• William D. Ford Direct Student Loans

    This is a U.S. government program of subsidized and unsubsidized direct loans, which are explained below. The U.S. government is the lender. Loan funds are disbursed to the university, which applies them directly to the student's account. Interest rates are fixed and fees may be significantly lower than rates charged by private lenders.

    Direct Subsidized Loans

    • Offered to undergraduate students only
    • Based on financial need
    • No interest accrues while you are in school and enrolled at least half-time.
    • No payment is due until six months after you leave school or fail to enroll at least half-time.

    Direct Unsubsidized Loans

    • Offered to undergraduate and graduate students
    • Not based on financial need
    • Interest accrues from date funds are disbursed to the university.
    • No payment is due until six months after you leave school or fail to enroll at least half-time, but, if possible, you should make interest payments on an unsubsidized loan while you are still in school.

    Application Process for First-Time Direct Loan Borrowers

    • Complete the Free Application for Federal Student Aid (FAFSA) online at www.fafsa.ed.gov. (The school code is 002780.) It is not necessary to have an admission decision to file the FAFSA.
    • Once you are admitted to The New School, you will receive a financial aid offer from Student Financial Services, which may include some combination of federal direct student loans.
    • The amount of your loans and the mix of subsidized and unsubsidized loans is based on a calculation that includes Estimated Cost of Attendance, your Estimated Family Contribution, and any scholarships and other forms of financial aid you receive.
    • If you choose to accept the loans offered by Student Financial Services, simply proceed to the next step. If you want to reduce or decline your loan amount in part or full, contact Student Financial Services as soon as possible.
    • Complete the online Entrance Interview and Master Promissory Note (MPN) at studentloans.gov. (Our school code for federal loans is 020662.)
    • The federal student loan servicing center will notify Student Financial Services when you have completed the entrance interview and submitted the MPN. We will then certify your eligibility and process your loan(s).
    • All student aid for the semester, including loans, cannot be disbursed before the first day of the semester. You will be notified when the funds have been applied to your account. Note that your financial aid file must be complete (including any requested verification documents processed) before your federal student loans will be disbursed.
    • Student loans must be accepted and originated prior to your last day of enrollment for the semester in the current aid year.

    Renew Annually

    You must refile FAFSA annually to renew your federal loan(s), but you are not required to repeat the Entrance Interview or refile the MPN. Your financial aid package, including loans, may change from year to year.

    Fees and Interest

    Interest rates are fixed for an annual loan but may change as loans are renewed from year to year. The origination fee for each direct loan is proportionally deducted from each disbursement.

    For official fee and interest rate information, go to the Department of Education website.

    Disbursement Policy

    A federal direct loan for the academic year is normally disbursed to the university in two payments (for the fall and spring semesters) or in one payment if the student will be attending for one semester or the summer term only. Borrowers who require a different disbursement schedule must contact Student Financial Services as soon as they receive their financial aid package.

    The Amount You Can Borrow

    There are limits to the amount you can borrow under the federal student loan programs. The following chart estimates maximum amounts of federal loans based on year in school and dependency status. If you have general questions about annual and aggregate limits, you can go to the Department of Education website or send an email to Student Financial Services.

    Note: Because subsidized direct loans are no longer available to graduate students, the maximum annual unsubsidized loan has been increased to $20,500.

    Please refer to your Financial Aid Award letter or log on to my.newschool.edu and go to My Financial Aid to see your specific annual and aggregate limits.

    If your subsidized and unsubsidized direct loans combined with your other financial aid is inadequate to meet your estimated cost of attendance, you may be able to bridge the gap with a Parent PLUS or Graduate PLUS loan.

    Students are allowed subsidized loans for 150 percent of the published timeframe for the program of study, if otherwise eligible. For example, if the student is enrolled in a 4-year degree program, the maximum period for which a Direct Subsidized Loan is potentially available is six years (150% of 4 years = 6 years).

    Changing programs of study does not restart the clock. Time already used is subtracted from maximum time allowed. Students later seeking a four-year degree must subtract eligibility already used from the six-year limit as well. Students who reach the 150 percent limit, whether they are seeking a certificate or a two-year or four-year degree, could continue to receive unsubsidized student loans if they are otherwise eligible. The limit affects those considered to be new borrowers with no outstanding loans on or after July 1, 2013.

    When a borrower has reached the 150 percent limit, his or her eligibility for an interest subsidy also ends for all outstanding subsidized loans, if he or she did not complete the program of study within the 150 percent timeframe and borrows again, at which time interest on those previously borrowed loans would begin to accrue and would be payable in the same manner as interest on unsubsidized loans.

    Annual Limits for Federal Direct Loans (as of July 2014)

    Type of Student Subsidized Amount Unsubsidized Amount Net Total
    1st Dependent Undergrad $3,500 $2,000 $5,444
    1st Year Independent Undergrad $3,500 $6,000 $9,402
    2nd Year Dependent Undergrad $4,500 $2,000 $6,434
    2nd Year Dependent Undergrad $4,500 $6,000 $10,392
    3rd/4th Year Dependent Undergrad $5,500 $2,000 $7,424
    3rd/4th Year Dependent Undergrad $5,500 $7,000 $12,372
    Grad N/A $20,500 $20,286

    Note: An otherwise dependent student whose parents are ineligible for a Parent PLUS loan will qualify for the independent annual borrowing limit. Parent PLUS ineligibility must be documented every year.

    Aggregate Limits for Direct Loans (2014)

    Type of Student Subsidized Total (subsidized and unsubsidized)
    Dependent Undergraduates $23,000 $31,000
    Independent Undergraduates and Dependent Students whose parents are ineligible for PLUS $23,000 $57,500
    Graduate/Professional $65,500 $138,500