Types of Loans

Investing in your Education with Loans

Your education is a long-term investment, and loans can help cover costs—but they must be repaid. Borrow only what you need and consider other aid options first:

Complete a FAFSA to see if you qualify for a federal grant
New York State (NYS) residents can apply for state grants and scholarships through the NYS Higher Education Services Corporation (HESC).
Nursing Students can apply for grants and scholarships with the Health Resources & Services Administration (HRSA).
Visit ScholarshipUniverse to apply for other internal and external scholarships

Students and their families have several loan options to consider. Students who submit a FAFSA will see at least one federal loan in their financial aid offer. Review your options carefully before borrowing.

Standard Eligibility Requirements
To qualify for loans, students must:

Be a U.S. citizen or eligible non-citizen
Submit a FAFSA - not required for private loans
Be enrolled in a degree-granting program
Take at least 6 credits toward their degree
Maintain satisfactory academic progress (SAP)
Not be in loan default
Not exceed aggregate loan limits

Note: Federal Nursing Loans and private loans have additional requirements.

To adjust a loan, complete the Loan Change Request Form.

Important Federal Loan Updates Effective July 1, 2026

The One Big Beautiful Bill Act (OBBBA) is changing how federal loans work. This matters to you and your family because it may affect how much you and your family can borrow to pay for college, which may impact how you plan for educational costs.

OBBBA was signed into law in July 2025; its main goals are to cap federal borrowing, lower long-term student loan costs, and increase institutional accountability. Please review the following federal loan changes that take effect with the 2026–2027 academic year (starting July 1, 2026).

Federal Loan Updates for Parents of New & Transfer Students

Why Your Student Should Accept Their Federal Student Loans First

Federal Direct Subsidized and Unsubsidized Loans are usually the best first loan option because they:

Often have lower interest rates than private education loans and Parent PLUS Loans,
Offer flexible repayment options and borrower protections,
Are in the student’s name, helping them build their credit history; and
You are limited to how much you can borrow in Parent PLUS Loan funds.

Federal Direct Parent PLUS Loan Limits

You are limited to how much you can borrow:

$20,000 per academic year
$65,000 total (aggregate) limit

These limits are per student. If each parent applies for a Parent PLUS loan, your combined loans cannot exceed these limits for the student for whom you’re applying.

If you previously borrowed a Parent PLUS Loan for another student, or if your student is transferring from another school, these limits still apply.

To help you plan, here are suggested annual loan amounts to help you avoid exhausting your lifetime limit too soon for your student:

Year in School	Parent PLUS Loan Amount
1	$20,000
2	$13,500
3	$10,500
4	$10,500
5	$10,500
Total	$65,000

Enrollment Requirements for Your Student

Less than full-time enrollment will reduce your student’s federal loan eligibility.

Your student must enroll in at least 6 major-applicable credits per semester to receive federal loans (Subsidized, Unsubsidized, and Parent PLUS).

*NEW* Beginning July 1, 2026, the requirement below applies to all students, regardless of enrollment status or prior borrowing history:

Federal Direct Subsidized and Unsubsidized Loans will be prorated if your student enrolls in fewer than 24 major-applicable credits per academic year.

Federal Loan Updates for Parents of Continuing Alfred State Students

Why Your Student Should Accept Their Federal Student Loans First

Federal Direct Subsidized and Unsubsidized Loans are usually the best first loan option because they:

Often have lower interest rates than private education loans and Parent PLUS Loans,
Offer flexible repayment options and borrower protections,
Are in the student’s name, helping them build their credit history; and
You may be limited to how much you can borrow in Parent PLUS Loan funds.

