Student Loans

Federal Direct Stafford Loans are also called Direct Loans or Federal Direct Loans. The lender of these loans is the US Dept. of Education; repayment is to the Department. Between 10-30 years to repay, depending on amount owed and type of repayment.

Students must be in a degree seeking program and register for at least 6 months for each semester they wish to use a student loan. Federal student loans have a fixed interest rate, but the rate for the 2025-2026 year has not yet been announced. This page will be updated once that information becomes available.

Subsidized Loans

The following requirements must be met in order for loan funds to disburse:

• Valid FAFSA
• Complete all CUNYfirst “To do” items for Hunter College financial aid
• Completed Direct Loan Entrance and Master Promissory Note (MPN)
• Be enrolled in a degree-seeking program for at least 6 credits per semester.

Automatically Offered Loans

Students who have submitted a valid FAFSA may be automatically offered a federal student loan for that year. Most undergraduate students whose anticipated financial aid grants will result in an outstanding balance of $500 or more will be automatically be packaged for federal student loans. Most graduate students will be packaged for student loans as well. The money for these loans will be applicable to that year’s fall and spring semesters. In order to utilize this loan, a student must accept the loan through their CUNYfirst student center using the steps below:

1. Click the financial aid tile.
2. Select the correct college and school year.
3. Click Awards on the left-hand side menu and then Accept/Decline.
4. Click Edit.
5. Click the drop down menu in the “Award Decision” column and choose “Accept”.
6. If you do not want to borrow the full value of the loan, click the check box under the “Reduce” column and indicate the amount you would like to borrow for the full year (fall and spring semesters combined). If you want to full value of the loan, skip this step.
7. Click Submit.

Requesting a Loan

Students that were not offered a loan or would like to use a federal direct loan for summer courses must complete the Direct Loan Processing Form in their CUNYfirst student center. It can be found by clicking the financial aid tile while in the student center. Please read the form’s instructions and complete the form carefully as changes or edits to the form cannot be made once it is submitted.

Changing an Existing Loan

Students who have already requested a federal student loan can request an increase, reduction or cancellation using the form below. Please note that reductions or cancellations must be requested within 14 days of the college receiving the loan funds.

• The federal government charges all borrowers an origination fee at the time the loan is disbursed. This is in addition to interest charges.
• While pursuing an undergraduate degree, dependent students can borrow a maximum of $31,000 while independent students can borrow a maximum of $57,500.
• While pursuing a graduate degree, students can borrow a maximum $138,500.
• Before loans funds can be disbursed, students must complete direct loan entrance counseling and a master promissory note (MPN). Both of these documents are completed on the studentaid.gov website.
• You must complete direct loan exit counseling on the studentaid.gov website when you leave school, are enrolled at less than half-time status, or change your address.
• You are responsible for notifying your direct loan servicer when you leave school, are enrolled at less than half-time status, or change your address.
• You may prepay all of or any part of your loan balance at any time without penalty. This will decrease the amount of interest you will pay over the life of your loan.
• At Hunter college, loan funds disburse once per semester unless you are only registered for one semester during the school year. In that case, the loan will disburse in two equal payments.
• A federal Student Loan Ombudsman office is available for assistance with loan problems. You can reach them here.

You can visit https://studentaid.gov/manage-loans/repayment/servicers for a holistic overview of your lender and loan history.

The U.S. Department of Education makes Direct PLUS Loans to eligible graduate or professional students through schools participating in the Direct Loan Program. A Direct PLUS Loan is commonly referred to as a Grad PLUS Loan when made to a graduate or professional student.

The maximum PLUS loan amount you can borrow is the cost of attendance (determined by the school) minus any other financial assistance you receive.

To receive a Grad PLUS Loan, you must meet the following eligibility requirements:

• Be a graduate or professional student enrolled at least half-time in a master’s or doctoral program.
• Be in good academic standing.
• Utilize the maximum annual limit in federal direct loans.
• Complete a direct PLUS master promissory note (MPN) on the studentaid.gov website.
• Pass a credit check requested by the U.S. Department of Education or have an eligible endorser.

Interest Rate on Direct PLUS

Direct PLUS loans borrowed between 7/1/2025 and 6/30/2026 are charged a fix interest rate. The interest rate will not change throughout the life of the loan. The interest rate may change each year for loans borrowed during that year. At this time, the interest rate has not been announced. This page will be updated when that information becomes available.

Borrowing Limit

The maximum PLUS loan a student can borrow is their cost of attendance minus any other financial aid, including other loans, that they are receiving.

A direct PLUS loan is available for parents of a dependent undergraduate student. They are often referred to as a Parent PLUS Loan.

To receive a Parent PLUS Loan, you must meet the following eligibility requirements:

• Be the biological parent, adoptive parent, or the stepparent legally married to the biological/adoptive parent of a dependent undergraduate student enrolled at least half-time pursuing a bachelor’s degree.
• Be the parent of a student in good academic standing.
• Complete a direct PLUS master promissory note (MPN) on the studentaid.gov website.
• Pass a credit check requested by the U.S. Department of Education or have an eligible endorser.
• Meet general eligibility requirements to receive federal student aid.

Note: Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive Parent Plus Loans, even if they had primary responsibility for raising the student.

Interest Rate on Direct PLUS

Direct PLUS loans borrowed between 7/1/2025 and 6/30/2026 are charged a fix interest rate. The interest rate will not change throughout the life of the loan. The interest rate may change each year for loans borrowed during that year. At this time, the interest rate has not been announced. This page will be updated when that information becomes available.

Borrowing Limit

The maximum PLUS loan a parent can borrow is the student’s cost of attendance minus any other financial aid, including other loans, the student is receiving.

How do my parents apply for a PLUS Loan?

After completing the FAFSA students and their parent will need to complete Hunter College’s Parent Plus Loan Application. Your parent will need to pass a credit check. If they don’t pass the credit check, they can appeal to the U.S. Department of Education that extenuating circumstances exist. They can also obtain an endorser for the loan who would agree to repay the loan if your parent doesn’t.

When does PLUS loan repayment begin?

For graduate students, repayment begins 6 months after a student graduates, leaves school, or drops below half-time enrollment. Interest will begin to accrue as soon as funds are disbursed. Your loan servicer will notify you when your first payment is due. For parent borrowers, repayment begins immediately after the loan fully disburses. If you wish, you may make a request with your loan servicer to defer payment while the student continues to attend at least half-time. Interest will begin to accrue as soon as funds are disbursed. Your loan servicer will notify you when your first payment is due.

What are the PLUS repayment periods?

The repayment periods for PLUS Loans vary depending on which repayment plan you choose. When it comes to repayment you can pick a repayment plan that’s right for you. You can get more information about repayment by going to the U.S. Department of Education’s studentaid.gov website.

How much could you get in a PLUS loan?

The annual limit for a PLUS loan is the cost of attendance minus any other financial aid received.

Can a PLUS loan borrower postpone loan repayment?

Borrowers can request either deferment or forbearance. Receiving deferment or forbearance is not automatic. The borrower must request it from their loan servicer. The borrower must continue to make payments until a deferment or forbearance has been granted.

What is deferment?

A period of time during which no payments are required and interest will accrue.

What is forbearance?

Loan payments that are reduced or postponed.

If you temporarily can’t meet your repayment schedule but you don’t meet the requirements for a deferment, your lender might grant you forbearance.

• Interest continues to accumulate and you are responsible for paying it no matter what type of loan you have.
• Generally forbearance is for periods of up to 12 months at a time for a maximum of 3 years.
• You’ll have to provide documentation to the holder of your loan to show why you should be granted forbearance.

Is there any prepayment penalty?

No. You can pay off these loans as soon as you wish.

Can my parents cancel their loan if they change their minds, even if they signed a promissory note agreeing to the loan’s terms?

Yes. Before your loan money is disbursed, you may cancel all or part of your loan at any time by notifying the school. After your loan is disbursed, you may cancel all or part of the loan within certain time frames. Your promissory note and additional information you receive from the school will explain the procedures and time frames for canceling your loan.

Other than interest, is there any other charge involved with a PLUS Loan?

An origination fee is charged before the funds are sent to the college.

Who gets the money?

Your school receives the loan funds and applies them to your tuition, fees, and other school charges. If there are any loan funds left over, the bursar’s office will send them to the borrower unless a Parent PLUS borrower specifies ahead of time the funds should go to their dependent student. Remaining loan funds must be used for the student’s educational expenses.

Alternative Loans (Private Education Loans) are offered through private lenders and are meant to provide additional educational funding only after exhausting all other sources of funding such as federal and state aid. These loans are not guaranteed by the federal government and may carry high interest rates and origination fees. All private loans require a credit check and may require a cosigner if the borrower has little or negative credit history.

Such loans are offered by private lenders, such as banks and credit unions. Students apply with the lender directly. The lender will then contact the Hunter College Financial Aid Office and they will work together to issue the loan funds through the college. Contact the lender of your choice for details about their loan program and application process.

Hunter College does not recommend any specific lender/programs. You are advised to use these loans sparingly, and you may wish to discuss your particular situation with the Office of Financial Aid.

After you graduate, leave school, or drop below half-time enrollment, you have a period of time before you have to begin repayment. This “grace period” will be

• Six months for a Federal Stafford Loan (Direct Loan Program).

Direct Loan Borrowers

Student Direct Loan borrowers have a period of time before they have to begin repayment. The grace period is 6 months after they graduate, leave school, or drop below half-time enrollment.

