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 Free Application for Federal Student Aid (FAFSA) each year.

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 2.0-4.5% origination fee.
                                         

2021-2022 2022-2023
Loan Type Interest Rate  Interest Rate Interest Rate Cap
Subsidized 3.73% 4.99% 8.25%
Unsubsidized 3.73% 4.99% 8.25%
Unsubsidized Graduate 5.28% 6.54.% 9.50%
Parent PLUS Loan 6.28% 7.54% 10.50%
Graduate PLUS Loan 6.28% 7.54% 10.50%

Chart list interest rates for the Federal Direct Loan program, as regulated by the Department of Education.Application Process:

Complete the Direct Loan Master Promissory Note online at Completing a Master Promissory Note | Federal Student Aid

·       First-time borrowers at Molloy University 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 online at Completing a Master Promissory Note | Federal Student Aid.
·       First-time borrowers at Molloy University 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 enrollment 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 (For 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 PLUS Loans | Federal Student Aid
 ·       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 University.

Federal Direct Graduate PLUS Loan (Grad Plus)

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 Free Application For Federal Student Aid (FAFSA)and the Grad Plus pre-approval form at PLUS Loans | Federal Student Aid·       Once approved, complete the Grad Plus Master Promissory Note at the above website.
·       For additional information contact the Financial Aid Office.
·       Renewal Requirements: Eligible students must file the Free Application For Federal Student Aid (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 3 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.
Note: 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  at PLUS Loans | Federal Student Aid
·       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. 

 

Contact Us

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Of course, feel free to Contact Us.

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

516.323.4200

Office-of-FinancialAid@molloy.edu