Federal Direct Loan
Borrowing Smart for College
It's a fact: Most CUNY students graduate debt free, thanks to scholarships, financial aid and a tuition plan that ranks among the top in the nation for affordability. But some students may need to borrow to make it through their college career. Are you unsure how much money you'll need or what loan options are best for your CUNY education? This video has all the answers. MORE»
Federal Direct Loans (FDL) are relatively low interest loans funded through federal Title IV legislation. The repayment interest rate is determined according to the federal Prime Lending rate in effect for the academic year encompassing the loan period. All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.
*NEW FOR GRADUATE STUDENTS*
No more standing in line to submit a paper application! You now have the ability to view and accept (or reduce) your Fall/Spring Direct Unsubsidized Loan directly on CUNYfirst.
STEP 1: Click the “Accept/Decline Awards” link located on the Finances section of your Student Center.
STEP 2: Click on the aid year you wish to view (click ‘2016’ for the Fall 2015-Spring 2016 aid year).
STEP 3: If you want a smaller loan than what has been offered, you can click on the award and reduce it to the amount you would like to accept.
You will be offered your maximum eligible amount for the Fall and Spring. Note that this is a Fall/Spring loan. The total dollar amount of the loan will be disbursed half in the Fall, and half in the Spring.
Any changes that you wish to make, other than the dollar amount, must be made in writing in the Financial Aid Office.
STEP 4: Check the appropriate box to either accept or decline your loan.
STEP 5: Click the ‘Submit’ button, and you're done. *Please be aware you must meet all eligibilty requirements to receive loan funds.
Please note - If this is your first loan at Lehman College, be sure to complete your Loan Entrance Counseling online at www.studentloans.gov.
- If this is your first Federal Direct Loan in the past 10 years, or if your previous Master Promissory Note has expired, be sure to complete a new Master Promissory Note online at www.studentloans.gov.
*Additional loan requests require a paper application.
*Graduate PLUS loan requests require a paper application.
All Direct Loans first disbursed on or after July 1, 2006 have a fixed interest rate.
As of Fall 2012, Subsidized Loans are no longer available for graduate students. Graduate students are now only eligible to receive Unsubsidized Loans and/or Graduate PLUS loans.
Unsubsidized Loans for both undergraduate and graduate students disbursed July 1, 2006 to June 30, 2013 have an interest rate of 6.8%.
All Direct Subsidized Loans for UNDERGRADUATE borrowers have a fixed interest rate that will be based on the first disbursement date as listed in the table below:
Date of Loans
|6.8%||Loans first disbursed on or after July 1, 2006 and prior to July 1, 2008|
|6.0%||Loans first disbursed on or after July 1, 2008 and prior to July 1, 2009|
|5.6%||Loans first disbursed on or after July 1, 2009 and prior to July 1, 2010|
|4.5%||Loans first disbursed on or after July 1, 2010 and prior to July 1, 2011|
|3.4%||Loans first disbursed on or after July 1, 2011 and prior to July 1, 2012|
|3.4%||Loans first disbursed on or after July 1, 2012 and prior to July 1, 2013|
|3.86%||Subsidized AND Unsubsidized Loans first disbursed on or after July 1, 2013 and prior to July 1, 2014|
|4.66%||Subsidized AND Unsubsidized Loans first disbursed on or after July 1, 2014 and prior to July 1, 2015|
|4.29%||Subsidized AND Unsubsidized Loans first disbursed on or after July 1, 2015 and prior to July 1, 2016|
Unsubsidized Loans for GRADUATE students disbursed July 1, 2015 to June 30, 2016 have an interest rate of 5.84%.
Unsubsidized Loans for GRADUATE students disbursed July 1, 2014 to June 30, 2015 have an interest rate of 6.21%.
All Direct PLUS Loans disbursed July 1, 2015 to June 30, 2016 have a fixed interest rate of 6.84%.
All Direct PLUS Loans disbursed July 1, 2014 to June 30, 2015 have a fixed interest rate of 7.21%.
Federal Direct Loan eligibility is initially determined through the filing of a FAFSA application. However, a separate Lehman College Direct Loan application must also be filed (Grad students - see new Grad loan info. noted above). To be eligible, students must be enrolled in a matriculated course of study leading to a degree, registered for a minimum of six credits applicable towards their degree requirements, and have a cumulative G.P.A. of at least 2.0 (3.0 for Graduate students). Direct Loans can be applied to direct and indirect educational costs (e.g. tuition and clothing, respectively). Like Perkins Loans, Federal Direct Loans have employment related loan cancellation provisions. Subsidized Direct Loans range from $200-$5500 for undergraduate students. Unsubsidized, Parent PLUS and Graduate PLUS loans are also available. Cost of Education, Expected Family Contribution and Academic Level determine actual Direct Loan awards. For more information, visit the U.S. Department of Education FDL website, or email us at firstname.lastname@example.org.
Complete online Exit Counseling if you have taken out Federal Direct and/or Stafford loans and are approaching graduation, or if you will not be enrolled for at least 6 credits, or just want an idea of what will happen later on.
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Last modified: Jun 10, 2015