost of education minus other financial aid. 1% Default fee from HESC. 3% origination fee from most lenders.

Federal Loan Terms

Application & Renewal

If you are a first-time borrower, applying for federal aid is a two-step process.

File the FAFSA (Free Application for Federal Student Aid) at www.fafsa.ed.gov. The information you report is used to determine your eligibility for subsidized/unsubsidized Stafford loans and Graduate Plus loan.
Choose a lender to service your loans and complete the MPN (Master Promissory Note) by going to www.hesc.com. Your loans cannot be approved, disbursed, or adjusted until you complete this step.

If you have borrowed Stafford loans and or Graduate Plus loans before and wish to continue receiving federal aid, you must file a Renewal FAFSA at www.fafsa.ed.gov before the start of each academic year. Another MPN is not necessary if you intend to receive federal Stafford loans from the same lender. You will need to complete a new application with HESC to renew your Graduate Plus loan.
If you wish to use a different guarantor or lender not associated with HESC, please contact the MBA Office of Financial Aid for instructions. There is no penalty for using a different lender.

Eligibility

*An aggregate limit has not yet been set for the Graduate Plus loan.

Interest Rate

Federal Stafford Loan

Interest rate is fixed at 6.8 %.
For Stafford loans that disbursed before July 1, 2006, the rate is calculated based on 91 Day TBill +1.7 %
For Stafford loans that disbursed before July 1, 2006, the rate while in repayment or in forbearance is 7.22 % (91 Day TBill + 2.3 %).

Federal Graduate Plus loan

Fees

Federal Stafford Loan

Origination fee: Some lenders charge an origination fee of up to 1%.
Default Fee: Higher Education Services Corporation (HESC), New York State’s designated guarantor, will charge a 1% Default Fee for all loans whose Period of Loan (POL) begins on or after May 1, 2008.

Federal Graduate Plus loan

Origination fee: up to 3%.
Default Fee: Higher Education Services Corporation (HESC), New York State’s designated guarantor, will charge a 1% Default Fee for all loans whose Period of Loan (POL) begins on or after May 1, 2008.

Repayment

Federal Stafford Loan

Up to 10 years to repay, in addition to authorized deferment and forbearance periods.
Grace period of 6 months after you graduate, leave school, or drop below half-time enrollment, whichever comes first.
Federal loans may be consolidated into a new, single loan with a fixed interest rate.
Lenders typically offer four repayment plan options for Stafford loans.

Federal Graduate Plus loan

Payment due after graduation unless forbearance requested and granted (contact lender for details).
Up to 10 years to repay.