Federal Direct Parent PLUS Loan Limits

If your student received a Federal Direct Subsidized or Unsubsidized Loan before July 1, 2026, these limits do not apply—unless your student:

•    Did not receive a Federal Direct Subsidized or Unsubsidized Loan before July 1, 2026
•    Withdraws or previously withdrew
•    Changes their degree (e.g., Associate to Bachelor)
•    Transfers schools
•    Graduates and re-enrolls in another undergraduate program

In these cases, Parent PLUS borrowing will be limited to:

$20,000 per academic year
$65,000 total (aggregate) limit

These limits are per student, not per parent.

IMPORTANT: If your student withdraws, changes their degree, or transfers schools, and you have already borrowed the $65,000 total (aggregate) limit for that student, you are no longer eligible to borrow additional Parent PLUS Loans for that student.

Note: Beginning July 1, 2029, these limits will apply to all Parent PLUS borrowers, regardless of your student’s status and prior borrowing history.

Enrollment Requirements for Your Student

Less than full-time enrollment will reduce your student’s federal loan eligibility.

Your student must enroll in at least 6 major-applicable credits per semester to receive federal loans (Subsidized, Unsubsidized, and Parent PLUS).

*NEW* Beginning July 1, 2026, the requirement below applies to all students, regardless of enrollment status or prior borrowing history:

Federal Direct Subsidized and Unsubsidized Loans will be prorated if your student enrolls in fewer than 24 major-applicable credits per academic year.

Federal Loan Changes for New & Transfer Students

Your Enrollment Matters

Enrolling less than full-time will reduce your loan eligibility.

You must enroll in at least 6 major-applicable credits per semester to receive a federal loan (Subsidized, Unsubsidized, and Parent PLUS).
Your Federal Direct Subsidized and Unsubsidized Loans will be prorated if you enroll in fewer than 24 major-applicable credits per academic year.

Why You Should Accept Your Federal Loans First

Federal Direct Subsidized and Unsubsidized Loans are usually your best first loan option because they:

Often have lower interest rates than private education loans and Parent PLUS Loans,
Offer flexible repayment options and borrower protections,
Are in your name, helping you build your credit history; and
Your parents will be limited to how much they can borrow in Parent PLUS Loan funds

Federal Direct Parent PLUS Loan Limits

Your parents can only borrow so much:

$20,000 per academic year
$65,000 total (aggregate) limit

These limits are per student, not per parent. If both parents apply, their combined loans cannot go over these limits for you. Even if your parents borrowed a Parent PLUS Loan for a sibling in the past, these limits still apply for your college education.

Federal Loan Changes for Continuing Alfred State Students

Enrollment Matters

Enrolling less than full-time will reduce your loan eligibility.

You must enroll in at least 6 major-applicable credits per semester to receive a federal loan (Subsidized, Unsubsidized, and Parent PLUS).
Your Federal Direct Subsidized and Unsubsidized Loans will be prorated if you enroll in fewer than 24 major-applicable credits per academic year.

Why You Should Accept Your Federal Loans First

Federal Direct Subsidized and Unsubsidized Loans are usually your best first loan option because they:

• Often have lower interest rates than private education loans and Parent PLUS Loans,
• Offer flexible repayment options and borrower protections,
• Are in your name, helping you build your credit history; and
• Your parent may be limited to how much they can borrow in Parent PLUS Loan funds.

Federal Direct Parent PLUS Loan Limits

Your parents’ borrowing will be limited if you:

•    Did not receive a Federal Direct Subsidized or Unsubsidized Loan before July 1, 2026
•    Withdraw or previously withdrew
•    Change your degree (e.g., Associate to Bachelor)
•    Transfers schools
•    Graduate and re-enroll in another undergraduate program

In these cases, your parents will be limited to:

$20,000 per academic year
$65,000 total (aggregate) limit

These limits are per student, not per parent.

IMPORTANT: If you withdraw, change degrees, or transfer schools, and your parents already borrowed the $65,000 total (aggregate) limit for you, they are no longer eligible to borrow additional Parent PLUS Loans for you.

Note: Beginning July 1, 2029, these limits will apply to your parents regardless of your enrollment status and prior borrowing history.

