Queens College works with our students who are in need of educational loans as a part of a financial assistance program.
William D. Ford Federal Direct Loan Program
The federal government–not a bank or other lending institution–is your lender and makes the loan directly to you or your parents through the school. The school determines your eligibility, calculates the loan amount, and disburses the money. Once the loan is made, it is managed and collected by the U.S. Department of Education. Your direct loan is money that is borrowed and must be repaid after you leave school.
After you apply and receive your Direct Loan, you will be contacted by your loan servicer (you repay your loan to the loan servicer). Your loan servicer will provide regular updates on the status of your Direct Loan, and any additional Direct Loans that you receive.
Three separate programs provide federally insured, low-interest, long-term loans to you or your parents to help you cover the costs of attending college: Subsidized, Unsubsidized, and Parent PLUS loans.
(Any combination of Subsidized and/or Unsubsidized)
(Any combination of Subsidized and/or Unsubsidized)
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 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.
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).
How to Apply
If you haven’t already done so, you must first file a Free Application for Federal Student Aid (FAFSA).
If you are a first-time Direct Loan borrower, you must complete Entrance Counseling* and an Electronic Master Promissory Note (MPN)** located on the Student Aid website.
Complete a Direct Loan Request by accessing your CUNYfirst Student Center page:
- Log into your CUNYfirst account
- Click on the Financial Aid tile
- On the left side, scroll down and click on the Direct Loan Processing form link
- Complete the form and submit
*Student loan entrance counseling is a mandatory process that is intended to help borrowers better understand the responsibilities that they will be taking on with this federal loan. The entrance counseling will walk borrowers through the importance of repayment, and the consequences of failing to do so. It will also discuss important points like how interest accrues and is capitalized. Finally, it will discuss repayment options for students and resources they have access to as borrowers.
**An MPN is a legal document that contains the Borrower’s Rights and Responsibilities and Terms and Conditions for repayment. Direct PLUS and Direct Subsidized / Unsubsidized loans have different MPNs. An MPN can also be good for up to 10 years if certain enrollment requirements are met.
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 the Loan Coordinator, Ms. Socorro Gago at Socorro.Gago@qc.cuny.edu
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:
- 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.
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 National Student Loan Data System (NSLDS).
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.
School Code – F5