Federal Loans

Federal Direct Loans

Federal Direct Loans are low-interest loans provided by the U.S. Department of Education to help students and families pay for college. Loan funds are borrowed, they must be repaid after you leave school or drop below half-time enrollment.

The Federal Direct Loan Program includes three types of loans: Subsidized Loans, Unsubsidized Loans, and PLUS Loans, each with different eligibility requirements and benefits designed to help cover the cost of attending college.

Subsidized Loans

Federal Subsidized Loans are available to eligible undergraduate students who demonstrate financial need based on information from the FAFSA. The U.S. Department of Education pays the interest on your loan while you are enrolled at least half-time, during your six-month grace period after leaving school, and during eligible periods of deferment.

Note: For Direct Subsidized Loans first disbursed between July 1, 2012, and July 1, 2014, the borrower was responsible for interest that accrued during the six-month grace period. Any unpaid interest may have been added to the loan’s principal balance.

See Federal Student Aid for current interest rates and fees.

Unsubsidized Loans

Direct Unsubsidized Loans are available to eligible undergraduate and graduate students, and you do not need to demonstrate financial need to qualify. Unsubsidized Loans allow you to borrow additional funds beyond any Direct Subsidized Loan for which you may be eligible.

You are responsible for paying the interest on an Unsubsidized Loan from the time the loan is disbursed, including while you are enrolled in school and during grace, deferment, and forbearance periods. If you choose not to pay the interest as it accrues, the unpaid interest may be capitalized and added to your principal balance.

Note: If you choose not to pay the interest while you are in school and during grace periods and deferment or forbearance periods, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

See Federal Student Aid for current interest rates and fees.

PLUS Loan

PLUS loans are available to help cover education expenses that are not covered by other financial aid. There are two types of Direct PLUS Loans: Parent PLUS Loans for parents of dependent undergraduate students and Graduate PLUS Loans for eligible graduate and professional students.

Parent PLUS Loans

Parents of dependent undergraduate students may borrow a Parent PLUS Loan to help cover costs not met by other aid:

  • Annual limit: $20,000 per dependent student
  • Lifetime limit: $65,000 per dependent student. This limit is shared by all parents borrowing for that student.
  • Legacy borrowers: If a Parent PLUS Loan was disbursed for your student before July 1, 2026, you may keep borrowing under the previous limits for up to three academic years or until your student finishes their current program, whichever comes first.

A credit check is required to receive a Parent PLUS Loan. If you have an adverse credit history, you may still qualify by obtaining an endorser who does not have an adverse credit history or by documenting extenuating circumstances to the U.S. Department of Education. The endorser cannot be the student for whom you are borrowing. If you qualify through either option, you must also complete PLUS credit counseling at StudentAid.gov.

  • A credit check is required. If a parent is denied, the dependent student may qualify for additional Unsubsidized Loan funds.
  • Interest accrues from disbursement, and repayment is the parent’s responsibility.

Graduate PLUS Loans

Graduate PLUS Loans are no longer available to new borrowers as of July 1, 2026. You may still qualify under the legacy provision if both of the following are true:

  • You received a federal Direct Loan disbursement before July 1, 2026, while enrolled in your current graduate program.
  • You remain continuously enrolled in that same program at Queens College.

Eligibility lasts up to three academic years or until you complete the program, whichever comes first. Changing programs, withdrawing, or a lapse in enrollment ends legacy eligibility.

Requesting a PLUS Loan

To request a PLUS Loan application, contact the Direct Loans Team at directloans@qc.cuny.edu.

  • All PLUS borrowers must sign a PLUS Master Promissory Note, which is your agreement to the loan terms.
  • If you qualify for a Graduate PLUS Loan under the legacy provision and have never received one before, complete Entrance Counseling.

Starting July 1, 2026, new annual and lifetime borrowing caps are being introduced, Graduate PLUS Loans are being eliminated for new borrowers, and loan amounts will be adjusted based on enrollment. Find more information about the One Big Beautiful Act here.

federal Loan borrowing limits

Your loan aggregate limit is the maximum amount you may borrow through the Federal Direct Loan Program, including both Direct Subsidized and Direct Unsubsidized Loans.

