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The Direct Loan is not a Grant; it must be Repaid
Direct Loan Interest Rates for Subsidized Loans & Unsubsidized Loans Interest rate: 2013‐14 6.8% fixed Fees: 1.05% origination fee Loan Limits Subsidized and/or Unsubsidized Additional Unsubsidized Dependent Undergraduates
Aggregate Limits (cap the total amount of Federal Direct Loans a student can accumulate) Aggregate Limits(cap the total amount of Federal Direct Loans a student can accumulate)
•
Dependent Undergraduates
$31,000 (no more than $23,000 may be subsidized)
•
Independent Undergraduates
$57,500 (no more than $23,000 may be subsidized)
Once a student has reached the maximum aggregate loan limits, he is no longer eligible to receive federal student loans, and may instead consider a private student loan.
REMEMBER:
• As a borrower, you are obligated to repay the full amounts of your loans, plus interest, even if you do not complete your program of study. Even if you Do not like the school or program; or do not obtain employment after completing your program of study. You are required to abide by the terms of the loan.
• No loan will be certified for an amount greater than your cost of education.
• If your enrollment drops below half-time (6 credits) enrollment, but you are not fully withdrawn, you may not be eligible for payment.
• If you withdraw from all of your classes during the semester, your loan will be Pro-rated, based on your length of enrollment.
• Once you drop below half-time (6 credits) enrollment, it is your responsibility to complete an Exit Interview online.(www.studentloans.gov)
Important:
Private Education Loan Programs
Alternative Loans (Private Education Loans) are offered through private lenders
and are meant to provide additional educational funding only after a student and
his/her family 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 the loans require a credit check and most
will require a cosigner if the borrower has little or negative credit history. CUNY
does not recommend any specific lender/programs. Contact the lenders of your
choice for details about their program and application process.
Certification for Private Loans will be handled in the following manner:
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ACADEMIC YEAR 20132014
Summer Sessions (1-4) 2013
Fall 2013 and Spring 2014
LOAN PROCESSING PACKAGE
Before you decide to borrow, we urge you to go to the web-site www.studentloans.gov and read “Direct
Loan Counseling Guide For Borrowers” that will provide you with information about Direct Loans. If
you have any questions, please see a Financial Aid Counselor at the service window.
If you are interested in applying for a Direct Loan for Summer 2013, Fall 2013, and Spring 2014, you must use the attached processing form and follow the procedures below:
1. File the 2013-2014 “Free Application for Federal Student Aid” (FAFSA). When the FAFSA is
processed, CITY TECH will receive an electronic record of your information. You may be required to verify information and submit documentation before the loan can be processed.
2. ALL questions must be completed, or the processing of your application will be delayed!
Drop the completed form in the Direct Loans Drop Box located outside the Financial Aid office Room, NG-13, or the application can be faxed to the Financial Aid office.
WHAT WILL HAPPEN UPON RECEIPT OF YOUR LOAN FORM? If you have satisfied all of the requirements, within 14 business days, you will receive a Loan Disclosure Statement letter. New borrowers must sign The Master Promissory Note on‐line. If there are problems with your form, you will be sent one of the following notices advising you of your status: NOTICE NO. 1:
If you did not complete the Entrance Interview Online, please refer to the fact sheet on the next page for instructions.
NOTICE NO. 3:
You will be advised that PROBLEMS EXIST with your data. The problems must be resolved before we can process your loan, or you will be advised that we HAVE NOT received your FAFSA data authorizing us to process your loan. We will continue to check the federal file on a weekly basis. Once the
information is received and finalized, we will continue the processing of your loan.
William D. Ford Federal Direct Loans
Fact Sheet
New York City College of Technology participates in the Federal Direct Loans Program in which the lender is the United States Department of Education. If you are eligible for a loan, the government will lend money directly to you through the City University of New York. Unlike the Federal Stafford Loan Program, banks are not involved.
DIRECT LOANS PROCESSING REQUIREMENTS:
1.
You must first file and receive a response to the 2013-2014Free Application for
Federal
Student
Aid (FAFSA).
All problems must be resolved.2.
You must be enrolled for at least 6 credits or equivalent hours and should remain in 6 credits or equivalent hours, until the end of the respective semester. Students who have attempted 30 remedial hours must register for at least 6 non- remedial credits to qualify for a Direct Loan.3.
