Direct Subsidized and Unsubsidized Loans are low-interest loans that help students pay for the cost of post-secondary education. The lender is the U.S. Department of Education, although most contact will be with your loan servicer.
Direct Subsidized Loans are interest-free while the student is enrolled at least half-time. To be eligible for this loan, a student must demonstrate financial need as determined by the FAFSA.
Direct Unsubsidized Loans accrue interest while the student is in attendance. Students have the option to make interest-only payments on the loan while they are in school or defer all payments until after they graduate, leave school, or drop below half-time (6 credits) enrollment. Interest that has accumulated while the student is in school will be capitalized and added to the principal balance of the loan. Students who do not qualify for a subsidized loan will usually qualify for an unsubsidized loan.
Parent PLUS Loans for students needing additional funding to cover costs are offered to parents of undergraduate students enrolled at least half-time at participating and eligible post-secondary institutions. These loans require the parent to complete a separate application
Eligibility Requirements
- Must have a valid FAFSA on file.
- Must be a U.S. citizen or eligible non-citizen
- Accepted as a regular student working toward a degree or eligible certificate program.
- Attending at least half-time (6 credit hours).
- Maintain satisfactory academic progress toward a degree per the policies of the university.
- Cannot be in default on any other federal loans.
- Cannot owe a refund on a federal student grant or loan.
- To receive a subsidized loan, the student must demonstrate financial need.
Current Interest Rates & Fees
Current Interest Rates
Direct Subsidized Loans and Direct Unsubsidized Loans disbursed after July 1, 2024, and before July 1, 2025: 6.53%
Parent PLUS Loans disbursed after July 1, 2024, and before July 1, 2025: 9.08%
Historical rates available at StudentAid.gov
Current Origination Fees
An origination fee is a percentage of the total loan amount of the loan. The loan fee is deducted from each loan disbursement a student receives. This means the money received will be less than the amount borrowed. The student is responsible for repaying the entire amount borrowed, not just the amount they received.
Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after before Oct. 1, 2024, federal direct subsidized and unsubsidized loans will have an origination fee of 1.057%
Parent PLUS Loans disbursed after October 1, 2020 is 4.228%
Subsidized & Unsubsidized Loan FAQs
Subsidized and unsubsidized loans are awarded to students in an offered status. Students should review their financial aid awards and decide if they need or want the loans that have been offered to them. Loans will not be originated and disbursed unless the student has accepted the loan in their Banner Self-service account. Students may accept their loans in full, reduce the amount, or decline loans completely.
All students borrowing a Federal Direct Subsidized or Unsubsidized loan must complete the Master Promissory Note and Entrance Counseling. When completing, please select Buffalo State so we can view your results. We are listed as SUNY COLLEGE AT BUFFALO and the school code is 002842.
Master Promissory Note (MPN) is a binding legal document that the student must sign before a federal loan disbursing. The MPN can be used to make one or more loans for one or more academic years (up to 10 years).
- Lists the terms and conditions under which the student agrees to repay the loan and explains their rights and responsibilities as a borrower.
- It is important to read and save the MPN and refer to it later when the student begins repaying their loan(s) or at other times when information is needed regarding the loan.
Entrance Counseling is an online session required for all first-time federal loan borrowers. Entrance counseling explains the student's rights and responsibilities as a student borrower. Students are educated on topics such as interest rates, interest charges, responsible borrowing, budgeting, repayment plans, and avoiding default.
- Students should set aside approximately one hour to complete this task.
Dependent Undergraduate Students
First-Year (0-29 credits): $5,500 (of which no more than $3,500 can be subsidized)
Sophomore (30-59 credits): $6,500 (of which no more than $4,500 can be subsidized)
Junior and Senior (60+ credits): $7,500 (of which no more than $5,500 can be subsidized)
Additional Unsubsidized Eligibility for Undergraduate Independent Students*
*As well as dependent students whose parents are unable to obtain a PLUS Loan and elected to receive the additional unsubsidized loan.
First-Year and Sophomore: $4,000
Junior and Senior: $5,000
Dependent Undergraduate Students
$31,000, of which no more than $23,000 can be subsidized
Additional Unsubsidized Eligibility for Undergraduate Independent Students*
*As well as dependent students whose parents are unable to obtain a PLUS Loan and elected to receive the additional unsubsidized loan.
$57,500, of which no more than $23,000 can be subsidized
Loans are generally awarded for the full academic year (except when a student will only be in attendance for one semester) with two equal disbursements one in the fall semester and one in the spring semester. Disbursement of funds does not begin until after the first week of the semester or when schedule adjustment is over. Funds are disbursed directly to the college and are applied to a student’s account to cover applicable outstanding charges such as tuition, fees, room and board. Any loan funds above a student’s charges will be refunded to the student by the Student Accounts Office via direct deposit or paper check.
