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Financial Aid

HOW TO ACCEPT YOUR LOANS
  • Login to BU Brain (login instructions on webpage).
  • At the Main Menu, click on the Financial Aid tab. 
  • Select Award and appropriate aid year.
  • Go to Award Overview to VIEW and/or PRINT your award offer.

Assure aid appears on bill>> 

 

Federal Direct Loans

There are two types of Federal Direct Loans:

Beginning July 1, 2013, the interest rate is 3.86% for subsidized and unsubsidized loans for undergraduate students.  The interest rate is 5.41% for unsubsidized loans for graduate/professional students.  Loans with a first disbursement on or after October 1, 2013 and before September 30, 2014 will have a loan origination fee of 1.072%. You will pay back 100% of what you borrow (plus interest); however, only 98.93% of the gross loan will be disbursed to the account. 

Repayment of both types of loans begins six months after graduation or if you fall below 6 credits. The passage of the Consolidated Appropriations Act has temporarily eliminated the interest subsidy provided on Direct Subsidized loans during the six-month grace period provided to students when they are no longer enrolled in at least 6 credits. This change is effective for new Direct Loans for which the first disbursement is made on or after July 1, 2012 and before July 1, 2014. 

How to Apply

The Free Application for Federal Student Aid (FAFSA) is the standard application used to apply for any type of financial aid including loans. Once we receive your FAFSA we will send you a financial aid offer letter which will describe your aid eligibility. Students must be enrolled in at least 6 credits, and complete all loan requirements within the enrollment period to receive federal loan funds. 

Accepting your loans

Once you have received and reviewed your award offer you must log in to BU BRAIN at http://bubrain.binghamton.edu to accept or decline your loan(s). At the Main Menu, click on the Financial Aid tab. Select Award and appropriate aid year. Go to Award Overview to VIEW and/or PRINT your award offer.

 *First-time borrowers must complete an electronic Master Promissory Note (eMPN) and Entrance Counseling before the loan will be disbursed.

Undergraduate Student Annual Loan Limit

Undergraduate student loan limits range from $5,500 to $12,500 per year depending on certain factors, including the student's year in college and other aid received.

Dependent Students Maximum Eligibility  
Freshman $5,500 If eligible, up to $3,500 may be subsidized.
Sophomore $6,500 If eligible, up to $4,500 may be subsidized.
Junior or Senior $7,500 If eligible, up to $5,500 may be subsidized.

 

Independent Students Maximum Eligibility  
Freshman $9,500 If eligible, up to $3,500 may be subsidized.
Sophomore $10,500 If eligible, up to $4,500 may be subsidized.
Junior or Senior $12,500 If eligible, up to $5,500 may be subsidized.

 

Graduate Student Annual Loan Limit

Graduate students can borrow up to $20,500 each year, and can apply for additional funding under the Graduate PLUS Loan program. Beginning July 1, 2012, subsidized loan funds are no longer available for graduate students due to the Budget Control Act of 2011.

Total Aggregate Loan Limit

An aggregate loan limit is the total amount of money a student is allowed to borrow during his/her undergraduate or graduate education.

Dependent Undergraduate Student: $31,000 (no more than $23,000 can be subsidized)

Independent Undergraduate Student: $57,500 (no more than $23,000 can be subsidized)

Graduate Student: $138,500 (no more than $65,500 can be subsidized)

Federal Direct Loan Repayment

Repayment begins 6 months after graduation, withdrawal or enrollment less than half-time. Students may select from one of four repayment options:

  1. Standard Repayment Plan
    • Fixed annual repayment amount.
    • Paid over a fixed period of time.
  2. Extended Repayment Plan
    • Fixed annual repayment amount.
    • Paid over an extended period of time.
    • Must repay minimum amount as determined by the U.S. Department of Education
  3. Graduated Repayment Plan
    • Annual repayment amount.
    • Established at two or more graduate levels.
    • Paid over a fixed or extended period of time.
    • Scheduled payments shall not be less than 50%, or more than 150% of what the amortized payment on the amount owed would be if the loan were repaid under the standard repayment plan.
  4. Income Contingent Repayment Plan
    • Each year the monthly payment is based on your annual income and amount borrowed.
    • Maximum repayment period is 25 years.
  5. Income-Based Repayment Plan (partial financial hardship)
    • Annual amount due on a 10-year repayment plan limited to 15% of the amount by which the Adjusted Gross Income exceeds 150% of the poverty line based on family size.
    • The annual amount due will be divided by 12 to calculate monthly payments.
    • May change repayment at any time.
    • Must reapply every year.

The U.S. Department of Education will provide the borrower with an opportunity to select a repayment plan. If the borrower does not select a plan, the department will provide the borrower assigned the standard repayment plan. The U.S. Department of Education will issue a repayment schedule that provides payment amounts and due dates. The Education Department may grant the borrower forbearance to eliminate a delinquency. The borrower may prepay all or any part of the unpaid balance on the loans at any time without penalty.

For additional information on understanding loans or repayment issues, visit The Student Loan Borrower Assistance website – a resource for borrowers, their families and advocates.





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Last Updated: 3/5/14