Metropolitan College of New York
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Office of Financial Aid

Loans Questions

How do I complete the application for loans?
You may apply for federal subsidized and/or unsubsidized student loans by completing FAFSA at and completing a MPN (Master Promissory Note) and LEQ (Loan Entrance Quiz) from Once you have completed these two applications, you will be offered a Federal Direct Loan by our Financial Aid Office. If you want to borrow a Graduate or Parent PLUS Loan, you must complete the application processs at If you request a Direct Loan and later decide you do not need the funds, you may decline the loan by writing to the Financial Aid Office.

How do I qualify for a loan?
You must take at least 6 credits per semester if you are an undergraduate student and at least 5 credits per semester if you are a graduate student. You must be accepted for admission to a degree-seeking program.

How much loan money can I borrow?
The amounts for your subsidized and/or unsubsidized Stafford loans per academic year are determined by several factors such as your grade level and financial need.

Loans Amount Based on Status
  Dependent (per semester) Independent (per semester)
Freshman $2,750 $4,750
Sophomore $3,250 $5,250
Junior $3,750 $6,252
Senior $3,750 $6,250


How often do I need to complete the Master Promissory Note (MPN)?
The Master Promissory Note (MPN) is good for 10 years in most cases.

Do I have to accept all of the loan funds I am offered?
You can choose to reduce the amount of the loan, or to refuse it all, and still keep the grant portion of your package. We will offer a loan that is the maximum amount that the student is eligible for. Nevertheless, you do not have to accept the loans for which you qualify.

What is the difference between subsidized and unsubsidized loans?
Eligibility for the subsidized Stafford loan is based on need. The government pays the interest on these loans while students are in school at least half-time and during the six-month grace period* before repayment begins (for loans disbursed before July 1, 2012). Unsubsidized loans, on the other hand, accrue interest while students are in school and during the six-month grace period.

*Federal Direct Subsidized Loans disbursed after July 1, 2012 will accrue interest during six-month grace period.

What is the interest rate on a student loan?
Federal Direct Loans for undergraduate students certified between July 1, 2011 and June 30, 2012 have a fixed interest rate of 3.4 percent for subsidized loans and 6.8 percent for unsubsidized loans. The graduate student interest rate for subsidized* and unsubsidized loan is 6.8 percent. PLUS loans have a fixed interest rate of 7.9 percent.

*Federal Direct Subsidized Loans will no longer be available to graduate students after July 1, 2012.

What is my repayment period?
The repayment periods for Federal Direct Loans vary from 10 to 30 years depending on which repayment plan you choose. When it comes to repayment you can pick a repayment plan that is right for you. You can get more information about repayment by going to the U.S. Department of Education web: site

When do I begin repaying my student loans?
If you are attending school at least half-time, you have a period of time after you graduate, leave school, or drop below half-time status before you must begin repayment. This period of time is called a "grace-period". The grace period for Direct Loans is 6 months.
Subsidized loan - during the grace period, you do not have to pay any principal and you will not be charged interest.

Unsubsidized loan - you do not have to pay any principal, but you will be charged interest. You can either pay interest as you go along or it will be capitalized and added to the principal balance later.

How much will I have to repay and how often?
Typically, you will pay monthly. Your repayment amount will depend on the size of your debt and the length of your repayment period. If you have a Direct Loan, the amount you will pay also depends on the repayment plan you choose.

How can I check the status of my student loans?
You should contact the holder of your loan. If you do not know who holds your loan, you can access to find out about your federal student loans. The site displays information on loan and/or federal grant amounts, outstanding balances, loan statuses, and disbursements. To use the NSLDS Student Access Web site, you will need to provide your Social Security Number, the first two letters of your last name, your date of birth, and your Federal Student Aid PIN.

What if I cannot make my payments?
There are two options for postponing repayment - deferment and forbearance. Receiving deferment or forbearance is not automatic. You must apply for it. You must continue making payments on your loan until your deferment or forbearance has been granted.

Deferment and Forebearance

Deferment is a period of time during which no payments are required and interest does not accumulate. In the case of an Unsubsidized Direct Loan you must pay the interest.

Forbearance is when loan payments are reduced or postponed.

If you temporarily cannot meet your repayment schedule but you do not meet the requirements for a deferment, your servicer might grant you forbearance.
  • Interest continues to accumulate and you are responsible for paying it no matter what type of loan you have.
  • Generally forbearance is for periods of up to 12 months at a time for a maximum of 3 years.

You will have to provide documentation to the holder of your loan to show why you should be granted forbearance.

What other deferment options are available to me?
The following conditions can qualify you for a deferment:

  • Conditions of your Federal Subsidized and Unsubsidized Loans
  • Enrolling in school at least half-time
  • Inability to find full time employment for up to 3 years
  • Economic hardship for up to 3 years
  • Other deferment conditions are loan specific

If I take a leave of absence from school, do I have to start repaying my loans?
Not immediately. The subsidized Direct loan has a grace period of 6 months before the student must begin repaying the loan. When you take a leave of absence you will not have to repay your loan until the grace period is used up. If you use up the grace period, however, when you graduate you will have to begin repaying your loan immediately. It is possible to request an extension to the grace period, but this must be done before the grace period is used up. If your grace period has run out in the middle of your leave of absence, you will have to start making payments on your student loans.

Can I cancel my student loans if I change my mind after signing my Master Promissory Note (MPN)?
Yes. Our school will notify you in writing whenever it credits your account with your loan funds. You may cancel all or a portion of your loans if you inform your school within 14 days after the date your school sends you this notice, or by the first day of the payment period, whichever is later.

Are my parents responsible for my educational loans?
No. Parents will only be responsible for your educational loans if you are under 18 and they co-sign your loan. In general you and you alone are responsible for repaying your educational loans. On the other hand, if your parents (or grandparents) want to help pay off your loan, you can have your billing statements sent to their address. Likewise, if your lender or loan servicer provides an electronic payment service, where the monthly payments are automatically deducted from a bank account, your parents can agree to have the payments deducted from their account. But your parents are under no obligation to repay your loans. If they forget to pay the bill on time or decide to cancel the electronic payment agreement, you will be held responsible for the payments, not them.

How do I check to see if I have financial aid for a certain term?
You can view your financial aid information on Self-Service. Click on "Finances" then “Financial Aid” or you can request an award letter from the Financial Aid Office.

If you cannot find the information you are looking for, send us an email at and we will get back to you within 2 business days.

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