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.
  • 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.
  • Awards range from $100-$4,000 per federal regulations.


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: http://dlenote.ed.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 2 1/2 percent origination (2 percent for loans disbursed on or after July 1, 2008) and insurance fee deduction in funds (with an automatic 1.5% rebate) at the time of disbursement.

Federal Direct Subsidized Stafford Loan:

  • Need-based.
  • Fixed interest rate of 6.0% for Undergraduate borrowers.
  • 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

 

The Department of Education's Office of Student Financial Assistance offers additional information about Ford Federal Direct Loans. Please go to www.dl.ed.gov for more information.