Loan Types

Federal Direct Student Loans

Federal Direct Student Loans are low-interest loans from the U.S. Department of Education to help cover college costs. Students who complete the FAFSA may be offered a:

Subsidized Loan: No interest accrues while enrolled at least half-time (6+ credits) in a degree-granting program; based on financial need
- Household income and grants and scholarships received affect eligibility

Unsubsidized Loan: Interest accrues while enrolled; not need-based

Interest & Fees

Fixed interest rate: 6.53% (effective July 1, 2025 – June 30, 2026)
Origination fee: 1.057% (through Sept. 30, 2026)
- You repay 100% of the loan, but 98.943% is applied to your account

How to Accept Your Federal Loans

Log in to my.AlfredState.edu/finances → Financial Aid Offer card → select Financial Aid Offer → Offer
Under Grants and Loans on studentaid.gov (login with student FSA ID) complete:

Required

Loan Entrance Counseling → select “I am an Undergraduate Student”
Master Promissory Note (MPN) → select “I am an Undergraduate Student”

Optional

Annual Student Loan Acknowledgement

Your loans will reflect on your account within 7 business days. Please contact us if the loans are not showing on your account, but you have completed all federal financial aid requirements.

Borrowing Limits

Dependent Students

Total (aggregate) loan limit is $31,000, with no more than $23,000 that can be subsidized.

Year(s) in School	Credits Earned	Loan Limit
1	0 - 23	$5,500
2	24 - 59	$6,500
3 - 5 Bachelor's Degree Only	60+	$7,500

Independent Students and Dependent Students whose parent is denied a Federal Direct Parent PLUS Loan

Total (aggregate) loan limit is $57,500, with no more than $23,000 that can be subsidized.

Year(s) in School	Credits Earned	Loan Limit
1	0 - 23	$9,500
2	24 - 59	$10,500
3 - 5 Bachelor's Degree Only	60+	$12,500

Disbursement Rules

Federal loans are automatically split evenly between fall and spring semesters per federal regulations
If you do not use a summer or fall loan, you may borrow your full eligibility in the spring
Typically, you cannot receive your full annual loan amount in the summer or fall semesters (federal regulation); however,
- Students graduating in August or December may request a prorated annual loan amount if enrolled in 13+ credits in their final semester by emailing sfs@alfredstate.edu

If you want to use loan funds to help pay for summer courses or winter courses, please visit my.AlfredState.edu/finances and select Complete Financial Aid Tasks on the Financial Aid & Costs card to complete a Summer or Winter Aid Application.

Repayment

Required, even if you don’t complete your degree at Alfred State
Payments are automatically deferred while enrolled at least half-time (6+ credits) in a degree granting program
- Repayment begins after a 6-month grace period
During your final semester, complete Loan Exit Counseling at studentaid.gov

Select a repayment plan using the Loan Simulator and manage your federal loans at studentaid.gov,where your loan servicer is listed on your account dashboard. Current federal loan servicers include:

Aidvantage
CRI
ECSI
Edfinancial
MOHELA
Nelnet

Note: Alfred State is not your loan servicer and cannot recommend repayment plans, collect your monthly payments, or communicate with your servicer on your behalf.

Your servicer can help you manage repayment, especially during times of financial hardship, unemployment, illness, or disability. Contact them promptly if you are having trouble making payments for any reason. If you cannot afford any repayment plan option, they can assist you with additional deferment or forbearance options.

Defaulting on a federal student loan can hurt your credit, lead to wage garnishment, and prevent you from borrowing future federal loans.

There are also programs for Student Loan Forgiveness.

Still enrolled, but your servicer is requesting payments?

Request a Verification of Enrollment form to be sent to your servicer, or
Request an In-School Deferment Form from your servicer
- Complete the borrower sections and email it to sfs@alfredstate.edu or bring it into the office
- Student Records & Financial Services will complete the school portion of the form and return it to you to submit it to your servicer.

