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. Queens College determines your eligibility and loan amount based on the information submitted on your FAFSA and disburses the funds directly to your student account. Loan funds are applied first to tuition and fees, and any remaining balance is refunded to the student. Because these funds are borrowed, they must be repaid after you leave school or drop below half-time enrollment.
After your loan is processed, it will be assigned to a loan servicer, who will manage your account and provide updates about your balance, repayment options, and due dates.
The Federal Direct Loan Program includes three types of loans: Subsidized Loans, Unsubsidized Loans, and Parent PLUS Loans, each with different eligibility requirements and benefits designed to help cover the cost of attending college.
Subsidized Loans
Eligibility for this loan is based on the information you provided on your FAFSA. The U.S. Department of Education pays the interest on the loan while you are in school at least half-time, for the first six months after you leave school (referred to as a grace period*), and during a period of deferment (a postponement of loan payments).
*Note: If you received a Direct Subsidized loan that was first disbursed on or after July 1, 2012, and before July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principle balance.
For more information on loans, please visit the Student Aid website.
Unsubsidized Loans
Unsubsidized loans allows you to borrow money in addition to any subsidized loan amounts for which you may be eligible. Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need. You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
Graduate students can only apply for an Unsubsidized Loans. The maximum amount of Unsubsidized Loan that a Graduate student can receive per aid year is $20,500.
Please refer to the U.S. Department of Education’s website for the most up‑to‑date information about interest rates and fees: https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized#interest-rates.
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).
Parent PLUS Loan
This loan allows the parents of dependent undergraduate students to borrow money to help students supplement the amount of financial aid they may be receiving in addition to other grants or loan programs.
To receive a Direct PLUS Loan, you must:
Be a graduate or professional student enrolled at least half-time at an eligible school in a program leading to a graduate or professional degree or certificate, or be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at an eligible school, and meet the general eligibility requirements for federal student aid. If you are borrowing on behalf of your child, your child must also meet these requirements.
A credit check will be performed during the application process. If you have an adverse credit history, you may still receive a Direct PLUS Loan through one of these two options:
1) Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.
2) Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history. With either option 1 or option 2, you also must complete credit counseling for PLUS loan borrowers on the StudentLoans.gov website.
You will be required to sign a Direct PLUS Loan Master Promissory Note (MPN), agreeing to the terms of the loan. Graduate or professional students who haven’t previously received a PLUS loan will also be required to complete entrance counseling.
You can request a Direct PLUS Loan application by contacting our Loan Coordinator, Nandy Sukhai, at nandy.sukhai@qc.cuny.edu
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 that your requested loan amount is not guaranteed. All loan requests are reviewed and certified by Financial Aid Services based on your eligibility, grade level, dependency status, and cost of attendance. The annual limit is the most you can request for the academic year.
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 amounts
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 | $138,500 | – |
APPLYING FOR A FEDERAL LOAN
- Complete the FAFSA application for the academic year you are requesting the loan.
- 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:
- Log in to your CUNYfirst account
- Navigate to Student Center
- Click the Financial Aid tile
- On the left hand side, select Direct Loan Processing Form
- Read all 12 items carefully
- 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, you must complete the Entrance Counseling and MPN, if you are a first time borrower.
- If you accept a loan award on Cunyfirst, it will be split between Fall + Spring.
When completing your Direct Loan Request:
- 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.
- Completion of all CUNYfirst “To Do” items. If you have a “verify my FAFSA” item, it must be completed and processed.
- Completion of Direct Loan Entrance Counseling and Master Promissory Note (MPN).
- Enrollment in a degree-seeking program for at least 6 credits per semester.
Important: If you request a loan for the academic year and your enrollment in a previous semester drops below half-time, your loan for the following semester will not be processed. You will need to contact the loans team to have the loan reinstated: 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.
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