Pay for College with Loans from New York State

Financial Tools for Students and Parents

The number one mission of most state-sanctioned higher education agencies like the New York Higher Education Services Corporation (HESC), is to make college as accessible and simple a process as possible for state residents. The HESC is nearly a one-stop-shop for college and financial aid. The agency provides links to the federal student loans, information on the New York college and university system, loan calculators, information on other state-specific financial aid programs.

The types of student loans New Yorkers may apply for include the Federal Direct Student Loan program, the Federal Family Education Loan Program and alternative student loans.

Federal Student Loans for New York Students and Parents

For the Federal student loans you’ll need to complete the FAFSA, the Free Application for Federal Student Aid, and you can get the FAFSA via the HESC website, where you’ll also find tips for filling out the application. You can also create an account and e-sign a Master Promissory Note, the official lender agreement once you’ve been approved for monetary aid.

So who qualifies for federal loans? Nearly everyone. And it’s not necessarily determined by economic need. Over 2 million American college students fail to file the FAFSA each year and in many cases it’s due to misconceptions like this: they assume their family’s household income is too much to qualify for federal student loans. Surprising statistics show that most of them figure wrong. So do yourself a favor and just file the FAFSA. Let Uncle Sam decide if you qualify.

  • Stafford Loans are the most popular. Most college students have one or more and these loans are available to both undergraduates and graduates.
  • Grad PLUS Loans offer a second layer of federal loans specifically designed to help graduate students that have met their Stafford Loan borrowing limits. Med students, Law students and many others have high dollar tuitions to pay for long after the Stafford Loan is tapped out. The Grad PLUS solves the problem.
  • Parent PLUS Loans are another of the federal loans and designed to assist parents of dependent undergraduates. Before you sell the homestead or borrow on a high interest loan or line of credit, consider this very effective and low-cost federal loan. Once your child’s federal loans and any other aid is paid out you may apply to borrow up to the remaining balance on their education.

Still Need More Money? How to Use an Alternative Student Loan to Your Advantage

Still need more cash to finance your tuition at a New York college or university? Only consider an alternative student loan, or private loan, once you’ve applied for federal loans and any other low-cost or free money programs. Alternative student loans can be had from private lenders and possibly even your hometown bank, but beware the higher cost to borrow and any variable interest rates and attached fees. Only borrow what you need to pay for your education costs. Try to pay for “extras” like computers and textbooks out of pocket—you’ll save thousands in the end.

For more information on student loan programs for New Yorkers, visit the HESC website.