Loans

Loans

Investing in your Education with Loans

Your education is one of the best long-term investments you can make, and borrowing is one way to fund that investment. Since all loans must be repaid, we recommend you only borrow what you need and explore other financial aid options first.

Alfred State offers a variety of lending options to assist students with paying for college. All students who submit a FAFSA will see at least one federal student loan listed on their financial aid plan. Review the information below to explore the various loan options to make an informed decision about borrowing for your education.

To be eligible for all student loans, students must:

  • Be a U.S. citizen or eligible non-citizen.
  • Complete a Free Application for Federal Student Aid (FAFSA) • excludes private loans.
  • Be matriculated in a degree-granting program.
  • Register for at least six credit hours that count toward their degree program.
  • Maintain satisfactory academic progress-pursuit of program (SAP-POP) • includes Parent PLUS loans.
  • Not be in student loan default.
  • Have not exceeded the overall aggregate limit • excludes Parent PLUS loans.

Federal Nursing Loans and private student loans may have additional eligibility requirements.

If you wish to make changes to your student loan amounts or you need your loans reinstated please email Student Records & Financial Services from your Alfred State email.

Federal Direct (Subsidized/Unsubsidized) Loan

Federal Direct Loans are low-interest loans offered to students by the U.S Department of Education to help cover the cost of higher education. Students may be offered a Federal Direct Subsidized Loan and/or a Federal Direct Unsubsidized Loan when they complete a FAFSA.

The current interest rate for both loan types is 2.75%, which changes every July 1. Also, both loan types have an origination fee of 1.057%, which changes every October 1. Students must pay back 100% of what they borrow; however, only 98.943% will disburse to the account.

What are the differences between subsidized and unsubsidized?
  • A subsidized loan does not accrue interest while the student is enrolled at least part-time (six credit hours). Also, it’s a need-based loan program. Household income and the number of scholarships and grants a student receives affect eligibility.
  • An unsubsidized loan does accrue interest while the student is enrolled, and it’s a non-need-based loan. All students are eligible as long as they meet all eligibility requirements.
How do I accept my Federal Direct Loan(s)?

If eligible, the loan(s) will show on your financial aid plan. You can view and accept the loan(s) by going to your Alfred State Portal, select Finances and then select Accept Aid. Then, you must log in to Federal Student Aid with your (the student’s) FSA ID and password to complete the following:

  • The Annual Student Loan Acknowledgement (optional for 2021-2022; required for 2022-2023)
  • Entrance Counseling
  • A Master Promissory Note for Undergraduates

All documents are located under the Complete Aid Process tab. Your loans will reflect on your account within 3 to 5 business days. Please contact us if the loans are not showing on your account, but you completed all federal financial aid requirements.

How much can I borrow?

There are annual limits and total aggregate limits.

Annual Dependent
Student Information
Year(s) in School Credits Taken Loan Limit
1 0 - 23 $5,500
2 24 - 59 $6,500
3 - 5
Bachelor Degree Only
60 + $7,500
Total Aggregate Loan Limits No more than $23,000 can be subsidized $31,000
Annual Independent
Student Information
Year(s) in School Credits Taken Loan Limit
1 0 - 23 $9,500
2 24 - 59 $10,500
3 - 5
Bachelor Degree Only
60 + $12,500
Total Aggregate Loan Limits No more than $23,000 can be subsidized $57,500
Do the loan(s) have to be split between semesters?

If you do not borrow the fall loan you may borrow the full loan for spring semester. Per federal regulations, we cannot award the full loan for the fall semester. However, if you are graduating in August or December and taking 13+ credits, you may request we prorate your loan amounts.

If you want use loan funds to help pay for summer courses or winter courses, please visit my.AlfredState.edu/finances to complete a Summer or Winter Aid Application.

If I don’t complete my degree on time will my loan(s) be affected?

Your subsidized loan eligibility may be affected. You can still receive unsubsidized loans unless you have reached the total aggregate loan limit.

Subsidized Federal Direct Loans are subject to the Subsidized Usage Limit Applies (SULA), or 150%, rule. Students will lose eligibility if they take more than:

  • Three (3) years to complete an associate degree program.
  • Six (6) years to complete a bachelor's degree program.
  • Seven (7) years to complete a five-year degree program.

The SULA limit never resets. Examples:

  • A student who completes an associate degree in two years and enrolls in a second associate degree program only has one year of subsidized loan eligibility left.
  • A student in their fourth year of a bachelor's degree program who changes to an associate degree program loses their subsidized loan eligibility.
  • A student who completes an associate degree program in three years then enrolls in a bachelor degree program has three years of subsidized loan eligibility remaining.
Do I have to repay the loan(s)?

Yes, the loans must be repaid to the loan servicer assigned to you whether you completed a degree or not. Federal Direct Loan payments are automatically deferred while you’re enrolled at least part-time. The grace period begins when you drop below six credit hours, leave school for any reason or graduate. Repayment begins after the six-month grace period ends.

If you want to make payments while you’re in school please contact your loan servicer. You can view your loan servicer by logging on to Federal Student Aid with your FSA ID and password. Please be aware you may have more than one servicer.

