Loans
Federal Direct Loans are low-interest loans for eligible students to help cover the cost of higher education. To apply for and receive a Federal Direct 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 Loan and amount of eligibility will be included in your Award Letter.
Federal Subsidized Loan
- This loan is based on financial need and is for undergraduate students only.
- You will not be charged interest while enrolled at least halftime. The federal government subsidizes the interest during these periods.
- Students must be enrolled at least half-time each term.
- The current interest rate is 5.05%, fixed for the life of the loan. Effective for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.
To view the fixed and variable interest rates for prior years click here.
Federal Unsubsidized Loan
- This loan is not based on financial need.
- You will 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 5.05% (undergraduate student) and 5.84% (graduate student), fixed for the life of the loan. Effective for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.
There is a loan fee on all Direct Subsidized and Unsubsidized Loans. The loan fee of 1.062% is a percentage of the amount of each loan you receive for loans first disbursed between October 1, 2018 and September 30, 2019.
For more information about Federal Direct 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 normally begins at the time the PLUS loan is fully disbursed with first payment due within 60 days after the final disbursement (typically spring semester). It is possible to request to have payments deferred while student is enrolled at least halftime.
- The current interest rate is 7.6%, fixed for the life of the loan. Effective for loans first disbursed on or after July 1, 2018 and prior to July 1, 2019.
There is a loan fee on all Direct PLUS Loans. The loan fee is 4.072% of the loan amount for all loans first disbursed between October 1, 2018 and September 30, 2019. The fee is deducted proportionately each time a loan disbursement is made.
For more information about Federal Direct PLUS Loans, 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 | $57,500 | ||
| The subsidized portion of an undergraduate's loan aggregate may not exceed $23,000. | ||||||
|
Graduate |
N/A | N/A | $20.500 | $20,500 | ||
|
Aggregate maximum |
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 Loan 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:
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