Welcome to the “Educational Loans” section of our Website, and join us for an overview of one topic that most college students have to consider while financing their education.  An educational loan is one of the most valuable resources for students and parents, and it has been since it was first introduced into federal legislation to the Congress of the United States in the late 1950’s, in response to the launch of  “Sputnick.”

Educational loans were developed specifically for college students and parents and are repayable at competitively low interest rates.  They are simple to apply for (via the FAFSA), are readily available, and generally offer a variety of repayment options.  The majority of loans that are based on financial need, the subsidized ones, require no repayment of principle or payment of interest while the student is in school, as long as he/she is attending at least half-time (generally six credits per term).  Unsubsidized loans require quarterly interest payments (not principle) while the student is in attendance.  The principle on both a type of loans become repayable after a grace period, generally after the student graduates or enrolls for less than six credits per term. 

For college students and parents, the two largest educational loan programs are the William D. Ford Federal Direct Student Loan Program, and the Federal Family Educational Loan Program (FFELP).  Long Island University offers loans through the Federal Direct Student Loan Program, and also offers loans through the Federal Perkins Student Loan and for pharmacy majors, the Health Professions Student Loan Programs.  The federal government guarantees all of these loans, and most are based on demonstrated financial need.

To help our students and parents become informed borrowers, we offer the following information on the educational programs.  We have provided information that we hope will explain loan borrowing from the application process through the repayment process, and hope that we can help families make the best loan choices for their student. This and additional information is also available in our publication “Financial Aid Guide” which is sent to all students with their award notices each year.

Federal Direct Student Loans are disbursed at different times, depending on the period of the loan.  If a loan is borrowed for only one semester, the loan is disbursed in two payments, over the course of the one term.  If the loan is for the academic year or two terms, the loan is disbursed twice – once each term.
Each year, the Office of Student Financial Services publishes the anticipated dates when loans are expected to be disbursed.  These dates are determined by federal guidelines and first-time borrowers must wait an additional 30 days beyond the start of the term for disbursement. 

Disclosure Statement:

A loan “Disclosure Statement” is a separate document sent by the federal government’s loan processor, at the time that the loan is disbursed.  A student will receive a Disclosure Statement for each new loan he/she borrows. It informs the student about the types of loans borrowed, the amount, the fees, and other information.  The Disclosure Statement will help students keep track of how much they have borrowed, and should be a part of their permanent records.
In addition to the federal government’s Disclosure Statement, the student will also receive a disbursement notice from the Bursar’s Office once loan proceeds are received on account.

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