You are also subject to annual loan limits and total (aggregate) limits that apply throughout your academic career. These limits depend on:

  • Your year in school
  • If you are a dependent or independent student
  • If your parent is eligible for a Direct PLUS Loan (dependent students whose parents are denied a PLUS Loan may qualify for additional Unsubsidized Loan funds)

The chart below outlines the maximum annual and total loan limits you may be eligible for. Please note your requested loan amount is not guaranteed. All loan requests are reviewed and certified by Financial Aid Services based on your grade level, dependency status, and cost of attendance. The annual limit is the most you can request for the academic year (Summer, Fall, and Spring).

Dependent Students

(Annual limit is combination of Subsidized and/or Unsubsidized)

Year Max Subsidized You May Request Annual Borrowing Limit
Freshman $3,500 $5,500
Sophomore $4,500 $6,500
Junior/Senior $5,500 $7,500
Graduate – –

 

Independent Students

(Annual limit is combination of Subsidized and/or Unsubsidized)

Year Max Subsidized You May Request Annual Borrowing Limit
Freshman $3,500 $9,500
Sophomore $4,500 $10,500
Junior/Senior $5,500 $12,500
Graduate  – $20,500

 

Maximum lifetime loan limit

If you reach your lifetime (aggregate) loan limit, you cannot receive more federal loans. However, if you repay part of your loan balance and go below the limit, you may become eligible to borrow again up to the remaining amount allowed.

Dependency Status Maximum Subsidized and Unsubsidized Maximum Subsidized
Dependent Undergraduate $31,000 $23,000
Independent Undergraduate $57,500 $23,000
Graduate & Professional $100,000 –
All federal student loans combined (undergraduate + graduate, excluding Parent PLUS) $257,500 –

 

APPLYING FOR A FEDERAL LOAN

  1. Complete the FAFSA application for the academic year you are requesting the loan.
  2. If you are a first-time Direct Loan borrower, you must complete: Entrance Counseling, an online session explaining your responsibilities and repayment, and the Master Promissory Note (MPN), a legal document outlining your loan terms and rights.

Once the above steps are complete, submit a Direct Loan Request on your CUNYfirst Student Center:

  1. Log in to your CUNYfirst account
  2. Navigate to Student Center
  3. Click the Financial Aid tile
  4. On the left hand side, select Direct Loan Processing Form
  5. Read all 12 items carefully
  6. Complete and submit the form

Important Notes:

  • Undergraduate students may borrow both Subsidized and Unsubsidized Loans (depending on eligibility).
  • Graduate students may only borrow Unsubsidized Loans.
  • When requesting a loan, keep in mind that fees are deducted from the total amount. You can find up-to-date information about interest rates and fees on the Federal Student Aid website.
  • If you accept a loan award on Cunyfirst, it will be split between Fall + Spring.

When completing your Direct Loan Request:

  • Make sure you are completing the loan application for Queens College and for the correct academic year. The college and academic year is displayed in the top left-hand corner of the application. 
  • If you plan to borrow a loan for one semester, only enter the credits for that specific semester.
  • If you plan to borrow for multiple semesters, enter the number of credits for each semester you intend to receive the loan. Please keep in mind that the loan amount you request will be split evenly across the semesters you select.

Eligibility Requirements

The following requirements must be met in order for your federal loan to disburse:

  • A valid FAFSA for the academic year you are requesting the loan.
  • Be a U.S Citizen or eligible noncitizen. 
  • Completion of all CUNYfirst “To Do” items. If you have a “Verify My FAFSA” item, it must be completed and processed.
  • Completion of Entrance Counseling and Master Promissory Note (MPN).
  • Enrollment in an eligible degree or certificate program. 
  • Enrollment in at least 6 credits (half-time).
  • Must be meeting Satisfactory Academic Progress (SAP).
  • Not be in default on any existing federal student loan or owe a refund on a federal grant. 
  • Must have borrowing eligibility remaining.