Federal Direct Parent PLUS Loan

Investing in your student’s future can include a Parent PLUS Loan, which allows you to help bridge the gap between financial aid and the remaining cost of your student’s education.

Please wait until June 1 to apply for the upcoming academic year to avoid additional credit checks.

Interest & Fees

Fixed interest rate: 9.08% (effective July 1, 2025 – June 30, 2026)
- Interest accrues while the student is enrolled
Origination fee: 4.228% (through Sept. 30, 2026)
- You repay 100% of the loan; 95.772% is applied to your student’s account

Borrower Eligibility

To qualify, the borrower must:

Be a biological or legally adoptive parent; or required FAFSA-listed stepparent
- Grandparents are not eligible
Be a U.S. citizen or eligible non-citizen
Not be in federal loan default
Not have an adverse credit history

Important: Your student must be considered dependent for FAFSA purposes for you to be eligible for a Federal Direct Parent PLUS Loan.

If your student is considered independent for FAFSA purposes, they can apply for a private student loan with you as a co-signer.

How to Apply?

Parents log in to studentaid.gov using their FSA ID
1. Under Grants and Loans, select PLUS Loans: Graduate PLUS and Parent PLUS
2. Select “I am a Parent of a Student”
3. Follow the instructions in the application, you should receive an immediate credit check and decision after submission
4. If approved, complete a Master Promissory Note (MPN) under Grants and Loans → select “I am a Parent of an Undergraduate Student”

Allow 10 business days after completing all steps for the loan to appear on the student’s account.

Loan Periods

Loans can be requested for the full academic year or by semester
Full-year loans are automatically split evenly between semesters per federal regulations
Apply by semester if you need different amounts for each semester

If you need a loan for:	Select this loan period (2026-2027):
Summer Only	May 26, 2026 - August 17, 2026
Summer, Fall & Spring	May 26, 2026 - May 14, 2027
Fall Only	August 31, 2026 - December 18, 2026
Fall & Spring	August 31, 2026 - May 14, 2027
Spring Only	January 25, 2027 - May 14, 2027

If you want to help your student finance summer or winter courses, your student must visit my.AlfredState.edu/finances and select Complete Financial Aid Tasks on the Financial Aid & Costs card to complete a Summer or Winter Aid Application.

If You Are Denied

Reapply with an endorser (cosigner), appeal the credit decision, or choose not to pursue the loan.
- If you choose not to pursue the loan, your student may receive additional unsubsidized loan funds:
  1. 0-59 credits earned: up to +$2,000 per semester
  2. 60+ credits earned (bachelor’s degrees only): up to +$2,500 per semester
- If you re-apply with an endorser or your appeal is approved, you must complete the following on studentaid.gov under Grants and Loans:
  1. A Master Promissory Note (MPN) — required even if previously completed
  2. PLUS Loan Credit Counseling → select “Parent of an Undergraduate Student”

Additional bill payment options include a monthly payment plan or a private student loan. Private loan co-signers may be any credit-worthy adult age 18 or older, they do not have to be a parent.

Deferment & Repayment

The parent borrower is responsible for repayment (cannot be transferred to the student under any circumstances per federal regulations)
Repayment is required even if the student does not complete their degree at Alfred State

Deferment

Deferment: Begins 6 months after the student drops below half-time (less than 6 credits), leaves school, or graduates

Immediate repayment: Begins 60 days after the full loan disburses

Repayment

You will select a repayment plan and manage your Federal Direct Parent PLUS Loans at studentaid.gov, where your loan servicer is listed on your account dashboard. Current federal loan servicers include:

Aidvantage
CRI
ECSI
Edfinancial
MOHELA
Nelnet

Note: Alfred State is not your loan servicer and cannot recommend repayment plans, collect your monthly payments, or communicate with your servicer on your behalf.

