Direct Loan Eligibility
In order to borrow Federal Direct Loans, you must
- Be a U.S. citizen or a U.S. permanent resident (with a green card)
- Have a valid Social Security Number
- File a FAFSA (Free Application for Federal Student Aid) each academic year
- Be enrolled at least half time (a minimum of six paying credits per semester). If you take less than six credits, you will not be eligible to apply for federal loans and additionally, any previous loans you borrowed will enter their grace period. Credits from free classes do not count towards the six credit minimum.
- Be below the aggregate borrowing limit ($65,500 subsidized, $138,500 combined)
- Meet satisfactory academic progress as defined in the Stern Bulletin
- Comply with Selective Service Registration, if required
- Must not be in default on a federal student loan
All male U.S. citizens, and male aliens living in the U.S., who are 18 through 25, are required to register with selective service. It is a way for the U.S. government to keep a list of names of men from which to draw in case of a national emergency requiring rapid expansion of our Armed Forces. Selective Service registration is a requirement for federal aid.
If you have been asked by FAFSA to provide proof of registration (or exemption), please visit www.sss.gov to apply for a Status Information Letter. Be sure to include your name, date of birth, Social Security Number, and current mailing address. As you await the arrival of the Status Information Letter, please submit the following to our office:
- A copy of your green card (front and back) if you are a permanent resident
- Evidence of when you first entered the United States (usually demonstrated with a copy of visa stamp in passport)
- Written explanation of your status from the time you entered the United States until you became a permanent resident
After accepting a Graduate PLUS Loan on the NYU Albert system, the government will check your credit to confirm approval. However, we advise you to use the credit report resources on our site to check your credit score prior to accepting the loan. If there is incorrect information on your report, be sure to rectify the issue(s).
Per the Department of Education, for purposes of qualifying for a Direct PLUS Loan, you are considered to have an adverse credit history if:
- you have one or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off (written off) during the two years preceding the date of the credit report, OR
- during the five years preceding the date of the credit report, you have been subject to a
- default determination
- discharge of debts in bankruptcy
- tax lien
- wage garnishment
- write-off of a federal student aid debt
An accepted credit check is valid for 180 days.