Annual loan limits are set for each class year by the Department of Education and cannot be changed by the school. Eligibility requirements are also determined by the Department of Education and all regulatory policies must be strictly adhered to by the university. Fixed interest rates are set by the federal government and are subject to change.
First-time Undergraduate loan borrowers for Subsidized and/or Unsubsidized Loans must complete:
For loans first disbursed on or after before Oct. 1, 2024, federal direct subsidized and unsubsidized loans will have an origination fee of 1.057%.
Origination fees are listed on the Federal Student Aid website.
An origination fee is a percentage of the total loan amount of the loan. The loan fee is deducted proportionately from each loan disbursement a student receives. This means the money received will be less than the amount borrowed. The student is still responsible for repaying the entire amount borrowed, not just the amount they received.
Loan fee calculations that result in more than two decimal places must be truncated (not rounded) to two digits after the decimal point (cents).
Definitions:
*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.
*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 or leave school for any reason. 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 are part of the Federal Direct Student Loan Program.
Click this link for more information regarding subsidized and unsubsidized loans.
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. For assistance in reviewing and accepting your loans in Banner, the following links may be very helpful:
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) - 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).
Entrance Counseling - 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.
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 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 in excess of 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, declined or reduced 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.
Situations that may decrease the amount of a loan after it has been awarded and/or disbursed include:
Situations that may increase the amount of a loan and require the student to request the additional funds in writing. Examples include:
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 with any changes to your personal information such as name, address, or phone number and feel free to contact them with any questions regarding your loan(s). Contact information for your federal loan servicer can be found by reviewing your loan(s) at www.studentaid.gov.
Exit counseling is a mandatory session which occurs when a student graduates or ceases to be enrolled on at least a half-time basis (6.0 credits). Exit counseling explains the student's loan repayment responsibilities and when repayment begins.
More information about federal loan exit counseling is found on the Exit Counseling page.
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