Federal Self-Help Loan Programs

Loans are a major form of self-help aid for college students. Money borrowed, including any interest and fees, must be repaid. Repayment usually begins after leaving school. Interest rates vary, depending on the type of loan. Student must complete FAFSA application each year.

Federal Perkins Loan
Eligibility: Loans are awarded by the Molloy College Financial Aid Office from federal funds. No interest accrues while the student is in college.

  • Possible Amounts: The award amount is based on need and funds availability.
  • The current annual interest rate is 5%.
  • Application Process: Students must complete promissory note, entrance counseling and appropriate paperwork annually in order to receive funds.
  • Renewal Requirements: Complete the FAFSA each year by May 1.
  • Repayment Information: Student enters repayment nine months after the student graduates, withdraws or falls below half-time enrollment status.

Federal Subsidized Direct Loans
Eligibility: Available to undergraduate students.

  • Student must be enrolled for at least 6 credits and must demonstrate financial need as defined by federal regulations.
  • Possible Amounts: Loan limits depend on grade level in school and dependency status.

Loan has a fixed interest rate (see chart below) and up to 2.0% origination fee.

Academic Year

Interest Rate for Undergraduate Students

Interest Rate for Graduate Students

Interest Rate for Parents

Interest Rate Cap for Undergraduate Students

Interest Rate Cap for Graduate Students

Interest Rate Cap for Parents

2016-2017

3.76%

5.31% - 6.31%

6.31%

8.25%

9.50% -10.50%

10.50% 

2015-2016

4.29% - 4.66%

6.21% - 7.21%

4.29% - 6.84%

8.25%

9.50% - 10.50%

10.50%

2014-2015

4.66%

6.21% - 7.21%

7.21%

8.25%

9.50% - 10-50%

10.50%

Chart lists interest rates for the Subsidized Direct Loan, as regulated by the Department of Education.

Application Process:

Complete the Direct Loan Master Promissory Note by paper or online at Studentloans.gov.

  • First-time borrowers at Molloy College must also complete an Entrance Counseling at the above website prior to disbursement of Direct funds.
  • Repayment Information: Student enters repayment six months after the student graduates, withdraws or falls below half-time enrollment status.

Federal Unsubsidized Direct Loans
Eligibility: Available to undergraduate and graduate students. Financial need is not necessary.

  • Undergraduate students must be enrolled for at least 6 credits. Graduate students must be enrolled for at least 4.5 credits.
  • Possible Amounts: Loan limits depend on grade level in school, and dependency status.
  • Loan has up to 2.0% origination fee.
  • Interest accrues immediately from the date of issuance of the loan.
  • Application Process: Complete the Direct Loan Master Promissory Note by paper or online at Studentloans.gov.
  • First-time borrowers at Molloy College must also complete an entrance counseling prior to receipt of Direct funds.
  • Repayment Information: Student enters repayment six months after the student graduates, withdraws or falls below half-time enrolent status.

Maximum Annual Loan Amounts
DEPENDENT STUDENT--MAXIMUM ANNUAL LOAN
AMOUNTS (Chart below)

LEVEL BASE AMOUNT   
ADDITIONAL UNSUBSIDIZED LOAN   
TOTAL
FRESHMAN $3500 $2000 $5500
SOPHOMORE $4500 $2000 $6500
JUNIOR/SENIOR    $5500 $2000 $7500


INDEPENDENT STUDENT-MAXIMUM ANNUAL LOAN AMOUNTS (Chart below)

LEVEL BASED AMOUNT   ADDITIONAL UNSUBSIDIZED LOAN    TOTAL
FRESHMAN $3,500 $6,000 $9,500
SOPHOMORE $4,500 $6,000 $10,500
JUNIOR/SENIOR    $5,500 $7,000 $12,500
GRADUATE $20,500 $20,500

 

 

 

Aggregate Borrowing Loan Limits
Dependent Undergraduate: $31,000
Independent Undergraduate: $57,500
Graduate Student: *$138,500

*Note: Includes any loans received as an undergraduate

Federal Direct Parent PLUS Loan (Undergraduate Dependent Student)
Eligibility: PLUS Loans are available to parents of dependent students. Parents who have no adverse  credit history are eligible for PLUS Loans. Student must be enrolled for at least 6 credits.

  • Possible Amounts: Maximum amount of eligibility is determined by the cost of attendance less any financial aid awarded to the student.
  • Application Process: Complete the PLUS pre-approval form at www.studentloans.gov.
  • Once approved, you must also complete the PLUS Master Promissory Note at the above website.
  • For additional information contact the Financial Aid Office. 
  • Eligible parents must re-apply for the Federal PLUS loan each academic year.
  • Repayment Information: Parents enter repayment 60 days after the loan is fully disbursed.
  • Interest begins to accrue from the date proceeds are sent to Molloy College.

