Need Based Federal Loans

Federal Perkins Loan

Students who are offered and accept a Federal Perkins Loan must complete a Master Promissory Note (MPN) and complete the on line Entrance Counseling. Once a Federal Perkins Loan is accepted instructions will be provided to the student to complete a master promissory note on line. Once a promissory note has been submitted and processed, it will be used for all Federal Perkins Loans processed by SUNY Potsdam over multiple academic years.

  • Need-based.
  • Fixed interest rate of 5 percent.
  • Interest-free while enrolled in at least 6 credit hours.
  • Limited number of awards available based on annual allocation of funds.
  • Repayment begins nine months after leaving school or if you drop below 6 credit hours.
  • Annual maximum per federal regulations is $5,500 for Undergraduate borrowers & $8,000 for Graduate borrowers.


William D. Ford Federal Direct Loans:

Students borrowing on or after July 1, 1999, will electronically sign a Master Promissory Note (MPN). The MPN can be used to make one or more loans for one or more academic years. This can be done electronically at: www.studentloans.gov. It will be used for all your loans over multiple academic years at the same school. A completed Promissory Note will enable the Financial Aid Office to request the disbursement of funds from the United States Department of Education. When planning loan financing, students should expect a 1 percent origination and insurance fee deduction in funds (with an automatic .5% rebate).

Federal Direct Subsidized Stafford Loan:

  • Need-based.
  • Fixed interest rate of 3.4% for Undergraduate borrowers for loans disbursed on or after July 1, 2011.
  • Fixed interest rate of 6.8% for Graduate borrowers.
  • Interest-free while enrolled in at least 6 credit hours.
  • Repayment begins six months after leaving college or if you drop below 6 credit hours.


The maximum yearly loan limits are:

  • $3,500     freshmen
  • $4,500     sophomores
  • $5,500     juniors/seniors
  • $8,500     graduate students (subsidized loan funding is not available to graduate students for loans disbursed on or after July 1, 2012)