Loans are available from the federal government or private sources. If you borrow loans, be aware that you are taking on a financial responsibility and promising to pay the money back with interest.
SUNY Oswego’s Loan Code of Conduct
Federal Direct Loans
William D. Ford Federal Direct Loans are made directly by the U.S. Department of Education. Federal Direct loans generally offer lower interest and have more flexible repayment options than loans from banks or private lenders.
You may hear these loans called Stafford Loans or Direct Stafford Loans although those terms are outdated.
Direct Subsidized Loans
Available to eligible undergraduate students with demonstrated financial need. The federal government pays the interest on these loans while you are enrolled at least half-time, and during the six-month grace period after you leave school.
Direct Unsubsidized Loans
Available to eligible undergraduate and graduate students. They are not based on financial need. Unsubsidized loans accrue interest during the entire life of the loan, whether it is during the school year, grace period, or any deferment period.
Federal Direct Loans — How much can eligible undergraduate students borrow?
Annual award limits vary by loan type and other factors such as the student’s year in school. Visit the Federal Student Aid (FSA) site for more about direct loan award limits.
Federal Direct Loans — How much can eligible graduate students borrow?
Degree-seeking graduate students qualify for $20,500 per year in Direct Unsubsidized Loans when you enroll in at least 9 credit hours. Graduate students enrolled in 6 to 8 credit hours are eligible for most of this loan amount. If your cost of attendance exceeds $20,500 annually, you may inquire about Graduate PLUS loans.
Parent Loans for Undergraduate Students (PLUS)
Parents of dependent, matriculated students enrolled in at least six credits can apply for a PLUS loan. Parent borrowers must have good credit histories or an endorser (someone willing to repay the loan if the parent borrower fails to do so). The yearly limit on a PLUS is equal to the student’s cost of attendance minus other financial aid received. Parents need to apply for each academic year that they want to receive Parent PLUS Loan funds.
Parent PLUS Loans — Interest Rates
Find current interest rates on the Federal Student Aid site. There is also an origination fee charged by the government for processing the loan. That fee is deducted proportionately from each disbursement of the loan.
Parent PLUS Loans — Eligibility
We do not include the Parent PLUS Loans in student awards, but we do tell parents what their eligibility would be should they decide to apply. They can find their maximum PLUS eligibility on the Financial Aid Award letter.
Parent PLUS Loans — Disbursement
PLUS funds are disbursed to the school in two equal installments, one at the beginning of the loan period and one at the midpoint of the loan period. The funds are first used to pay school charges, and any remaining funds are refunded to either the student or parent (the parent selects the refund recipient on the application).
Parent PLUS Loans — Repayment
When repaying the loan you may contact your loan servicer to request a deferment if your child is enrolled at least half-time and for an additional six months after your child ceases to be enrolled at least half-time. If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due. Loans cannot be transferred to the student.
Parent PLUS Loans — How to Apply
Follow the Parent Direct PLUS Loan instructions on the Federal Student Aid Site:
Parents must apply for each academic year that they want to receive Parent PLUS Loan funds. The parent applying for the loan must use their own their own FSA ID to complete a parent Direct PLUS Loan. A credit decision will be displayed upon completion. If the credit is denied, additional information will be given should you choose to appeal the decision.
The entire Direct PLUS Loan Application process must be completed in a single session. It takes about 20 minutes to apply.
What you will need:
- Parent’s Verified FSA ID
- Requested Loan Amount
- Personal Information
- Employer’s Information
The application takes 1-2 business days to reach SUNY Oswego. At that point we will update the application requirement on the student’s myOswego. If the credit is denied, the student will automatically be offered the additional unsubsidized eligibility when the application is processed.
Graduate PLUS loans
The Graduate PLUS Loan is a federally guaranteed loan that can be used to cover the full costs of graduate school, including reasonable living costs. Anyone who is a U.S. citizen, enrolled in a graduate program at least half time, and has minimally acceptable credit is eligible. Some non-degree programs, such as some teacher certificate courses, do not qualify for PLUS loans.
Master Promissory Notes
If you’re getting a federal loan for the first time, you must complete a document called the Master Promissory Note (MPN). This is your official promise to repay the loan. A Parent Loan for Undergraduate Students (PLUS), will require the parent borrower to submit a PLUS Loan Application for the current aid year and also complete an MPN.
Each applicable promissory note must be electronically signed and complete before loan funds can be disbursed. MPNs are generally good for 10 years, so most borrowers do not typically need to complete them more than once over the course of a degree.
Student Loan Entrance Counseling
After you submit your Master Promissory Note (MPN), first-time borrowers must complete Entrance Counseling at studentaid.gov intended to help you better understand the responsibilities that you will be taking on by borrowing federal loans. If you accept loans on your package and do not complete the Entrance Counseling, the aid will not disburse until counseling is complete.
About Loan Entrance Counseling
Private Loans
In addition to federal loans, private loans may help cover education expenses. These private loans typically have higher interest rates, as well as repayment terms that are not as favorable as federal loans. If needed, we encourage you to compare lenders that best fit your needs.
For a listing of some of the available private loans, visit:
Home Equity Loans
Home equity can be a very good option for some families. Contact your local bank or credit union to see if it is a good option for you.
Student Loan Exit Counseling
It is federal law that all student borrowers who are graduating, leaving school, or dropping below half-time enrollment are required to complete exit counseling which gives you information and instructions related to the loans received while attending college.
Manage Loans
Federal Student Aid has gathered information to help you manage your federal student loans after college: Find resources, explore options, and get help at:
Loan Forgiveness
In certain situations, borrowers can have their federal student loan forgiven. In these situations you, you won’t have to pay back some portion of your loan(s).