Federal Loans

Federal Direct Subsidized and Federal Direct Unsubsidized loans are available to undergraduate students who are U.S. citizens or eligible non-citizens. The U.S. Department of Education pays the interest on a Federal Direct Subsidized Loan while the student is enrolled at least half-time and during the grace period (first six-months after the student separates from school). Federal Direct Subsidized Loan eligibility is based on financial need determined by the FAFSA. With Federal Direct Unsubsidized Loans, interest is accruing during all loan periods.

Annual loan limits are based on the student's year in school. 

The current interest rate is fixed at 6.39% with an origination fee of 1.057%. 

To apply, students must submit the FAFSA application. For more information about the Federal Direct Loan program, visit the Federal Student Aid website. 

A Parent PLUS Loan is a federal loan in the parent's name for their student's educational expenses. These are credit-based loans (requiring an application and subject to a credit check). They are available to parents of dependent, undergraduate students. We encourage you to borrow only what you need for the academic year. 

Eligibility

• Meet the basic eligibility criteria for the federal student aid programs
• Eligible, dependent student must complete the Free Application for Federal Student Aid (FAFSA®) form
• Additional information is available in the SUNY Cortland Undergraduate Catalog and at Studentaid.gov 

Origination and Interest Rates

• Current interest rate is fixed at 8.94% with a 4.228% origination fee. 

Loan Limits

• Parents borrowing funds for the first time for a student after July 1, 2026, will only be able to borrow up to $20,000 per year, per child, with a $65,000 lifetime maximum per child. This is a change from current rules, which allow borrowing up to the Cost of Attendance without a lifetime limit.
• Existing students with a Federal Direct Loan disbursed before July 1, 2026, can continue under the current limits until the completion of their current program or for up to three additional years, whichever comes first.

Repayment

• Repayment begins 60 days after the loan is fully disbursed. Parent PLUS Loan borrowers may choose to have repayment deferred (postponed) while their student (for whom the parent borrowed) is enrolled at least half-time and for an additional six months after the student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower. Unless requested, there is no six-month grace period. Payments can be deferred if the parent borrower is in school themselves. Please note, since the interest rate is not subsidized, it will continue to accrue and capitalize when the loan enters repayment. The repayment term is up to 10 years.

For additional information on repayment and repayment plans please visit studentaid.gov 

Application Process

1. Determine how much to borrow using the Direct Loan Origination Fee Calculator. We recommend that you borrow the amount needed for all terms the student will be attending for the academic aid year. 
2. Complete the Federal Parent PLUS Loan application. To complete the application, you will need the following:
   • NOTE: The application begins with a credit check. After you sign in to studentaid.gov, click "Request a Federal Direct PLUS Loan" and complete the online parent credit application and Federal Parent Plus Master Promissory Note.
   • Credit checks are good for 180 days
   • If a parent with adverse credit files an appeal or obtains an endorser, they must complete the PLUS Credit Counseling
• Your (the parent) Social Security number and your student's Social Security number
• Your (the parent) federal PIN number (the one you used to sign your student's FAFSA)

 For more information about Federal Direct PLUS Loans, visit the Federal Student Aid for parent website.

Federal Direct Unsubsidized Loans are available to graduate students who are U.S. citizens or eligible non-citizens. Graduate students must be enrolled at least part-time to be eligible. 

The annual loan limit for Federal Direct Loans for graduate students is $20,500 per academic year, within the cost of attendance.

The current interest rate is fixed at 7.94% with a 1.057% origination fee. With Federal Direct Unsubsidized Loans, interest is accruing when the loan disburses.

To apply, students must submit the FAFSA application. For more information about the Federal Direct Loan program, visit the Federal Student Aid website. 

Graduate PLUS Loan will no longer be available to new borrowers starting July 1, 2026. If a student has borrowed this type of funding for their current degree program, then they may continue to apply for up to three additional academic years or until the completion of their current program, whichever comes first.

These loans are only available to graduate students and are considered unsubsidized, so interest accrues while the student is enrolled in school and during deferment periods. They require an application and are subject to a credit check. We encourage you to borrow only what you need for the academic year. 

 Eligibility

• Meet the basic eligibility criteria for the federal student aid programs
• Complete the Free Application for Federal Student Aid (FAFSA®) form
• Additional information is available in the SUNY Cortland Undergraduate Catalog and at studentaid.gov 
• Be enrolled in a minimum of 6 credit hours required for your degree program

 Origination fee and Interest Rates

The current interest rate is fixed at 8.94% with a 4.228% origination fee. 

 Repayment

Repayment begins 60 days after the loan is fully disbursed. Grad PLUS Loan borrowers may choose to have repayment deferred (postponed) while in school, enrolled at least half-time, and for an additional six months after the student is no longer enrolled at least half-time. Interest that accrues during these periods will be capitalized if not paid by the borrower. The repayment term is up to 10 years.

For additional information on repayment and repayment plans please visit studentaid.gov

 How to Apply

Apply online at Direct PLUS Loan for Graduates or Professional Students application by logging in with your FSA ID.

• Once approved, make sure you continue the process and complete the Entrance Loan Counseling and Master Promissory Note
• PLUS Loan credit checks will expire 180 days after the approval date

 For more information about Federal Direct Graduate PLUS Loans, visit Federal Student Aid. 

The Federal Perkins Loan program was discontinued by the Department of Education. A borrower who received a Perkins Loan can learn more about managing repayment by contacting The Student Loan Service Center at 518-525-2626 or slsc@uamail.albany.edu.

The Student Loan Servicing Center is responsible for all Perkins Loan repayments and handles all requests for deferment, forbearance and loan forgiveness.