Simulate repayment and choose a repayment plan using the Loan Simulator.

Your servicer can help you manage repayment, especially during financial hardship, unemployment, illness, or disability. Contact them promptly if you are having trouble making payments for any reason. If you cannot afford any repayment plan option, they can assist you with additional deferment or forbearance options.

Defaulting can hurt your credit, lead to wage garnishment, and prevent you from borrowing future federal loans.

Is your student still enrolled, but your servicer is requesting payments?

Request an In-School Deferment Form from your servicer
- Complete the borrower sections and email it to sfs@alfredstate.edu or bring it into the office
- Student Records & Financial Services will complete the school portion of the form and return it to you to submit it to your servicer.

Federal Nursing Loan

A Federal Nursing Loan is a low-interest, need-based loan for students enrolled in a nursing program—helping make your education more affordable as you invest in your future.

Interest & Fees

Fixed interest rate: 5%
- No interest accrues (subsidized) while enrolled at least half-time (6+ credits) in an eligible Nursing program (530, 834/835, 835)
No loan fees (100% of the loan disburses to your account)

Loan Types

Federal Nursing Loan:
- For Associate Nursing students
  - 530
  - 834/835 before completing Nursing IV
  - 835 before completing Nursing IV
Baccalaureate Federal Nursing Loan:
- For Bachelor Nursing students after completing Nursing IV
  - 834/835
  - 835

Do I need to Apply

No. If you compete a FAFSA, the loan will appear in your financial aid offer at my.AlfredState.edu/finances.

If you were not offered the loan, it may be because:

You do not have financial need
- Household income and grants and scholarships received affect eligibility

Funding is no longer available (awarded on a first-come, first-served basis)
- Receiving the loan in a prior academic year does not guarantee eligibility in future years

How to Accept the Loan

Log in to my.AlfredState.edu/finances → Financial Aid Offer card → select Financial Aid Offer → Offer
On or after June 1, you will receive notice to your Alfred State email to complete the following documents on Alfred State Student Forms:
- Award Addendum
- Entrance Counseling
- Master Promissory Note (MPN)
- Self-Certification Form
- Title VII & VIII Truth-in-Lending & Rights/Responsibilities

Important:

Funding is not guaranteed until documents are completed
- Submit all documents within 30 days of the semester start
The MPNis mailed to your mailing address on file, and the original copy must be returned (keep pink copy for your records)

The loan will appear on your account within 7 business days after all documents are received by Student Records & Financial Services.

Borrowing Limits

Loan amounts depend on financial need and available funding.

Up to $3,300/year: Associate Nursing and Bachelor Nursing (before Nursing IV)
Up to $5,200/year: Bachelor Nursing (after Nursing IV)
Total (aggregate) loan limit: $17,000

The loan is split evenly between semesters per federal regulations. If you do not use the loan in a summer or fall term, you may borrow your full eligibility in the spring.

Deferment & Repayment

Repayment is required, even if you do not complete a degree at Alfred State
Your 9-month grace period begins after any of the following occur:
- Drop below 6 credits
- Leave an eligible Nursing program
- Graduate or leave school for any reason

Payments are made to the SUNY Student Loan Service Center (SLSC). You must contact SLSC with repayment questions:

Website: https://slsc.albany.edu/borrowers/

Email: slsc@albany.edu

Phone: 1-833-920-1481

Mail:
SUNY Student Loan Service Center
PO Box 610
Albany, NY 12201-0610

Important: Contact SLSC to request an In-School Deferment Form if SLSC requests payment before you finish your eligible nursing program.

Keep in mind, if you change to an ineligible major, your loan will enter repayment while you are still enrolled, and you will be required to begin making payments.

For additional repayment assistance, consider HRSA’s Loan Repayment Program.

Private Student Loan

A private student loan is a non-federal loan offered by banks, credit unions, or online lenders to help cover college costs not met by financial aid.