Federal Direct Parent PLUS Loan

A Federal Direct Parent PLUS Loan is a federal loan that parents of a dependent undergraduate student can borrow to help finance their student’s college education. The current interest rate is 5.30%, which changes every July 1. Also, the loan has an origination fee of 4.228%, which changes every October 1. The borrower must pay back 100% of what they borrow; however, only 95.772% will disburse to the student’s account. The loan accrues interest while the student is enrolled.

Who can borrow a Parent PLUS Loan?

To be eligible for a PLUS Loan, a borrower must:

  • Be a U.S. citizen or eligible non-citizen.
  • Be a biological/legal adoptive parent; or, a step parent on the FAFSA.
  • Not be in student loan default.
  • Not have an adverse credit history.
How do I apply?

The borrower applies by logging on to Federal Student Aid with their FSA ID and password. Under the Apply for Aid tab, select Apply for a Parent PLUS. Please do not complete an application for the 2021-2022 academic year until June 1, 2021.

You must apply each academic year. You cannot apply for the full length of your student’s degree program. If you apply for a 12-month loan or a full-year loan, the loan must be split evenly between semesters. Please apply by semester if you think you will need more funds in one semester than another. Loan periods are:

  • Summer: May 1, 2021 – Aug. 1, 2021
  • 12-month: May 1, 2021 – May 1, 2022
  • Full-year: Aug. 1, 2021 – May 1, 2022
  • Fall semester: Aug. 1, 2021 – Dec. 1, 2021
  • Spring semester: Jan. 1, 2022 – May 1, 2022

You can borrow up to the student’s cost of attendance minus all other financial aid. Please contact us if you need assistance calculating a loan amount. Please do not choose ‘Let the school decide’ on the application. Fax or email a signed and dated request to Student Records & Financial Services if you want to change the loan amount or cancel the loan.

After you submit an application, you must complete:

  • A Master Promissory Note for Parents.
  • The Annual Student Loan Acknowledgement. (optional for 2021-2022; required for 2022-2023)
  • PLUS Credit Counseling (only if you appealed the credit decision or applied with an endorser).

The above documents are located on Federal Student Aid under the Complete Aid Process tab. Please allow seven to ten business days for the loan to show on your student’s account after you complete all documentation. The loan officer reviews all applications.

I was denied, what now?

You can re-apply with an endorser (cosigner) or appeal the credit decision on Federal Student Aid, both options are under the Apply for Aid tab.

If your credit is denied, the student receives an automatic increase to their Federal Direct Unsubsidized Loan. Year 1 and Year 2 students receive an additional $2,000 per semester. Year 3, 4 & 5 students in a bachelor’s degree program receive an additional $2,500 per semester.

If the student needs additional funds to pay the bill, the student can apply for a private loan with a credit-worthy cosigner, or the student can set up a Monthly Payment Plan. Please contact Student Records & Financial Services to discuss payment options.

Do I have to repay the loan?

Yes, you must repay the loan whether your student earns a degree or not. Also, the parent(s) must repay the loan. It is not eligible for transfer to the student under any circumstance.

On the application you can choose immediate repayment or deferment. If you choose immediate repayment, repayment begins once the full loan pays to your student’s account. Otherwise, deferment delays repayment until six (6) months after the student drops below six (6) credit hours, leaves school for any reason, or graduates.

When repayment begins, you will make payments to your loan servicer. Please be aware you may have more than one. You can view your loan servicer(s) by logging in to Federal Student Aid with your (the parent borrower’s) FSA ID and password.

Federal Nursing Loan

A Federal Nursing Loan is a low-interest, need-based loan funded by the federal government for students enrolled in a nursing program. A nursing student may be offered a Federal Nursing Loan or a Baccalaureate Federal Nursing Loan when they complete a FAFSA. The interest rate is 5%. There are no loan fees; 100% of the loan will pay to the student’s account. The loan does not accrue interest while you are enrolled at least part-time.

What types of Federal Nursing Loans are there?

Students in the Associate Nursing program (530) and students in a Bachelor Nursing program (834 or 835) who haven’t completed Nursing IV are eligible for a Federal Nursing Loan. Students in a Bachelor Nursing program who complete Nursing IV are eligible for the Baccalaureate Federal Nursing Loan.

Do I need to apply for it?

No, if you are eligible, the loan is offered to you in your financial aid plan which you can view on your Alfred State Portal and then select Financial Aid Plan.

If you’re enrolled at least part-time in an eligible program, but the loan is not offered to you:

  • You may not have a need. Your eligibility is affected by the household income reported on your FAFSA and the number of scholarships and grants you receive.
  • There is no more funding available. Financial aid counselors award the fund on a first-come-first-serve basis. Alfred State receives a determined amount of funds from the federal government to distribute to nursing students.
  • You do not meet all eligibility requirements listed above.
How do I accept it?