You are required to maintain the college satisfactory academic standards.4.
You must complete a Direct Loan Entrance Interview for City Tech, by going to:www.studentloans.gov and proceed as follows:
• Click on Take Entrance Counseling Session
• Print out the confirmation page and bring it to
the Office of Financial Aid
(If you completed an entrance interview on-line for another college, you must go on-line and add New York City College of Technology to your school list
(use lower-case letters only).
Remember: Annual Loan limits include Summer 2013, Fall 2013 and Spring 2014.
If you choose to use your maximum annual loan limits in one semester (for example:
MASTER PROMISSORY NOTE REQUIREMENTS
FIRST TIME BORROWERS AT CITY TECH:
Upon origination of your Direct Loan, you will receive a Loan Disclosure Statement in the mail. The Loan Disclosure statement will indicate the loan amount, loan periods, type of loan, and the anticipated disbursement dates.
Next, you will need to sign The Master Promissory Note on-line. (for both the Direct Subsidized and
Unsubsidized loans) Please go to: www.dlenote.ed.gov and follow the 9 steps to complete the process.
PREVIOUS BORROWERS:
When your Direct Loans are originated, you will only receive a Disclosure Statement from the Direct Loans Servicing Center. The disclosure statement will indicate the loan amount, loan period, type of loan and the anticipated disbursement dates. Your Master Promissory Note previously on file with Direct Loans will satisfy any additional Direct Loans you take at City Tech.
**HOW TO MAKE CHANGES TO YOUR LOAN Information**
(Please Submit ONLY one Loan Processing Form per Academic Year)If you need to request an increase, reduction, cancellation, or a change of the loan type, you must complete our Direct Loans Status Change Form (located on the shelf outside the Financial Aid Office NG-13). Please Note - No duplicate Loan processing forms will be accepted within the 2013-14 academic year. You can submit the form to the Financial Aid Office or mail/fax the form to the Financial Aid Office, room NG-13 at 300 Jay Street, Brooklyn, New York 11201.
Current Interest Rates
Both Subsidized and Unsubsidized loans are at a fixed 6.8 percent interest Rate for borrowers whose first disbursement is made on or after July 1,2013. This change does not affect the interest rate for Subsidized loans first disbursed prior to July 1,2013.
Alternative Private Loans:
If eligible, you must first complete the requirements we have outlined for Direct Loan Borrowers. Then refer to our handout, located on the Direct Loan shelves outside the Office of Financial Aid.
Academic year 2013 -2014 Direct Loan Processing Form
Borrower Information To Be Completed By Student
(You must PRINT this information legibly)
1.
Name:(Last) (First) 2.
SS#: - - CUNYFIRST ID# Email address: 3.
Telephone: ( ) Birth Date: / / 4.
Permanent Address: Apt: 5.
City: State: Zip:
6.
References: Please provide two persons that reside in the U.S. with different Addresses, who will know your whereabouts for at least three years.Name 1. 2.
Street Address City, State, Zip Code Telephone number
Loan Types
There are two types of William D. Ford Federal Direct Loans: The Subsidized is based on your financial need, and The Unsubsidized is not based on need. You will automatically be considered for the Subsidized Loan. To be considered for the Unsubsidized Loan, you must check the box below. Interest will be charged on your Direct unsubsidized loan from the day the loan is disbursed until the loan is paid in full.
7. Direct Subsidized Direct Unsubsidized Loan Amount Requested:
X
• Have you ever borrowed a Direct Loan from CityTech?• Will you be enrolled at CityTech for at least 6 credits in the Summer 2013 semester? • Will you be enrolled at CityTech for at least 6 credits in the Fall 2013 semester?
• Will you be enrolled at CityTech for at least 6 credits in the Spring 2014 semester?
Yes Yes Yes Yes No No No No
8. Will you be graduating at the end of the Summer13? Yes__ No__ (or)Fall13? Yes__ No__ (or) Spring14? Yes__ No__
9. Which semester or semesters are you requesting your loan to be processed for?
Summer 2013_____________ (funds will disbursed when 6 credits have been completed) Fall 2013___________ Spring 2014____________
Processing Certification: Your signature below certifies that you understand that this processing form is not a Promissory Note. First time borrowers must sign The Master Promissory note on-line. Please note, that the Office of Financial Aid will determine eligibility for the William D. Ford Direct Loans based on Federal Law.