Loans and Payment Plans

Bank Street College participates in the William D. Ford Federal Direct Loan Program, through which borrowers obtain federal loan funds directly from the US Department of Education.

Students who file a FAFSA, are matriculating, and enroll at least half-time may qualify for a Federal Direct Loan. Half-time enrollment is considered a minimum of 5 credits (or the equivalent) during the Summer Long, Fall, or Spring semester or a minimum of 2 credit hours during the Summer 1 or Summer 2 term.

First-time borrowers must complete two requirements to accept Federal Direct loans:

• Schedule Loan Entrance Counseling, which  provides information on the rights and responsibilities of the student borrower
• Sign the master promissory note, which is the student’s legal promise to repay the loan money borrowed.

Both items can be completed at the Federal Student Aid website

The Federal Direct Unsubsidized Loan is a low-interest-rate loan provided by the federal government. Graduate students may borrow an annual maximum of $20,500.

• “Unsubsidized” means that the borrower must pay the accrued monthly interest on the loan or the interest will be capitalized (added to the principal).
• As of July 1, 2022, Unsubsidized Direct loan has an interest rate fixed at 6.54 percent for the 2022-2023 academic year. Repayment of the principal of the loan begins six months after the borrower ceases to be enrolled at least half-time. Interest begins accruing upon disbursement, and the Borrower must pay the accrued monthly interest on the loan or the interest will be capitalized (added to the principal) when repayment begins.
• Note: This loan has an origination fee that is deducted from the gross loan amount before any loan proceeds are sent to Bank Street College.

Graduate students who are enrolled at least half-time have the option of applying for a Graduate PLUS loan. You should first apply for a Federal Direct Unsubsidized Loan before applying for the Graduate PLUS Loan because the interest rate and fees are lower.

• This loan is credit-based.
• Effective July 1, 2022, Graduate PLUS loans have a fixed interest rate of 7.54 percent for the 2022-2023 academic year.
• Repayment begins 60 days after the second disbursement unless the borrower requests that repayment be deferred until after graduation.
• You’ll apply for the Graduate PLUS Loan directly on the Federal Student Aid website

Various alternative loans from private banks are also available, but we strongly recommend that you utilize federal loans before considering alternative loan options.

• Alternative loans are commercially based and usually require a credit check and/or a credit-worthy cosigner.
• Interest rates are fixed or variable.

If you decide to apply for an alternative loan, you’ll complete the process directly on the lender’s website. The lender will notify us of an approved loan, and a staff member in the Office of Financial Aid will certify the loan (as long as you have enrolled for classes). Loan funds will be disbursed to your account once payment from the bank has been received. The loan application and certification process takes approximately two to three weeks.