Fordham University            The Jesuit University of New York
 


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Federal Direct Subsidized/Unsubsidized Loans










Federal Direct Subsidized/Unsubsidized Loan


Click here to view a detailed chart on the Federal Loan Program

Eligibility for subsidized loans is need based. The federal government pays (subsidizes) the interest during in-school, grace and deferment periods for subsidized loans. For unsubsidized loans the interest which accrues during in-school, grace and deferment periods may be paid by the student or capitalized. Students are not required to make payments on Stafford loans until after their in-school and grace periods are over.

  • Fixed interest rate of 3.86% for Direct Stafford loans. 
  • Net origination fee of 1.072% deducted from each loan disbursement

Fordham School of Professional and Continuing Studies & Gabelli School of Business Evening Students should review and complete the 2013-14 Professional and Continuing Studies & Gabelli Evening Financial Aid Application to receive aid and/or loans.

The FAFSA can be filed at http://fafsa.ed.gov

The MPN and Entrance Counseling can be completed at http://studentloans.gov

You can confirm that Fordham has received your completed MPN and Entrance Counseling by clicking on the Documents tab of the Financial Aid section of your my.fordham.edu account.

Click on the links below for detailed information about the Direct Stafford Loan:

Application Process
Eligibility
Master Promissory Note (MPN) & Entrance Counseling
Repayment Options
Rates and Fees
Disbursement
Cost of Attendance
Loan Limits
Deferment and Forbearance
Consolidation
Calculate Your Monthly Payments
Direct Loan Glossary
Additional Resources

 

Application Process

For Full Time traditional students, Your Full Direct Stafford Loan eligibility will be offered to you on your award letter/notification. It will be processed once you accept it online at my.fordham.
PCS & Gabelli Evening students must complete the   2013-14 Professional and Continuing Studies & Gabelli Evening Financial Aid Application in order to receive aid and/or loans.

 

Eligibility

To be eligible, you must be:

  • accepted and matriculated in a degree granting program
  • making satisfactory academic progress
  • enrolled at least half-time
  • not be in default on any federal student loan

 

Master Promissory Note (MPN) & Entrance Counseling

The MPN is your promise that you will repay these funds. The Entrance Counseling is an online tutorial that gives you more details about your loan including your rights and responsibilities. Both can be completed at http://studentloans.gov . Students who received funds from the Direct Stafford Loan program at Fordham in prior years do NOT have to complete another MPN or Entrance Counseling Session.

You may only receive Direct Stafford Loan funds after the FAFSA, Master Promissory Note (MPN) and Entrance Counseling have been completed. You can confirm that Fordham has received your completed MPN and Entrance Counseling by clicking on the Documents tab of the Financial Aid section of your My.Fordham account.

 

Repayment Options

Repayment begins 6 months after graduation or when you drop below half-time. Repayment begins immediately after you drop below half time enrollment if you have already used your 6 month grace period.

Below is a brief description of repayment options. Please click on each plan for further details.

Standard Repayment Plan
Repayment is up to 10 years and monthly payment is fixed.

Graduated Repayment Plan
Repayment is up to 10 years. Payments are lower at first then increase every two years.

Extended Repayment Plan
Repayment is up to 25 years. Payments may be fixed or graduated.

Income Based Repayment Plan (IBR)
Repayment is up to 25 years. Your maximum monthly payments will be 15 percent of “ discretionary income”. Your payments change as your income changes. If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven.

Pay As You Earn (PAYE)
You must be a new borrower on or after 10/1/2007. Repayment is up to 20 years. Your maximum monthly payments will be 10 percent of “discretionary income”. Your payments change as your income changes. If you have not repaid your loan in full after making the equivalent of 20 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven.

Income Contingent Repayment Plan (ICR)
Repayment is up to 25 years. Payments are calculated each year and are based on your adjusted gross income, family size, and the total amount of your Direct Loans. If you have not repaid your loan in full after making the equivalent of 25 years of qualifying monthly payments, any outstanding balance on your loan will be forgiven.

 

Rates and Fees

The interest rate for Federal Direct Stafford loans is 6.8%. The origination fee is 1.072%.

