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Financial Aid

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 for loans made prior to July 1, 2012. However, new Direct Subsidized loans made from July 1, 2012 to July 30, 2014 will not be eligible for subsidized interest benefits during the six-month grace period after a student graduates or falls below half-time enrollment. Interest will accrue during the grace period and will be capitalized if unpaid by the borrower. This loan type is based on your financial need. The interest rate on subsidized loans first disbursed on or after July 1, 2014 and before July 1, 2015 is 4.66 %. The interest rate on subsidized loans first disbursed on or after July 1, 2015 and before July 1, 2016 will be 3.76%.

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. The interest rate on unsubsidized loans for undergraduate students first disbursed on or after July 1, 2014 and before July 1, 2015 is 4.66 %. The interest rate on unsubsidized loans for undergraduate students first disbursed on or after July 1, 2015 and before July 1, 2016 will be 3.76%.

There is also a new limit on eligibility for Direct Subsidized Loans for new borrowers on or after July 1, 2013. A new borrower on or after July 1, 2013 will not be eligible for new Direct Subsidized Loans if the period during which the borrower has received such loans exceeds 150 percent of the published length of the borrower's educational program. The law also provides that a borrower reaching the 150 percent limit becomes ineligible for interest subsidy benefits on all Direct Subsidized loans first disbursed to that borrower on or after July 1, 2013.

Dependent Undergraduate

Yearly Eligibility Maximum Subsidized Loan Additional Unsubsidized Loan Total Loan Combined Subsidized and Unsubsidized
First Year (0-29 credits) $3,500 $2,000 $5,500
Second Year (30-59 credits) $4,500 $2,000 $6,500
Third Year and Fourth Year (60 credits) BA Programs $5,500 $2,000 $7,500

Independent Undergraduate

Yearly Eligibility Maximum Subsidized Loan Additional Unsubsidized Loan Total Loan Combined Subsidized and Unsubsidized
First Year (0-29 credits) $3,500 $6,000 $9,500
Second Year (30-59 credits) $4,500 $6,500 $10,500
Third Year and Fourth Year (60 credits) BA Programs $5,500 $7,000 $12,500

Frequently Asked Questions

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.
  • Be making satisfactory academic progress for federal student aid

  • You must file a Free Application for Federal Student Aid (FAFSA) at www.fafsa.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 at www.studentloans.gov.

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 Loan Packet. Decide the amount you wish to borrow.
  • After the form is completed, submit your Direct Loans Processing Form to a counselor at the Financial Aid Service Window in Namm Hall, Room G-13. The loan will take approximately four weeks to process.
  • If you are a first time borrower, you will need to sign the Master Promissory Note on line (for both the Direct Subsidized and Unsubsidized loans.) Please go to www.studentloans.gov and follow the 9 steps to complete the process.

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 1 and/or 2, and the borrower certification.

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 Loan Status Change Form with your name, SS#, section 3 and/or 4, and the borrower certification.

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 Loan Status Change Form with your name, SS#, section 5 and/or 6, and the borrower certification.