Loans
Federal Direct Stafford Loans are low-interest loans for eligible students to help cover the cost of higher education. To apply for and receive a Stafford Loan, you must complete the following:
- The Free Application for Federal Student Aid (FAFSA). Use FAFSA on the Web at http://www.fafsa.ed.gov/
- Master Promissory Note (MPN) and Entrance Counseling. Complete these online at https://www.studentloans.gov.
Federal Direct Loans include:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
Your loan eligibility may only be determined by the Financial Aid Office after a FAFSA is filed. The type of Stafford Loan and amount of eligibility will be included in your Award Letter.
Federal Subsidized Stafford Loan
- This loan is based on financial need.
- You will not be charged interest before you begin repayment or during deferment periods. The federal government "subsidizes" the interest during these periods.
- Students must be enrolled at least half-time each term.
- The current interest rate is 6.8%
The following schedule shows the annual interest rates (for loans first disbursed on July 1, 2008).
- 5.6% for loans first disbursed between 7/1/09-6/30/10
- 4.5% for loans first disbursed between 7/1/10-6/30/11
- 3.4% for loans first disbursed between 7/1/11-6/30/12
- 3.4% for loans first disbursed between 7/1/12-6/30/13
To view the fixed and variable interest rates for prior years click here.
Federal Unsubsidized Stafford Loan
- This loan is not based on financial need.
- You'll be charged interest from the time the loan is disbursed until it is paid in full. If you allow the interest to accrue (accumulate) while you are in school or during other periods of nonpayment, it will be capitalized. Meaning, the interest will be added to the principal amount of your loan, and additional interest will be based upon the higher amount.
- Students must be enrolled at least half-time each term.
- The current interest rate is 6.8%
There is a loan fee on all Direct Subsidized and Unsubsidized Stafford Loans. The loan fee is a percentage of the amount of each loan you receive. For loans first disbursed between July 1, 2013 and June 30, 2014 the loan fee is 1.051%.
For more information about Federal Direct Stafford Loans, click here.
Federal Direct PLUS Loans for Parents and Graduate Students
- This loan is not based on financial need.
- The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid the student receives.
- Graduate students and parents of dependent students may apply for a Direct PLUS Loan to help pay education expenses as long as certain eligibility requirements are met.
- Students must be enrolled at least half-time.
- Graduate students and parents must have an acceptable credit history, or may need to apply with a co-signer.
- The repayment period begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. The interest rate for a PLUS Loan is fixed at 7.9%. Interest is charged from the date of the final disbursement until the loan is paid in full.
There is a loan fee on all Direct PLUS Loans. The loan fee is 4.204% of the loan amount, deducted proportionately each time a loan disbursement is made.
For more information about Federal Direct PLUS Loans for Parents, click here.
For more information about Federal Direct Loans for Graduate Students, click here.
Annual Loan Maximums
Effective July 1, 2008.
GRADE LEVEL |
Dependent |
Independent |
||||
Maximum Sub only |
Additional Unsub |
Sub/Unsub Total |
Maximum Sub only |
Additional Unsub |
Sub/Unsub Total |
|
Undergraduate |
||||||
1st year 01 |
$3,500 + |
$2,000 = |
$5,500 |
$3,500 + |
$6,000 = |
$9,500 |
2nd year 02 |
$4,500 + |
$2,000 = |
$6,500 |
$4,500 + |
$6,000 = |
$10,500 |
3rd-5th year 03-05 |
$5,500 + |
$2,000 = |
$7,500 |
$5,500 + |
$7,000 = |
$12,500 |
Aggregate maximum |
$23,000 |
$31,000 |
$23,000 |
$46,000 |
||
The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000 . |
||||||
Graduate |
N/A | N/A |
$20.500 |
$20,500 |
||
Per Year |
N/A | $65,500 |
N/A |
$138,500 |
||
Alternative (Private) Loans
Alternative Loans are available from private lending institutions and are not part of the Federal Direct Loan program. Concordia College encourages students to explore Federal loan programs prior to considering an alternative loan.
Concordia College-New York Code of Conduct
The Concordia College-New York Financial Aid Office has adopted the following College Loan Code of Conduct:
- Revenue Sharing Prohibition - Concordia College-New York Financial Aid employees are prohibited from receiving anything of value from any lending institution in exchange for any advantage sought by the lending institution.
- Gift and Trip Prohibition - Concordia College-New York Financial Aid employees are prohibited from taking anything of more than nominal value from any lending institution. This includes a prohibition on trips for Financial Aid officers and other College officials paid for by lenders.
- Advisory Board Compensation Rules - Concordia College-New York Financial Aid employees are prohibited from receiving anything of value for serving on the advisory board of any lending institution.
- Preferred Lender Guidelines - Concordia College-New York preferred lender lists are based solely on the best interest of the students or parents who may use the list without regard to financial interests of the College.
- Preferred Lender Disclosure - On all preferred lender lists, Concordia College-New York has clearly and fully disclosed the criteria and process used to select preferred lenders. Students must also be told that they have the ability to select the lender of their choice regardless of the preferred lender list.
- Loan Resale Disclosure - No lender on the Concordia College-New York preferred lender list has an agreement to sell its loans to another lender without disclosing this fact. In addition, no lender may bargain to be a preferred lender with respect to a certain type of loan by providing benefits to a College as to another type of loan.
- Call Center Prohibition - Concordia College-New York ensures that employees of lenders never identify themselves to students as employees of the college. No employee of a lender is working or providing staffing in the Concordia College-New York Financial Aid Office.
Here is a list of Alternative Loan providers: