Student Loans

Subsidized Loans

Undergraduate Students

To apply for a Direct Loan, you must first complete the FAFSA and list Hunter College (Federal Code #002689). You will then need to submit a Direct Loan Application via your CUNYfirst account.

If approved, you will also need to sign a promissory note, a binding legal document that states you agree to repay your loan according to the terms of the note. If you request a Direct Loan and later decide you do not need the funds, you may decline the loan by contacting the financial aid office.

How To Apply

1. Log onto your CUNYfirst account and click on "Student Center"
2. On the Student Center page, navigate to the Direct Loan Processing form and click the link
3. Fill out the Direct Loan Processing form

If you are unable to complete the form online, you can complete a paper Direct Loan Application and send the completed, signed form to the Loans Unit at loans@hunter.cuny.edu. This form can be found on our Policies and Forms page.

Graduate Students

Once you complete the FAFSA for the year of your enrollment and your application is received by CUNY, Hunter College will auto package you and you will be awarded an unsubsidized loan automatically on CUNYfirst. You may accept, reduce, or decline the loan request.

How to accept, reduce, or decline the loan request, follow these steps:

1. Login to CUNYfirst at https://home.cunyfirst.cuny.edu
2. Select HR/Campus Solutions from the left menu
3. Navigate to Self Service followed by Student Center
4. In the Finances section, click the Accept/Decline Awards
5. On the Select Aid Year to View page, you may see listings for multiple aid years and multiple colleges. Click the link for the college and aid year you wish to view. Note: This is a Fall/Spring loan and the total dollar amount of the loan will be disbursed in two equal disbursements, half in the fall and half in the spring. You will be offered the maximum eligible amount for the academic year.
6. Check the appropriate box to either accept or decline your loan. Note: If you want a lesser amount than what has been offered you will have to complete and submit the status change form (found on our Policies and Forms page) or accept a reduced amount on CUNYfirst.
7. If you are borrowing for the first time you must also complete the Entrance Counseling and a Master Promissory Note (MPN), once you have accepted the loan.

You must meet all the following eligibility requirements to receive loan funds:

• Valid FAFSA
• CUNYfirst "To do list" items must be completed
• Complete Entrance Counseling and completed Master Promissory Note (if required)
• Be a matriculated student
• Enrolled for at least six credits in your career/program plan

Federal Perkins Loans

Federal Perkins Student Loans are low interest loan in which your college serves as the lender.  The Perkins Loan Program ended September 30, 2017.

Residency and Citizenship

You must be a citizen of the United States or have been admitted into the United States as a permanent resident, refugee or asylee.

Undergraduate Student Eligibility

Interest Rate and Repayment

The interest rate is 5%. Perkins Loan borrowers are eligible to defer the repayment of the loan principal, with no interest charged while enrolled for classes as at least a half-time student. It is a subsidized loan, with interest being paid by the federal government during the in-school and 9 month grace periods. Repayment begins nine months after dropping below half-time enrollment. Repayment can take a maximum of ten years.  You may consolidate your Perkins loan with your other Federal student loans. The benefit of this is a single monthly payment instead of multiple payments to multiple lenders. By consolidating, you may have an option for additional repayment plans.

For additional information on Direct Loan Consolidation, visit the Federal Student Aid website.

A Direct PLUS Loan is commonly referred to as a Grad PLUS Loan when made to a graduate or professional student.

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

• Be a graduate or professional student enrolled at least half-time at an eligible school in a program leading to a graduate or professional degree or certificate.
• Not have an adverse credit history (unless you meet certain additional eligibility requirements).
• Meet the general eligibility requirements for federal student aid.

Current Interest Rate

For Direct PLUS Loans first disbursed on or after July 1, 2020, and before July 1, 2021, the interest rate is 5.30%. This is a fixed interest rate for the life of the loan.

Borrowing Limit

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

Repayment

You don't have to start making payments until six months after you graduate, leave school, or drop below half-time enrollment.

During any period when you’re not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

A Direct PLUS Loan is commonly referred to as a Parent PLUS Loan when made to a graduate or professional student.

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

• Be the biological or adoptive parent (or in some cases, the stepparent) of a dependent undergraduate student enrolled at least half-time at an eligible school.
• Not have an adverse credit history (unless you meet certain additional requirements).
• Meet the general eligibility requirements for 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 have had primary responsibility for raising the student.

Current Interest Rate

For Direct PLUS Loans first disbursed on or after July 1, 2020, and before July 1, 2021, the interest rate is 5.30%. This is a fixed interest rate for the life of the loan.

Borrowing Limit

The maximum PLUS loan amount you can borrow is the cost of attendance at the school your child will attend minus any other financial assistance your child receives. The cost of attendance is determined by the school.

Repayment

If you request a deferment, you will not need to make payments while your child is enrolled at least half-time and for an additional six months after your child graduates, leaves school, or drops below half-time enrollment. If the school your child is attending requires you to submit your request for a Parent PLUS Loan at StudentAid.gov, you’ll have the option of requesting a deferment as part of the loan request process. You can also contact your loan servicer to request a deferment.

If you do not request a deferment, you will be expected to begin making payments after the loan is fully disbursed (paid out).

During any period when you’re not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

How do my parents apply for a PLUS Loan?

After completing a FAFSA your parents complete a Direct PLUS Loan application and promissory note that you’ll get from your school’s financial aid office. They will have to pass a credit check. If they don’t pass they might still be able to receive a loan if they can demonstrate that extenuating circumstances exists, or if someone they know, who can pass agrees to endorse the loan and promises to repay it if your parents don’t.

When does PLUS loan repayment begin?

Direct PLUS Loans enter repayment once your loan is fully disbursed (paid out). Parent borrowers, may contact your loan servicer to request a deferment

• while you or your child are enrolled at least half-time and
• for an additional six months after your child ceases to be enrolled at least half-time.

If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due

What are the PLUS repayment periods?

The repayment periods for Stafford Loans vary from 10 to 30 years depending 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 web site www.studentaid.ed.gov.

How much could you get in a PLUS loan?

The amount you could get is the student’s cost of education minus other aid the student receives. This will equal the maximum loan amount.

Can a PLUS loan borrower postpone loan repayment?

Borrowers can request either deferment or forbearance. Receiving deferment or forbearance is not automatic. You or your parents must apply for it. You must continue making payments on your loan until your deferment or forbearance has been granted.

Deferment

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

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?

Your parents will pay a fee of up to 5 percent of the loan.

Do they get the money or do I?

Your school first receives the loan funds and might require your parents to endorse a disbursement check and send it back to the school. Your school then applies the loan funds to your tuition, fees and other school charges.

If there are any loan funds left over, your parents will receive them either by check or in cash, unless they authorize the funds to be released to you or to be put into your school account. Any remaining loan funds must be used for your education expenses.

Alternative Loans (Private Education Loans) are offered through private lenders and are meant to provide additional educational funding only after a student and his/her family has exhausted 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 the loans require a credit check and most will 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, and students must apply directly to lenders. Those lenders, in turn, will contact Hunter's Financial Aid Office, and the two parties work together to issue the loan funds through the university. Contact the lender of your choice for details about their 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).
• Nine months for Federal Perkins Loans.

PLUS Loan Borrowers

The repayment period for a Direct PLUS Loan begins at the time the PLUS loan is fully disbursed, and the first payment is due within 60 days after the final disbursement. However, a graduate student PLUS Loan borrower (as well as a parent PLUS borrower who is also a student) can defer repayment while the borrower is enrolled at least half-time, and, for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after the borrower is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower during the deferment.

Parent PLUS Loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the parent during the 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 ^SM (NSLDS ^SM ) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access NSLDS, go to nslds.ed.gov.

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, or Perkins Loans, contact your loan servicer. In the case of Perkins Loans, your servicer will be the school that made the loan. If you don’t know who your loan servicer is, go to nslds.ed.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
• Perkins Loans: contact the school you were attending when you received the loan

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