Please wait until June 1 to apply for the upcoming academic year to avoid additional credit checks.

How to Apply

Visit FASTChoice to compare lenders and loan products before applying
- Students create an account with their chosen lender to complete application
  - Please contact the lender for application assistance and questions as it varies by lender
- Some lenders offer private parent loans that any credit-worthy adult (not limited to parents) can borrow
  - Typically, the borrower is responsible for repayment as the loan may not be eligible for transfer to the student.
You may choose any lender—you are not limited to FASTChoice
Interest rates, fees, and terms vary by lender
- Interest accrues while enrolled
- No origination fees (100% of the loan disburses to your account)
International students must apply with a credit-worthy, U.S. citizen co-signer who is 18 years or older (not all lenders allow international borrowers)

Note: Eligibility requirements vary by lender.

Loan Periods

Loans can be requested for:
- Full academic year
  - Automatically split evenly between semesters unless you submit a Loan Change Request Form to request a different distribution
Individual semesters

If you need a loan for:	Select this loan period for (2026-2027):
Summer Only	May 26, 2026 - August 17, 2026
Sumer, Fall & Spring	May 26, 2026 - May 14, 2027
Fall Only	August 31, 2026 - December 18, 2026
Fall & Spring	August 31, 2026 - May 14, 2027
Spring only	January 25, 2027 - May 14, 2027

Co-Signer Information

A co-signer is not required if you are 18 or older and a U.S. citizen or eligible non-citizen, but a co-signer may improve approval chances and lower interest rates
Co-signers must:
- Be a U.S. citizen or eligible non-citizen
- Be credit-worthy
- Be at least 18 years old
- Not be in loan default

Note: Requirements vary by lender

Some lenders offer co-signer release after a period of on-time payments; varies by lender.

When Will Funds Appear on my Account?

Typically 10 business days after completing all lender requirements
Funds cannot disburse until:
- The lender’s cancellation period ends (varies by lender)
- And no sooner than 7 days before the semester begins
  - If you need funds sooner to purchase required tools, laptop or other supplies for your program, please request a Billable Curriculum Cost (BCC) Account

Funds are required to be sent directly to Alfred State. If there is a credit balance, Student Records & Financial Services will issue a refund after the semester starts.

How Much Can I Borrow?

Up to your annual cost of attendance minus all other financial aid/loans
Check with your lender for total (aggregate) loan limits

Fixed vs. Variable Interest Rates

Private student loans may have either a fixed or variable interest rate. It’s important to understand the difference before choosing a loan.

Fixed Interest Rate
- Stays the same for the life of the loan
- Provides predictable monthly payments
Variable Interest Rate
- Can change over time based on market conditions
- May start lower than a fixed rate but can increase or decrease, affecting your payment

Tip: If you prefer stability, a fixed rate may be a better option. If you’re comfortable with potential changes in your payment, a variable rate may offer lower initial costs.

Interest Rate vs. APR

Interest Rate
- The cost of borrowing the loan principal
APR (Annual Percentage Rate)
- Includes the interest rate plus any fees, giving a more complete picture of the total loan cost

Tip: Compare APRs, not just the interest rates, when evaluating loan options.

Repayment

Repayment is required, even if you do not complete your degree at Alfred State
Terms vary by lender:
- Many offer a 6-month grace period after leaving school
- Some require payments while you are in school

Contact your lender directly for repayment questions.

Note: Alfred State cannot recommend repayment plans, collect your monthly payments, or communicate with your lender on your behalf.

Still enrolled, but your lender is requesting payments

First, verify with your lender whether or not they require payments while enrolled.

If you are not required to make payments while enrolled:

Request a Verification of Enrollment form to be sent to your lender, or
Request an In-School Deferment Form from your lender
- Complete the borrower sections and email it to sfs@alfredstate.edu or bring it into the office
- Student Records & Financial Services will complete the school portion of the form and return it to you to submit it to your lender.