Students and others who apply for loans must always be aware that they are taking on a financial responsibility and have promised to pay the money back with interest. Students apply for federal loans (the Federal Stafford loan and Federal Perkins loan programs) by completing the Free Application for Federal Student Aid (FAFSA).
Parents who are interested in a Federal Parent Loan for Undergraduate Students (PLUS) must complete a credit check and promissory note. Private student loans are available from various banks. Each loan has separate application, interest and repayment terms. It is important that students and borrowers read the terms carefully before borrowing. Your financial aid counselor can answer questions about the following loan programs:
Federal Perkins Loans are long-term, low-interest federal educational loans. The interest rate is 5% and students may have up to 10 years to repay the loan, depending on the amount borrowed. Students who have outstanding Federal Perkins Loans have nine months after termination of study before repayment begins. These funds may be used to defer charges.
The Federal Direct Stafford Loan is a federal educational loan with a low interest rate and extended repayment. Eligibility for the Federal Direct Stafford Loan is on the same basis as other need-based student financial aid.
The Federal Direct Unsubsidized Loan (Unsub) is for students who do not demonstrate "financial need" for a subsidized Federal Direct Stafford Loan.
The Federal Direct Parent Loan (PLUS) is a federal loan for parents of dependent students. SUNY Oneonta automatically packages PLUS in aid packages and lets parents decide whether and how much to borrow based on their eligibility. The parent's credit history is considered by the lender before approving the loan. In the event a parent does not qualify for this loan, the student may become eligible for additional aid through the Federal Unsubsidized Loan.
Special Note about Federal Direct Loans: Students and parents who borrow in the Federal Direct Loan program(s) complete an Electronic Master Promissory Note (e-MPN), which remains in effect throughout the student's college career (with exceptions). This procedure eliminates the need to complete subsequent promissory notes each award year. Previous Federal Direct Loan borrowers who negotiated an e-MPN do not need to complete a new one; however, returning students must notify the Financial Aid Office if they wish to reduce or decline any loan(s) offered.
Private Educational Loans | College Loan Code of Conduct