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Our Best Answer: How and when will I receive my Federal Direct Loan (FDL)?

Receiving Your Federal Direct Loan (FDL)

Before crediting any loan funds toward your tuition or releasing any funds to you, the College will verify that you enrolled on at least a half-time basis.Your loan funds will be given to you either in the form of a check or direct deposit. If you've elected the direct deposit option for receiving financial aid, your disbursement will be credited to your direct deposit account on the scheduled disbursement date. Please note that no payments will be scheduled until at least 30 days of the term has passed.

You will receive your loan money in at least two installments, neither of which will be more than one-half of the loan total. For loans covering the full academic year, the second disbursement will be approximately 30 days after the start of the spring semester. For loans covering one semester only, the second disbursement will occur about midway through the semester.

Every attempt is made to have the actual loan disbursement dates coincide with the anticipated disbursement dates on your Loan Disclosure Statement; however, this is not always possible. Your actual loan disbursement date depends on when your MPN (Master Promissory Note) is returned and acknowledged by the processor and when this information links up with a scheduled CUNY financial aid payment cycle.

The Bursar's Office will calculate unpaid tuition and fee balances at the time your loan is disbursed. A deduction will be made for any balance remaining in your account before you receive the balance of your funds.

Loan Interest: The interest rate for both subsidized and unsubsidized loans first disbursed after July 1, 2019 and before July 1, 2020 is 4.53%. The interest rate for loans is adjusted each year on July 1 and is calculated according to a federal formula. However, it will never exceed 8.25%. You will be notified as the interest changes throughout the life of the loan.

SUBSIDIZED LOAN: You are not charged interest while you are in school. The federal government supports or subsidizes the interest payments while you are in school and during any grace or deferment periods. You do not pay interest on a subsidized loan until your loan enters repayment.

UNSUBSIDIZED LOAN: You are charged interest while you are in school.The federal government does not pay the interest charges. You are charged interest from the day your loan is disbursed until it is fully repaid, including all in-school, grace, and deferment periods. You have the option of either paying the interest as you go or allowing it to accumulate. If you allow the interest to accumulate, it will be capitalized, or added to the principal amount of the loan, thereby increasing the total amount you will have to repay.

Loan Cancellation: You have up to 14 days after the loan has been first disbursed to cancel all or part of the loan and have it returned to the U.S. Department of Education. To cancel all or part of your loan you must come to the Student Financial Services Office to fill out the Federal Direct Loan Change Form. There you may indicate that you want to cancel or decrease your loan.

You may cancel all or part of your loan by returning the funds yourself to the U.S. Department of Education within 120 days of the loan disbursement date. Contact the Direct Loan Servicing Center for guidance on how and where to return your loan money. You do not have to pay interest or the loan fee on the part of your loan(s) that you return within these time frames.

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