Students wishing to apply for a loan within the Federal Direct Loan Program must file a Free Application for Federal Student Aid (FAFSA) each academic year. Upon filing this form, the resulting Student Aid Record (SAR) or Institutional Student Information Record (ISIR) must be filed with the Office of Financial Aid.
When filing the FAFSA, students should make sure to utilize the Title IV Federal School Code for the appropriate campus. Specifically, the Federal School Code for the Florham-Madison Campus is 004738; the Federal School Code for the Teaneck-Hackensack Campus is 002607.
The Federal Direct Loan Program allows the student to defer repayment while enrolled ar least half time. There are a number of repayment optionw with with to repay the loan (standard repayment is 10 years), with a minimum payment of $50.00 per month after graduation, withdrawal or dropping to less than half time enrollment.
Federal Direct Unsubsidized Loan
Effective July 1, 2012, the Federal Direct Unsubsidized Loans are available to matriculated students enrolled at least half time. A graduate or professional student may borrow up to a maximum of $20,500.00 per academic year based on the Cost of Education and less any other financial aid received. The interest rate on an unsubsidized loan is fixed at 6.8% and a 1.051% loan fee is taken at the time of disbursement. A student may choose to either pay or accrue the interest while attending school. Interest that is not paid is capitalized (added to the principal amount borrowed).
The cumulative aggregate Federal Direct Loan debt a graduate dependent student may incur is $138,500; no more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
Students must complete Loan Entrance Counseling and a Master Promissory Note (MPN) prior to borrowing at www.studentloans.gov. The Loan Entrance Counseling provides required information about a borrower's rights and responsibilities.
Federal Direct Plus Loan
The Federal Direct PLUS Loan is a credit-based loan program which enables approved borrowers to borrow up to the cost of education less any other financial aid received. Repayment of the PLUS Loan begins 60 days after disbursement of the funds to the University but may be deferred while in enrolled at least half time. To be eligible for a Federal Direct PLUS loan, the student must file the FAFSA and may not be in default on any federal student loans.
Credit decisions are determined by the U.S. Department of Education when the student applies via www.studentloans.gov. Credit approvals will expire after 90 days.
The Federal Direct PLUS Loan has a fixed interest rate of 7.9% and a loan fee of 4.20% is taken at the time of disbursement.
More information about the Direct Loan Program, including repayment plans, calculators and borrower's rights and responsibilities may be found online at: http://www2.ed.gov/offices/OSFAP/DirectLoan/student.html
Veterans' Educational Benefits
Some veterans are eligible for monthly allowances (paid directly to the veteran) paid by the United States Veterans Administration. Funding eligibility is based on enrollment status as determined by the number of credits for a particular semester. Veterans applying for benefits must complete the Veteran Program Card at the beginning of each semester and submit it to the Office of Veterans Affairs.
Students who contributed to the Veterans Educational Assistance Program (VEAP-Chapter 32) may be eligible for benefits. In addition, dependents and spouses of veterans who died of service-related causes may also be eligible for benefits. Any questions regarding veterans and 16 dependents of veterans benefits should be directed to the Office of Veterans Affairs at the Teaneck-Hackensack Campus at (201) 692-2368.
Useful web sites:
The SmartStudentTM Guide to Financial Aid - finaid.org
NJ Higher Education Student Assistance Authority - hessa.org
Student Loan Marketing Association - salliemae.com
Federal Office of Post-Secondary Education - ed.gov/offices/OPE
Direct Loans: William D. Ford Federal Loan Program - ed.gov/DirectLoan
FastWeb: Free Scholarship and College Searches Plus Financial Aid Tools - fastweb.com
Wired Scholar - The Planning for College Destination - wiredscholar.com
Armed Forces Financial Aid - myfuture.com
National Association of Student Financial Aid Administrators - nasfaa.org