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.

Loan Exit Interviews:

Students must complete an electronic Loan Exit Interview immediately upon graduating, or enrolling for less than six credits.  This is one of the federal requirements and a student’s responsibility connected to borrowing educational loans.  The Loan Exit Interview is an electronic session that provides students with a wealth of information on repaying their educational loan obligations, and helps them become familiar with the repayment phase of their borrowing.

Generally, most educational loans become repayable six months after the discontinuation of studies.  This six-month period of time is called a “grace period” and it gives the student an opportunity to become familiar with all the options that will be available when he/she begins repaying the loan(s).

The law also requires the collection of certain demographic information to help the student and his/her lender stay in touch during the repayment period.  Even if a student changes schools or pursues a graduate or professional degree, he/she must complete this Loan Exit Interview.

The federal government’s website provides an option for the electronic loan Exit Interview.  Students may access this using their PIN at www.dl.ed.gov and follow the links to Entrance & Exit Counseling.  Students who do not complete the loan Exit Interview will not be allowed to receive their diplomas upon graduation.