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 private education 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. Students can borrow up to $20,500 each academic year, depending upon enrollment. 

• No application or credit check are required.
• Federal Direct Unsubsidized Loans for the 2026-2027 academic year which disburse between July 1, 2026 and June 30, 2027 have a fixed interest rate of 8.07%.
• Any Direct Unsubsidized Loan disbursed before October 1, 2026 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.

***Beginning July 1, 2026, graduate and professional students enrolling in a new course of study at Bank Street, and/or taking out a Federal Direct Unsubsidized Loan for the first time at Bank Street, will not be eligible for a Federal Graduate PLUS loan.***

Some Bank Street continuing students may be eligible to supplement the Federal Direct Unsubsidized Loan with a Federal Graduate PLUS Loan. For these students, federal regulations require them to exhaust their Federal Direct Unsubsidized Loan eligibility before applying for a Federal Grad PLUS Loan. 

• A credit check will be performed by the lender to determine if you qualify for this loan.
• Federal Graduate PLUS Loan applications are submitted via the Federal Student Aid website.
• Federal Grad PLUS Loans for the 2026-2027 academic year, which disburse between July 1, 2026 and June 30, 2027 have a fixed interest rate of 9.07%.
• Any Federal Grad PLUS Loan disbursed before October 1, 2026 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 Federal Grad PLUS Loan borrowers must complete a Federal Grad PLUS Loan Master Promissory Note (MPN) on the studentaid.gov website.
• The maximum Federal Grad PLUS loan amount you can receive is based on your enrollment and 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.

A private education loan is issued by a private financial institution—not the US Department of Education—so it receives no federal subsidies. Interest rates and repayment options also differ from federal loans and vary by lender.

Before taking out a private education loan:

• Maximize borrowing federal student loans first.
• Reduce expenses where possible to minimize how much you need to borrow.
• Borrow only what you need.
• Compare rates and terms across multiple lenders.

How to Choose a Private Loan Lender

Not all lenders are the same. In addition to banks, educational associations, state agencies, and other organizations may offer loans to students and parents attending Bank Street Graduate School of Education. These lenders may provide special discounts or benefits based on factors such as your state of residence, credit history, or academic level.

It’s important to carefully research your options and choose the lender that best fits your needs. Ask questions, compare offers, and take the time to understand each lender’s terms before making a decision.

As a general guideline, consider a private education loan only after you have fully used your federal loan options.

Be aware that lender fees can significantly increase the total cost of a loan. A loan with a lower interest rate but high fees may end up costing more than one with a slightly higher rate and no fees. As a rule of thumb, fees of 3% to 4% are roughly equivalent to a 1% increase in interest rate. Keep in mind that many lenders do not provide complete loan details until after you apply, which can make direct comparisons more difficult.

Questions to Ask a Potential Lender

If you’re considering a private loan, research the following:

• What is the interest rate? Is it fixed or variable? Is there a cap?
• What fees are associated with the loan?
• When does repayment begin, and is there a grace period?
• What will the monthly payment be?
• What is the total cost over the full repayment term?
• Are there penalties for early repayment?
• Are deferment or forbearance options available?
• Is the loan program well established and reputable?

Resources

The National Association of Student Financial Aid Administrators (NASFAA) offers a comprehensive guide for students considering private education loans. It explains how these loans work, eligibility requirements, borrower costs, and repayment options.

NASFAA also provides a helpful checklist in a Q&A format covering eligibility, interest rates and fees, repayment and servicing, and borrower protections.