PLUS Loan Borrowers

PLUS Loan borrowers go into repayment as soon as their loan is disbursed. Grad PLUS borrowers will be automatically enrolled in deferment as long as they attend at least half-time continuously. Parent PLUS borrowers can request a deferment through their loan servicer while their student is in school, but it is not automatic. Interest will continue to accrue during deferment.

Your loan servicer will provide information about repayment and will notify you of the date loan repayment begins. It is very important that you make your full loan payment on time, either monthly (which is usually when you’ll pay) or according to your repayment schedule. If you don’t, you could end up in default, which has serious consequences.

Student loans are real loans—just as real as car loans or mortgages. You have to pay back your student loans.

Sign into the “My Aid” page with your FSA ID to view information about all of the federal student loans and other financial aid you have received, and to find contact information for the loan servicer for your loans.

The U.S. Department of Education’s National Student Loan Data System (NSLDS ) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans.

You can also call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243); TTY 1-800-730-8913.

You have a choice of several repayment plans that are designed to meet the different needs of individual borrowers. The amount you pay and the length of time to repay your loans will vary depending on the repayment plan you choose. Go to Repayment Plans for more information about the various repayment plans and to calculate your estimated repayment amount under each of the different plans.

If you have specific questions about repaying Direct Loans contact your loan servicer. If you don’t know who your loan servicer is, go to studentaid.gov to find out.

You can consolidate (combine) multiple federal student loans with various repayment schedules into one loan.

Carefully consider whether loan consolidation is the best option for you. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans. You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.

However, if you increase the length of your repayment period, you’ll also make more payments and pay more in interest. Compare your current monthly payments to what monthly payments would be if you consolidated your loans.

You also should consider the impact of losing any borrower benefits offered with the original loans. Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You might lose those benefits if you consolidate.

For additional information visit the Loan Consolidation page at studentaid.gov.

Benefits of a Consolidation Loan

• Make one monthly payment
• Your payments can be significantly lower
• You can take longer time to repay (up to 30 years)
• You can pay a lower interest rate than on one or more of your existing loans
• You can consolidate your loan during grace periods, once you entered repayment, or during periods of deferment or forbearance.

Interest Rate for a Direct Consolidation Loan

The interest rate is a fixed rate for the life of the loan. The fixed rate is based on the weighted average of the interest rates on the loans you consolidate, rounded up to the nearest 1/8 of a percent.

How to Get a Consolidation Loan

Direct Consolidation Loan – You (or your parents for a Direct PLUS Consolidation Loan) can contact the Direct Loan Origination Center’s Consolidation Department at 1-800-557-7392 or you can go to the Loan Consolidation page at studentaid.gov.

The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on your Direct Loans after you have made 120 (10 years) qualifying payments under a qualifying repayment plan while working full-time for a qualifying employer. However, your loan will only be forgiven if you meet all PSLF Program eligibility conditions.

You’ll need to work with your loan servicer to apply for deferment or forbearance and be sure to keep making payments on your loan until the deferment or forbearance is in place.

These periods don’t count toward the length of time you have to repay your loan. Interest may not accrue on subsidized direct loans during a deferment period, but you are responsible for paying the interest that accrues during deferment on an unsubsidized loan.

Most deferments are not automatic, and you will likely need to submit a request to your loan servicer, the organization that handles your loan account. If you are enrolled in school at least half-time and you would like to request an in-school deferment, you’ll need to contact your school’s financial aid office as well as your loan servicer.
Your deferment request should be submitted to the organization to which you make your loan payments.

• Direct Loans and FFEL Program loans: contact your loan servicer

Deferment of principal and interest payments may be obtained under the following circumstances:

• For any period during which you are enrolled at least half-time.
• For up to three years while you are seeking but unable to find full-time employment or are experiencing economic hardship.
• During the periods you are serving on active duty during a war or other military operation or national emergency, or performing qualifying National Guard duty during a war or other military operation or national emergency.

If you can’t make your scheduled loan payments, but don’t qualify for a deferment, your loan servicer may be able to grant you a forbearance. With forbearance, you may be able to stop making payments or reduce your monthly payment for up to 12 months. Interest will continue to accrue on your subsidized and unsubsidized loans (including all PLUS loans). Financial hardship and illness are examples why you may request a forbearance. To request a a loan forbearance you must apply by making a request to your loan servicer.

A cancellation or discharge releases you from all obligations to repay the loan. If you think you qualify for a discharge you must apply to the holder of your loan.

Qualifications for a cancellation (discharge) of a loan include:

• Death
• Total permanent disability
• Your loan might be discharged for working in a designated low-income school.
• Other cancellations are loan specific

Your loan cannot be cancelled because:

• You did not complete the study at your school (unless you couldn’t complete the program for a valid reason – because the school closed for example.)
• You didn’t like the school or program of study
• You didn’t obtain employment afterwards