Loans and Payment Plans

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

Students who file a FAFSA, are matriculated in a degree-granting program, and enrolled 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 semesters or a minimum of 2 credit hours during the Summer 1 or Summer 2 terms.

The second and third tabs on this page summarize the Federal Direct Unsubsidized and Federal Graduate PLUS Loan options. The last tab on this page contains information about alternative student loans which aren’t federally funded. This type of loan is recommended as a last resort if all other funding options have been exhausted.

The Federal Direct Unsubsidized Loan is a low-interest-rate loan provided by the federal government. If you’re enrolled at least half time in a degree program, you can borrow up to $20,500 in Direct Unsubsidized Loan funds per academic year.

• No application or credit check are required.
• Federal Direct Unsubsidized Loans for the 2024-2025 academic year that disburse between July 1, 2024 and June 30, 2025 have a fixed interest rate of 8.08%. 
• Federal Direct Unsubsidized Loans for the 2025-2026 which disburse between July 1, 2025 and June 30, 2026 have a fixed interest rate of 7.94%.
• Any Direct Unsubsidized Loan disbursed before October 1, 2025 will be subject to a 1.057% loan origination fee. This fee comes out of the amount disbursed (paid out) to you while you’re in school. This means the total amount of your loan disbursement(s) will be less than the amount you actually borrow, but you’re still responsible for repaying the entire amount of the loan before origination fees.
• All first-time borrowers must complete both Federal Loan Entrance Counseling and a Direct Unsubsidized Loan Master Promissory Note (MPN) must be completed at studentaid.gov.
• This loan is unsubsidized which means interest starts accumulating on it from the date of your first loan disbursement (when the funds are sent from the lender to the school).
• Repayment of this loan officially begins six months after the you graduate, leave school, or drop below half-time enrollment. 
• Students have the option to make full or partial payment on any interest that accumulates on this loan while they are in school. While not mandatory, making full or partial interest payment while in school will lower the amount a borrower has to repay when their loans officially go into repayment.

If the Federal Direct Unsubsidized Loan doesn’t fully cover your charges and/or expenses and you’re enrolled at least half time in a degree program, you have the option of applying for additional loan funds via a Federal Graduate PLUS Loan. Federal regulations require you to exhaust your Direct Unsubsidized Loan eligibility before applying for a Grad PLUS Loan.

• A credit check will be performed by the lender to determine if you qualify for this loan.
• Graduate PLUS Loan applications are submitted via the Federal Student Aid website.
• Federal Grad PLUS Loans for the 2024-2025 academic year that disburse between July 1, 2024 and June 30, 2025 have a fixed interest rate of 9.08%. 
• Federal Grad PLUS Loans for the 2025-2026 which disburse between July 1, 2025 and June 30, 2026 have a fixed interest rate of 8.94%.
• Any Federal Grad PLUS Loan disbursed before October 1, 2025 will be subject to a 4.228% loan origination fee. This fee comes out of the amount disbursed (paid out) to you while you’re in school. This means the total amount of your loan disbursement(s) will be less than the amount you actually borrow, but you’re still responsible for repaying the entire amount of the loan before origination fees.
• All first-time Grad PLUS Loan borrowers must complete a Federal Grad PLUS Loan Master Promissory Note (MPN) on the studentaid.gov website.
• The maximum Grad PLUS loan amount you can receive is calculated by subtracted any financial aid you receive for the academic year from your estimated cost of attendance (determined by the school) for the academic year.
• This loan is unsubsidized which means interest starts accumulating on it from the date of your first loan disbursement (when the funds are sent from the lender to the school).
• As long as you’re enrolled at least half time, repayment of this loan will automatically be deferred until six months after the you graduate, leave school, or drop below half-time enrollment. 
• Student have the option to make full or partial payment on any interest that accumulates on this loan while they are in school. While not mandatory, making full or partial interest payment while in school will lower the amount a borrower has to repay when their loans officially go into repayment.

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 want to apply for an alternative loan, you would complete the process directly on the lender’s website. State and federal regulations prohibit us from recommending any specific lender. You can do a search for alternative loan lenders online. 

Before choosing a lender, we recommend reviewing information such as:

• The lender’s interest rate

• If the interest rate is fixed or variable (variable interest rate loans may have lower interest rates in the short term, but they usually don’t have an interest cap so the variable interest rate may wind up exceeding the fixed interest rate being offered. Also, it is harder to budget for variable interest rate payments when it comes time to repay the loan 
• When repayment begins on the loan (some may require you to repay while you’re still enrolled in school)
• Any special benefits the loan might offer (ex: no loan origination fees, a discount if you sign up for automatic payments when in repayment, etc.)

All of this information will vary from lender to lender so we encourage you to compare lenders before making a final decision

We will be informed by the lender once your loan application is approved so we can begin the certification process. Loan funds will be applied to your account once payment from the bank has been received. Depending on when the approval information is sent to us, the entire process from application approval to disbursement can typically take an average of approximately two to three weeks.