FAQ's » Loan

A.  Yes, you may borrow the Stafford Loans from the Federal Family Education Loan (FFEL) program or the William D. Ford Federal Direct Loan (Direct Loan) program. 

Q.  What is the difference between the FFEL and Direct Loans?

A.  The main difference between the FFEL and Direct Loans is that you receive FFEL funds from private lenders such as banks, credit unions, or other lenders that participate in the FFEL program.  The FFEL is repaid to the private lender you selected to borrow your Stafford loan.

The Direct Loan is borrowed from and repaid to the U.S. Department of Education. 

Q.  What is the maximum I can borrow from Stafford loans?

A.  The maximum amount in Stafford loans a student can receive in an academic year is $20,500.

Q.  What is the difference between Subsidized and Unsubsidized Stafford loan?

A.

• A subsidized loan is awarded on the basis of financial need (cost of education minus EFC and other aid).  You will not be charged any interest while you are enrolled in school at least half-time (6 credits) status.  The federal government "subsidizes" the interest during these periods. 
• An unsubsidized loan is not awarded on the basis of need.  You'll be charged interest from the time the loan is disbursed until it's paid in full.  

NOTE:  Students who do not qualify for a subsidized Stafford loan may borrow up to $20,500 under the Unsubsidized Stafford loan.

 Q.  What is the interest rate on the Stafford loan?

A.  The interest rates for the Stafford loan are variable. 

NOTE:  Interest rates are reset each July 1.

 Q.  How about the Federal Perkins Loan?

A.  The Federal Perkins Loan is awarded on the basis of financial need (cost of education minus EFC and other aid).  You will not be charged any interest while you are enrolled in school at least half-time (6 credits) status.  The interest rate is fixed at 5%.  If awarded, you must visit the Student Accounts Office at 133 Thompson Hall.  Their telephone number is (212) 678-3056. 

A.  Many students find that after receiving their award amounts for federal funding they still need more money to cover tuition and other educational expenses.  You may want to look into the Deferred Payment plan offered by the Students Account Office at Teachers College, please contact them at (212) 678-3056 for further information.  Another alternative is applying for a private loan. 

 Q. How will I receive my Direct or FFEL  loans?

A. For a Direct Loan, the U.S. Department of Education will pay you through your school.  For a FFEL  Loan, the lender will send your loan funds to your school.  In most cases, your loan will be disbursed in at least two installments, and no installment will be greater than half the amount of your loan.

 Q. When can I expect a refund from my account?

A. You can expect your refund once your financial aid (Plus Loan, Stafford Loans, Perkins, scholarship) has covered all of your charges.  The Office of Student Accounts will then mail to you your refund check.

 Q. Can my loan be discharged (canceled)?

A. Yes, in certain circumstances.  For more information about discharge or repayment assistance, Direct Stafford Loan borrowers should contact the Direct Loan Servicing Center at (800) 848-0979.  FFEL Stafford Loan borrowers should contact the lenders or agencies that hold their loans.