FEDERAL DIRECT LOAN SELF-CHECKLIST
FOR STUDENTS AND PARENTS
Student Borrowers
Undergraduate and Graduate students must maintain at least half-time enrollment in order to retain eligibility for all federal
loans. Graduate students who are enrolled in less than 4.5 credits and have been approved by their advisor for full or
half-time equivalency are eligible for federal loans.
SUBSIDIZED AND UNSUBSIDIZED LOANS
❑ Accept the desired loan(s) on NYU Albert via the Accept/Decline Financial Aid link and follow the instructions
given.
❑ Students who are borrowing Subsidized and/or Unsubsidized Loans for the first time as an NYU student must:
1. Sign-in to studentaid.gov using your own student FSA ID
2. Sign the Subsidized/Unsubsidized Master Promissory Note
3. Complete the online Undergraduate or Graduate Entrance Counseling
❑ Students who have borrowed Subsidized and/or Unsubsidized Loans as an NYU student in previous years do not
need to complete a new promissory note if their previous MPN is still active and will not have to complete a new
Entrance Counseling session.
GRADUATE PLUS LOANS * I nformation about Credit Freezes
❑ Accept the desired loan(s) on NYU Albert via the Accept/Decline Financial Aid link and follow the instructions
given.
❑ Students who are borrowing Graduate PLUS Loans for the first time as an NYU student must:
1. Sign-in to studentaid.gov using your own student FSA ID.
2. Sign the Graduate PLUS Master Promissory Note (MPN).
3. Complete the online Graduate Entrance Counseling (applicable to Unsubsidized Loan as well).
❑ Students who have borrowed a Graduate PLUS Loan as an NYU student in previous years do not need to
complete a new promissory note if their previous MPN is still active and will not have to complete a new Graduate
Entrance Counseling session.
❑ If credit denied, please see the information below for your options.
Parent Borrowers
Undergraduate students must maintain at least half-time enrollment in order to retain eligibility for all federal loans
including the Parent PLUS Loan.
PARENT PLUS LOANS – NEW BORROWERS * I nformation about Credit Freezes
❑ The student will accept the desired loan(s) on NYU Albert (Accept/Decline Financial Aid link) and assign each
loan to a parent borrower by providing the parent borrower’s email address. The email must belong to the parent,
not the student. You, the parent, will immediately receive an email providing further instructions. Note: If the
designated parent does not receive the email, please check the spam folder.
❑ Create a parent FSA ID if one does not already exist.
❑ Sign-in to studentaid.gov using your parent FSA ID and:
1. Complete a PLUS Loan Request
2. Complete a Parent PLUS Master Promissory Note
❑ If credit is approved, within approximately five business days of completing the Federal Direct PLUS Loan
Application and PLUS MPN, a PLUS Confirmation email (subject line “NYU PLUS Loan Confirmation
Instructions”) will be sent to the designated parent. Please check your spam folder if you do not receive the email.
Complete the PLUS Confirmation by clicking the link in the email and following the instructions.
❑ If credit is denied, please see the information below for your options.
PARENT PLUS LOANS – EXISTING BORROWERS * I nformation about Credit Freezes
❑ The student will accept the desired loan(s) on NYU Albert (Accept/Decline Financial Aid link) and assign each
loan to a parent borrower by selecting the existing borrower from the drop down box .
❑ Note that a PLUS Loan Request is then automatically generated and FSA will check your credit history in order to
obtain a credit decision. Credit decisions are valid for 180 days from the date FSA completes each credit check.
❑ If credit is approved, within approximately two business days of the student accepting the loan(s), a PLUS
Confirmation email (subject line “NYU PLUS Loan Confirmation Instructions”) will be sent to the designated
parent. Complete the PLUS Confirmation email from NYU by clicking the link in the email and following the
instructions.
❑ If credit is denied, please see the information below for your options.
GRADUATE OR PARENT PLUS LOAN CREDIT DENIALS
The NYU Office of Financial Aid is not provided with the specific reason for the denial. If your PLUS Loan is credit
denied there are three options:
1. Appeal the credit decision with the lender, Direct Loans, by documenting extenuating circumstances at
studentaid.gov .
2. Have a qualified cosigner complete an Endorser Addendum at studentaid.gov .
3. For parents who have been denied, the student may request additional Unsubsidized Loan in the student’s
name from the NYU Office of Financial Aid. The additional loan will be up to $4,000-$5,000 depending on the
student’s grade level. If at a later time during the academic year a parent becomes eligible or is approved with
an endorser for a Parent PLUS loan, the additional Unsubsidized Stafford Loan will be cancelled .
4. Pursue a private educational loan in the student’s name.
Graduate Students or Parents who are originally credit denied for a PLUS Loan, but have obtained approval by
appeal or endorser are required to:
❑ Complete an online PLUS Loan Counseling session. The federal Department of Education will contact the
borrower in these cases and direct them to studentaid.gov to complete PLUS Loan Counseling. Your PLUS
Loan cannot disburse to your Bursar bill until you have completed the PLUS Loan Counseling.
❑ Complete a new PLUS Loan Master Promissory Note. Any PLUS Loan that has been approved with an
endorser must have its own PLUS Loan Master Promissory Note. Direct Loans will not disburse your loan funds
without this.
TIMEFRAME FOR ACCEPTING AND DISBURSING FEDERAL LOANS
❑ The ability for students to accept or decline their federal loans typically begins in May or June, prior to the start
of the new academic year. If loans are offered after that timeframe, students can accept or decline their loans
immediately thereafter.
❑ All federal loans must be accepted prior to the last week of each semester. Once a semester has ended, all
loans that haven’t been accepted will be canceled.
❑ Note that PLUS Loan credit decisions are valid for 180 days. Credit denied graduate and parent borrowers who
decide to pursue an appeal or endorser must do so before the credit decision expires. PLUS Loan Credit
Counseling must be completed within that 180 day period as well.
❑ Federal financial aid regulations prohibit schools from disbursing loan funds more than 180 days after each loan
period (semester) ends. So, it is important to complete all required documents, as previously described, as soon
as possible. Once the 180 day-mark after the end of each loan period is reached, loans that have not disbursed
will be canceled.
*If you have placed a security freeze on your credit file with Equifax and/or TransUnion, you must lift or remove
the freeze at each credit bureau before FSA can determine your credit status. Your Graduate or Parent PLUS Loan will
not be processed if you have a security freeze on your credit files.