Interest begins to accrue on the date of loan disbursement and continues to accrue during in-school, grace and deferment periods. Interest accrued during in-school, grace and deferment periods may be paid or capitalized. You are not required to make payments until after the completion of in-school and grace periods.

Origination fees are deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You're responsible for repaying the entire amount you borrowed and not just the amount you received.

 

Disbursement

The initial loan you request should cover all terms in which you would like to borrow. We encourage you to make just one loan request for the year to avoid adjustments to your aid later on in the year. It also helps you avoid incurring additional fees during the year due to any new legislation (Sequestration is an example). Your loan can always be decreased during the year at your request.

You will be notified when funds are posted to your account. If you subsequently decide you do not need these funds, you must notify Student Financial Services in writing. The timing of your loan disbursements depends on the loan period you choose. Your total loan amount is spread across the number of semesters or trimesters you plan to attend. For example:

  • If you are attending the fall & spring terms, there will be two disbursements. Half of your loan will disburse at the beginning of the fall term and the other half at the beginning of the spring term.
  • If you are attending only one term, there will be one disbursement at the beginning of the term and your total loan amount will be sent to Fordham in one payment.


Cost of Attendance (COA)

The Cost of Attendance (COA) is an amount used to determine your maximum financial aid eligibility for an academic year. The COA consists of standard school expenses (tuition, fees and books) and an estimate of a student's standard living expenses (housing, food, transportation, and other miscellaneous expenses). Each student's financial needs are different, so the estimated COA may be less depending on the student's circumstances.

Fordham University adjusts COA amounts annually based on a combination of factors including data from the Bureau of Labor Statistics and other sources. It is meant to provide for moderate, but reasonable living expenses in the NY area.

 

Loan Limits

Annual Direct Subsidized/Unsubsidized Loan Limits

All Independent Undergrads & Dependent Undergrads with a PLUS Denial

 

Maximum Subsidized Eligibility

Unsubsidized Eligibility

Total Eligibility

Freshman

$3,500

$6,000

$9,500

Sophomore

$4,500

$6,000

$10,500

Junior & Senior

$5,500

$7,000

$12,500

All Dependent Undergraduates

 

Maximum Subsidized Eligibility

Unsubsidized Eligibility

Total Eligibility

Freshman

$3,500

$2,000

$5,500

Sophomore

$4,500

$2,000

$6,500

Junior & Senior

$5,500

$2,000

$7,500

Aggregate Lifetime Limit: $23,000 Subsidized

$31,000 Total

$57,500 Total for independent students or students whose parents have been denied a PLUS Loan

Students can only borrow up to their total Cost of Attendance (COA) minus other aid.

 

Deferment/Forbearance

This is a period during which repayment of the principal and interest of your loan is temporarily delayed. During a deferment/forbearance, you do not need to make payments. You are responsible for paying the interest that accrues (accumulates) during the deferment period, but your payment is not due during the deferment period. You can request a deferment or forbearance by contacting your loan servicer.

Your loans are automatically put into deferment if you are a student in a degree granting program and enrolled at least ½ time.

See the federal student aid web site for further details .

 

Consolidation

A Direct Consolidation Loan allows you to consolidate (combine) multiple federal student loans into one loan. The result is a single monthly payment instead of multiple payments. This is especially helpful for students whoseloans are with different servicers. Research has shown that students with multiple servicers are more than 30% more likely to default. You can apply for consolidation at http://loanconsolidation.ed.gov .

See the federal student aid web site for further details .

 

Calculate Your Monthly Payments

Use the federal loan repayment comparison calculator to estimate what your monthly payment would be on different repayment plans.

 

Additional Resources

http://loanconsolidation.ed.gov – Apply or get details about federal loan consolidation.

http://studentaid.ed.gov – Great resource for information about all federal aid/loan programs.

http://studentloans.gov – This is where you complete your MPN, entrance counseling or apply for a PLUS loan.

http://nslds.ed.gov – Log in and get a complete listing of all your loans as well as the servicer for each. You can also complete exit counseling on this site.


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