NYIT - Admissions

Loans

Once you have received and responded to your NYIT award letter, you can apply for a loan. Information on Federal Stafford, Federal PLUS, Federal Grad PLUS loans, and alternative loans is listed below.

As a borrower, you have the right and ability to borrow student and/or parent loan funds using any lender you choose. NYIT encourages students to research and select any of the many educational lenders that provide meaningful benefits to your specific needs. Please click here for a helpful checklist for choosing lenders. Remember that Federal Stafford, Federal PLUS, and Federal Grad PLUS loans’ interest rates are set by the federal government and not by the lender, guarantor, or school.

When a borrower fills out an electronic federal master promissory note (E-MPN) on the New York State Higher Education Services Corporation (HESC) Web site, lenders are listed in alphabetical order. In certain cases, one lender may have several lender codes and their name will appear multiple times on the HESC lender dropdown list. Please note that borrower benefits and lender fees may vary by lender code and you should select your lender using their specific lender code that you researched, and not just based on their name.

In the event that a lender you would like to borrow from is not one of the more than 240 listed on the New York State Higher Education Services Corp Web site, you may contact the lender directly and apply through their process. Then, e-mail the NYIT Office of Financial Aid or call 516.686.7680 to inform us so that we may process and certify your loan correctly. Also, if you would prefer to use a guarantor other than HESC, please contact our office for further instructions. As always, we are here to assist you in any way possible. Helping our students to achieve their academic goals is our top priority.

Stafford Student Loan

There are two types of this federal loan -- Subsidized and Unsubsidized.

Subsidized Stafford Loans have a fixed interest rate of 6.0%.
Unsubsidized Stafford Loans have a fixed interest rate of 6.8%.

Some lenders charge an origination fee of up to 1.5% and others do not charge a fee at all. You may want to research which lender you would like to utilize using the Student and Parent Loan Guide as a reference for the kinds of questions you should be asking lenders about their loan products.

Steps in Applying:

You must complete Stafford Loan Entrance Counseling online.
Please complete an electronic master promissory note (E-MPN) using the New York State Higher Education Corporation (HESC) Web site.

Parent Loan for Undergraduate Students (PLUS)

This is for parents of dependent undergraduates only. Interest rate is fixed at 8.5% and most lenders charge a 3% loan origination fee.

First-time PLUS borrowers: Parent needs to complete a pre-approval for credit status and, if approved, complete an electronic master promissory note (E-MPN). Please complete all steps for loan to be processed. Additionally, parent and student need to sign an authorization statement c lick here.

Continuing PLUS borrowers: Parent who originally borrowed for the same student as last year needs to only complete a credit pre-approval. If approved, the loan will continue processing because an E-MPN is already on file. Please complete all steps for loan to be processed. Also, parent and student need to sign an authorization statement if not previously done c lick here.

Both of these processes can be completed at New York State Higher Education Services Corporation (HESC) Web site. During the pre-approval and E-MPN process, the parent will be asked to create a HESC user ID and password. The pre-approved parent needs to electronically sign the E-MPN by using the HESC ID and password assigned. Please save your user ID and password for future transactions.

If the parent’s credit is denied for the PLUS loan, please contact our office as soon as possible. With confirmation of the parent loan credit denial, the dependent undergraduate student will be offered an additional Unsubsidized Stafford Loan up to $5,000 for the year, based on grade level.

Federal Graduate PLUS Loans

These loans are for graduate students only. Interest rate is fixed at 8.5% and most lenders charge a 3% loan origination fee.

First-time GPLUS borrowers need to complete a pre-approval for credit status, and, if approved, complete an electronic master promissory note (E-MPN). Also, students must complete Graduate PLUS Loan Entrance Counseling online.

Continuing GPLUS borrowers need to only complete a pre-approval for credit status and, if approved, the loan will continue to processing because an E-MPN is already on file. Also, students must complete Graduate PLUS Loan Entrance Counseling online.

The pre-approval for credit status and E-MPN processes can both be completed at the New York State Higher Education Services Corporation (HESC) Web site. During the pre-approval and E-MPN process you will be asked to create a HESC user ID and password. The student needs to electronically sign the E-MPN by using the HESC ID and password assigned. Please save your HESC user ID and password for future transactions. If you are credit denied, you may want to research alternative/private education loans. Many of these require a co-signer.

Alternative Loans

Alternative loans are private student loans that are used to fill the gap between the cost of education and financial aid received. It is recommended that you borrow the maximum Stafford Loans for which you are eligible and consider the Parent PLUS loan (for dependent undergraduate students) or the Graduate PLUS loan (for graduate students) before applying for an alternative student loan. The Federal PLUS loan is usually less expensive than an alternative loan. In addition, alternative loans are based on credit and debt-to-income ratio whereas the PLUS loan is based on credit only.

Some alternative loan lenders charge fees on their loans, which can significantly increase the cost of the loan. A loan with a relatively low interest rate but high fees may ultimately cost more than a loan with a higher interest rate and no fees. Also, be aware that the higher the number of payments/years that you have to repay the loan, the more money you will pay in interest over the life of the loan.

The best alternative student loans have interest rates around LIBOR* + 1.8% or Prime** + 0.5%.

These rates are generally offered to students with extremely good credit scores. The rates and fees generally increase proportionately as credit scores decline. Many lenders will require school certification and will not lend more than the school determines to fit into the total cost of education less all other financial aid received.

Alternative loan lenders will usually defer the principal payment while the student is in school and up to 6 months or more after the student leaves school (grace period). During the time of principal deferment, interest is still accruing on these loans. If a student elects not to pay interest while in school, the lender will add the interest to the principal loan amount (capitalization). It is not uncommon for a lender to advertise lower interest rates during “in-school” and “grace” periods and to increase the interest rate when full repayment begins.

Students may apply for an alternative loan with a credit-worthy co-borrower if they are unable to borrow a loan on their own. It’s advisable to have a co-borrower anyway, as many lenders offer lower interest rates and/or fees for loans with a co-borrower.

*LIBOR is the three-month average of the London Interbank Offered Rate that is paid on deposits of U.S. dollars in the London market.
**Prime is the prime lending rate set by the U.S. Treasury. Prime is the rate that U.S. banks charge their most creditworthy customers.
Current rates for both can be found in the Federal Reserve Statistical Release.