Student loans are funds borrowed from an institution that must be repaid. There are two types of loans available to students: Federal and Private.
Federal loans consist of funding provided by the government to domestic students (U.S. citizens and permanent residents). Private loans are those offered through private institutions. Both domestic and international students may be eligible for private loans.
The chart below is designed to help you understand the differences between student loan types. Review your options before making a student loan decision.
|Federal Student Loans||Private Student Loans|
|How to Apply||Submit the FAFSA, be sure to include NYU’s school code 002785||Apply directly with the lender of your choice|
|When to Apply||Any time after the FAFSA is released on October 1st of the preceding year||About a month before your program’s payment deadline, must reapply separately per semester unless you receive
a designated fall/spring loan
|Credit Review||Credit check for Grad PLUS loan||Credit check for all loans is used to determine eligibility and rates|
|May be necessary if borrower has adverse credit history||May be beneficial to lower interest rates if borrower has little or adverse credit history|
|Loan Amount*||Up to the full Cost of Attendance, minus other financial aid||Determined by lender based on eligibility, but typically up to the full Cost of Attendance, minus other financial aid|
|Repayment||Multiple plans available, including income driven repayment||Repayment terms vary and are set by the lender; may charge fee for early repayment|
|Grace Period||Borrowers have a six-month grace period after graduation before repayment begins||Grace period for private loans varies based on lender; many financial institutions match the
six-month grace period offered for Federal Loans
|Interest Rate||Fixed||Fixed or variable|
|May be eligible for Public Service Loan Forgiveness||Not typically offered|
This table is designed specifically for students in Stern graduate programs. The information may vary for loans offered for other programs.
*Whether utilizing federal loans, private loans, scholarships, tuition remission or a combination of these sources, a student's total financial aid from all sources cannot exceed the student's cost of attendance.