Federal Direct Graduate PLUS Loan (GradPLUS)
Eligibility: Available to Graduate and professional degree students. Applicants must not have an adverse credit history, and must be enrolled for at least 4.5 credits each semester. 

  • Possible Amounts: Maximum amount of eligibility is determined by the cost of attendance less any financial aid awarded to the student. 
  • Application Process: Complete the FAFSA and the GradPLUS pre-approval form at www.studentloans.gov.
  • Once approved, complete the GradPLUS Master Promissory Note at the above website.
  • For additional information contact the Financial Aid Office.
  • Renewal Requirements: Eligible students must file the FAFSA each academic year.
  • In addition, the student must have utilized maximum yearly federal graduate Direct Unsubsidized loan eligibility before applying for a Graduate/Professional Plus loan.
  • Repayment Information: Repayment begins on the date of the last disbursement of the loan. *See chart above for current interest rates.

NURSING FACULTY LOAN
The Nursing Faculty Loan is a loan cancelation program with a service obligation. To be eligible for the maximum 85% cancelation, the borrower must agree to serve as a full-time faculty member at a School for Nursing for a consecutive four-year period following graduation from the program.

To be eligible to receive a Nursing Faculty Loan, the student must be:

  • A. U.S. citizen or national of the U.S.
  • Be enrolled for a minimum of 6 credits in an eligible program
  • Be in good academic standing (GPA - 3.00) in an advanced nurse education program to prepare Nursing faculty to teach.

For more information, contact the Graduate Nursing Department.

Important Information About Federal Student Loans:

  • All first-time borrowers must complete a federally mandated entrance counseling session electronically before receiving any loan proceeds.
  • Students receiving, Federal Direct loans or Federal Graduate PLUS loan, can satisfy this requirement only at www.studentloans.gov.
  • Students who are recipients of these loans must sign a Master Promissory Note for the first year they are receiving any type of Federal loan.
  • Students receiving Federal Perkins loans will receive information from the Financial Aid Office.

For New Federal Direct Subsidized Loan Borrowers - EFFECTIVE JULY 1, 2013

150% Subsidized Usage Limit Applies (SULA)

  • Subsidized Usage Limit Applies (SULA) is the Department of Education's rule regarding the Maximum Eligibility Period for Federal Direct Subsidized Loans. 
  • If you've looked on your NSLDS record, you may have seen the phrase 'SULA ELIGIBLE.' SULA is an acronym that stands for Subsidized Usage ­Limit Applies, and it refers to the new regulation that limits the amount of time (measured in academic years) a student may receive Direct Subsidized Loans.  
  • The regulation applies to students who are considered first-time borrowers on or after July 1, 2013.  If this limit applies to you, you may not receive Direct Subsidized Loans for more than 150 percent of the published length of your program. This is called your "maximum eligibility period." Your maximum eligibility period is generally based on the published length of your current program. You can usually find the published length of any program of study in your school's catalog.
  • Any student who has no outstanding balance on a Direct Loan or on a FFEL Program loan on July1st, 2013, or on the date the borrower obtains a Direct Loan after July 1st, 2013 is subject to the Subsidized Usage Limit Applies Rule described above. Students that do not meet these criteria are not subject to the rule while they do not meet the above criteria, but can become subject to the rule if they subsequently meet the criteria above.
  • For example, if you are enrolled in a four-year bachelor's degree program, the maximum period for which you can receive Direct Subsidized Loans is six years (150 percent of 4 years = 6 years).
  • Because your maximum eligibility period is based on the length of your current program of study, your maximum eligibility period can change if you change to a program that has a different length. Also, if you receive Direct Subsidized Loans for one program and then change to another program, the Direct Subsidized Loans you received for the earlier program will generally count toward your new maximum eligibility period.
  • Certain types of enrollment may cause you to become responsible for the interest that accrues on your Direct Subsidized Loans when the U.S. Department of Education usually would have paid it.
  • The Department of Education will determine whether borrowers are "first-time borrowers" for purposes of the 150% limit.

 

 

Contact Us

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Of course, feel free to Contact Us.

Office of Financial Aid
1000 Hempstead Avenue Wilber Arts Building, Second floor, Room W236 Rockville Centre, New York 11571-5002

516.323.4200

Office-of-FinancialAid@molloy.edu