If a student wants to change the amount of a loan that they have accepted or declined in Banner, they will need to submit a Loan Revision Request Form that can be found on the Forms page. If a student wants to return all or a portion of a loan that has already been disbursed, they will need to return the refund or remit payment to the Student Accounts Office. All requests for a revision or return of loan funds must be within regulatory guidelines.
Once your loan has been originated by our office, the Department of Education will assign your loan to a federal servicer. The servicer assigned to your loan(s) will send you correspondence including disclosure statements that contain loan amounts, interest rates and disbursement dates, repayment information, and options regarding loan consolidation. Always notify your loan servicer of any changes to your personal information such as name, address, or phone number, and feel free to contact them with any questions regarding your loans.
You can find who your loan servicer is at StudentAid.gov.
Students must complete exit counseling when they leave school or drop below half-time enrollment. The purpose of exit counseling is to ensure students understand their student loan obligations and are prepared for repayment. It is required even if the student transfers to another institution and enrolls half-time there.
Students will learn about what your federal student loan payments may look like when you enter repayment. You will also be able to create a repayment strategy that best suits your future plans and goals.
You can complete your Exit Counseling at StudentAid.gov.
Parent PLUS Loan FAQs
The Parent PLUS Loan is an option for students who need additional loan funding to cover their direct or indirect charges. The Federal Direct PLUS loan is a loan in the parent’s name to assist their undergraduate dependent student when there is a gap between the cost of attendance and the student’s financial aid. Federal Direct PLUS loans are guaranteed and regulated by the Department of Education. Credit approval is required before loan origination. If a parent is not credit-approved, the student may be eligible for an additional Federal Direct Unsubsidized loan.
Students suspected of applying for a Federal Parent PLUS Loan using their parent’s information without parental consent will be referred to the Federal Office of Inspector General for further review
The biological or adoptive parent of a dependent undergraduate student who meets all the eligibility requirements may apply for a PLUS loan, even if they are not listed on the FAFSA. A step-parent, if still married to the student's biological parent, and whose income is reported on the student’s FAFSA, is also eligible to borrow on behalf of the student.
Grandparents, legal guardians, or other relatives are not eligible to borrow a Parent PLUS Loan.
The maximum PLUS loan amount you can borrow is the cost of attendance at the school your child will attend minus any other financial assistance your child receives.
The PLUS Loan has a higher interest rate than the student's Direct Loans, therefor we encourage borrowers to only borrow what is needed.
- Students must have a FAFSA on file for the current academic year
- The student must be enrolled at least half-time in a degree-seeking program
- Both the student and parent must be a U.S. citizen or an eligible non-citizen
- The student must be making satisfactory academic progress per the policies of the college
- Both the parent and the student cannot be in default on their federal student loans or owe a refund on any federal grant or loan.
Parent PLUS loans for Summer 2025 are part of the 2024-2025 academic year. Parents should select the academic period for 05/2024 to 08/2025 when applying for the loan at https://studentaid.gov. An application for a summer PLUS loan should not be requested until the student has registered for a minimum of six credit hours of required coursework throughout the summer (this can be from multiple summer sessions).
Parents who also intend to file a PLUS loan application for the 2025-2026 academic year, will need to file a separate application for that loan period on or after JUNE 1, 2025.
- Parent signs in at StudentAid.gov using their Federal Student Aid (FSA) ID and password.
- Click on “Request a Direct PLUS Loan”
- Complete all information and submit a request for credit approval. Please ensure you choose the correct school name. Buffalo State is listed as "SUNY College at Buffalo." Refer to the image below:
- If credit is approved, complete a Federal Direct PLUS Master Promissory Note
- If denied, the school will receive an electronic notification and an additional unsubsidized loan will be offered to the student if they are eligible
Exception: Under certain extenuating circumstances (which must be documented) a parent may be eligible for an automatic denial of the PLUS loan without completing the online credit check. Please contact our office before applying for a PLUS loan if you feel that you have an extenuating circumstance. Several examples are listed below:
- The parent borrower is incarcerated
- The parent borrower has filed for bankruptcy and is prohibited from borrowing additional loans
- The parent borrower’s income is limited to public assistance or disability benefits
- The parent is not a U.S. citizen or an eligible non-citizen (must provide proof of citizenship such as passport, visa status, etc.).
If the parent is not credit-approved for the PLUS loan, an increase in the student’s unsubsidized loan will be offered to them if they are eligible. Based on their remaining eligibility for aid, first-year and sophomores may typically borrow up to an additional $4,000 in the unsubsidized loan; juniors and seniors may borrow up to an additional $5,000 annually. Students will need to accept, reduce, or decline any additional loan that is offered to them.