Loans for College
Students and parents have several options for borrowing money to help to pay for college.
Alternative/Private Educational Loan
Direct Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of attendance. Eligible students borrow directly from the U.S. Department of Education. Students must be enrolled for at least 6 credits to be eligible for Direct Student Loans.
How to apply:
- You must submit the Free Application for Federal Student Aid (FAFSA) to be considered for Federal Direct Loans. We will determine your eligibility for the type of Direct Loan based on your financial need.
- Direct Loans are offered on your Financial Aid Award. You may accept all or a portion of the award on KnightWeb.
- If you accept a Student Direct Loan, you must complete the following steps:
Geneseo will process your loan electronically. Federal Loans may be cancelled within 14 days of disbursement to the account.
Types of Student Direct Loans:
Subsidized Direct Loans: Direct Subsidized Loans are for students with financial need. You are not charged interest while you're in school at least half-time and during grace periods and deferment periods. For 2013-14, the interest rate is set to increase to 6.8% fixed. An origination fee of 1.051% is deducted at the time of disbursement.
Unsubsidized Direct Loans: You are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Interest accrues (accumulates) on an unsubsidized loan from the time it's first paid out. You can pay the interest while you are in school and during grace periods and deferment or forbearance periods, or you can allow it to accrue and be capitalized (that is, added to the principal amount of your loan). If you choose not to pay the interest as it accrues, this will increase the total amount you have to repay because you will be charged interest on a higher principal amount. For 2013-14, the interest rate is fixed at 6.8%. An origination fee of 1.051% is deducted at the time of disbursement.
2013-14 Annual Maximum eligibility:
Dependent Undergraduate Students
YEAR IN SCHOOL (CREDITS) | ANNUAL MAXIMUM -Subsidized | ANNUAL MAXIMUM - Combined Subsidized & Unsubsidized |
| FRESHMEN (0-29) | $3,500 | $5,500 |
| SOPHOMORE (30-59) | $4,500 | $6,500 |
| JUNIOR (60-89) | $5,500 | $7,500 |
| SENIOR (90+) | $5,500 | $7,500 |
Independent Undergraduate Students &
Dependent Undergraduate Students whose parents are denied the Federal Parent PLUS Loan
YEAR IN SCHOOL (CREDITS) | ANNUAL MAXIMUM - Subsidized | ANNUAL MAXIMUM - Combined Subsidized & Unsubsidized |
| FRESHMEN (0-29) | $3,500 | $9,500 |
| SOPHOMORE (30-59) | $4,500 | $10,500 |
| JUNIOR (60-89) | $5,500 | $12,500 |
| SENIOR (90+) | $5,500 | $12,500 |
Graduate Students
ANNUAL MAXIMUM- Unsubsidized Direct Loan (*For loan periods beginning after July 1, 2012) | $20,500 |
Aggregate Federal Subsidized & Unsubsidized Stafford Loan Limits:
AGGREGATE MAXIMUM- Subsidized | AGGREGATE MAXIMUM- Combined Subsidized & Unsubsidized | |
| Dependent, Undergraduate Students | $23,000 | $31,000 |
| Independent, Undergraduate Students & Dependent Undergraduate Students whose parents are denied the Federal PLUS Loan | $23,000 | $57,500 |
| Graduate Students | $65,500 | $138,500 |
Perkins is a low-interest federal loan program. Geneseo receives an allocation from the government and we distribute the funds based on eligibility for federal need-based aid. Availability is not guaranteed. For 2013-14, the interest rate is fixed at 5.0% and there is no origination fee.
How to apply:
- You must submit the Free Application for Federal Student Aid (FAFSA) to be considered.
- Perkins Loans are offered on your Financial Aid Award. You may accept all or a portion of the award on KnightWeb.
- You must complete the Entrance Interview and Electronic Master Promissory Note.
Federal Parent Loans for Undergraduate Students (Parent PLUS)
You must submit the Free Application for Federal Student Aid (FAFSA) in order for the Parent PLUS Loan to be processed. A PLUS loan is meant to assist parents in covering costs beyond any student financial aid. The PLUS loan is credit-based and is held solely in the parent's (and endorser's, if applicable) name for the life of the loan. The interest rate is fixed at 7.9%. For 2013-14, an origination fee of 4.204% is deducted at the time of disbursement.
