Financial Aid

Federal Direct Loan

Borrowing Smart for College
It's a fact: Most CUNY students graduate debt free, thanks to scholarships, financial aid and a tuition plan that ranks among the top in the nation for affordability. But some students may need to borrow to make it through their college career. Are you unsure how much money you'll need or what loan options are best for your CUNY education? This video has all the answers. MORE»

Federal Direct Loans (FDL) are relatively low interest loans funded through federal Title IV legislation. The repayment interest rate is determined according to the federal Prime Lending rate in effect for the academic year encompassing the loan period. All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan.

Interest Rates

All Direct Loans first disbursed on or after July 1, 2006 have a fixed interest rate.

As of Fall 2012, Subsidized Loans are no longer available for graduate students. Graduate students are now only eligible to receive Unsubsidized Loans and/or Graduate PLUS loans.

Unsubsidized Loans for both undergraduate and graduate students disbursed July 1, 2006 to June 30, 2013 have an interest rate of 6.8%.

All Direct Subsidized Loans for undergraduate borrowers have a fixed interest rate that will be based on the first disbursement date as listed in the table below:

Interest Rate

Date of Loans

6.8% Loans first disbursed on or after July 1, 2006 and prior to July 1, 2008
6.0% Loans first disbursed on or after July 1, 2008 and prior to July 1, 2009
5.6% Loans first disbursed on or after July 1, 2009 and prior to July 1, 2010
4.5% Loans first disbursed on or after July 1, 2010 and prior to July 1, 2011
3.4% Loans first disbursed on or after July 1, 2011 and prior to July 1, 2012
3.4% Loans first disbursed on or after July 1, 2012 and prior to July 1, 2013
3.86% Subsidized AND Unsubsidized Loans first disbursed on or after July 1, 2013 and prior to July 1, 2014

Unsubsidized Loans for GRADUATE students disbursed July 1, 2013 to June 30, 2014 have an interest rate of 5.41%.

All Direct PLUS Loans disbursed July 1, 2013 to June 30, 2014 have a fixed interest rate of 6.41%.

Federal Direct Loan eligibility is initially determined through the filing of a FAFSA application. However, a separate Lehman College Direct Loan application must also be filed, either electronically or on paper. To be eligible, students must be enrolled in a matriculated course of study leading to a degree, registered for a minimum of six credits applicable towards their degree requirements, and have a cumulative G.P.A. of at least 2.0 (3.0 for Graduate students). Direct Loans can be applied to direct and indirect educational costs (e.g. tuition and clothing, respectively). Like Perkins Loans, Federal Direct Loans have employment related loan cancellation provisions. Subsidized Direct Loans range from $200-$5500 for undergraduate students. Unsubsidized, Parent PLUS and Graduate PLUS loans are also available. Cost of Education, Expected Family Contribution and Class year determine actual Direct Loan awards. For more information, visit the U.S. Department of Education FDL website, or email us at direct.loan@lehman.cuny.edu.

Complete online Exit Counseling if you have taken out Federal Direct and/or Stafford loans and are approaching graduation, or if you will not be enrolled for at least 6 credits, or just want an idea of what will happen later on.

Helpful sites:
Student Debt Repayment Assisitant
4 Things You Need to Know About Repaying Your Student Loans

Last modified: Nov 8, 2013

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