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allows you to borrow money for your education
in addition to the amounts allowed in Direct Subsidized Loan
funds.
Who may get a Direct
Unsubsidized Loan?
To get a Direct Unsubsidized Loan, you
must meet the same general eligibility requirements as for
a Direct Subsidized Loan, except that you do not have to demonstrate
financial need.
How do I apply?
Follow the same application and disbursement process as you
would for a Direct Subsidized Loan.
How much can I borrow?
Note: the following loan limits go into effect beginning with the 2008-2009 academic year:
|
Dependent Students |
Base Amount (may be subsidized or unsubsidized) |
Additional Unsubsidized Amount |
Total Subsidized and Unsubsidized Amount |
| up
to $3,500 per year |
up
to $2,000 per year |
up to $5,500 per year |
| 1st
year - fewer than 28 credits earned |
| 2nd
year - 28 or more credits earned |
up
to $4,500 per year |
up
to $2,000 per year |
up to $6,500 per year |
| undergraduate
aggregate maximum |
up
to $23,000 |
up
to $8,000 |
up to $31,000 |
|
Independent Students |
Base Amount (may be subsidized or unsubsidized) |
Additional Unsubsidized Amount |
Total Subsidized & Unsubsidized Amount |
| up
to $3,500 per year |
up
to $6,000 per year |
up to $9,500 per year |
| 1st
year - fewer than 28 credits earned |
| 2nd
year - 28 or more credits earned |
up
to $4,500 per year |
up
to $6,000 per year |
up to $10,500 per year |
| undergraduate
aggregate maximum |
up
to $23,000 |
up
to $34,500 |
up to $57,500 |
Note: If you are a dependent student
whose parents are unable to get a Direct
PLUS Loan, you may be eligible for the increased independent student loan
maximums listed above and should speak with a financial aid
counselor.
Are there other limitations
on the amount I may borrow?
Yes. You may not borrow more than your
cost of attendance at BMCC less any other financial aid you
may be receiving. Also, if your period of enrollment is less
than a full academic year, the amount of loan assistance you
are entitled to may be less than the maximum amounts listed
above. Furthermore, the Federal Government may restrict how
frequently you may request or receive the maximum loan amount.
Finally, the Office of Financial Aid may refuse to process
your loan request or may otherwise reduce the amount of your
loan, if it provides you with a written explanation for its
decision.
What
is the interest rate on my unsubsidized loan?
Unsubsidized loans have the same variable interest rate as
subsidized loans. If you first received a FFELP or Direct
Loan on or after July 1, 1l994, your rate of interest will
never exceed 8.25%. The actual interest rate for your loan
is adjusted each year on July 1 and is calculated according
to a federal formula. You will be notified as the interest
rate changes throughout the life of the loan.
If you borrowed a FFELP loan before July 1, 1994, the interest
rate for this loan will be different. Check with your lending
institution for the interest rate that applies to your FFELP
loan.
You may check current education loan interest
rates at: www.finaid.org/loans/scripts/interest.cgi.
Am I
charged interest on this loan while going to school?
Yes. These loans are called unsubsidized because the Federal
Government does not pay the interest charges. You are charged
interest from the day your loan is disbursed until it is fully
repaid, including all in-school, grace and deferment periods.
You have the option of either paying the interest as you go
or allowing it to accumulate. If you allow the interest to
accumulate, it will be capitalized, or added to the principal
amount of the loan, thereby increasing the total amount you
will have to repay.
Is there a charge
for this loan?
Yes. You'll pay a fee of up to 4% that
will be deducted proportionately from each disbursement. Some
of this fee will go to the Federal Government to help offset
the administrative costs of the loan.
When and how do I
pay back my loan?
Grace periods, repayment options, deferments
and forbearance procedures are the same for unsubsidized loans
as they are for subsidized loans, except that you are charged
interest during the entire attendance and repayment period,
including any grace or deferment periods. Please refer to
the previous section on Direct
Subsidized Loans to review your repayment and deferment
options.
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The City University
of New York
