Federal Stafford Loan Process
Application process for first-time Federal Stafford Loan borrowers:
- Complete Free Application for Federal Student Aid (FAFSA) online at www.fafsa.ed.gov. Our school code is 002780.
- Receive award information from Student Financial Services. If you choose to accept the loans listed on the award notice, simply proceed to step 3. If you wish to have your loan adjusted, please contact our office at sfs@newschool.edu.
- Complete Entrance Interview online at www.edfund.org/wps/portal/AboutEdTestStudents.
- Select a lender and contact them directly. The lender will provide you with instructions to complete the Federal Stafford Loan Master Promissory Note (MPN). Our federal school code for loans is 020662.
- Once your lender receives your completed MPN, they will contact our office so that we can certify your enrollment. Lender processes may differ, so please confirm their application process.
- Funds will be disbursed directly to The New School, and you will be notified when these funds have been applied to your account. Note that your financial aid file must be complete (all requested verification documents received and processed) before your federal Stafford Loans can be disbursed.
For continuing New School students, if you had a loan in the last semester, your loan will automatically be processed with the lender that you selected. If you wish to have your loan processed with another lender, or need to reduce the loans offered, please contact Student Financial Services at sfs@newschool.edu or 212.229.8930.
Amount you can request: There are limits to the amount you can borrow under the federal Stafford Loan program. The following chart estimates the maximum borrowing level based on your year in school and dependency status. Please contact us or the Department of Education for further information on annual and aggregate limits. For specific amounts, please refer to your Financial Aid Award Letter or log on to MyNewSchool.
Federal Stafford Loan Limits
Federal Stafford Loan Limits For loans disbursed AFTER July 1, 2008
| STUDENT LEVEL & DEPENDENCY STATUS |
MAXIMUM STAFFORD (combined subsidized and unsubsidized) |
MAXIMUM SUBSIDIZED |
| Annual Loan Limits for Dependent Students |
| Dependent Freshman |
$5,500 |
$3,500 |
| Dependent Sophomore |
$6,500 |
$4,500 |
| Dependent Junior or Senior |
$7,500 |
$5,500 |
| Annual Loan Limits for Independent Students and Dependent Students whose parent is ineligible for PLUS |
| Independent Freshman |
$9,500 |
$3,500 |
| Independent Sophomore |
$10,500 |
$4,500 |
| Independent Junior or senior |
$12,500 |
$5,500 |
| |
| Graduate/Professional |
$20,500 |
$8,500 |
| Aggregate Limits for Stafford Loans |
| |
Subsidized |
Total (subsidized and unsubsidized) |
| Dependent Undergraduates |
$23,000 |
$31,000 |
| Independent Undergraduates and Dependent Students whose parent is ineligible for PLUS |
$23,000 |
$57,500 |
| Graduate/Professional |
$65,500 |
$138,500 |
For loans disbursed prior to July 1, 2008, click here.
Interest:
Undergraduate subsidized loans first disbursed between July 1, 2009 and June 30, 2010: fixed rate of 5.6%.
Undergraduate subsidized loans first disbursed between July 1, 2008 and June 30, 2009: fixed rate of 6.0%.
Undergraduate subsidized loans disbursed between July 1, 2006 and June 30, 2008: fixed rate of 6.8%.
Undergraduate unsubsidized loans disbursed after June 30, 2006: fixed rate of 6.8%.
Graduate subsidized and unsubsidized loans disbursed after June 30, 2006: fixed rate of 6.8%.
All Stafford loans disbursed prior to July 1, 2006 have a variable interest rate capped at 8.25%.
Fees: There is a guarantee fee of up to 1%. There is an origination fee up to 3%. Both fees are deducted from the loan prior to disbursement.
Necessary Forms: Entrance Interview (Required for first-time borrowers)
Repayment: Generally, the repayment period is ten (10) years, but some lenders allow for a repayment period of up to thirty (30) years. You must begin to repay your loan once you graduate, leave school, or drop below half-time status (6 credits).