You must complete a series of documents to accept the loan:

  • An Award Addendum (required once per academic year),
  • Entrance Counseling (required once per academic year),
  • A Master Promissory Note (required for first-time borrowers, valid for ten years),
  • A self-certification form (required each semester); and,
  • A Title VII & Title VIII Truth-in-Lending & Notice of Rights and Responsibilities form (required each semester).

You must submit all required documents within 30 days of the start of the semester otherwise Student Records & Financial Services has the right to cancel your loan and award it to another nursing student in need.

You will receive an email to your Alfred State email when the documents are available to complete on Alfred State Verification. If an MPN is required, we will mail it to your home address on file. You must submit the original MPN to Student Records & Financial Services. Please allow at least three business days for the loan to show on your account once you submit all documentation. The Loan Officer reviews all documents.

How much can I borrow?

The student’s need and funding available determines the annual loan amount.

Students in the Associate Nursing program (530), and students in the Bachelor Nursing program (834) who haven’t completed Nursing IV, may receive up to $3,300 per academic year. Students in the Bachelor Nursing program (834) who completed Nursing IV may receive up to $5,200 per academic year. All nursing students cannot borrow more than $17,000 overall.

Please contact us for a Summer Aid Application or a Winter Aid Application of you would like to use some of your loan eligibility to help pay for summer courses or winter courses.

Do I have to repay the loan?

Yes, you must repay the loan whether or not you complete a degree. Repayment begins nine (9) months after you drop below six (6) credit hours in a nursing program, leave a nursing program, or graduate.

Payments are made to the SUNY Student Loan Service Center (SLSC). For more information about repayment please visit their website. You can pay online or send checks to:

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

How do I contact the Student Loan Service Center?

You can email SLSC or call toll-free at 1-833-920-1481. SLSC’s mailing address is:

SUNY Student Loan Service Center
5 University Place Suite A310
Rensselaer, NY 12144-3440

Private Student Loan

A private student loan is a non-federal loan that students can apply for through a bank, credit union, or online lender to help fund their college education. How do I apply? Students can visit FASTChoice to view lenders and compare loan products. Interest rates and loan fees vary by lender. Please be aware you do not have to choose a lender from FASTChoice. You can apply with any institution that offers private student loans.

Do I need a co-signer?

Generally, if you’re at least 18 years of age, you are not required to apply with a co-signer. However, you’re more likely to be approved with one. Most lenders require co-signers to:

  • Be a U.S. citizen or eligible non-citizen.
  • Be credit-worthy.
  • Be 18 years of age or older.
  • Not be in loan default.

Note: Eligibility requirements vary by lender. Some lenders release the co-signer after you make a certain number of on-time payments. Please contact the lender you borrowed from for co-signer eligibility requirements and to inquire about co-signer release.

As an alternative, some lenders offer a private Parent PLUS loan that any eligible, credit-worthy person can borrow (the borrower does not have to be a parent). Please direct any questions to the lender you want to apply with.

How much can I borrow?

In an academic year, a student cannot borrow more than their cost of attendance minus all other financial aid. If you applied for a 12-month loan or a full-year loan and want to change how the loan is split please submit a request via your Alfred State email.

Please contact us for a Summer Aid Application or a Winter Aid Application if you would like to use some of your loan eligibility to help pay for summer courses or winter courses.

Please contact the lender you want to borrow from to see if there’s an aggregate loan limit.

What loan period do I choose on the application?

You must apply each academic year. You cannot apply for one loan for the full length of your degree program. You may borrow a loan for a whole academic year, or you may borrow by semester. Loan period examples are:

  • Summer: May 1, 2021 – Aug. 1, 2021
  • 12-month: May 1, 2021 – May 1, 2022
  • Full year: Aug. 1, 2021 – May 1, 2022
  • Fall semester: Aug. 1, 2021 – Dec. 1, 2021
  • Spring semester: Jan. 1, 2022 – May 1, 2022
I was approved, when will it show on my bill?

It may take 7 to 14 business days for the loan to show on your account after you complete all documentation with the lender. The Loan Officer reviews all applications.

Please be aware a private lender cannot disburse funds until their loan cancellation period ends and no sooner than 7 days before the semester begins. Most lenders’ loan cancellation period ends 10 days after the Loan Officer certifies the loan. Loan cancellation periods and disbursement dates are mandated by the federal government, we are aware private loans disburse after bill due dates.

The funds are sent directly to Alfred State via electronic fund transfer/disbursement or check. If you borrowed more than your remaining balance we will issue a refund after the semester begins. If you need the refund to order a laptop or tools required for your degree program please contact us.

Do I have to repay the loan?

Yes. You must repay all student loans whether you earned a degree or not.

Repayment depends on the lender. Please contact the lender for repayment options. Most lenders do not require students to start repayment until six (6) months after they graduate or leave school for any reason. However, some lenders require students to make payments while in school.

I’m still in school, but my lender says I have to begin repayment. What do I do?

You can submit a Verification of Enrollment form to Student Records & Financial Services to defer repayment.

Or, you can contact the lender for an In-School Deferment Request form. You complete the student information section, and Student Records & Financial Services completes the school section. We will return the completed form to you, and then you send it to the lender.