William D. Ford Federal Direct Loan Program
This program provides federally insured, low interest and long-term loans to students or parents to help cover the costs of attending college. The federal government is the lender (not a bank or any other financial institution) and makes the loan directly to the student or the parent through the college. Direct Loans are either subsidized or unsubsidized. Repayment on the student’s loans begins six months after graduation, termination of attendance, or when you register for less than six credits while in attendance. Repayment on Parent Loans for Undergraduate Students (PLUS) begins after the first check disbursement.
Federal Direct Subsidized Loan: Eligibility for this loan is based on the information you provided on your FAFSA. The federal government pays the interest on the loan while you are in school and during other deferment periods. This loan type is based on your financial need.
Federal Direct Unsubsidized Loan: Allows you to borrow money in addition to any subsidized loan amounts for which you may be eligible. You will be charged interest from the time an unsubsidized loan is disbursed until you pay the loan in full. This loan type is not based on need.
Annual Limits for Federal Direct Loans
(first disbursed on or after July 1, 2008)
| Subsidized | Total (subsidized & unsubsidized) | |
|---|---|---|
| Dependent Undergraduate | ||
| First Year | $3,500 | $5,500 |
| Second Year | $4,500 | $6,500 |
| Third Year and Beyond | $5,500 | $7,500 |
| Independent Undergraduate | ||
| First Year | $3,500 | $9,500 |
| Second Year | $4,500 | $10,500 |
| Third Year and Beyond | $5,500 | $12,500 |
AGGREGATE LOAN LIMITS (for loans first disbursed on or after July 1, 2008)
Dependent Undergraduate: $31,000 (limited to $23,000 subsidized loans)
Independent Undergraduate: $57,500 (limited to $23,000 subsidized loans)
How do I know if I am eligible?
To be eligible for William D. Ford Federal Direct Loans, a student must be:
- Be a U.S. citizen or an eligible non-citizen
- Be admitted and enrolled as a matriculated student
- Have completed the FAFSA process. (See “How do I apply”- Step 1)
- Be registered for at least six credits per semester to apply and must maintain enrollment in at least six credits at the time the check is disbursed.
How do I apply?
- You must file a Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov for the academic year for which you are planning to attend. All problems with the FAFSA must be resolved before the loan is originated. Therefore, we strongly urge you to follow-up with the Financial Aid Office once your FAFSA is submitted and processed.
- You must complete a Direct Loan Entrance Counseling session.
IMPORTANT: When you get to the section of the Entrance Counseling Session that asks for Selected Schools, you must type in the name of the college, New York City College of Technology (must be in lowercase) and proceed.
- You must print and complete a William D. Ford Federal Direct Loans Processing Form. Decide the amount you wish to borrow.
- After the form is completed, submit your Direct Loans Processing Form to the Loan Drop off Box located next to the literature case outside the Office of Financial Aid, Namm Hall, Room G-13. The loan will take approximately four weeks to process and will be issued by check after the college makes any necessary deductions for tuition and fees.
- If you are a first time borrower, you will receive a Master Promissory Note (MPN) in the mail. Please review the promissory note carefully and complete, sign, and return it to the Direct Loans Service Center so your loan will be processed without delay. If you wish, you may complete your promissory note online at http://dlenote.ed.gov.
How do I increase my Federal Loan?
If you have already submitted a loan request for the current academic year, but need additional loan funds, please complete and submit a William D. Ford Federal Direct Loan Status Change Form with your name, SS#, section 2, and the borrower certification.
How do I reduce my Federal Loan?
If you have already submitted a loan request for the current academic year, but do not need all the funds you are eligible for, please complete and submit a William D. Ford Federal Direct Loans Status Change Form with your name, SS#, section 3, and the borrower certification.
How do I cancel my Federal Loan?
If you have already submitted a loan request for the current academic year, but now wish to cancel your loan, please complete and submit a William D. Ford Federal Direct Loans Status Change Form with your name, SS#, section 4, and the borrower certification.