How to apply:
- Parent PLUS Loans are offered on your Financial Aid Award. You and your parent may accept all or a portion of the award on KnightWeb.
- Parents of dependent, undergraduate students may apply for the PLUS by visiting Studentloans.gov.
- Tips: Remember that the PARENT is the borrower and STUDENT is the student.
- Double check the student's SSN on the application.
- Your parent will log-in to the website and select the option "Request a Direct PLUS Loan." A credit decision is provided immediately upon submission of the application.
- Next, your parent must complete the Master Promissory Note for the Parent PLUS Loan on the same website.
- The loan application, credit decision, and Master Promissory Note are sent to SUNY Geneseo electronically to be matched to your record.
If your parent's credit decision is denied, the parent has three options:
- The parent may request a "credit appeal." A package of additional information will be automatically sent to the parent from Direct Lending. The parent will work with the Direct Loan to pursue this option.
- Provide an endorser: The endorser must pass a credit check and sign a promissory note. An email with the Loan Reference ID and an endorser packet will be mailed to the borrower. The endorser will need the Loan Reference ID to complete the paper packet or complete the Endorser Addendum online. The endorser must create a Federal PIN to sign in and go to "Endorse a PLUS Loan."
- Not pursue the PLUS Loan: If the borrower is not interested in the following other two options, a borrower can select the option for their son/daughter to be offered additional Federal Direct Unsubsidized Loans. Additional loan limits are available up to $6,000/academic year for 1st and 2nd year students (59 or less credit hours earned); and up to $7,000/academic year for 3rd and 4th year students (60 or more credit hours earned).
Federal Direct PLUS for Graduate Students
The Direct PLUS Loan for Graduate Students are only available for students working toward their Master's or other Professional Degree. You should always borrow through the Stafford Subsidized and/or Unsubsidized Direct Loan programs first. Students may be able to borrow up to $20,500 through the Direct Federal Stafford Loan program. The interest rate is fixed at 7.9%. For 2013-14, an origination fee of 4.204% is deducted at the time of disbursement.
How to apply:
- Graduate students will log-in at Studentloans.gov and select the option "Request a Direct PLUS Loan." A credit decision is provided immediately upon submission of the application.
- Next, you must complete the Master Promissory Note AND Entrance Counseling for the Graduate PLUS Loan on the same website. Ensure that you select the MPN option for the Graduate PLUS Loan.
- The loan application, credit decision, and Master Promissory Note are sent to SUNY Geneseo electronically to be matched to your record.
If your credit decision is denied, there are two options:
- You may request a "credit appeal." A package of additional information will be automatically sent from Direct Lending. You will work with the Direct Loan to pursue this option.
- Provide an endorser: The endorser must pass a credit check and sign a promissory note. An email with the Loan Reference ID and an endorser packet will be mailed. The endorser will need the Loan Reference ID to complete the paper packet or complete the Endorser Addendum online. The endorser must create a Federal PIN to sign in and go to "Endorse a PLUS Loan."
Alternative Student Loans/Private Educational Loans:
Be advised that you should always consider federal loan options first. Students may be able to borrow up to $7,500 through the Direct Federal Stafford Loan program depending on their grade level and parents have the option of utilizing a Direct Federal Parent Loan for Undergraduate Students (PLUS) to fund educational costs.
If you are interested in applying for an Alternative Education loan, you may contact the lender of your choice. You may choose any lender. The suggested lenders listed below were determined by an RFI (Request for Information) process and selected based on the following criteria: excellent customer service, competitive and reasonable rates & terms, user-friendly technology, and financial literacy efforts.
You may need to ask your selected lender about the interest rate structure, rate caps, repayment terms and deferment options, as they vary.
Our suggested lenders for Alternative Loans:
- Citizens Bank-Trufit Student Loan
- Credit Union Student Choice
- cuStudentLoans
- PNC Bank
- SallieMae
- SunTrust Bank
- Wells Fargo
For a comparison of these lenders and/or to apply, please visit ELMSelect 2.0.
Your application will be processed by the lender and SUNY Geneseo will be contacted if you are approved. We will certify the loan upon notification from the lender.