Important: If you request a loan for the academic year and your enrollment in a previous semester drops below half-time or you no longer meet eligibility requirements, your loan for the next semester will not be processed. You must contact the Loans Team to have the loan reinstated at directloans@qc.cuny.edu.

exit counseling and repayment

Exit Counseling

Exit counseling provides important information to prepare you to begin repaying your federal student loan(s).

If you have received a subsidized, unsubsidized or PLUS loan under the Direct Loan Program or the Federal Family Education Loan Program, you must complete exit counseling each time you:

  • Graduate
  • Leave school
  • Drop below half-time enrollment

Exit Loan Counseling is completed online at Federal Student Aid. The entire counseling process must be completed in a single session. Exit counseling may take up to 20 minutes or more to complete. Once you finish, any related hold on your account will automatically be released within 1–2 weeks.

To complete Exit Counseling you will need:

  • A verified FSA ID
  • Details on your income, financial aid, and living expenses
  • Names, addresses, e-mail addresses and phone numbers of two references, preferably at least one next of kin (close relative).

For a complete and detailed history of a student’s loan debt, as well as federal grants received, a student can use their FSA ID to log in to the Studentaid.gov website.

Repayment

Repayment is the process of paying back the money you borrowed through federal student loans. After you leave school, graduate, or drop below half-time enrollment, you are responsible for repaying your loans according to a schedule set by your loan servicer. Making regular payments on time helps you avoid penalties, protects your credit, and keeps you on track to fully repay your loan.

Borrower Grace Period:

  • After you graduate, leave school, or drop below half-time enrollment, you have a 6 month grace period before you must begin repaying your Direct Loans. PLUS Loans begin repayment as soon as they are disbursed, though Grad PLUS borrowers may be eligible for automatic deferment while enrolled at least half-time.

Loan Servicer Information:

  • Sign in to Federal Student Aid’s dashboard to view all federal loans, balances, and your loan servicer.
  • Still not sure who your loan servicer is? You can find that information here.

Repayment Plans:

  • Most federal loans require repayment after you graduate, leave school, or drop below half-time. Direct Subsidized and Unsubsidized Loans include a six-month grace period. PLUS Loans for graduate students may defer automatically.

  • Your loan servicer provides your repayment schedule and options. You can pay monthly or make extra payments to reduce interest.

  • For more information, visit Federal Student Aid’s Repayment page.

Loan Consolidation

  • Combine multiple federal loans into one Direct Consolidation Loan for a single monthly payment.

  • Can lower monthly payments and provide longer repayment terms (up to 30 years).

  • For more information, visit Federal Student Aid’s Loan Consolidation page.

Postponing Loan Payments:

  • In certain situations, you can temporarily postpone or reduce your federal student loan payments. This is called a deferment or forbearance. Interest usually does not accrue on subsidized loans during deferment, but it does accrue on unsubsidized loans and during forbearance.

  • Deferment and forbearance do not count toward your total repayment time, so your loan term may still be the same.

  • Most requests are not automatic, you must contact your loan servicer to apply. If you are enrolled at least half-time, you may qualify for an in-school deferment. You will need to submit a “Deferment Form” to the Registrar’s Office so they can verify your enrollment. 

  • For more information, visit Federal Student Aid’s Temporary Relief page. 

Federal Perkins Loan Program

The Federal Perkins Loan Program provided low-interest loans to help students in need to finance the costs of postsecondary education at Queens College. The Perkins Loan Program ended September 30, 2017 and is no longer available.

Current Federal Perkins Loan borrowers can contact the loan servicer, ECSI, to complete your Exit Interview, payment options, deferments, cancellations, and details regarding your Federal Perkins Loan account.

ECSI

Phone: 1-888-549-3274

Website: https://home.ecsi.net/

School Code – F5

CONTACT THE LOANS TEAM

Have specific questions about your loans? Contact our Direct Loans team for assistance. We can help answer your questions and guide you through your loan options and process.

directloans@qc.cuny.edu